Dynamic Marketing Capabilities Research Articles

International new venture performance: Role of international entrepreneurial culture, ambidextrous innovation, and dynamic marketing capabilities

International new ventures (INVs) contend with environmental dynamism in global markets, compelling firms to enhance their innovation and marketing capabilities. While the INV literature is growing, it is not informative as to how INVs develop and utilize dynamic capabilities to overcome resource-constraints to enhance performance. We utilize the concept of international entrepreneurship culture (IEC) to better understand how INVs advance innovation and dynamic marketing capabilities to succeed in their internationalization activities. Building on the dynamic capabilities view (DCV), we empirically examine the relationships among IEC, ambidextrous innovation, dynamic marketing capabilities, and INV performance under varying levels environmental dynamism. The findings highlight that IEC influences both ambidextrous innovation and dynamic marketing capabilities; and, together, these link to INV performance gains. Furthermore, this research finds support for the mediating effects of ambidextrous innovation and dynamic marketing capabilities in the IEC – INV performance relationship. Additionally, the results indicate an international entrepreneurial culture is of greater significance in developing ambidextrous innovation when environmental dynamism is present. The study context is a sample of 286 high-technology INVs from India, a large and dynamic emerging market.

Dynamic marketing capability – refining the concept and applying it to company innovations

PurposeThis paper aims to introduce dynamic marketing capability (DMC) as a construct relevant for business research and business practice, and to test its validity in relation to company product innovations and company agility.Design/methodology/approachThis study tests a hypothesized model using partial least squares structural equation modeling on data from a survey conducted with 155 companies based in Poland.FindingsThis study provides evidence that DMC facilitates company innovations in terms of their speed and market success. Thus, DMC complements other organizational capabilities that were previously found effective for new product development (NPD) with regard to intra- and inter-organizational processes. However, the influence of DMC on company innovation success is stronger in the case of companies that operate without the pressure to customize. Thus, this approach is more relevant for companies that provide standardized offerings and which target various customer segments, rather than companies that operate in customer niches or when their NPD processes are strongly orchestrated by their customers, e.g. in B2B sales within hierarchical supply chains.Research limitations/implicationsThis study is limited by the cross-sectional empirical setting in that one country is used to test the research hypotheses. Further studies may focus on the combined effects of DMC and other important organizational capabilities, for example, flexible manufacturing, and may provide a detailed picture of DMC development by applying a longitudinal approach and case studies.Practical implicationsGenerally, managers can use this research to rethink their corporate strategies. The study proposes a specific strategic approach to corporate innovativeness: companies may acquire meaningful market benefits through systematic reconfiguration of their marketing assets, combined with the introduction of new products. However, managers should analyze their business model and industrial setting to verify to what extent their companies operate in a context relevant for reconfiguring marketing resources. If the pressure for strong customization is high in the existing customer base, investing in DMC may not be relevant, as new offerings are rather customer tailored, i.e. designed by “big fish” buyers. On the other hand, many companies may leverage their innovations with DMC in both B2B and B2C settings, as long as they can provide standard solutions as their market offerings.Originality/valueThe study contributes to marketing theory in three ways. Firstly, the study conceptualizes DMC as a distinct dynamic capability aligned with dynamic capabilities view (from which DMC logically originates), and proposes how DMC is linked nomologically with company innovativeness and agility. Secondly, a measurement instrument for DMC and an empirical test for the model are both provided. Thirdly, the paper presents evidence that the link between DMC and product innovations becomes restricted in the presence of certain contingencies, specifically with regard to the so-called customization norm.

