Development Of Marketing Capabilities Research Articles

Developing a global B2B strategy for products and services management: practical guidance from the field

PurposeThis study aims to examine the challenges of developing a global business-to-business (B2B) offering from an emerging economy (Chile) during an internationalization endeavor. This study analyzes the development and management of an offering evolving from local to global.Design/methodology/approachThe data were collected via an in-depth interview (105 min).FindingsThe interviewee presented a mixed of interesting marketing and/or marketing-related decisions (e.g. marketing–sales interface and marketing capabilities development) that support the internationalization of a firm and consequently its offering.Research limitations/implicationsThe data represent a practical, ongoing rationalization of the events perceived by a manager. New theory can emerge from further exploring identified research opportunities.Practical implicationsThe findings suggest that an emerging economy firm can gradually transition toward a multinational condition by coordinating a series of marketing and/or marketing related decisions, where the CMO (i.e. maximum marketing authority in the organization) plays an essential role.Originality/valueThis study brings the voice of practitioners to an academic environment and serves as an innovative effort to analyze B2B practitioners’ reality from a scholarly perspective. To the best of the authors’ knowledge, this study is the first one of the new series “Practitioners Insights” in the Journal of Business and Industrial Marketing.

Marketing capability development through networking – An entrepreneurial marketing perspective

How are marketing capabilities developed in SMEs? Drawing upon the entrepreneurial marketing perspective, this article explores how small-to-medium-sized enterprises (SMEs) develop their marketing capabilities. Using an in-depth qualitative study of SME entrepreneurs from a small open developed economy, we find that entrepreneurial networking plays a significant role in how SMEs develop specialized, cross-functional and dynamic marketing capabilities which are integral to their growth and competitiveness. We identify the type of resource interaction processes entrepreneurs engage in with actors in their network to generate and deliver market value. SMEs in this study wholly depend upon entrepreneurial networking for accessing key informational, relational, reputational, and knowledge resources to develop their marketing capabilities. Our findings further elucidate that the type of entrepreneurial networking in this study is one that exhibits entrepreneurial marketing behavior, yet, is more strategic and deliberate in nature rather than effectual. This study advances the entrepreneurial marketing and marketing capabilities literatures by assigning greater theoretical and empirical credence to the under-explored role of entrepreneurial networking in marketing capability development in SMEs.

Dynamic and marketing capabilities as determinants of firm performance: evidence from automotive industry

Purpose This study aims to explore the roles and relations of dynamic capabilities (DCs) and marketing capabilities (MCs) to generate firm performance through new empirical data from the automotive industry in an emerging market, Turkey, where volatile market conditions may compel firms to use both their DCs and MCs. The automotive industry dynamic character, which is shaped by fierce competition among car manufacturers, fluctuating customer demands and strong effect of environmental forces, provides an ideal context for examining the performance outcomes of MC and DC in non-static environments. This study aims to show whether better financial performance can be achieved through an integrated MC and DC framework; if the level of environmental dynamism (ED) influences the utilization of MCs; and the impact of MC and DC convergence on firm performance by using emerging market data, which is rare in the extant literature. Design/methodology/approach This paper empirically investigates the role of MCs on the relationship between DCs and firm performance and the effect of ED in marketing capability development through a study of 162 top level managers from the automotive industry in Turkey using multiple regression methods. A self-administered questionnaire was used to collect data. A maximum concern was given to obtain at least three questionnaires from each firm to minimize the risk of getting biased answers from only one manager. Findings The data were analyzed by the regression method, and the mediation and moderation tests were conducted to test the established hypotheses. The direct relationship between MCs and firm performance was examined through linear regression, and a significant relationship was found (ß = 0.408; t = 5.656; p < 0.001). Pricing (ß = 0.404; p < 0.001), marketing research (ß = 0.367; p < 0.001) and marketing strategy and implementation (ß = 0.336; p < 0.001) had the strongest association with firm performance. The mediating role of MC on the relationship between DC and firm performance was assessed, and the analysis result yielded a significant result (ß = 0.439; t = 6.174; p < 0.001). Finally, the moderating effect of ED on the direct relationship between MC and firm performance was assessed. Yet, the interaction term was insignificant (ß = 0.013; t = 0.103; p = 0.918) in predicting firm performance. Research limitations/implications Although the data set covers a broad range of firms operating in the Turkish automotive industry, the generalization of findings should only be possible through obtaining fresh evidence from other emerging markets that possess the similar market characteristics of Turkey. The cross-sectional nature of the study may offer insights only for a certain period of time; thus, additional longitudinal studies are recommended to see the dynamic changes on the constructs and relationships between them. Future studies may also include qualitative methods, i.e. interviews with top managers to have a deeper understanding on how DC–MC interaction creates better performance. Practical implications This study empirically shows the importance of MCs for firm performance; thus, managers should allocate significant efforts and resources for improving MCs. The demand for the electric and even autonomous vehicles is likely to increase in the following years, and this new era in the automotive industry requires more R&D and innovation-based products, i.e. green vehicles with low carbon footprint, the use of robotics and long-life batteries for electric vehicles. The cost-related pricing may no longer be a competitive advantage for the firms in emerging markets such as Turkish automotive industry; thus, more investment for disruptive technologies should be considered. Originality/value The results show that MCs of firms mediated the relationship between DCs and economic performance. Yet, ED did not play a moderating role on the relationships between MCs and performance. It is concluded that DCs were associated with improved firm performance via MCs. Furthermore, the insignificant impact of ED on the development of MCs leading to better performance was explained by firms’ given over-performing efforts in the context of emerging markets.

