Marketing Capabilities Research Articles

Unlocking New Product Performance Through Market Orientation and Firm Capabilities in Malaysian Manufacturing SMEs

In Malaysia, small and medium enterprises (SMEs) are critical to the economic transformation as they form the key domestic source of growth and the bedrock of private sector activity. Moreover, SMEs are also important in stimulating innovation and stabilizing growth during the economic slowdown. Therefore, this paper investigates how the relationships between a firm’s market orientation and its new product performance are mediated by such capabilities (marketing and technological capabilities). Embedded in the firm's Resource-based View (RBV), a theoretical framework for new product performance was developed. The empirical results demonstrate that a firm’s market orientation positively impacts new product performance. Also confirms that marketing capabilities do have a direct impact on new product performance. Besides, marketing capabilities serve as an indirect-only mediator (full mediation) for the relationship between market orientation and new product performance. A clear message for managers and owners is that they should develop strong firm capabilities to achieve superior new product performance.

Gauging the impact of M-marketing capabilities on perceived sales performance of organization

The aim of this study to address the purposeful question for the managers and researchers is how organizational resources through mobile marketing (M-marketing) capabilities can improve sales performance of organizations. The study considered training, internal marketing, organizational culture and product-related knowledge as organizational resources that enhance perceived sales performance through different M-marketing capabilities like accessibility, cost saving and quick decision making. This research incorporated dynamic capability and resource-based view (RBV) theories to construct the research model. 396 responses were received from SMEs employees from ten big cities of Pakistan and structure equation modelling used to examine the research model. Findings showed that the organizational resources (training, internal marketing, organizational culture and product-related knowledge) and M-marketing capabilities (accessibility, cost saving and quick decision making) significantly impacted the PSP. M-marketing capabilities significantly partially mediate among the relationships of organizational resources and PSP.

Market-orientation, entrepreneurial-orientation and SMEs’ performance: the mediating roles of marketing capabilities and competitive strategies

PurposeAppealing to the resource-based view and the resource advantage theory, this research aims to ascertain the complementarity of entrepreneurial and market orientation in enhancing the performance of small and medium enterprises.Design/methodology/approachFollowing a survey design, a self-administered questionnaire containing scales adapted from leading previous studies was used to collect data from 400 executives working in small and medium enterprises in Pakistan. Partial least squares-based structural equation modeling was performed to analyze the measurement and the structural models and test the significance of the hypothesized relationships.FindingsIt has been found that market orientation and entrepreneurial orientation enhance firm performance directly and indirectly with marketing capabilities and competitive strategies (partially or fully) mediating these causes and effects relationships.Practical implicationsThe study adds to the literature on entrepreneurship, marketing and strategy and has significant ramifications for managers and public policymakers desiring to boost the performance of small and medium enterprises, which is crucial to the economic growth of developing nations, through nurturing and leveraging intangible resources such as market orientation, entrepreneurial orientation and marketing capabilities.Originality/valueIt is one of the rare attempts to investigate the complementarity of entrepreneurial orientation and market orientation, channeled through marketing capabilities and competitive strategies to boost SME performance, that too in the context of a developing country.

The Role of Innovative Marketing in Achieving Competitive Advantage of Yemeni Pharmaceutical Companies

The study aimed to identify the role of innovative marketing in achieving competitive advantage for Yemeni pharmaceutical manufacturing companies. It employed a descriptive-analytical approach, and to achieve the study's objectives and test its hypotheses, a questionnaire was constructed to collect primary data from the study population of 140 employees in Yemeni pharmaceutical manufacturing companies. A comprehensive sampling method was chosen for all marketing managers, their supervisors, and sales representatives. The questionnaires valid for analysis were 112, and the data were statistically processed using SPSS. The study revealed that there is a significant interest among the studied companies in practicing innovative marketing across its various dimensions. The studied companies also show a high interest in achieving competitive advantage in all its dimensions. It was found that there is a positive role for innovative marketing in achieving competitive advantage. Furthermore, the study revealed a significant interest from the studied companies in offering innovative products and products with different shapes and packaging. The study recommended the necessity of investing in the influential relationship of innovative marketing in achieving competitive advantage, which contributes to enhancing their performance and sustainability by strengthening their innovative marketing capabilities and skills, and thus positively impacting their competitive advantage.

