Value innovation and marketing capabilities in dynamic environments: a dynamic capability perspective

Abstract

In highly competitive markets, organizations need to engage in the disruptive type of innovation to create superior value for customers. Drawing on the dynamic capabilities view; this paper explores value innovation as a dynamic capability for reconfiguring the resource-base of the organization in pursuit of competitive advantage. This paper first investigates the mediating role of operational marketing capabilities, namely pricing, product development, channel management, and marketing implementation, in the relationship between value innovation and organizational outcomes. Secondly, it explores the moderating effects of environmental dynamism in terms of market turbulence and technological turbulence in the relationship between value innovation and marketing capabilities. The study, employing structural equation modelling, is based on data from 414 senior managers. The findings indicate that value innovation positively affects these operational marketing capabilities, which in turn leads to enhanced organizational outcomes. Further, in more turbulent environments, the relationship between value innovation and operational marketing capabilities is stronger.