Examining the role of information technology in cultivating firms' dynamic marketing capabilities

Most prior research has investigated an organization's dynamic capabilities in general and overlooked their effect on critical business functions. Our study considered the role of IT in improving firm's dynamic marketing capabilities. We developed a model consisting of market orientation, IT infrastructure capabilities, and the use of IT in customer relationship management (CRM). With data collected from 135 manufacturing and service firms in Taiwan, our results supported most of our hypotheses. Our results showed important direct effects of a firm's market orientation, use of IT to support CRM, and the functionality of IT infrastructure capabilities on its dynamic marketing capabilities.

[1]  George A. Marcoulides,et al.  Modern methods for business research , 1998 .

[2]  Christoph Zott,et al.  DYNAMIC CAPABILITIES AND THE EMERGENCE OF INTRAINDUSTRY DIFFERENTIAL FIRM PERFORMANCE: INSIGHTS FROM A SIMULATION STUDY , 2003 .

[3]  Wayne D. Hoyer,et al.  The Customer Relationship Management Process: Its Measurement and Impact on Performance , 2004 .

[4]  Yolande E. Chan,et al.  Theoretical Explanations for Firms' Information Privacy Behaviors , 2005, J. Assoc. Inf. Syst..

[5]  C. Narasimhan,et al.  Customer Profitability in a Supply Chain , 2001 .

[6]  Bernard J. Jaworski,et al.  Markor: A Measure of Market Orientation , 1993 .

[7]  Alok K. Chakrabarti,et al.  Technological learning, strategic flexibility, and new product development in the pharmaceutical industry , 1996 .

[8]  B. Menguc,et al.  Creating a firm-level dynamic capability through capitalizing on market orientation and innovativeness , 2006 .

[9]  S. Winter Understanding dynamic capabilities , 2003 .

[10]  D. Teece,et al.  DYNAMIC CAPABILITIES AND STRATEGIC MANAGEMENT , 1997 .

[11]  Paul P. Tallon A Process-Oriented Perspective on the Alignment of Information Technology and Business Strategy , 2007, J. Manag. Inf. Syst..

[12]  Mark Bergen,et al.  Scanning Dynamic Competitive Landscapes: A Market-based and Resource-based Framework , 2003 .

[13]  Gregory M. Rose,et al.  Market Orientation , 2001 .

[14]  John C. Narver,et al.  Does Competitive Environment Moderate the Market Orientation-Performance Relationship? , 1994 .

[15]  David F. Midgley,et al.  Formative versus reflective measurement models: two applications of formative measurement | NOVA. The University of Newcastle's Digital Repository , 2008 .

[16]  G. Hult,et al.  Innovation, Market Orientation, and Organizational Learning: An Integration and Empirical Examination , 1998 .

[17]  Gautam Ray,et al.  Information Technology and the Performance of the Customer Service Process: A Resource-Based Analysis , 2005, MIS Q..

[18]  Bernard C. Y. Tan,et al.  Dimensions of national culture and corporate adoption of IT infrastructure , 2001, IEEE Trans. Engineering Management.

[19]  Lars Mathiassen,et al.  Dynamic Capabilities in Small Software Firms: A Sense-and-Respond Approach , 2007, IEEE Transactions on Engineering Management.

[20]  James M. Sinkula,et al.  The synergistic effect of market orientation and learning orientation on organizational performance , 1999 .

[21]  J. B. Quinn,et al.  Intelligent Enterprise: A Knowledge and Service Based Paradigm for Industry , 1992 .

[22]  Bernard J. Jaworski,et al.  Market Orientation: The Construct, Research Propositions, and Managerial Implications , 1990 .

[23]  Detmar W. Straub,et al.  Specifying Formative Constructs in Information Systems Research , 2007, MIS Q..

[24]  Peter Weill,et al.  Strategic context and patterns of IT infrastructure capability , 1999, J. Strateg. Inf. Syst..

[25]  Kathleen M. Eisenhardt,et al.  DYNAMIC CAPABILITIES, WHAT ARE THEY? , 2000 .

[26]  A PavlouPaul,et al.  From IT Leveraging Competence to Competitive Advantage in Turbulent Environments , 2006 .

[27]  Leslie P. Willcocks,et al.  Shaping the Future. Business Design Through Information Technology , 1991, J. Inf. Technol..

[28]  Toni M. Somers,et al.  Impact of Information Technology Management Practices on Customer Service , 2001, J. Manag. Inf. Syst..

