Dynamic capabilities play a key role in successful key account management, according to a new study by researchers from the University of Eastern Finland, Cranfield University and the University of Portsmouth. The study found that in key account management, companies should invest in market sensing, opportunity creation, continuous improvement of processes and value propositions, as well as capabilities for radical change. The findings were reported in Industrial Marketing Management.
The study developed a framework for key account management, identifying the resources and capabilities needed by companies to gain sustained competitive advantages and profitability.
"We feel that it is vital for companies to develop their key account management schemes, staff and processes with dynamic capabilities in mind, as this can make them stand out from competition and create sustained profitability," says Professor of International Business Mika Gabrielsson from the University of Eastern Finland, one of the study authors.
The study focused on key account management, which is a key aspect of sales management, and a facilitator of increased business profitability. An extensive literature review combined with the authors' consultancy experience served as the foundation for identifying the resources and capabilities that play a key role when striving for sustained competitive advantages and profitability. The study paves way for a new line of research, as the resource-based theory has not been applied to key account management before.