International marketing capabilities development: The role of firm cultural intelligence and social media technologies

ABSTRACT The purpose of this study is to analyze how firm cultural intelligence and social media technologies influence the international marketing capabilities of multinational enterprise (MNE) regional offices. The data used in this study were obtained from MNE regional offices located in the Emirate of Dubai, which were analyzed using structural equation modeling. The results of the study indicate that firm cultural intelligence and social media technologies have unique and complementary contributions to the development of international marketing capabilities, and these capabilities play an essential role in firm performance by lessening the adverse effects of foreign market turbulence.

Versatile capabilities for growth in the context of transforming countries: Evidence from Polish manufacturing companies

This study follows the newest extension to the resource-based view of company strategy, namely the versatility approach, to explain how resource-restrained companies may expand on international markets. The focus is on dynamic capabilities in marketing and innovation functions, which are conceptualized as versatile resources in the context of companies from transforming countries. The paper develops a model in which these two capabilities are linked with market expansion and product expansion, whereby market expansion facilitates product expansion. The survey data is based on a sample of 590 Polish companies and provides empirical support for the hypothesized links. The trade-off effect related to the parallel development of marketing capabilities and innovation capabilities receives partial support. The results are compared with prior research in the field and the observed international expansion paths of companies from transforming countries. The study contributes to the limited knowledge on organic, resource-based modes of growth among companies from transitional economies that expand in asymmetrical power international markets. Overall, the study recommends investing in marketing and innovation capabilities as versatile resources that can help companies from transforming countries to expand in competitive international markets.

Absorptive capacity, marketing capabilities, and innovation commercialisation in Nigeria

PurposeThe purpose of this paper is to investigate how specialised capabilities including absorptive capacity and marketing capabilities influence innovation commercialisation in manufacturing and service firms in Nigeria. The authors hypothesise that absorptive capacity measures including openness and formal training for innovation, and marketing capabilities encompassing new product marketing and marketing innovation are positively associated with innovation performance.Design/methodology/approachThe authors examine commercialisation of innovation within the profiting from innovation (PFI) and dynamic capabilities (DC) framework and use data from the 2012 Nigeria Innovation Survey to test the hypothesis by means of a Heckman sample selection model.FindingsThe authors find that absorptive capacity measures comprising openness and formal training are positively associated with innovation performance. The authors also find that marketing capabilities as indicated by new product marketing and marketing innovation are positively associated with innovation performance.Research limitations/implicationsThe authors acknowledge that firms undergo continuous changes and that there may be the presence of unobserved or unmeasured heterogeneity. Taking into cognisance that Nigeria is a federal state, cultural diversity and economic factors are likely to differ widely between geographical regions. Also, while the proposed conceptual framework offers a deeper understanding of innovation performance, examining how integrating activities of the R&D department, human resource department and marketing department affect innovation commercialisation is likely to provide more meaningful insights.Practical implicationsThe role that inter-organisational learning and intra-organisational learning play in driving innovation performance provide managers with a basis for incorporating absorptive capacity building programs that boost employees’ ability to recognise and apply valuable external knowledge to commercial ends. Similarly, firms may benefit from offering marketing capabilities development programs. Furthermore, innovation policies in Nigeria are generally designed to focus on fostering innovation activities aimed at developing innovative output. Accordingly, government support explicitly targeting new product marketing and marketing innovation is likely to play a vital role in the successful commercialisation of innovation in Nigeria.Originality/valueThis study fuses the PFI and DC framework to examine why innovating firms may not necessarily succeed. This area of study has received scant attention in sub-Saharan Africa given that extant literature focusses on value creation as opposed to value capture.

