Role Of Marketing Capabilities Research Articles

Marketing first? The role of marketing capability in SME growth

PurposeThis paper aims to examine the growth rates of small- and medium-sized enterprises (SMEs) over a three-year period, the relationship between firm size and firm growth in the context of SMEs, and the effect of marketing capability (MC) on firm growth and how it relates to firm size. The theoretical framework is based on the resource-based view and dynamic capabilities.Design/methodology/approachData were gathered from Finnish SMEs (n = 214) and analyzed with Latent growth curve modeling (structural equation modeling). Respondents were chief executive officers or company owners.FindingsResults show that firm size is unrelated to the rate of change, and MC has a significant effect on both the intercept and slope parameters. Smaller SMEs have less MC than larger SMEs.Practical implicationsWhile the overall human resources level of the SME is not linked to the rate of growth, MC is. This is an important point for small business growth studies, for it shows what type of personnel is called for during rapid growth. SMEs could advance significantly and rapidly if they invest in versatile human capital, especially in the marketing area.Originality/valueMajority of the MC research involves larger corporations. This study brings new insights from SME perspective. In addition, this study suggests that it is imperative to consider different types of growth separately. This study contributes to this need by demonstrating the connection between employee growth rate and MC in SMEs.

Marketing and bankruptcy risk: the role of marketing capabilities

ABSTRACT Research has demonstrated the role of marketing actions and assets in reducing bankruptcy risk. However, firms with strong marketing assets and robust marketing budgets also fall prey to bankruptcy. Therefore, the sheer magnitude of marketing expenses and mere possession of marketing assets do not fully account for the variation in bankruptcy risk. In this paper, we propose that a firm’s marketing capability, besides its marketing assets, plays an essential role in determining its bankruptcy risk by affecting cash flow. We thereby identify conditions under which a firm’s marketing assets reduce its bankruptcy risk. Using a large longitudinal dataset of U.S. firms, we show that a combination of capabilities and assets is required to reduce bankruptcy risk. We employ machine learning to analyze the effects of marketing capability on bankruptcy. Out-of-sample validation indicates that when marketing capability is included with standard financial predictors, it improves the performance of bankruptcy prediction models. .

The Role of Marketing Capabilities and Market Munificence in an Emerging African Economy

In this paper, the authors investigate the relationship between marketing resources and firm performance in the context of SMEs in a developing African economy. Drawing on sample of SMEs from Ghana, the study examines the direct relationship between marketing resources and firm performance, the mediation role of marketing capabilities between marketing resources and firm performance, and the way market munificence moderates the impact of marketing capabilities on firm performance. They find evidence of a positive causal link between the use of marketing resources and firm performance. The findings provide insight to practicing SME managers to consider when deploying resources to succeed on their plans for firm performance in a developing economy.

The effect of high-performance work systems on new product development in knowledge-based companies through the mediating role of marketing capability

The effect of high-performance work systems on new product development in knowledge-based companies through the mediating role of marketing capability

The role of marketing capability in linking CSR to corporate financial performance

PurposeThe authors use signaling theory in proposing a conceptual framework that simultaneously incorporates both the mediating effects of corporate reputation (CR) and the moderating effects of marketing capability (MC) into the corporate social responsibility (CSR)–corporate financial performance (CFP) link and theorize a single moderated mediation model. The empirical results of the research confirm the theorized moderated mediation model among the four variables, where a firm’s CR plays a mediating role in the relationship between CSR and CFP, and a firm’s MC moderates the effect of CSR on CR exclusively in the first link. Both theoretical and practical implications of the moderated mediation model are discussed.Design/methodology/approachThis study uses structural equation model estimations with the relevant secondary datasets collected from publicly available databases.FindingsThe empirical results confirm the theorized moderated mediation model in the conceptual framework that uses signaling theory. Specifically, the results identify the moderating role of MC in only the CSR- CR link (but not in the CR and CFP link), such that CR plays a moderated mediation role in the CSR–CFP link.Research limitations/implicationsThe current research is not without limitations. These limitations mainly stem from data sets used in the empirical analyses. More details are discussed in the limitations and future research directions section.Practical implicationsThe empirical findings suggest that a firm needs to develop a consolidated CSR-marketing program, simultaneously satisfying stakeholders’ needs for both the firm’s socially desirable business practices and value-creating marketing programs to increase its CR, which will, in turn, lead to better profitability for the firm.Originality/valueTo the best of the authors’ knowledge, the current research is the first to use signaling theory in building a conceptual framework that theorizes a moderated mediation model regarding the simultaneous effects of CR and MC on the relationship between CSR and CFP and to empirically test this conceptual framework of the single moderated mediation model. By doing so, the current research clarifies an unanswered question in the literature of whether the underlying mechanism in the CSR–CFP link is based on a mediated moderation or moderated mediation of CR and MC.