Assessing Marketing Capabilities and Re-Patronage Intentions Relationship Through the Lens of Technological Advancement

This study examines the relationship between marketing capabilities and re-patronage intentions in the retail sector. Building upon dynamic capability theory, expectation-confirmation theory, and social exchange theory, it also investigates the moderating role of technological advancement between marketing capabilities and customer satisfaction. Further, the mediating role of customer satisfaction has also been examined. Four hundred and seventy-nine shoppers across six shopping malls have responded to the questionnaire. The validity and reliability of the measurements have been confirmed through Confirmatory Factor Analysis. Structural equation modeling has been used for hypothesis testing. The study revealed that marketing capabilities affect customer satisfaction, and customer satisfaction affects both customer trust and re-patronage intentions. Further, technological advancement moderates the relationship between marketing capabilities and customer satisfaction. The study has many implications for academics and practitioners.

Marketing and IT capability as mediators: The role of digital marketing and orientation on SMEs marketing performance

The aim of this research is to examine the correlation linking digital marketing and the digital sphere orientation on marketing performance of MSMEs in Indonesia. Then, how information technology capabilities and marketing capabilities can be mediating variables between these three variables. This research uses a quantitative approach. This research falls under the category of exploratory research. The population in this study was 2,766; the research sample came from 338 MSMEs that are Go-Food partners spread across 4 districts on the island of Madura, Indonesia. The findings of the study indicate that digital marketing and digital orientation significantly influence the marketing performance of MSMEs. Information technology and marketing capabilities can be mediating and are variables that support other variables. The impact of this research is practical for Small and Medium Enterprises because, by improving marketing performance, they can maximize and develop their marketing capabilities. Information technology and marketing capability are widely used in research involving large companies. This research brings information technology capability within the scope of MSMEs because digital marketing has been widely applied to improve marketing performance. Then, this research has a practical implication to contribute to the role of information technology and marketing capability to answer how digital marketing impacts marketing performance.

An evolutionary perspective on capabilities for fluid product-markets: The contingent effects of routinization and renewal in marketing, R&D, and operations

The performance benefits of functional capabilities in marketing, technology, and operations rely on their routinization in organizational processes, but these also require renewal in response to environmental change. This raises a fundamental tension: is it better to maximally develop functional capabilities that offer the highest contingent benefit in present market conditions, and/or to modify capabilities as conditions change? We propose two measures of a firm's ability to renew its functional capabilities to align with market conditions: capability heterogeneity (variation in extant capabilities) and capability adaptability (selection among these strategic options). In a 20-year panel of 771 firms, we find environmental change increases the importance of these aspects of how capabilities are managed relative to what capabilities a firm possesses: In stable product-markets, capability heterogeneity and adaptability incur significant costs whereas functional capabilities improve profitability. In contrast, functional capabilities can be detrimental in fluid product-markets whereas heterogeneity and adaptability increase profitability. Notably, marketing capability remains beneficial across environments, acting as a profitable alternative to capability heterogeneity and adaptability when future conditions are uncertain. This evolutionary perspective contributes to ongoing theoretical debates on the conceptualization and consequences of capabilities, with practical implications for mitigating the risks of excessive inertia or change.

Impact of marketing capabilities on competitive advantage: A case of thai sme durian exporters

Purposes of this study were to highlight the role of durian exporters’ marketing capabilities in achieving competitive advantage among Thai SMEs, and to describe the significance of a competitive advantage in achieving marketing goals by examining marketing capabilities. One hundred SME exporters were randomly selected from the list of firms listed on the Association of the Durian Exporters. Ninety-six questionnaires were included in this study. The PLS-SEM Program was used to analyze the collected data which was collected by using a mail questionnaire distributed to SME exporters. Results from data analysis were: 1) it indicated that all marketing capabilities, including product, price, distribution, and promotional capabilities, impacted competitive advantage; and 2) five competitive advantage forces were found to have statistically significant impacts. Moreover, the analysis confirmed that marketing capabilities and competitive advantages were related. Implications from this study were: 1) exporters find their endeavors to develop marketing strategies to achieve competitiveness in the global market; and 2) exporters could focus on distribution capabilities to survive and to expand their product to gain a competitive advantage in the marketplace. The limitation of this study was that this study did not involve quality assurance and variety of the durian, which would affect price capacity.