Cultivating organizational wisdom for value innovation

PurposeMarketing literature, while acknowledging the relevance of organizational learning for a better market understanding, has shown remarkably little effort to develop a framework for organizational wisdom (OW). A learning organization becomes wiser through time. Knowledge acquisition and exploitation are the foundation for differentiation between firms and sustain value creation. Therefore, this paper aims to integrate OW with previously validated marketing concepts in a broader nomological network.Design/methodology/approachThe authors review extant literature associated to OW and offer a theoretical model to clarify the conceptual domain of this construct.FindingsThis study develops the theory of OW, arguing that when a firm clusters a specific set of knowledge dynamically through time, the organization reaches a level of exceptional understanding about the market and improves the judgment and communication of decision-making. Moreover, this study partializes the effect of the market orientation construct through its components for better outcomes in the value innovation process.Originality/valueBased on the theoretical support, therefore, the authors provide a framework identifying the properties of OW, as well as the antecedents (a set of organizational knowledge) and consequences of OW (innovation and marketing capabilities development), specifying the moderation role of the marketing function influence.

Facilitating dynamic marketing capabilities development for domestic and foreign firms in an emerging economy

While the strategy literature has long advocated the impact of strong firm dynamic capabilities on new product development, scant research has discussed how to build dynamic marketing capabilities (DMCs), a key component of dynamic capabilities, to improve innovation performance. Focusing on emerging economies, this study develops a framework for exploring the mechanisms of building strong DMCs from the perspective of both external (inter-organizational relationships) and internal (entrepreneurial orientation) factors. Using survey data from firms in China, the authors find that both vertical and horizontal relationship can facilitate the development of DMCs. Moreover, the impact of vertical relationship is stronger than that of horizontal relationships for domestic firms but weaker for foreign firms, because foreign and domestic firms have different levels of resource dependence on their partners. Furthermore, entrepreneurial orientation influences firms' willingness and ability to leverage the benefits from relationships, thus strengthening the impact of vertical relationships but weakening that of horizontal relationships. The study extends DMCs research into the area of international business by suggesting different approaches for firms to develop DMCs in domestic versus overseas markets.

Marketing Capability Development in Micro Manufacturing Enterprises

Marketing capability is defined as the ability of an organization to understand and fulfil customers’ needs at the right time, right place and right cost. Marketing capability is essential for sustainable business performance. Many micro enterprises do not have any marketing strategy and/or have limited marketing activities. A conceptual framework is developed with a view to develop the marketing capability of micro manufacturing enterprises in this research. In this study, four micro manufacturing enterprises were observed over a year. Action research methodology was adopted to test effectiveness of interventions. Some interventions and capabilities were found to be related with marketing capability in micro manufacturing enterprises. Findings showed that empowerment, operational excellence, strategy development and implementation, and collaboration capabilities could enhance marketing capability in micro manufacturing enterprises.

How marketing capabilities shape entrepreneurial firm\u2019s performance? Evidence from new technology based firms in turkey

Prior research has shown that early development of marketing capabilities enable firms to achieve competitive advantage. The entrepreneurial orientation of the firm acts as a catalyst and impacts the market orientation and the marketing capabilities of the firm in a positive way. A high level of entrepreneurial orientation enables the firms to be innovative, take calculated risks and be proactive in their marketing- related activities. The marketing activity of the firm becomes entrepreneurial. In this empirical study, we test the various antecedents and outcomes of marketing capabilities in entrepreneurial new technology- based firms (NTBFs) in a developing country’s environment. The study sample consists of 253 small and medium sized NTBFs operating in the METU Technopark, Turkey. The structural equation modelling approach using PLS was employed to test the research hypotheses. Results show that the early development of marketing capabilities of the NTBF significantly impacted performance, prompting implications for policy makers.

