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Abstract
The study aims to analyze the moderating impact of competitive dynamism on the association between firm capabilities (marketing and operations capabilities) and growth (revenue and profit growth). Using the data for the period of 2013 to 2019, the study draws a simple random sample of 60 pharmaceutical companies of Thailand. The data are collected from annual reports of sampled firms to compute the study variables. Marketing and operations capabilities show significant negative interaction effect on profit growth and suggests substitution interactive impact between marketing capability (MC) and operations capability (OC) in such a way that the positive impact of MC on profit growth of firm is weakened when the OC is higher. Overall, this outcome reports that MC enhances firm growth while OC diminishes the MCs direct impact on profit growth. The negative but insignificant association between MC and OC on revenue growth of firm strengthens and becomes negatively significant in highly competitive dynamic condition of market. Competitive dynamism generates larger hitches for practitioners in predicting moves of rival and competitive responses. The study concludes that the need for revenue growth effect of such services and products changes is likely to be higher in more competitive dynamic conditions of markets. The study finds strong evidences that the outcomes of growth of capability investments of firms are contingent upon competitive dynamism of market in which they operate.
Published Version
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