Product-market Planning Capability and Profitability

Paul Hughes, Ian R. Hodgkinson, Robert E. Morgan, Mathew Hughes, Chih-Hsien Lois Hughes

Research output: Contribution to journalJournal articleResearchpeer-review

Abstract

We test the profit implication of product-market planning as a dynamic capability, from a contingency theory perspective. Among a sample of high-technology industrial organizations, we find that product-market planning capability is significantly and positively related to profits under marketing differentiation, but negative implications ensue for those adopting cost efficiency strategies. Pursuing hybrid strategies has no significant effect, while technological turbulence also has no moderating effect. Additional analysis establishes the temporal effects of product-market planning capability on 3-year lagged profits. These differential results are considered within a contingency framework. Implications are identified and discussed for industrial marketing management theory and practice.
Original languageEnglish
JournalIndustrial Marketing Management
Volume90
Pages (from-to)370-379
Number of pages10
ISSN0019-8501
DOIs
Publication statusPublished - Oct 2020
Externally publishedYes

Keywords

  • Product-market planning
  • Dynamic capability
  • Profits
  • Marketing differentiation
  • Hybrid
  • Cost efficiency

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