Impact of entrepreneurial orientation, marketing capability, and market orientation on business sustainability and corporate reputation

This research aimed to explore the effect of market orientation, marketing capability, and entrepreneurial orientation on business sustainability and corporate reputation in Small and Medium Enterprises (SMEs). It also aimed to test the mediating effect of business sustainability between the stated factors and corporate reputation. The required data was obtained from employees of various SMEs in the United Arab Emirates (UAE) through a survey method. Structural equation modeling (PLS-SEM) was used for data analysis in order to test the hypotheses and reach at conclusions. The analysis confirmed that entrepreneurial orientation and market orientation have significant effects on business sustainability and corporate reputation. It was also found that marketing capability plays a key role in affecting business sustainability and corporate reputation. Lastly, the results revealed that business sustainability mediates the relationship among the selected factors and corporate reputation. The findings contribute to the existing empirical research on this topic and suggest that SMEs’ management should emphasize on these factors in an attempt to ensure the sustainability of their businesses and strengthen their reputations.

COVID-19 pandemic: advancing international marketing theory and guiding practice

Purpose This paper has a dual purpose. The first is to provide a thorough analysis of developments in international marketing in relation to the coronavirus disease 2019 (COVID-19) pandemic; the second is to capitalize on these developments to set an agenda for future research in the field of international marketing.Design/methodology/approach This paper zooms in on and reviews the 18 papers published in International Marketing Review’s (IMR) Special Issue on “Covid 19: advancing international marketing theory and guiding practice” (2023, volume 40, issue 5). It also integrates recent research at the intersection of international marketing and the COVID-19 pandemic.Findings The paper highlights five areas that embody significant contemporaneous changes brought about by the COVID-19 pandemic and affect international marketing practice. These include (1) shifts in consumer behavior, (2) digitalization and artificial intelligence, (3) disruptions in supply chains, (4) communication and corporate social responsibility (CSR), and (5) international dynamic marketing capabilities. In order to advance international marketing theory in relation to pandemics and other external crises, the paper establishes research directions for each of these areas.Originality/value The paper provides a novel and comprehensive categorization of fundamental shifts caused by the COVID-19 pandemic and lays out a research roadmap to advance research in the field of International Marketing (IM). Important implications for practice are also discussed.

The Moderated Mediation of Product Innovation and New Product Development in Relationship Between Organizational Learning and Marketing Capability, in Community Enterprise Management of Khid Clothing: Upper Northeastern of Thailand

Objective: The purpose of this research was to analyze the impact of the organizational learning (OL) on marketing capability (MC), the mediating of product innovation on the relationship between OL and MC, and the moderated mediation of product innovation and new product development in the relationship between OL and MC in community enterprise of Khid clothing in Thailand. Theoretical Framework: The theoretical framework for this research provides a comprehensive understanding of the interplay between organizational learning, product innovation, new product development and marketing capability within the context of community enterprises. Method: This report is a part of a larger exploratory study. Information was gathered from 389 people involved in silk-weaving cooperatives in the provinces of UdonThani and Nong Bua Lamphu through the use of questionnaires. Results and Discussion: The data demonstrates a link between strategic organizational learning and competitive advantage. Product innovation and the knowledge gained by an organization about how the market works go hand in hand. Lastly, the impact of product innovation on the link between organizational learning and market capability was tempered by the introduction of a new product. Research Implications: For Khid Clothing, integrating these theoretical perspectives can provide a comprehensive strategy for sustained growth and competitive advantage. The interplay between organizational learning, product innovation, new product development, and marketing capabilities creates a robust framework for the company to thrive in the competitive fashion industry. Originality/Value: The theoretical contributions of organizational learning, product innovation, new product development, and marketing capabilities provide Khid Clothing with a comprehensive approach to enhance its competitive edge, adapt to market changes, and achieve long-term success. By leveraging these theories, Khid Clothing can strategically position itself in the fashion industry, meet evolving customer demands, and drive sustainable growth.

Empirical study on marketing investment and business innovation—A case analysis based on small and medium enterprises

Marketing investment and innovation capacity are crucial strategic choices for companies. This paper uses data from small and medium-sized companies from 2015 to 2022 to explore the impact of marketing investment on corporate innovation in depth. The study finds a positive correlation between marketing investment and corporate innovation, market competition intensity moderates the relationship between marketing investment and corporate innovation. This research has practical significance for enhancing the marketing capabilities and innovation resource allocation of small and medium-sized enterprises in China.