The Impact of Market Orientation and Dynamic Marketing Capability on the Marketing Performance of 'Make-To-Order' SMEs

Objective – Literature suggest that companies should focus their Market Orientation (MO) on good marketing and business performance. However, previous research in this area deals mostly with large companies. The objective of this research is to study the significance of MO for small and medium enterprises (SMEs) with the specific production strategy of Make-To-Order. Methodology/Technique – The sample of this study is 111 Indonesia SMEs. The descriptive research design is supported by exploratory research. The structural model is analysed using the Structural Equation Modelling approach with LISREL 8.8 and SPSS 16.00. Findings – The result shows that MO does not have a significant impact on Marketing Performance. In the context of MTO, SMEs do not need to have a high Market Orientation to have satisfactory performance. It is more important for them to take care of the relationship with their principal companies. Government regulations, such as raw material regulations, also have an impact on SMEs performance. It is recommended that future research explore the types of capabilities of SMEs relating with the era of Industry 4.0. Other strategic orientations, such as production orientation, could be considered as factors in future research. Type of Paper: Empirical Keywords: Strategic Leadership Competence; Entrepreneurial Orientation; Market Orientation; Dynamic Marketing Capability; Business Environment; Marketing Performance; Maklun (MTO Strategy). Reference to this paper should be made as follows: Susanto, Y.B. 2019. The Impact of Market Orientation and Dynamic Marketing Capability on the Marketing Performance of ‘Make-To-Order’ SMEs, J. Mgt. Mkt. Review 4(3) 157 – 170 https://doi.org/10.35609/jmmr.2019.4.3(1) JEL Classification: M3, M30, M31.

Marketing innovation and sustainable competitive advantage of manufacturing SMEs in Ghana

Purpose The purpose of this paper is to establish how small- and medium-sized enterprises (SMEs) in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries can sustain or improve their competitive advantage by integrating specific resources and capabilities. The paper seeks to offer an alternative framework “resource capability-based view (RCBV)” that provides a strategic marketing direction for SMEs regarding how innovative marketing practices and dynamic marketing capabilities integrate to create sustainable market advantage. Design/methodology/approach This current paper employed a quantitative survey design with a positivist methodological research paradigm. The paper used a multi-stage stratified and simple random sampling technique to collect data from 591 manufacturing SMEs in Ghana. SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries were sampled for the study. A structural equation model was employed to test the study hypotheses to arrive at the findings. Findings The study found that product design and packaging innovations, promotion innovations, retail innovations and pricing innovations provide sustainable market advantage for water, beverage, detergent and metal fabrication SMEs. The paper also found that new product designs and packages are the major drivers of sustainable market advantage followed by innovative retail outlets. The paper further originated that integrating marketing competence (marketing resources and marketing capabilities) and innovative marketing activities provides a marginal improvement in competitive advantage. Physical resources may result in market advantage but integrating physical resources with dynamic marketing capabilities provides sufficient competitive sustainability in a competitive market. Practical implications SMEs in water, beverage, soap, detergent, metal fabrication, wood and furniture manufacturing industries should prioritise their key marketing resources and capabilities in product designs, promotion, pricing and retailing innovations in order to sustain market advantage. Old products should not be faded from the market but rather SME managers should employ innovative retail strategies, such as eco-friendly advertising, product re-branding and digital platforms (social network sites and websites), which are important to sustaining market performance. Government must develop targeted policies to bridge the information gap between SMEs and research institutions such as universities through regular subsidised entrepreneurial training and creation of semi-annual industry-academic fairs. The main theoretical contribution of this current paper is the development of “RCBV” as a framework which shows how SMEs can integrate specific resources and capabilities to achieve sustainable market advantage. This framework offers an integrative view of conventional resource-based view and dynamic capability theory (DCT) which are independently examined in the literature. Originality/value This current study has proposed an integrated and elaborative approach to the conventional resource-based view and DCT which does not provide a composite understanding in the literature. SMEs may lack the needed resources and capabilities to introduce new products or extant product lines but this paper has demonstrated that how SME can sustain market advantage of existing product(s) by synchronously using specific marketing resources and capabilities. The proposed framework offers a guide for SMEs to integrate their physical resources and capabilities to sustain their market advantage.

How an unequal intra-firm resources distribution affect market share

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.

