Technological Capability, Marketing Capability, and Firm Performance in Turbulent Conditions

Abstract

AbstractThe manner in which technological capability and marketing capability can be successfully leveraged is an important research issue. Based on the resource-management model, this study aims to answer two research questions: (1) whether technological capability and marketing capability are complementary or supplementary capabilities; and (2) how technological capability and marketing capability can be used appropriately to respond to environmental turbulence. Based on a face-to-face interview survey of 212 Chinese firms, we find that technological capability and marketing capability have synergistic effects. We also find that technological turbulence enhances the performance effect of technological capability, but impedes that of marketing capability; whereas market turbulence advances the performance effect of marketing capability, but impedes that of technological capability. Thus, the appropriate way to leverage technological capability and marketing capability is to integrate them and to deploy technological capability to respond to technological turbulence and marketing capability to respond to market turbulence.