The integration of logistics and marketing practice into baseline supply chain practices in the emerging markets

Abstract

PurposeThis study aims to draw on the strategy–structure–performance framework to investigate baseline supply chain (BSC) practices as a function of how firms structure logistics and marketing mix activities to achieve market share in the emerging market (EM) supply chain ecosystems.Design/methodology/approachThe authors validate the study’s conceptual framework with survey data collected in two contrasting EM supply chain ecosystems. They include supply chains in EM economies with an advanced logistics/distribution infrastructure such as China and those in economies with poor logistics/distribution infrastructure such as Ghana. The authors use ordinary least squares regression and structural equation modeling analysis to examine the relative market share outcomes of different configurations of logistics-marketing practices (logistics-affordability marketing, logistics-accessibility marketing, logistics-acceptability marketing, logistics-and awareness and full integration into BSC).FindingsKey findings confirm that the integration of logistics with marketing activities into BSC practice is more pervasive in EMs with high logistics performance index, such as China than in firms in EMs with low logistics performance index, such as Ghana. Moreover, the authors confirm that integrating logistics and marketing into BSC generates higher market share performance than logistics- or marketing-only practices in China and Ghana. These differences are driven more by the firm’s strategic orientation than the demands of competitive market conditions.Research limitations/implicationsThe study focuses on BSC integration activities in the logistics and marketing functions because researchers have not updated this issue for the past two decades.Practical implicationsThe study results provide managers with much-needed empirical evidence of the strategic benefit of BSC integration under different supply chain ecosystems in the EMs.Originality/valueLinking BSC activities in logistics management and marketing management mix activities within the 4As marketing mix framework provides evidence to support the argument that the 4As marketing mix is an appropriate planning framework for EMs’ unique ecosystems.