HOW ARE DYNAMIC CAPABILITIES AND DIGITAL MARKETING RELATED? A REFLECTION FROM LITERATURE

Este estudo visa explorar a relação entre capacidades dinâmicas e marketing digital. A partir da revisão de literatura sobre capacidades de marketing dinâmico, capacidades de marketing e capacidades de marketing digital, infere-se que, sem considerar a denominação, todos eles incluem os fatores componentes dinâmicos. A revisão também resulta da consideração de que esses recursos já envolvem o uso de TICs e ferramentas digitais para seu desenvolvimento. Conclui-se que o marketing digital suporta diretamente as capacidades de marketing exigidas pelo contexto e, portanto, a estratégia de negócios direcionada para um melhor desempenho das empresas.

Know to grow: the role of knowledge integration in marketing dynamic capabilities

PurposeBased on the knowledge-based view, this paper aims to uncover the formation mechanism of marketing dynamic capabilities (MDCs) in international firms and to examine the moderating effects of learning culture, organizational structure and institutional distance on knowledge and knowledge integration.Design/methodology/approachThis study used a survey of 223 Chinese international firms and applied partial least squares path modeling to test the conceptual model.FindingsThe results indicated that both market knowledge dimensions (i.e. knowledge breadth and knowledge depth) and knowledge integration constitute important sources of MDCs. Specifically, knowledge breadth has direct and indirect effect on MDCs, while knowledge depth has indirect effect on MDCs; knowledge integration mediates the effects of knowledge dimensions on MDCs. Formalization and institutional distance significantly moderate the relationship between the breadth of knowledge and knowledge integration, whereas the learning culture shows little moderating effect on the above paths.Originality/valueThe authors identify an association between the knowledge-based view and the dynamic capability view, suggesting that a firm’s essential capability of knowledge integration constitutes a genesis of MDCs. In addition, while knowledge breadth strengthens MDCs, knowledge depth carries no direct effect, indicating that the attributes of knowledge have asymmetric influences on MDCs. The indirect effects of knowledge on MDCs through knowledge integration vary under different organizational conditions and institutional distances.

Comparing the impact of different marketing capabilities: Empirical evidence from B2B firms in China

This research compares three key types of marketing capabilities (static, dynamic, and adaptive capabilities) with one another to examine empirically the relative contribution of each capability type to firm performance under different market conditions. Through two empirical studies with business-to-business managers, this study first develops a scale of adaptive marketing capabilities and then investigates the relationships between all three types of marketing capabilities and firm performance. The results show that adaptive marketing capabilities have the greatest impact on market performance. In addition, while environmental turbulence obliterates the contribution of static marketing capabilities (turning the effect negative), it actually strengthens the relationship between adaptive marketing capabilities and firm performance. Finally, dynamic marketing capabilities have a similar impact under low and high environmental turbulence, suggesting the instability in today's marketplace even within relatively “stable” markets. Together, the insights from this research underscore the importance of differentiating among the three types of marketing capabilities and building a firm's capabilities portfolio depending on firm and market conditions.

A Dynamic View of Marketing Capabilities for SMEs’ Export Performance

The aim of this paper is to analyse marketing capabilities, through the dynamic capabilities framework, in order to increase understanding of how gradual global SMEs operating in traditional sectors can improve their export performance.The work is based on the exploratory, descriptive, qualitative method of a case study. An Italian SME has been selected on the basis of its export performance and marketing activities. The study has been conducted through secondary data analysis and a semi-structured in-depth interview with the CEO, with the aim of highlighting the relevance of emerging dynamic marketing capabilities connected with international performance.The results show that a SME, which lacks resources for international expansion, can improve its export performance by adapting, integrating, building, and reconfiguring its existing internal and external marketing capabilities for international markets.The principal limitation of this work is that, by analysing a company belonging to the alcoholic beverage sector, where price decisions are often left to importers, it was not possible to analyse dynamic pricing capabilities. This paper offers a contribution to the discussion of the internationalization of gradual global SMEs from the perspective of marketing and dynamic capabilities, missing from the literature, which is mainly focused on the study of multinational and born global enterprises.

Dynamic marketing capabilities view on creating market change

PurposeThe purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs.Design/methodology/approachA questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation.FindingsThe findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals.Practical implicationsThe research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied.Originality/valueThis study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.

