Resource Based View and the Impacts of Marketing and Production Capabilities on Innovation

Abstract

Researchers have begun to focus on identifying organizational capabilities, but still relatively little is known on the types of business capabilities stimulating innovation. From this point forth, this study investigated the possible relationships among production capabilities, marketing capabilities and innovation. By the findings of this study we aim to reveal whether primary capabilities effect innovation or not and which one effect more. Many researchers suggest that capabilities can be determined via the value analysis of functional areas such as production, marketing, finance, research and development, human resource management (Snow and

Marketing innovation and sustainable competitive advantage of manufacturing SMEs in Ghana

“…Fundamentally, resources such as brand name, trade contacts, efficient processes (Barney, 2011), technical skills, knowledge, technology, relationships (Remeikiene and Startiene, 2009), finance and materials (Saunila et al, 2014) are required to develop innovative marketing strategies for SCA (Barney, 2012). However, Barney (1991) and Genç et al (2013) re-echoed the fact that not all firms' resources can create SCA. In order to develop marketing innovation for SCA, internal and external resources must be rare, inimitable, valuable and non-substitutable (Barney, 1991;Ren, Au and Birtch, 2009;Ren, Xie and Krabbendam, 2009;Teece et al, 1997;Genç et al, 2013).…”

“…However, Barney (1991) and Genç et al (2013) re-echoed the fact that not all firms' resources can create SCA. In order to develop marketing innovation for SCA, internal and external resources must be rare, inimitable, valuable and non-substitutable (Barney, 1991;Ren, Au and Birtch, 2009;Ren, Xie and Krabbendam, 2009;Teece et al, 1997;Genç et al, 2013). The shift in focus from just competitive advantage to SCA re-enforces the works of Weerawardena (2003) and Weerawardena and O'Cass (2004) who noted that SCA must involve providing superior customer value and achieving relative lower cost for a long period of time and creating superior performance.…”

“…Apart from the RBT which focusses on both internal tangible and intangible assets (Barney, 1991), this study also adopts the DCT which focusses on the processes used in exploiting firms' resources (Vassolo and Anand, 2008). These processes represent the capabilities that managers possess to integrate, develop and reconfigure their competences to match and address rapidly changing environments (Genç et al, 2013;Jiao et al, 2010;Teece et al, 1997). In view of this, the integration of resources and capabilities creates competences relevant to sustaining firms' market advantage (Genç et al, 2013).…”

“…These processes represent the capabilities that managers possess to integrate, develop and reconfigure their competences to match and address rapidly changing environments (Genç et al, 2013;Jiao et al, 2010;Teece et al, 1997). In view of this, the integration of resources and capabilities creates competences relevant to sustaining firms' market advantage (Genç et al, 2013). The relevance of RBT and DCT to this study is that SMEs possess unique marketing resources and capabilities such as knowledge (quality information and activities), expertise, appropriate technology and adequate finances relevant to anticipating and responding to changing customer needs with innovative marketing tools.…”

“…Walobwa et al (2013) on SMEs in Kenya revealed that in Sub-Sahara Africa, the ability of SMEs to innovate depend largely on capabilities, information and skills available. In this study, the researchers follow the recommendation that efficient integration of marketing resources and capabilities create blocks of core marketing competence to develop innovative marketing strategies (Barney, 1991;Genç et al, 2013;Jiao et al, 2010;Miller et al, 2002). Hence, it is hypothesised that:…”