Institutional Differences, Foreign Ownership Modes, Marketing Capabilities and Domestic Technological Catch-up: Evidence from India

This research examines FDI-mediated domestic firms’ technological catch-up by considering institutional differences between home and host countries, the role of marketing capabilities, and the joint effects of institutional differences and the degree of foreign ownership. Using firm-level panel data for Indian manufacturing industries, we find that FDI-mediated technological catch-up in domestic firms is conditional on institutional differences between the home and host country of multinational enterprises and the level of marketing capabilities of foreign-owned affiliates. In addition, we find that technological catch-up in domestic firms is likely to be positively influenced by the presence of wholly foreign-owned firms from institutionally close countries, whereas we find some evidence that the presence of minority foreign-owned firms may have a negative effect on domestic technological catch-up, regardless of institutional differences. We also provide theoretical and policy implications of our findings.

The role of marketing capabilities, absorptive capacity, and innovation performance

PurposeThe purpose of this paper is to analyze effects of absorptive capacity (ACAP) on organizational performance. The model looks at the mediating influence of marketing capabilities (innovative capability and new product development capability (NPDC)) and innovation performance (IP).Design/methodology/approachThis study takes a quantitative approach by using survey data from 333 Brazilian manufacturer managers involved with strategic marketing processes. Structural equation modeling was used to test the theoretical hypotheses.FindingsResults indicate that ACAP does not have a direct impact on organizational performance. The relation is fully mediated by marketing capabilities (innovative capability and NPDC) and IP.Research limitations/implicationsAccording to the research findings, managers should put efforts in the ACAP as well as marketing capabilities that will result in better organizational performance. This research is limited to the context of manufacturer firms in Brazil. However, it is suggested that an application of this research can be conducted in different industries and different countries.Originality/valueThis study contributes to theory and management practice. First, no study has explored all these constructs together. Through the relationship between ACAP and performance, the authors found that marketing capabilities and IP can fully mediate the former proposed relation. The authors’ contribution is the understanding of the role of ACAP influence on performance. Managers should be encouraged to invest in companies’ ACAP as well as marketing capabilities to differentiate themselves from competitors and improve performance.

The effect of high performance work systems on radical innovation in knowledge-based companies through moderating role of innovation capabilities

The present study aims to examine the effect of high-performance systems through moderating role of marketing capabilities on radical innovation of knowledge-based companies. The statistical population of study includes all managers and employees of Iranian knowledge-based companies that are located in Isfahan province. The statistical sample of study includes 165 individuals. The results of present study suggest that the variables of employee autonomy, training and development off employees, participation in decision-making, job security and performance management affect radical innovation of knowledge-based companies significantly. In addition, the results suggest that the variables of job security and job clarity do not affect radical innovation of knowledge-based companies significantly. In addition, results of testing moderating hypothesis suggest that innovation capabilities with adjustment coefficient of 0.527 moderate the effect of high-performance systems on radical innovation significantly.

Partial least square structural equation modeling in knowledge management orientation: A role of marketing capability in a model to firm performance of agri-input retailer

Partial least square structural equation modeling in knowledge management orientation: A role of marketing capability in a model to firm performance of agri-input retailer

Marketing Capabilities as Sources of Sustainable Competitive Advantage: A Review of Literature

In our study, we made an effort to review the existing literature with the purpose of illustrating the significance of marketing capabilities, its linkage to the resource-based view and the impact on sustainable competitive advantage. Because of the ever increasing concern of firms to achieve superior performance in a highly competitive environment, the role of marketing capabilities is becoming more and more significant. When compared with other capabilities, marketing capabilities seem to make a more positive impact on the performance of a firm. That is why, in general the past two decades and particularly the last decade, marketing capabilities as sources of superior firm performance, is becoming a significant area of interest for the marketers and marketing authors. In light of this fact the present paper tries to: 1) review the available literature on marketing capabilities and 2) compile a list of identified marketing capabilities for sustainable competitive advantage.

SMEs' performance by adopting strategic orientation and mediating role of marketing capabilities: a study among small businesses in the Ampara District of Sri Lanka

Small businesses are vital for people in the Ampara District in terms of employment generation and this, in turn, contributes to the gross domestic production to the development of the country. It is, therefore, paramount to study the small business sectors in the region and to figure out the problems faced by these small businesses. The major objective of the study is to find the association between strategic orientation of small businesses in Ampara District and its performance through mediating marketing capabilities. This study helps to understand the mediating effect of marketing capabilities by adopting the strategic orientation. Data were collected by utilising questionnaires. Analysis was done using multivariate techniques. Small businesses in the Ampara District have to achieve its profitability with lucrative performance. Hence, there should be proper guidance by way of formulating strategies so that they will be devising strategies by adopting marketing orientation, entrepreneurial orientation, and technological orientation with an effect of marketing capabilities as mediator.

