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Firm capabilities and performance: a necessary condition analysis

Firm capabilities and performance: a necessary condition analysis PurposeThe purpose of this paper is to employ a necessary condition analysis (NCA) approach to investigate the level of necessity of two conditions, marketing capability, including responsiveness to customers, responsiveness to competitors, responsiveness to the macro environment, and business relationship quality, and innovativeness capability for firm performance.Design/methodology/approachUsing a survey data set collected from a sample of 311 Vietnamese firms, this study explored the levels of necessity of the components of marketing capability and innovativeness capability by NCA. The study also tested the net effects of these components on firm performance by multiple regression analysis (MRA).FindingsThe MRA results reveal that except for responsiveness to the macro environment, other components of marketing capability and innovativeness capability have positive effects on firm performance. Further, firm size affects performance but industry types do not. The NCA results indicate that these conditions exhibit different levels of necessity for the occurrence of firm performance.Research limitations/implicationsA major limitation of this study is the exploration of necessary levels of only two key firm capabilities, i.e., marketing and innovativeness. Several other capabilities, such as, research and development, operations capabilities, and other market-based assets should be investigated in future research.Practical implicationsThe findings suggest that firms should pay attention not only to the net effects (β weights) but also to the levels of necessity of firm capabilities for their target outcome.Originality/valueThis study is among first studies investigating the levels of necessity of marketing capability and innovativeness capability for firm performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Management Development Emerald Publishing

Firm capabilities and performance: a necessary condition analysis

Tho, Nguyen Dinh
Journal of Management Development , Volume 37 (4): 11 – May 14, 2018
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References (30)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0262-1711
DOI
10.1108/JMD-06-2017-0204
Publisher site
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Abstract

PurposeThe purpose of this paper is to employ a necessary condition analysis (NCA) approach to investigate the level of necessity of two conditions, marketing capability, including responsiveness to customers, responsiveness to competitors, responsiveness to the macro environment, and business relationship quality, and innovativeness capability for firm performance.Design/methodology/approachUsing a survey data set collected from a sample of 311 Vietnamese firms, this study explored the levels of necessity of the components of marketing capability and innovativeness capability by NCA. The study also tested the net effects of these components on firm performance by multiple regression analysis (MRA).FindingsThe MRA results reveal that except for responsiveness to the macro environment, other components of marketing capability and innovativeness capability have positive effects on firm performance. Further, firm size affects performance but industry types do not. The NCA results indicate that these conditions exhibit different levels of necessity for the occurrence of firm performance.Research limitations/implicationsA major limitation of this study is the exploration of necessary levels of only two key firm capabilities, i.e., marketing and innovativeness. Several other capabilities, such as, research and development, operations capabilities, and other market-based assets should be investigated in future research.Practical implicationsThe findings suggest that firms should pay attention not only to the net effects (β weights) but also to the levels of necessity of firm capabilities for their target outcome.Originality/valueThis study is among first studies investigating the levels of necessity of marketing capability and innovativeness capability for firm performance.

Journal

Journal of Management Development – Emerald Publishing

Published: May 14, 2018

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