A Resource-Based View on Marketing Capability, Operations Capability and Financial Performance: An Empirical Examination of Mediating Role

AbstractUsing a resource - based view of firms, this study provides a new viewpoint to model functional capabilities of the firm. It also emphasizes that a firm with marketing capabilities leads to superior financial performance as compared to those, focusing solely on operational capabilities. This paper sets out to examine the relationships among marketing capabilities, operations, capabilities and financial performance of the firm. It also investigates the mediating role of competitive advantage and supply chain management (SCM) in the above mentioned relation. An approach based on the survey was considered to gather data. The conceptual model was tested empirically using structural equation modelling. The results support the research model and reveal that competitive advantage fully mediates marketing capabilities to the financial performance relationship. Among the operations capabilities and financial performance of a firm, SCM plays a role of a partial mediator. Moreover, both marketing as well as operations capabilities found significantly linked, and has a positive influence on financial performance. In addition, findings also depict that SCM significantly influences the firm competitive advantage