Product Development Under Information Technological Turbulence: The Role of Marketing Communication for Competitive Advantage in Small Businesses Enterprises

Abstract

This chapterinvestigates the impact of marketing communication capability on sustainable competitive advantage by examining the mediating effect of product development and selling capabilities. It also explores the effect of information technological turbulence on the relationship between marketing communication capability and firm competitive advantage. This chapter proposes a structural equation model to empirically test the relationships between marketing communication, selling capability, product development, and sustainable competitive advantage. Drawing from the SMEs database provided by the Ministry of Cooperative and SMEs in Indonesia, the random sample adopts a self-administered mail survey for data collection. The results indicate that marketing communication capability has a positive impact on product development capability, which in turn strengthens the sales capability to achieve sustainable competitive advantage. However, high information technological turbulence reduces the effectiveness of marketing communication capability on supporting the competitive advantage. This chapter extends the dynamic capability theory by adopting information technological turbulence at various levels to explain the role of marketing communication and product development.