Creating dynamic capabilities to increase customer value

Abstract

Purpose – The purpose of this paper is to contribute to the strategic management literature by identifying possible combinations of three organizational capabilities (market orientation, knowledge management, and customer relationship management). It seeks to analyze the potential interaction between them that would lead to the creation of superior customer value. Design/methodology/approach – The research question is: “If the customer demands superior value, how should a firm combine its existing capabilities in order to offer this superior value?” Findings – It is clear that one should turn to dynamic capabilities to explain the connection between the interaction of these three capabilities and superior customer value. Firms are aware of the customers’ demand for superior value and need to know how to combine their existing capabilities to offer this superior value. Practical implications – A possible way of increasing the value created for the customer is proposed, which is a key factor for the increasing number of firms seeking new ways to achieve and maintain competitive advantage. Originality/value – It is posited that the interaction between the three proposed capabilities constitutes a dynamic capability