기업의 역량에 따른 정부 지원 혜택이 벤처기업의 장기 성장 전망에 미치는 영향

[Purpose] This study was designed to examine whether there is a difference in the impact of support for each company’s capabilities on long－term growth for venture companies. [Methodology] Analysis was conducted through a questionnaire method, using SPSS statistical analysis company, and multiple regression analysis method was used. [Findings] First, in a sample of all companies, it was found that the more financial support benefits and image benefits the company received, the higher the long－term growth prospects of the company. Second, in the sample divided by each competency, companies with high development capabilities were found to have higher long－term growth prospects as they received higher financial support benefits, and for companies with high manufacturing capabilities, companies with higher technical manpower benefits were found to have higher marketing capabilities. It was found that the higher the financial support benefits, the higher the long－term growth prospects. Third, in a sample where all companies were asked to select only one excellent competency for each company, companies with high development capabilities showed a negative significance in the long－term growth prospects of technical manpower deposits, and companies with high manufacturing capabilities showed negative significance. Technical manpower benefits and image benefits showed a significant positive relationship with long－term growth prospects, and companies with high marketing capabilities did not show a significant relationship with any benefits. [Implications] Through this study, it was empirically proven that government support is more effective when it provides benefits tailored to each company rather than universal support.

Reshaping of Global Shipping Dynamics: Implications for Strategic Resilience Capabilities, Marketing Capabilities, Supply Chain Orientation Capabilities and Port Competitiveness in Indonesia

The phenomenon of dynamic maritime environment have affected port business and it is substantially changing the business environment in which large-scale container trade growth is being facilitated. In this paper will illustrate the dynamic features of port users, discuss the port competition strategy and analyse the marketing strategic for port business under transformation phases. Using qualitative methods using case studies through a literature review and empirical evidence to prove, deepen and expand the results of the study. In this article, we develop and examine the implication such marketing capabilities approach to the effectiveness of the marketing strategies and strategic resilience capabilities to determine sustainable competitive performance. Based on a discussion among with its managements, this paper could prove a conceptual framework in which strategic resilience capabilities and supply chain orientation capabilities have a profound impact on the company’s sustainable competitive performance.

Drivers of metaverse adoption for enhancing marketing capabilities of retail SMEs

Small and medium-sized enterprises (SMEs) rely on a thriving distribution network and digital technologies, including the metaverse, to remain competitive. The retail industry is perceived as a portfolio-based and granular business. Hence, retail SMEs can be a key source of innovation and a major source of growth that need technical flexibility to react quickly to changing customer needs. Therefore, grounded in the TOE framework, this study is undertaken to explore the drivers of metaverse adoption for enhancing the marketing capabilities of retail SMEs. Online surveys were used to gather primary data from 300 marketing practitioners employed in retail SMEs. Subsequently, the data were analysed using quantitative research methodology. The finding reveals that the metaverse is gaining attention from retail SMEs due to its technological, organisational, and environmental drivers, as well as its ability to provide immersive experiences to customers. Thereafter, metaverse adoption enhances the marketing capabilities of SMEs with new sales channels, tailored marketing, and increased customer reach with an understanding of the marketplace focused on customer relations, market research, and cross-management capabilities.

Market Orientation and Marketing Capability of SMEs: A Conceptual Framework

Market Orientation and Marketing Capability of SMEs: A Conceptual Framework

Linking SMEs’ customer strategy to firm growth: the case of manufacturing suppliers in South Korea

PurposeThis study examines the customer strategies for small- and medium-sized manufacturing suppliers (SMMSs) in customer dominance markets, particularly regarding power asymmetry. It has two key objectives: (1) to identify factors impacting SMMSs' customer strategies, including technological and marketing capabilities and the importance of the main customer and (2) to examine the impact of these strategies on firm growth.Design/methodology/approachUsing the survey data on 279 Korean manufacturing suppliers in B2B markets, nine hypotheses were verified through a structural equation model (SEM). It involved capturing the varied influence of organizational capabilities on the two types of customer strategies and the link between customer strategy and firm growth.FindingsTechnology and marketing capabilities affect new customer acquisition directly, while in the case of main customer retention, marketing capability affects main customer retention through the overall satisfaction about the existing relationship. Although the importance of the main customer suppresses new customer acquisition strategies, SMMSs should actively pursue both customer acquisition and retention to promote firm growth.Originality/valueThe findings reveal how SMMSs, leveraging technological and marketing capabilities, can concurrently pursue new customer acquisition and main customer retention. Additionally, it empirically demonstrates the impact of the main customer’s importance on these customer strategies and underscores the positive impact of both strategies on firm growth. This provides a blueprint for a value-creation process linking capabilities, customer strategies and firm performance.

The paradox of aging population and firm digital transformation in China

Although a number researchers have acknowledged that the aging population inhibits firm digital transformation, others find it promoting digital transformation in some firms. As the relevant literature to clarify such paradox is still scare, this paper wants to fill the gap regarding the labor cost theory, the capital-skill complementarity hypothesis, and the human capital externality theory. Based on the empirical tests of Chinese A-share listed companies from 2001 to 2022, this study detected a U-shaped relationship between the aging population and digital transformation. In terms of the institutional environment, higher marketization strengthens the U-shaped relationship by making the slopes on either side of it steeper. However, higher minimum wage levels weaken the U-shaped relationship. In terms of firm strategy, firms with stronger marketing capabilities strengthened the U-shaped relationship. However, firms with higher customer concentration weakened the U-shaped relationship. Overall, we enriched scholarly understanding of the impact of the aging population on digital transformation and demonstrated the dual potential impact of aging populations. Instead of assuming they are detrimental to the economy and society, positive contributions in the form of innovation and progress for companies can be detected.

Identifying the impact of absorptive capacity, new product development, and marketing capabilities on digital marketing adoption and new product performance in Indonesian SMEs

This study investigates the impact of absorptive capacity on enhancing the performance of SMEs through new product development, marketing capabilities, and the adoption of digital marketing. The research problem addresses how absorptive capacity influences these factors to improve new product performance. A quantitative approach was employed, collecting data from 212 SMEs in three cities in East Java Province, Indonesia. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that critical factors influencing new product performance include the ability of SMEs to absorb external knowledge (indicator AC3, loading factor 0.852), new initiatives in product development (indicator NPD4, loading factor 0.886), and strong marketing strategies (indicator MC3, loading factor 0.878). Further analysis reveals that absorptive capacity positively and significantly affects new product development (ß=0.763; p-value<0.05) and marketing capabilities (ß=0.724; p-value <0.05) but has a negative and insignificant effect on digital marketing adoption (ß=–0.102; p-value>0.05). However, digital marketing adoption positively and significantly impacts new product performance (ß=0.628; p-value<0.05). These findings suggest that while absorptive capacity is crucial for new product development and marketing capabilities, it is insufficient to drive digital marketing adoption. The results highlight the important but not significant mediating role of digital marketing adoption. The practical implications provide guidance for SMEs to adjust their marketing strategies and new product development to improve performance, particularly during a crisis

The impact of marketing assets of foreign subsidiaries on marketing dynamic capabilities of multinational enterprises (MNEs): the mediating effect of customer orientation

PurposeThe purpose of this paper is to explore mechanisms of the overseas marketing assets needed for marketing dynamic capability in Chinese multinational enterprises (MNEs) settings. Marketing assets of foreign subsidiaries contribute to the dynamic capability of MNEs, which are crucial for their sustained competitiveness. This kind of mechanism attracts much attention in academia and industry. However, there are few studies on how dynamic capabilities are developed in MNEs considering the organizational structure of geographically dispersed assets in multiple locations. This paper aims to examine the effect of knowledge-based and relational-based marketing assets on dynamic marketing capabilities and the mediating effect of customer orientation on Chinese MNEs.Design/methodology/approachIntegrating the dynamic capability approach and the international marketing literature, this study examines the impact of two types of marketing assets of foreign subsidiaries, focusing on knowledge-based and relationship-based marketing assets, on the dynamic marketing capabilities of Chinese MNEs. A large-scale empirical study of Chinese MNEs operating in overseas markets was performed, and the questionnaires were distributed and collected.FindingsThe results suggest a positive impact of knowledge-based and relationship-based marketing assets on marketing dynamic capability. We find that customer orientation has a positive mediating effect on the relationship between marketing assets and marketing dynamic capability. We also find that the competitive strength of the overseas market negatively moderates this relationship.Research limitations/implicationsThis study aims to contribute to the existing literature with a more fine-grained understanding of marketing assets and marketing dynamic capability, then provides theoretical guidance and management suggestions for the formulation and implementation of internationalization strategies of Chinese MNEs.Practical implicationsThe findings outline several important implications for MNEs seeking into expand to overseas markets.Originality/valueThis paper contributes a novel, combined perspective on marketing assets and marketing dynamic capability.