How do Organizations Align their Marketing and Technological Capabilities in a Turbulent Market Environment?

Previous research has found that organizations that align their operational marketing and technological capabilities with changing market conditions eventually achieve evolutionary fitness in terms of organizational survival and firm growth. Dynamic capabilities comprise the processes of opportunity identification and reconfiguring of operational capabilities which are required to align operational capabilities with changing market environments. In this paper, we develop and test a model of dynamic capabilities. Drawing on data from a survey of 228 organizations, we investigate how dynamic capabilities influence marketing and technological capabilities and how market turbulence moderates these relationships. Our results find positive relationships between dynamic and operational capabilities. FIMIX-PLS analysis – a response-based segmentation approach which accounts for unobserved heterogeneity – further uncovers latent segments within our data and shows that differences in the relationships between dynamic and operational capabilities between firms can be explained by the degree of market turbulence that firms face.