[29]  Paul A. Pavlou,et al.  From IT Leveraging Competence to Competitive Advantage in Turbulent Environments: The Case of New Product Development , 2006, Inf. Syst. Res..

[30]  Tasadduq A. Shervani,et al.  Marketing, Business Processes, and Shareholder Value: An Organizationally Embedded View of Marketing Activities and the Discipline of Marketing , 1999 .

[31]  Nancy Bogucki Duncan,et al.  Capturing Flexibility of Information Technology Infrastructure: A Study of Resource Characteristics and their Measure , 1995, J. Manag. Inf. Syst..

[32]  Jeanne W. Ross,et al.  Enterprise Architecture As Strategy: Creating a Foundation for Business Execution , 2006 .

[33]  Lior Fink,et al.  Exploring the perceived business value of the flexibility enabled by information technology infrastructure , 2009, Inf. Manag..

[34]  Michael R. Wade,et al.  The Resource-Based View and Information Systems Research: Review, Extension, and Suggestions for Future Research , 2004, MIS Q..

[35]  C. Bhattacharya,et al.  Consumer–Company Identification: A Framework for Understanding Consumers’ Relationships with Companies , 2003 .

[36]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[37]  Lior Fink,et al.  Gaining Agility through IT Personnel Capabilities: The Mediating Role of IT Infrastructure Capabilities , 2007, J. Assoc. Inf. Syst..

[38]  Wynne W. Chin The partial least squares approach for structural equation modeling. , 1998 .

[39]  John C. Narver,et al.  The Effect of a Market Orientation on Business Profitability , 1990 .

[40]  Igor H.Ansoff Strategic Management , 1979 .

[41]  Terry Anthony Byrd,et al.  An Exploratory Analysis of the Value of the Skills of IT Personnel: Their Relationship to IS Infrastructure and Competitive Advantage , 2001, Decis. Sci..

[42]  G. Day The Capabilities of Market-Driven Organizations , 1994 .

[43]  Judy A. Siguaw,et al.  Effects of Supplier Market Orientation on Distributor Market Orientation and the Channel Relationship: The Distributor Perspective , 1998 .

[44]  R. Staelin,et al.  A Customer Relationship Management Roadmap: What is Known, Potential Pitfalls, and Where to Go , 2005 .

[45]  Cheryl Burke Jarvis,et al.  A Critical Review of Construct Indicators and Measurement Model Misspecification in Marketing and Consumer Research , 2003 .

[46]  Constance E. Helfat,et al.  The dynamic resource-based view: capability lifecycles , 2003 .

[47]  Florian Heinemann,et al.  Antecedents of Market Orientation: A Cross-Cultural Comparison , 2008 .

[48]  M. Wade,et al.  Review: the resource-based view and information systems research: review, extension, and suggestions for future research , 2004 .

[49]  Ronald Swift,et al.  Accelerating Customer Relationships: Using Crm and Relationship Technologies , 2000 .

[50]  Subhash Sharma,et al.  The Role of Relational Information Processes and Technology Use in Customer Relationship Management , 2005 .

[51]  Mark J. Zbaracki,et al.  Pricing process as a capability: a resource-based perspective , 2003 .

[52]  ZolloMaurizio,et al.  Deliberate Learning and the Evolution of Dynamic Capabilities , 2002 .

[53]  Ahmet H. Kirca,et al.  Market Orientation: A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance , 2005 .

[54]  Bernard J. Jaworski,et al.  Market orientation: Antecedents and consequences , 1993 .

[55]  Govind S. Iyer,et al.  Procurement of IT Consulting Services and Firm-Specific Characteristics , 2006, J. Assoc. Inf. Syst..

[56]  Varun Grover,et al.  Shaping Agility through Digital Options: Reconceptualizing the Role of Information Technology in Contemporary Firms , 2003, MIS Q..

[57]  P. Berthon,et al.  Market Orientation, Generative Learning, Innovation Strategy and Business Performance Inter-Relationships in Bioscience Firms , 2008 .

[58]  Blake Ives,et al.  Review: IT-Dependent Strategic Initiatives and Sustained Competitive Advantage: A Review and Synthesis of the Literature , 2005, MIS Q..

[59]  James C. Wetherbe,et al.  Key Issues in Information Systems Management: 1994-95 SIM Delphi Results , 1996, MIS Q..

[60]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .