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The Capabilities and Perfor Mance Advantages of Market†Driven Firms: An Empirical Investigation

Author

Listed:
  • Douglas W. Vorhies

    (Department of Marketing, Illinois State University, College of Business Administration, Campus Box 5590, Normal, IL 61790.)

  • Michael Harker

    (Department of Marketing, University of the Sunshine Coast, Maroochydore, QLD 4558. Email: mharker@usc.edu.au)

Abstract

Although progress has been made in understanding the development of businesses competencies from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed to become market†driven and the perfor Mance advantages accruing to firms possessing these capabilities. One of the barriers faced has been in defining what is meant by the term ‘market†driven’. This study develops a multi†dimensional measure useful for assessing the degree to which a firm is market†driven. Evidence is presented in this study that strategically focused market†driven business units developed higher levels of capabilities than their less market†driven rivals and significantly outperfor Med these rival business units on four measures of organisational perfor Mance.

Suggested Citation

  • Douglas W. Vorhies & Michael Harker, 2000. "The Capabilities and Perfor Mance Advantages of Market†Driven Firms: An Empirical Investigation," Australian Journal of Management, Australian School of Business, vol. 25(2), pages 145-171, September.
    • Handle: RePEc:sae:ausman:v:25:y:2000:i:2:p:145-171
    DOI: 10.1177/031289620002500203
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    References listed on IDEAS

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    Cited by:

    1. Mihaela DIACONU, 2011. "Considerations about the Relationship between the Work Satisfaction – Marketing Capabilities and the Performance in the Performing Services Organizations," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 1(5), pages 1-5, August.
    2. Paul A. Pavlou & Omar A. El Sawy, 2010. "The “Third Hand”: IT-Enabled Competitive Advantage in Turbulence Through Improvisational Capabilities," Information Systems Research, INFORMS, vol. 21(3), pages 443-471, September.
    3. Sanna Joensuu-Salo & Kirsti Sorama & Anmari Viljamaa & Elina Varamäki, 2018. "Firm Performance among Internationalized SMEs: The Interplay of Market Orientation, Marketing Capability and Digitalization," Administrative Sciences, MDPI, vol. 8(3), pages 1-13, July.
    4. Smirnova, M.M. & Rebiazina, V.A., 2014. "Strategic orientations as a driver of innovations in Russian firms," Working Papers 6386, Graduate School of Management, St. Petersburg State University.
    5. Ahmed, Muhammad Usman & Kristal, Mehmet Murat & Pagell, Mark, 2014. "Impact of operational and marketing capabilities on firm performance: Evidence from economic growth and downturns," International Journal of Production Economics, Elsevier, vol. 154(C), pages 59-71.
    6. Youn Kue Na & Sungmin Kang & Hye Yeon Jeong, 2019. "The Effect of Market Orientation on Performance of Sharing Economy Business: Focusing on Marketing Innovation and Sustainable Competitive Advantage," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    7. Muhammad Shahid Qureshi & Nergis Aziz & Sarfraz A. Mian, 2017. "How marketing capabilities shape entrepreneurial firm’s performance? Evidence from new technology based firms in turkey," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    8. Smirnova, Maria M., 2006. "Managing buyer-seller relationships in industrial markets: A value creation perspective," Working Papers 862, Graduate School of Management, St. Petersburg State University.
    9. Sonia Cruz-Ros & Tomás González Cruz & Carmen Pérez-Cabañero, 2010. "Marketing capabilities, stakeholders’ satisfaction, and performance," Service Business, Springer;Pan-Pacific Business Association, vol. 4(3), pages 209-223, December.
    10. Agustinus A. Toryanto & Hasyim, 2017. "Networking Quality and Trust in Professional Services," European Research Studies Journal, European Research Studies Journal, vol. 0(3A), pages 354-370.
    11. Rajkovič Tanja & Prašnikar Janez, 2009. "Technological, Marketing and Complementary Competencies Driving Innovative Performance of Slovenian Manufacturing Firms," Organizacija, Sciendo, vol. 42(3), pages 77-86, May.
    12. Smirnova, Maria M. & Rebiazina, Vera A. & Frösén, Johanna, 2018. "Customer orientation as a multidimensional construct: Evidence from the Russian markets," Journal of Business Research, Elsevier, vol. 86(C), pages 457-467.
    13. Cruz-Ros, Sonia & Gonzalez-Cruz, Tomas F., 2015. "Service firm capabilities and performance: Contingent analysis of customer contact," Journal of Business Research, Elsevier, vol. 68(7), pages 1612-1621.

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