The Impact of Marketing and Operational Capabilities on Performance of Financial Companies (Evidence from Tehran Stock Exchange)

Document Type : Original Article


1 Master of Business Management, Financial Orientation, Khazar Institute, Mahmoudabad, Mazandaran, Iran.

2 Master of Executive Management, Strategic Orientation, Tehran University of Science and Research, Iran


This study examines the effect of marketing and operational capabilities on performance of the listed financial q companies on Tehran Stock Exchange (TSE). The research was conducted based on a descriptive-correlational design. Data analysis was performed in the EViews environment. The TSE-listed financial companies (24, in total) formed the statistical population in this study, whose data (in year-firm) for the period 2009 through to 2013 was subjected to panel/pooled data analysis using regression models. The overall significance of the fit model was verified using Fisher test (F-test) statistic, and for the fixed-effects model Chow test was used. The research results indicated a positive and significant association between operational capability and return on assets (ROA), but no significant association between operational capability and return on equity (ROE). The findings, conversely, indicated a positive and significant association between marketing capability and ROE, but no significant association between marketing capability and ROA. Further, a positive and significant relationship was found between importance of marketing and ROE, but no significant relationship between importance of marketing and ROA. Finally, there was consistently a significant association between importance of operation and ROA, whereas this significant relationship was not present between importance of operation and ROE.


1. Akroush, M., & A1-Mohammad, S.  (2010). The effect of marketing knowledge management on organizational performance: An empirical investigation of the telecommunications organizations in Jordan. International Journal of Emerging Markets, 5(1), 38-77.
2. Brinkerhoff, D., & Kanter, R. M. (1980). Appraising the Performance of Performance Appraisal. Sloan Management Review, 21.
3. Cohen, J. F., & Olsen, K. (2015). Knowledge management capabilities and firm performance: A test of universalistic, contingency and complementarity perspectives. Expert Systems with Applications. 42, 1178–1188.
4. Day, G. S. (1994). The capabilities of market driven organizations. Journal of Marketing, 58, 37-51.
5. DeSarbo, W., Di Benedetto, C. A., & Song, M. (2007). A heterogeneous resource based view for exploring relationships between firm performance and capabilities. Journal of Modeling in Management, 2(2),103-130.
6. Dutta, S., Narashiman, O., & Surendra, R. (1999). Success in high technology markets: Is marketing capability critical? Marketing Science, 18(4), 856-547.
7. Hall, M. T. (2008). The effect of comprehensive performance measurement   systems on role clarity, psychological empowerment   and   managerial performance. Accounting, Organizations and Society, 33, 141–163.
8. Glaser, R. & David J. K. (1962). Proficiency Measurement: Assessing Human Performance, in Psychological in system Development: Robert M. Gange. NEW York: Holt, Rinehart and Winston, 1962.
9. Morgan, N. A., Vorhies, D. W., & Mason, C. H. (2009). Market orientation, marketing capabilities and firm performance, Strategic Management Journal, 30(8), 920-909.
10. Muhammad, U. A., Murat Kristal, M., & Pagell, M. (2014). Impact of operational and marketing capabilities on firm performance: Evidence from economic growth and downturns, journal homepage:
11. O’Cassa, A. &  Weerawardena, J. (2010). The effects of perceived industry competitive intensity and marketing-related capabilities: Drivers of superior brand performance. Industrial Marketing Management, 39, 571-581.
12. Ortega, M. J. R. & Villaverde, P. M. G. (2008). Capabilities and competitive tactics influences on performance: Implications of the moment of entry. Journal of Business Research, 61, 332-345.
13. Prithwiraj, N., Subramanian, N., & Ramakrishnan, R. (2010). The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view. Industrial Marketing Management, 39, 317–329.
14. Song, M., Benedetto, A. D., & Nason, R. W. (2007). Capabilities and financial performance: The moderating effect of strategic type. Journal of the Academy of Marketing Science, 34-1835.
15. Song, M., Droge, C., Hanvanich, S., & Calantone, R. (2005). Marketing and technology resource complementarity : An analysis of their interaction effect in two environ-mental contexts. Strategic Management Journal, 26(3), 276-259.
16. Swanson Richard, A. (1994). Analysis for improving Performance. Berret Koehler publishing.
17. Pulic, A. (1998), Measuring the performance of intellectual potential in knowledge economy. Available online: http:// /papers /Pulic/Vaictxt/vaictxt.html.
18. Pulic, A. & Bornemann, M. (1999). The physical and intellectual capital of Austrian banks. Available online at: /Papers/ Pubic /Bank/en-bank.html.
19. Tuominen, M., Moller, K., & Rajala, A. (1997). Marketing capability: a nexus of learning-based resed resources and a prerequisite for market orientation. Proceedings of the Annual Conference of the European Marketing Academy, May, 1220-1240.
20. Vorhies D. W. & Morgan, N. A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, 1(69).