Dynamic Marketing Capabilities in Science‐based Firms: an Exploratory Investigation of the Pharmaceutical Industry

Abstract

This paper investigates how market knowledge can benefit science-based firms. By reviewing the literature on dynamic capabilities and recent empirical works on the impact of market knowledge on technological innovation, we derive the concept of dynamic marketing capabilities and explore its validity through a qualitative study of high-performing pharmaceutical firms. We provide a description of key variables involved in market knowledge creation and release, and highlight how these activities support the creation of new products and the changes in the new product development process. We discuss our results by pointing out that dynamic marketing capabilities can contribute to a more granular understanding of management practices and performance heterogeneity in science-based settings and conclude our work by identifying its limitations and providing fruitful directions for future research on this topic.

Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power

“…Dynamic marketing capabilities enable the firm to shift resources and transform their use when radical change threatens the firm's ability to achieve competitive advantage (Bruni & Verona, 2009;Barrales-Molina et al, 2014;Rossignoli & Ricciardi, 2015). Short term orientation improves the performance of market oriented firms (Bhuian et al, 2005).…”

“…Despite the plethora of research on marketing capabilities (Moorman & Slotegraaf, 1999;Vorhies & Morgan, 2005;Bruni & Verona, 2009;Morgan et al, 2009;Day, 2011), there is little agreement on what to consider as marketing capabilities and how to measure them.…”

“…Capabilities in acquiring and transforming tangible and intangible resources are considered as an important determinant of value creation and competitive advantage (Hunt & Morgan, 1995;Hunt & Morgan, 2005;Morgan, 2012;Wang et al, 2013;Kozlenkova et al, 2014). In increasingly fragmented and dynamic markets (Cavusgil et al, 2007), dynamic capabilities of utilising market knowledge become crucial to technological innovation (Bruni & Verona, 2009). Thus, dynamic marketing capabilities are defined in terms of absorptive capacity and knowledge management (BarralesMolina et al, 2014).…”

The Architecture of Dynamic Capability Research Identifying the Building Blocks of a Configurational Approach

“…Identification of the specific role of social capital in a dynamic capability Bock et al (2012) Quantitative Hypothesis development, survey, regression analysis CEO perceptions of the drivers of strategic flexibility during business model innovation Bowman & Ambrosini (2003) Conceptual Literature review Dynamic capability view can be used to extend resource-based view to inform our understanding of strategy Bruni & Verona (2009) Qualitative Case study Conceptualization of dynamic marketing capabilities as a complementary source of competitive advantage Buenstorf & Murmann (2005) Qualitative Case study Drawing a parallel between Ernst Abbe's management principles at Carl Zeiss and resource-and capabilities-based views of the firm Capron & Mitchell (2009) Quantitative Interviews, survey and longitudinal data…”

Marketing mix dynamism and performance: evidence from commercial firms

“…Furthermore, it is based on the concept that "the accumulation of new resources for forming new organizational competencies is a type of organizational learning" (Danneels, 2008, p. 520). With a more specific look at the dynamic marketing capabilities, it is interesting to take into account the work of Severi Bruni and Verona (2009), which highlights how dynamic marketing capabilities are specifically aimed at developing, releasing, and integrating market knowledge. Furthermore, dynamic marketing capabilities are related to the broader context of dynamic managerial capabilities managers use to build, integrate, and reconfigure the capability base over time (Adner and Helfat, 2003).…”