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.

Dynamic marketing capabilities, foreign ownership modes, sub-national locations and the performance of foreign affiliates in developing economies

PurposeThe purpose of this paper is to examine the role of dynamic marketing capabilities (DMC), foreign ownership modes and sub-national locations on the performance of foreign-owned affiliates (FOAs) in developing economies.Design/methodology/approachBased on a sample of 254 FOAs in the Indian manufacturing sector (covering the period of 2000-2008 leading to 623 firm-year observations), the empirical paper adopts the panel data regression approach.FindingsThe study confirms the significant importance of DMC to assist FOAs to gain better sales performance in an emerging market such as India. The findings indicate that wholly owned foreign affiliates (WOFAs) have better sales performance than international joint ventures (IJVs), and majority-owned international joint ventures (MAIJVs) perform better than minority-owned international joint ventures in the Indian manufacturing sector. The results confirm that effective deployment of DMC leads to better sales performance in WOFAs and to some extent in MAIJVs. Perhaps the most interesting finding is that developing DMC in non-metropolitan areas is associated with higher sales growth than in metropolitan locations.Originality/valueThe study contributes to the literature by examining the impact of DMC on performance of FOA by considering the organised manufacturing sector in a large and fast growing developing economy. In addition, the results for the moderating effects provide novel evidence of the conditions under which DMC of FOA interact with different ownership modes and influence firm performance.

Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance

This study combines the signaling theory and dynamic marketing capabilities perspective to investigate the mediating role of product innovation in the influence of R&D expenditure and brand equity on marketing performance. The study shows that MNC firms are able to use R&D expenditure to improve their product innovation and market share to a greater extent compared to SME and retailer firms. However, the stronger brand equity of MNC firms may actually hurt the performance of their new products by inhibiting product innovation. The authors use regression and probit analysis to study a panel data for 1356 food brands. Overall, this research provides fresh insights into the process by which R&D expenditure and brand equity affect product innovation and marketing performance in highly competitive product categories.

Marketing’s contribution from the perspective of marketing executives

Purpose – The purpose of this paper is to determine the impact that chief marketing executives’ (CMEs) mindsets about important marketing capabilities have on company performance. Design/methodology/approach – The authors propose a structural model for analysing specialised, cross-functional and dynamic capabilities at the functional level of marketing. The model is tested by using a quantitative survey among CMEs. Additionally the authors conducted a cluster analysis with the purpose of identifying differences in CMEs’ mindsets about important marketing capabilities and the impact of these differences on company performance. Findings – The study identified four categories of mindset about important capabilities. An investigation into the company performance profile of each mindset shows that integration and rejuvenation are central qualities of CMEs’ mindsets and important drivers for company performance. Hence, companies that have a CME who prioritises both brand management, product development and customer relationship management as well as a set of specialised and dynamic marketing capabilities will outperform companies that have a CME who focuses on only one area of cross-functional marketing capabilities. Practical implications – Top managers, including CMEs, can use the typology of mindsets to analyse and critically reflect on their own ideas about important marketing processes and capabilities, but also as a tool for initialising change processes in their business unit or particular function (general management or marketing). Originality/value – The study provides an original assessment of sets of marketing capabilities at the functional level of marketing, and of the link between dynamic and two cross-functional marketing capabilities (product development and customer relationship management).

PENGARUH PROMOSI DAN KINERJA PELAYANAN TERHADAP LOYALITAS NASABAH DENGAN KEPUASAN NASABAH SEBAGAI PEMODERASI: STUDI PADA BANK BUMN DI DIY

