Who pulls the strings: firm strategy or firm environment in controlling firm risk?

Manisha Mathur ()
Additional contact information
Manisha Mathur: Augusta University

Journal of Marketing Analytics, 2022, vol. 10, issue 4, No 5, 359 pages

Abstract: Abstract Modern firms operate in rapidly changing and aggressively competitive environments that are risky for their growth and survival, yet within these environmental influences, firms have to successfully achieve their goal of enhancing shareholder value. In view of that, this research proposes a comprehensive conceptual framework that explicates how developing appropriate capabilities guided by the firm’s strategy is critical for reducing the idiosyncratic risk of a firm. As the environment is an integral aspect of any organization’s existence, this study examines the moderating effects of environmental influences on the effectiveness of a firm’s strategy in developing capabilities. Upon investigating using robust regression and stochastic frontier estimation, the findings emphasize the key mechanism of marketing capabilities in accounting for the reduction in firm risk as compared to operations capabilities. With important implications for advancing the marketing literature and guiding practitioners, this study demonstrates that adept and resilient firms not only cope with external events but also develop capabilities that enable them to coordinate their offerings with the marketplace requirements.

Keywords: Business strategy; Marketing capability; Environmental influences; Firm risk (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1057/s41270-021-00141-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jmarka:v:10:y:2022:i:4:d:10.1057_s41270-021-00141-8

Ordering information: This journal article can be ordered from
http://www.springer. ... gement/journal/41270

DOI: 10.1057/s41270-021-00141-8

Access Statistics for this article

Journal of Marketing Analytics is currently edited by Maria Petrescu and Anjala Krishnen

More articles in Journal of Marketing Analytics from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().