Abstract
Innovative marketing practices are essential for firms to increase sales and profitability. This paper aims to investigate the determinants of firms’ marketing innovation based on the employment of resource-based view and stakeholder theory. A probit regression model linking marketing innovation with proxies of firms’ resources and pressures from firms’ stakeholders was tested based on a dataset of 5,857 Vietnamese enterprises taken from a survey by the Ministry of Science and Technology of Vietnam in 2016. The findings indicate that firms’ size decreases the probability of marketing innovation by 1%, while internal knowledge gained from internal R&D causes the probability of marketing innovation to increase by 0.18%. Besides, the political connection and collaborations with competitors and private consultants drive the probability that firms implement the marketing innovation up by 0.09%, 0.12%, and 0.09%, respectively. On the other hand, export-oriented firms are more likely to implement marketing innovation by 0.03%, while foreign ownership reduces the chance of this decision by 0.05%. This research also reveals the essential role of the firm’s market pressures to enter into new markets or improve product quality in encouraging marketing innovation by 0.16% and 0.13%, respectively. AcknowledgmentThis research was supported by National Economics University, Grant Number: 343-QĐ-ĐHKTQD.
Highlights
Despite the contribution of technological innovation to business growth (Lee & Kang, 2007; Gunday et al, 2011), this does not always ensure that firms will reap the benefits of being first mover (Basu, 2014)
The findings indicate the importance of internal knowledge proxied by internal R&D activities (Own_Act), and education, retraining, and training of human resources (Educ_Act)
The findings reveal that firm size Regarding the moderating effects of political conand knowledge attained from the external acqui- nection, this research conducts a further analsition of R&D (Bought_Act) or internal training ysis that examines the arguments of Mcmillan (Edu_Act) are no longer significant preconditions and Woodruff (2002), Franklin et al (2005), and for marketing innovation when the firm is state- Faccio (2006, 2007) by considering diverse genres owned
Summary
Despite the contribution of technological innovation to business growth (Lee & Kang, 2007; Gunday et al, 2011), this does not always ensure that firms will reap the benefits of being first mover (Basu, 2014). Product innovation is a risk-taking behavior that involves huge costs and uncertainty, and not every firm can afford to make it (Kraatz & Moore, 2002; Lounsbury, 2002). The question of whether to innovate products and services becomes tricky. If they choose to innovate, they have no guarantee of success. If they decide to abstract these innovative activities, their market position is highly likely disrupted. This does not mean that firms are put in the horns of a dilemma since they may have an alternative choice: implementing new marketing methods or called “marketing innovation”
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