Abstract
The adoption of marketing innovations can contribute to the sustainability of a firm. However, research on the types of marketing innovations and their effects is limited. The purpose of this study is to analyze the dimensions of marketing innovations, their effects on firm performance, and how market environmental factors moderate those effects. Based on an analysis of the literature, this study discovered two types of marketing innovations and established a model to explain the dynamics of marketing innovation and firm performance under different market environments. Empirical data were collected and used to validate the model. Results show that both market-driven and market-driving innovations significantly contribute to a firm’s performance. Moreover, their effects are significantly moderated by competition intensity and technological turbulence but not demand uncertainty. This study contributes to the literature because it elaborates the conceptualization of marketing innovation and presents the dynamics of marketing innovation, market environment, and firm performance. It also provides practical implications on how firms can utilize marketing innovations to achieve business sustainability.
Highlights
Marketing innovation is a powerful tool for the sustainability of small- to mediumsized firms because it can quickly increase a firm’s market share based on its existing products and technologies
Pinduoduo secured the budget market, Daily Fresh harvested from fresh food, and MI
We found that demand uncertainty, competition intensity, and technological turbulence are three major characteristics of the market environment
Summary
Its pragmatic value is well demonstrated by several new retail companies in the competitive Chinese market. Marketing innovations have helped companies successfully overcome fierce competition, supporting scholars’ arguments that they are no less important than technological ones [1]. They are especially valuable to smalland medium-sized enterprises because while the threshold for adopting such innovations is relatively low, they can help firms to utilize market opportunities, correctly position themselves, and establish differentiated competition strategies. In situations of technological bottleneck, the use of marketing innovations to enhance a firm’s performance is of critical importance
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