The Effect of Marketing Strategy and Marketing Capability on Business Performance. Case Study: Iran's Medical Equipment Sector

Abstract

In this article, the relationship between marketing strategy and the marketing capability of three categories of business performance – overall, financial and non-financial – has been investigated using a questionnaire including 30 parameters. The acceptable Cronbach's α in the questionnaire is considered to be 0.80. The multiple regression tests indicate that marketing strategy has no effect on the overall performance (β= 0.001; t = 0.005), whereas it shows a positive effect on non-financial performance (β = 0.412; t = 3.067), and a negative effect on financial performance (β= − 0.293; t = − 2.081). The results also indicate that marketing capability has positive effects on all three investigated categories, that is, the overall performance (β = 0.727; t = 5.680), the non-financial performance (β = 0.481; t = 3.580) and the financial performance (β = 0.649; t = 4.612).