SMEs' performance by adopting strategic orientation and mediating role of marketing capabilities: a study among small businesses in the Ampara District of Sri Lanka

SMEs' performance by adopting strategic orientation and mediating role of marketing capabilities: a study among small businesses in the Ampara District of Sri Lanka

How to Build a Learning Capability for Innovation? A Framework of Market-Based Learning Process

Learning organization has been an important issue in both management and marketing areas. Also learning capability is a key construct of innovation process in a firm. Especially, in marketing context, several researchers have studied market-based learning and its relation with performance. Previous studies have shown that market-based learning has a positive impact on overall firm performance. However, there has been inconsistency in the concept of market-based learning itself and its relationships with antecedents and consequences. Given this conflicting and inconsistent results of previous research, this study has two main objectives. First, this paper proposed a conceptual framework that marketbased learning has two types of processes and each types of market-based learning will generate different types of performance. Second, the mediating role of marketing capability in learning-performance link is proposed. The proposed conceptual framework shows that organizations which have marketbased learning for innovation management can enjoy ambidextrous firm performance on both side of effectiveness and efficiency via marketing capability. Moreover our research model proposes key drivers of market based organizational learning.

The role of entrepreneurial marketing in new technology ventures first product commercialisation

This paper sheds light on the importance of entrepreneurial marketing (EM) in the context of new technology ventures (NTVs) first product commercialisation. This study explores the role of EM expressed as the degree of complementarity between entrepreneurial orientation (EO) and market orientation (MO) in driving firms’ innovation activities including competence exploration and exploitation in achieving first product performance (FPP). The results of a survey drawn from Indian NTVs identify a significant effect for the complementarity of EO–MO on exploratory and exploitative innovation activities. Furthermore, the findings indicate a positive effect of both exploratory and exploitative activities in enhancing FPP and the contingency role of marketing capabilities (MCs) in enhancing the impact of competence exploration and exploitation in first product commercialisation.

Innovation Pathway to Profitability: The Role of Marketing Capabilities

We examine the role of architectural and specialized marketing capabilities in value creation and value appropriation in a firm’s innovation pathway to profitability. Drawing from the marketing cap...

The Role of Marketing Capabilities for the Competitive Advantage in the Slovenian Market

In the paper it’s proposed a framework with capabilities-based view of the firm to explain how marketing capabilities can enhance sustained competitive advantage of the firm. Specifically, it is suggested that marketing capabilities are important determinants of sustained competitive advantage of the firm. Marketing processes within the firm require many specific capabilities that enable the firm to carry out activities necessary to move its products or services through the value chain. It should be explored the role of distinctive marketing capabilities in competitive strategy of the company. As sources of competitive advantage, companies try to create their product or service differentiation by developing new product or service, by using their knowledge to solving marketing problems, by aligning the firm’s operations to changing conditions in the market and by satisfying customer’s needs. Marketing capabilities like generating new business ideas and new product development can enhance the firm’s sustained competitive advantage and thus should also be confirmed in the paper. The paper closes with the implications of the findings and highlights promising future research avenues.

An integrated marketing capability benchmarking approach to dealer performance through parametric and nonparametric analyses

The role of marketing capabilities as a source of sustainable competitive advantage has been discussed previously in the marketing strategy field. Benchmarking, a well-known learning mechanism, is suggested as a tool to identify and improve the marketing capabilities of a firm. Despite its popularity as a theoretical concept, there is not much empirical evidence to support the view of benchmarking marketing capabilities as a route to guide managers' efforts in this direction. This paper contributes to the three perspectives in the literature that support the view that benchmarking marketing capabilities can offer a basis for sustainable competitive advantage of the firm through both a conceptual and integrated benchmarking model. They are empirically analyzed using stochastic frontier and data envelopment analysis methods based on four-year data set of forty-five dealers of a leading business-to-business supplier. The results indicate the importance of competent salespeople and building a long-term relationship in enhancing dealer performance. In addition, they reinforce a recipe of how marketing capabilities can be benchmarked to achieve sustainable competitive advantage. Discussions and implications for managers are also presented.

The role of marketing capability in innovation-based competitive strategy

In recent years there has been a considerable debate on the role of marketing in competitive strategy. Marketing researchers argue that one way of marketing making a more significant contribution to the theory and practice of strategy is by explicit articulation of marketing capabilities. The new research agenda must explore the role of distinctive marketing capabilities as they relate to innovative and entrepreneurial firm behaviour. However, the literature on the role of marketing capabilities in competitive strategy has been limited. Similarly there have been inadequacies in the conceptualization and operationalization of innovation and sustained competitive advantage constructs. This paper presents the results of a study that examines the role of marketing capabilities in innovation-based competitive strategy. Results suggest that marketing capabilities influence both the innovation intensity and sustained competitive advantage of the firm. The research contributes to strategic marketing theory and practice by developing, refining and validating measures of entrepreneurship, marketing capabilities, organizational innovation and sustained competitive advantage.