Analyzing the role of dynamic capabilities and competitive advantage in the impact of market orientation on business performance

Document Type : Research Paper

Authors

1 Assistant Professor, Department of Public Administration, Payame Noor University, Tehran, Iran

2 Masters student of Business Administration, Department of Business Administration, Payame Noor University, Tehran, Iran

Abstract

Extended Abstract
Introduction
Dynamic capabilities represent the business's ability to integrate, create, and reconfigure internal and external competencies to meet changing environments. Competitive advantage refers to the degree to which a business can create a defensible position against competitors. Market orientation is defined as market information processing activities such as acquiring, publishing and responding based on the observation of customers and competitors. The present study was conducted with the aim of analyzing the mediating role of dynamic capabilities and competitive advantage in the effect of market orientation on the commercial performance of dairy production companies.
Methodology
The research is applied in terms of purpose and descriptive-survey in terms of data collection method. The statistical population of the research was made up of all the business managers of the selected dairy production companies in Tehran province, in the number of 495 people in 2023. Based on the simple random sampling method and Cochran's formula, 216 people were selected as a sample and included in the study. . The data collection tool was a standard questionnaire. The validity of the questionnaires was confirmed using the opinions of experts in the field of management and their reliability through Cronbach's alpha. Data were analyzed using structural equation model and SmartPLS4 software.
Discussion and Results
In recent years, due to the much turbulence that exist in various industries, it seems that the requirements of strategic management are inevitable for businesses to survive, improve their business performance and maintain a suitable market share. Today, understanding what products and services to provide to meet the needs of customers is an important challenge for business managers. In this regard, businesses must fully understand the benefits and limitations of each strategic orientation to create competitive advantages (cost leadership or differentiation) to achieve superior performance. Therefore, dynamic capabilities and competitive advantages help to better understand the relationship between market orientation and business performance of businesses. Therefore, one of the strategies that bring superior performance to businesses is market orientation. Market orientation means integrating organizational efforts to effectively respond to customer needs and should have a positive impact on business performance. Based on this, the present study was conducted with the aim of investigating the effect of market orientation on the commercial performance of the business according to the mediating role of variables of dynamic capabilities and competitive advantage in selected dairy companies in Tehran province. The findings of the research showed that market orientation has a positive and significant effect on dynamic capabilities, and dynamic capabilities also have a positive and significant effect on differentiation and cost leadership variables. Differentiation and cost leadership also have a positive and significant effect on business performance. Finally, both dynamic capabilities and competitive advantage mediate the relationship between market orientation and business performance. According to the findings of the research, market orientation has a significant effect on improving the performance of dairy production companies.
Conclusion
According to the findings, with the improvement of market orientations, dynamic capabilities are improved and improved, and dynamic capabilities also lead to increased competitive advantages for businesses. On the other hand, with the growth and improvement of dynamic capabilities, a sustainable competitive advantage is created for the business. In addition, market orientation also has a positive and significant indirect effect on the commercial performance of dairy production companies in Tehran province through the mediating variable of dynamic capabilities and competitive advantage. Therefore, the implementation of market orientation, the implementation of customer-oriented strategies, the creation of sustainable value and attention to the changing needs of consumers in the entire activities of the company can improve the performance of dairy companies.

Keywords

Main Subjects

References

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