Competitive strategies and firm performance: Technological capabilities' moderating roles

This article evaluates the role of technological capabilities in moderating the relationship between competitive strategies and firm performance using a sample of 253 companies from the information and communications technology industry in Spain. The study tests the hypotheses that technological capabilities have a positive influence on performance. However, unlike previous research, the study gives specific consideration to how the relationship between competitive strategies and performance is moderated by technological capabilities. The findings indicate that technological capabilities enhance the relationships between quality orientation and performance, and cost orientation and performance, respectively. The obtained results suggest that the theoretical prescriptions of RBV and competitive strategy must be strategically combined within the firm for maximum effect.