Performance implications of marketing, technological, and production capabilities: an institutional perspective

Abstract

This study focuses on performance implications of firm capabilities in the emerging economy of China. We investigate the effects of marketing, technological, and production capabilities. We further integrate an institutional perspective with the traditional resource-based view and examine how firm capabilities and the institutional environment jointly shape firm performance. Using a four-year longitudinal data of both local private firms and foreign wholly-owned subsidiaries in China, we find that firm capabilities exhibit differential effects on financial performance and market performance for local and foreign firms. Moreover, the institutional environment moderates the performance impact of different types of firm capabilities.