Novel Perspectives of Engineering Research Vol. 5

Abstract

Capabilities can be sorted into three categories, depending on the orientation and focus of the defining processes. At one end of the spectrum are those that are deployed from the inside out and activated by market requirements, competitive challenges, and external opportunities. Capabilities of a dynamic nature, aside from being a source of new resources for the company, provide a solid instrument for the organization's strategists. Focus on marketing capabilities in times of crisis may be less profitable than possessing the capabilities for strategic flexibility, especially as competitive intensity increases. Market share has become a language for the expression of the market targets by top management. In this study concept of organizational capability and its implications to strategy and business performance are discussed, but more in- depth empirical study will be needed for developing better understanding of linkages among organizational capability and market share.