Impact of marketing effectiveness and capabilities, and export market orientation on export performance

Purpose The purpose of this paper is to examine the relationships between marketing effectiveness, marketing capabilities, export market orientation and export performance. Design/methodology/approach The research analyses whether export market orientation, marketing effectiveness and marketing capabilities are antecedents of export performance with structural equation modelling. Data to test the model were obtained through a structured survey of 443 export companies operating in the Aegean region of Turkey. After explanatory and confirmatory factor analysis, the structural model was tested. Findings The findings suggest that export market orientation has a significant impact on marketing capabilities and marketing effectiveness, and that marketing effectiveness has a significant impact on export performance. This indicates that export market orientation is central to the development of marketing capabilities, while marketing effectiveness contributes to explaining export performance. Research limitations/implications There are several limitations of the research. The first significant limitation is that the variables had various sub-dimensions. The second limitation is about sampling of the research that it is not specific to a particular sector. Practical implications This paper provides useful insights to exporters on market orientation, focal dimensions of marketing effectiveness and marketing capabilities that would help them enhance their export performance. Originality/value Using the resource-based view, this paper contributes to the explanation for export performance by assessing the role of export market orientation behaviour on marketing capabilities and marketing effectiveness.

A Process Model of Marketing Capabilities Development: Insights from a Case Study of Ctrip.com

A Process Model of Marketing Capabilities Development: Insights from a Case Study of Ctrip.com

Development of marketing capabilities scale in banking sector

Purpose – The purpose of the study is to develop, measure and empirically validate marketing capabilities (MARKCAPB) scale in banking sector. Design/methodology/approach – Data are collected from a branch manager and three next senior managers of 144 branches of 21 public and 7 private banks operating in Jammu city, North India. Findings – The study finds that marketing capabilities are of multi-dimensional scale, comprising three dimensions – outside-in, inside-out and spanning. Further, the study results demonstrate that all three dimensions are significantly related to marketing capabilities; with outside-in capabilities to be most strongly associated with marketing capabilities development followed by inside-out and spanning dimensions. Research limitations/implications – The study focused on only operational perspective of marketing capabilities to develop a reliable and valid measurement scale. Hence, developing marketing capabilities scale from remaining three perspectives – intellectual capital, marketing mix and competition would prove to be an interesting line of future research. Second, as marketing capabilities scale is developed and tested in banks, that too, in a single city of a country (India), it becomes important to examine whether the same scale can be applied to different sectors and countries. Moreover, future research could be carried on at identifying various antecedents that facilitate the development of marketing capabilities. Originality/value – This is the first study of this type that contributes to the development of multi-dimensional scale of marketing capabilities in banking sector in Indian context. The study provides banks’ managers with the deeper understanding of how to develop and establish marketing capabilities in an organisation. Besides, it also put light on the significant role of outside-in, inside-out and spanning capabilities that facilitate the managers in enhancing financial performance by focusing on varied sub dimensions such as relationship, regularity, communication (outside-in), Web technology and employee bonding (inside-out), advertising, pricing and product/service skills (spanning).

The Effects of Early Internationalization on Performance Outcomes in Young International Ventures: The Mediating Role of Marketing Capabilities

In an emerging market context, this article examines the impact of early international market entry on marketing capability development and performance outcomes in young and small entrepreneurial firms. The authors identify the importance of marketing capabilities and the boundary conditions associated with international commitment, as well as the type of international market entered (developed vs. emerging market), to determine performance outcomes in early internationalization. With survey data from more than 300 senior managers in China, the results indicate that early foreign market entry enhances a young venture's marketing capabilities, which in turn leads to international growth. The findings also reveal that young ventures tend to be in a better position to improve their marketing capabilities when their senior management demonstrates a high level of commitment to foreign markets. Furthermore, the impact of marketing capabilities on the performance outcomes of early internationalization seems more salient among ventures that target developed, rather than emerging, foreign markets. Theoretically, through the lens of organizational learning and the development of marketing capabilities, this article contributes to the study of international new ventures by demonstrating that marketing capabilities serve as enabling factors that help young international ventures mitigate their liabilities of foreignness to achieve international performance outcomes.

