Industry structure organisational capability and firm performance of herbal cosmetic industry in india strategies for growth

Abstract

Drawing on the industrial-organizational viewpoint, resource-based view, and dynamic capability theory, the present study tests a conceptual model linking the industry structure in terms of Porter s five forces; organisational capability in terms of market-focused learning capability and marketing capability; and firm performance in terms of financial and strategic measures of the Indian herbal cosmetic industry. The target population is the marketing/strategy managers of the top Indian herbal cosmetic firms. Data was collected from 202 respondents using a survey approach. The results from multiple and hierarchical regression revealed that industry structure is found to have a significant and positive impact on marketing capabilities, market-focused learning capability, and firm performance. Also, both market-focused learning capability and marketing capability are found to have a significant and positive impact on the firm performance. Moreover, market-focused learning capability is also found to have a significant and positive impact on marketing capability. Taking all the independent variables together, it is concluded that only market-focused learning capability and marketing capability impacted the firm performance in a significant and positive manner, the industry structure variable is found to be insignificant. newline