Abstract
Purpose The purpose of this paper is to address how marketing assets and resources of the firm perform under different product (brand) innovation conditions using the dynamic marketing capabilities (DMC) research perspective. The study contributes to the DMC research stream showing the effects and performance of heterogeneous firm drivers and resources. Academic research to date has paid a little attention to the interrelationship between market share as a performance metric, dynamic capabilities and product (brand) innovation. The current study bridges this knowledge gap by empirically validating the effects of DMC on market share performance output using panel data for 753 retail food brands. Design/methodology/approach The model was initially fitted with the β regression analysis and cluster analysis in the second step of the estimation procedure. The results of simulation by Monte Carlo experimentation are discussed. Findings The findings show that firms leverage their marketing capabilities unequally in the multi-brand portfolios, which leads to an unequal intra-firm distribution of assets and resources. The research contributes to the understanding of the brand competitive dynamics and appropriate deployment of assets and resources for improved firm performance. Originality/value These findings are useful for both academics and practitioners because they address new and future research. In doing so, the authors advance the firm performance and branding literature with extension in the DMC literature.
Highlights
Managers are under constant pressure to improve firm performance using the firm’s limited resources
To analyze the estimations of brand performance outputs, market share was regressed on brand equity, marketing investment, price, firm type, and innovation
The results indicate that brand equity, marketing investment in a brand, price, and innovation type have a high statistical effect on market share (p
Summary
Managers are under constant pressure to improve firm performance using the firm’s limited resources. Managing firm resources requires the use and transformation of available dynamic capabilities that improve the organizational efficiency and assist the firm to gain a competitive advantage. Dynamic capabilities (DC) are the organizational and strategic routines by which firms achieve new resource configurations as markets constantly change. DC represent the firm’s processes that use resources, the processes that integrate, reconfigure, gain, and release resources to match and even create market change (Eisenhardt and Martin, 2000; Teece, 2007; Morgan, 2012). The DC research framework eventually gave rise to the dynamic marketing capabilities (DMC) research stream. The DMC research stream proposes that marketing resources and capabilities together play a unique role in determining the needs of customers, distribution channels and competing products. Research has shown that market share may enhance a firm’s profitability (Park and Srinivasan 1994,) and, from a marketing perspective, market share signals higher value for a consumer (O’Regan, 2002), which in turn improves a firm’s brand portfolio status
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