Organizational structure and specialized marketing capabilities in SMEs

PurposeThis paper aims to develop and test a conceptual model of organizational structure design that incorporates some factors influencing strategy implementation. The research also aims to consider inter‐functionality in new product development (NPD) processes and marketing decisions, measured from the dispersion of these activities among functional areas.Design/methodology/approachThe research was conducted across 424 small and medium‐sized furniture manufacturing companies. In total, eight hypotheses were proposed and tested using structural equation modeling.FindingsMost important among the study's findings was that inter‐firm relationships and inter‐functional processes are relevant for the study of organizational structure design. It was found that the dispersion of the new product development process and of marketing decisions exert a positive influence on architectural marketing capabilities. The results showed that the dispersion of NPD processes and marketing decisions influence the development of marketing capabilities only in those companies with inter‐firm relationships. The paper also found that inter‐firm design did not affect the impact of the relationship between the dispersion of marketing decisions and NPD process on specialized capabilities.Research limitations/implicationsThe study focuses research on Brazilian small to medium‐sized furniture enterprises and could have single‐source bias in its data collection process.Practical implicationsThe findings provide insights into ways of integrating structures. It is observed that a higher integration of areas in marketing decisions is related to the dispersion of the NPD process. Given that dispersion in NPD is a disseminated practice, it is found that higher dispersion in marketing activities has an impact on product development.Originality/valueThe paper's findings confirm the influence of organizational design on the development of planning capabilities and on the implementation of marketing strategies.

Marketing Capabilities Development in Small and Medium Enterprises: Implications for Performance

The purpose of the research is to analyze the organizational antecedents of marketing capabilities and their impact on business performance using a sample of small and medium enterprises (SMEs). More specifically, the research analyzes the effect of the organizations’ internal marketing (IM) practices on the employees’ implementation of a coordinated set of commercial abilities crucial to firms’ competitiveness. Results of the research indicate that IM, or the management of human resources as internal organizational clients, is a key determinant in motivating employees effectively to develop both strategic and operational marketing capabilities. Marketing capabilities exert a significant and positive effect on clients’ satisfaction and loyalty, which ultimately lead to better organizational performance in terms of sales, profit, and market share. The research also contributes to the scarce amount of empirical evidence on the positive and direct effect of IM strategies on business performance.

Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations

This study develops and empirically tests a model that links alternative strategic orientations with firm performance, through the mediating effect of marketing capabilities. The influence of environmental forces and organizational characteristics on the decision to pursue lucrative strategic orientations is also examined. Using data collected from 316 bank branch managers, the authors find that market turbulence, intensity of competition, and decentralization in decision making play a pivotal role in determining managerial strategic priorities. Moreover, competitor orientation and innovation orientation contribute significantly to the development of marketing capabilities. In turn, marketing capabilities have a positive impact on firm performance. The authors discuss the managerial implications of study findings and offer directions for future research.

Trust as a moderator of the relationship between organizational learning and marketing capabilities: Evidence from Spanish SMEs

In the current environment of technological change and increased competition, it is more important than ever for small- and medium-sized enterprises to develop competitive advantages that enable them to consolidate their market position. This research analyses the links among organizational learning (OL), operational marketing capability, and performance in such organizations. In particular, interpersonal trust may moderate the positive impact of OL on the development of marketing capabilities. This study is based on a nationwide survey of 163 small- and medium-sized Spanish industrial firms. The results confirm the existence of the moderating effect, as well as the positive influence of OL on performance.

Organizational Learning and Marketing Capability Development

Social enterprise is a hybrid form of profit- and social benefit–seeking organization whereby traditional nonprofit organizations pursue both their social mission and business opportunities. To embrace this new strategic direction shift, the nonprofit organizations need to develop new competences that will enable them to respond to the changes in the business model. The article investigates the learning mechanisms through which social enterprises develop a marketing capability to deploy their resources in the marketplace as the drivers of competitive advantage in their commercial practice. We study eight cases of U.K.-based charity retailers to address the role of knowledge accumulation, articulation, and codification process in the evolution of marketing capability development. We identify, among other things, that the critical process of organizational learning for social enterprise is to transfer the experience into organization-specific knowledge under the social aspects of constraints.

Marketing capabilities: do they matter in INVs?

This paper examines the influence that marketing capabilities developed in international new ventures can have on their international performance and international geographical diversification. Rapid entry in foreign markets is also highlighted as a factor contributing to the development of marketing capabilities in international new ventures. The central concept advanced in the paper is that international new ventures generate competitive advantages associated with early internationalisation that derive from their influence on the development of marketing capabilities in these firms. The study's conclusions provide new keys for the literature on entrepreneurship and marketing, and will contribute to improve our understanding of how new international ventures behave.