The resource-based and dynamic capability views as a foundation for a market segmentation theory

Abstract

Resources and capabilities drive market segmentation success, yet little attention has been devoted to applying the resource-based and dynamic capability views of the firm to market segmentation. The objective of this paper is to develop a theoretical foundation for the resource-based view of market segmentation. Using Hooley et al's (1998) framework as the basis, an evaluation of market segmentation resources and capabilities is undertaken. The framework developed has implications for managers seeking effective implementation of market segmentation and provides the basis for further research into the resource-based and dynamic capability views of market segmentation.