Environmental dynamics shown by the uncertain situation faced by the company. Uncertain situationdue to a catastrophic event is one of the factors that need to be anticipated by the company. This studyaimed to analyze the effect of dynamic marketing capabilities to the performance of the creativeindustries and the dynamic moderating influence of the environment on their relationship in situationsof disaster that struck the Yogyakarta area.This study was conducted with 103 respondents.Respondents include business entrepreneurs of creative industries in Yogyakarta, especially in smalland medium business group. Hypothesis testing is done by regression analysis and regressionanalysis moderation. The results showed only two of the four hypotheses were supported, wherestrategic flexibility significantly affect firm performance, while dynamic environment do not moderatethe relationship between the two.Keywords: Dynamic Marketing Capability, Market Orientation, Strategic Flexibility,Environmental Dynamism, and Firm Performance

The contribution of dynamic marketing capabilities to service innovation and performance

Innovation can become a sustainable competitive advantage for service firms. However, there is lack of empirical research on how marketing capabilities support innovation. This study differentiates between operational and dynamic marketing capabilities, the latter related to strategic marketing, marketing planning and market knowledge skills. Based on a sample of 152 service firms, the results show that operational marketing capabilities influence on those dynamic marketing capabilities. Strategic marketing and marketing planning capabilities impact positively on firm's performance while market knowledge capabilities impact positively on service innovation.

Dynamic marketing capabilities and radical innovation commercialisation

Innovation research tends to deem marketing management does not occupy salient place of strategic significance in innovation policy formulation. More recently, strategic marketing scholars have begun to highlight marketing capabilities as an integral part to general dynamic capabilities to facilitate radical innovation commercialisation. However, comprehensive frameworks are still required in substantiating the strategic conduciveness of specific dynamic marketing capabilities to radical innovation commercialisation in the international technology–intensive sector. The current study develops and validates the radical innovation commercialisation model that reconfigures relevant theoretical conceptualisations and empirical verifications to narrow this gap. As the model reveals, innovative corporate culture drives radical innovation commercialisation of international technology–intensive firms directly as well as through the mediation of dynamic marketing capabilities. Most noteworthy, the mediated impact is proven almost equivalent to the direct impact, illustrative of the strategic role of dynamic marketing capabilities in facilitating radical innovation commercialisation for international technology–intensive firms.

Effects of Political and Business Ties on Developing Marketing Dynamic Capabilities in Emerging Economies: The Evidence from Russia

Since the effects of the institutional environment and its non-market factors have not been thoroughly explored within the relatively new domain of marketing dynamic capabilities (MDCs), this paper advances our understanding of the phenomenon by assessing whether political and business ties of MNEs may serve as the driving forces behind the development of MDCs. The findings demonstrate that managerial ties have a major impact on development of MDCs within an MNE’s subsidiary in emerging markets. In essence, this paper argues for an institutionally contextualized “Dynamic Capabilities” approach by proposing that ties may compensate for institutional voids in emerging economies.

Marketing mix dynamism and performance: evidence from commercial firms

We focused on the analysis of marketing mix dynamic capabilities, taking into account their influence on customer, market and financial performance. In order to achieve this research goal, 201 SMEs in the Portuguese commercial sector were contacted and personally administered a questionnaire pertaining to the presence of diverse marketing mix dynamic capabilities. Data were analyzed by means of factorial analyses of the main components, as well as linear parametric regressions. Our findings show that there is a clear relationship between marketing mix dynamic capabilities and diverse performance metrics. Especially, the marketing dynamic capabilities related to aspects external to the product exert the greatest impact. This study highlights how Portuguese company managers are conscious of the importance of developing marketing mix dynamic capabilities and to adapt them to the changes in the environment..

Enhancing Firm Innovativeness: The Role of Dynamic Marketing Capabilities

A gap between the dynamic marketplace and the relatively limited and static marketing resources available to the firm is growing. This paper explores how marketing capabilities, specifically market orientation, work in synergistic ways with other organizational capabilities to form dynamic marketing capabilities that enhance firm innovativeness. Our findings indicate that a tight integration of technical and marketing functions is a fertile point of transformation within the organization where a robust market orientation can infuse the innovation process with a greater sensitivity to the customer and competition. In this way, market orientation interacts with the integrated marketing and technical capabilities to form of a dynamic marketing capability that enhances organizational vigilance and improves the firm’s ability to sense and respond through innovation.