Organizational capabilities have a key influence on firm performance. Ordinary capabilities, a prominent classification advocated by capability scholars, allow a firm to perform its primary functional activities. Past research indicates that there are limits to the contributions of ordinary capabilities to firm performance, but largely has explored it via contingent effects in an industry context. We argue, however, that these limits also are a function of the development of market-supporting institutions. In this paper, we investigate the effect of capital market development – a key pillar of market-supporting institutions – on a firm’s use of two ordinary capabilities, operations and marketing. We trace the heterogeneity of this effect for two key firm resources, investments in R&D and financial slack, that are indicative of different strategies pursued by firms. We test our three-way interaction model using a sample of Indian firms over a twenty-year period of institutional reforms. Our findings contribute to integrating the organizational capability and institutional theory literature and advancing research on the sustainability of firm profits in emerging economies.

组织能力对企业绩效具有关键影响。普通能力是能力学者提倡的一个突出分类，允许公司执行其主要功能活动。过去的研究表明，普通能力对公司绩效的贡献是有限的，但主要是通过行业背景下的偶然效应对其进行了探索。然而，我们认为，这些限制也是市场支持机构发展的一个功能。在本文中，我们研究了资本市场发展（市场支持机构的关键支柱）对公司使用运营和营销这两种普通能力的影响。我们追踪了两种关键公司资源（研发投资和财务松弛）的这种效应的异质性，这表明公司采取的不同战略。我们使用印度公司的样本在 20 年的体制改革期间测试了我们的三向互动模型。我们的研究结果有助于整合组织能力和制度理论文献，并推进对新兴经济体企业利润可持续性的研究。