Effects of Technological Capability on Operations and Marketing Capabilities

Technological knowledge has been recognized as one of the critical resources necessary for a firm’s successful performance over its competitors. When the characteristics of technological capability are difficult to determine, competitors also face difficulty imitating such functions. Moreover, when organizations possess a higher level of technological capability, it can assist marketing to introduce a steady stream of new products. With better technological resources, a firm is able to achieve the positive market perception necessary as a resource for better marketing practices. Along with higher technological capability, a firm is able to achieve knowledge for efficient operations to produce goods at the lowest cost but still maintain or even improve its quality. In this paper, we theorize how firms with higher levels of technological capability deliver innovative technologies which can benefit marketing and operational capabilities. In turn, firms will achieve better performance.