THE IMPACT OF MARKETING'S INNOVATION-RELATED CAPABILITIES ON A FIRM'S INNOVATION PERFORMANCE

Abstract

Innovation performance is a potential source of competitive advantage for any firm. A capable marketing department (MD) can contribute significantly to the market success of the new products and services offered. Therefore understanding the impact of marketing's innovation-related capabilities in the innovation process is an important area of inquiry to achieve a more innovative and competitive company. This study examines the relations among relevant MD capabilities marketing's decision influence on innovation development and a firm's innovation performance. The results indicate that the capabilities of the MD are strongly associated with the firm's innovation performance. Our findings also demonstrate that marketing capabilities have a positive relationship with the department's influence on innovation development. However the department's influence on innovation decisions has no effect on the firm's innovation performance. We proposed a moderated mediation model considering a set of firm-level and environmental contingency variables. Results reveal that the proposed model relationships are indifferent for all the sub-groups of moderators.