What is it about?
The purpose of this article was to investigate the relationship between firm capabilities and profitability, paying particular attention to the mediating role of business strategy.
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Why is it important?
In northern Portugal, textile firms play a vital role in creating jobs; however, they find themselves at a precarious crossroads as they must reposition themselves and find new competitive advantages to continue in their traditional role as major contributors to national production and job creation. The paucity of studies focusing specifically on the Portuguese textile industry and the influence of firm capabilities and business strategy on profitability further justify the present study and the hypothesized model.
Perspectives
Portuguese textile managers who are able to develop strategies in line with the strongest capabilities of the organization can achieve greater competitive advantages, and ultimately, improve their organization’s performance. In addition to selecting the best business strategy, having the resources necessary to develop their specific and singular capabilities will likely lead to improve performance, which will undoubtedly increase the profitability of the northern Portugal’s textile organizations.
Ms M. Ángeles López-Cabarcos
Santiago de Compostela University
Read the Original
This page is a summary of: Organizational Capabilities and Profitability, SAGE Open, November 2015, SAGE Publications,
DOI: 10.1177/2158244015616852.
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