Explaining the Relationship between Marketing Capabilities and Business Financial Performance

Abstract

One of the main concerns of business executives is the investment in developing organizational capabilities that have a significant impact on improving business competitiveness and performance. Marketing capabilities - as one of the most important capability- are mainly concerned with the market and customers. In this research, the conceptual model is developed through a qualitative research based on content analysis to create a comprehensive model for Marketing Capabilities in Iranian B2C Market. It is notable that this model has been completed with reviewing the latest concepts in the related literature. The result of this stage is identifying 14 marketing capabilities which is a new combination for marketing capabilities. Finally, the new developed model has been tested in 123 B2C firms in the stock market. It is noteworthy that the confirmatory factor analysis was conducted and the PLS software was used to analyze the data and test the model. The results indicate that a significant direct relationship exist between marketing capabilities and business financial performance. Also, the results indicate that the relationship between marketing capabilities and business performance is moderated by Environmental Factors.

Keywords

• Business Competitiveness
• Business Financial Performance
• Marketing Capabilities
• Qualitative research