Examination of effects of marketing and operations capabilities, product diversification and international diversification strategies on financial performances of firms (case study: Production/manufacturing firms admitted to the tehran stock exchange)
In order for firms to achieve competitive advantages, it is necessary for them to have marketing and superior operations capabilities. On the other hand, diversification strategy enables firms to create synergy and economies of scale. So, by considering the concepts of the strategic management, the marketing theories and also the resource based view, examination of the relative effect of the functional capabilities (marketing and operations) and diversification strategies (product and international) on the financial performances of one hundred eighteen production/manufacturing firms admitted to the Tehran Stock Exchange Organization was undertaken. The data used for testing hypotheses were obtained from the financial statements and reports of board of directors in the sample firms. The results of the multivariate regression analysis show that marketing and operations capabilities and also international diversification have significant positive impact on financial performances of the firms and the operations capability has relatively more effect on performances of firms . © IDOSI Publications, 2012.