The role of business process capabilities and market-based assets in creating customer value and superior performance

Abstract

The expense of implementing marketing strategies has always been classified as a cost to the firm. However, recent research has demonstrated these costs might be more appropriately viewed as investments in creating assets. The present research augments the growing body of research examining the interface between the marketing and financial departments. The model is grounded in the resource-based view (RBV) of the firm. The RBV postulates that firms must posses certain assets and deploy them successfully to achieve a sustainable competitive advantage. Specifically, the role marketing assets (relational and intellectual) play in creating customer value, SCA and, firm performance is examined. One of the criticisms of the RBV is also addressed – demonstrating a linkage between an endogenous variable (assets) and an exogenous variable (competitive advantage). Additionally, three core business processes are examined: customer relationship management (CRM), supply chain management (SCM) and product innovation management (PIM). In the RBV, these processes can be viewed as strategic, interrelated capabilities. Marketing managers have substantial influence over these inter-functional processes. It is posited that a linear relationship exists between market-based assets and customer value, SCA and performance.The model is empirically tested with data collected in a business-to-business context. Data is collected from both sides of the buyer-seller dyad. In general, the results were very positive. Support was found for nine of the eleven hypotheses examined. Support was found for the relationship between market-based assets and customer perceived value and competitive advantage; human resource assets and competitive advantage; SCM, CRM and PIM capabilities and customer perceived value (both individually as well as collectively as a block); customer perceived value and competitive advantage; and competitive advantage and performance. Support was not found for the moderating role of BPC between the relationship between market-based assets and customer value nor the mediating role of Human Resource Assets between market-based assets and competitive advantage.%%%%Ph.D., Business Administration – Drexel University, 2008