Winning through innovation and marketing: Lessons from Australia and Vietnam

We examine the role of innovation and marketing, two functional capabilities that have the capacity to play a major role in creating superior marketplace performance in firms. Our study of the two capabilities and firms' marketplace performance also takes into account the contribution of entrepreneurial orientation (EO) and market orientation (MO) to our focal functional capabilities and marketplace performance. The results of a study of firms in Australia and Vietnam show innovation capability, marketing capability mediate the effects of the firm's MO on its marketplace performance. The results also show that the interaction of innovation and marketing capabilities significantly influences firms' marketplace performance more than they do individually. Finally, our results show that MO partially mediates the relationship between EO and innovation and marketing capabilities.

► We focus on role of business orientations and capabilities in enhancing firms marketplace performance.
► Our focus was on how these orientations and capabilities should be configured to provide superior marketplace performance.
► Innovation and marketing capabilities mediate the effects of market orientation on performance.
► The interaction of innovation and marketing capabilities significantly influences firms' marketplace performance.