The marketing strategy of a project-based firm: The Four Portfolios Framework

The purpose of this paper is to address the simultaneous management of multiple business relationships and multiple projects in the marketing strategy of the project-based firm. The research question is: How can the essence and interdependencies between the portfolios of relationships and projects be conceptualized as the marketing strategy of a project-based firm? We address this question by constructing a framework including two portfolios of relationships and two portfolios of projects, and by discussing how these portfolios may be interrelated. Combining the approaches of relationship management in project marketing on the one hand and the management of project portfolios on the other contributes a novel viewpoint to project marketing.     

Marketing capabilities: Antecedents and implications for B2B SME performance

The study provides a new perspective on SME marketing strategies in the B2B context. Using a resource-based view of the firm, the study develops a structural model linking marketing capabilities and marketing performance. A study of 367 SME Australian firms reveals that two key marketing capabilities, namely branding and innovation, have major performance outcomes in the SME B2B context. This is the first SME study to evaluate concurrently the contribution of innovation and branding marketing capabilities, with innovation capability the strongest determinant of SME performance. The study also finds market orientation and management capability act as enabling mechanisms for building marketing capabilities. Disaggregation tests indicate that the same findings apply to three size categories denoting micro firms (less than 20 staff), small firms (20-99 staff) and medium-sized firms (100-499 staff).     

Applying knowledge management to project marketing in a demanding technology transfer project: Convincing the industrial customer over the knowledge gap

Literature in project and knowledge management has examined knowledge management in projects, but the utilization of knowledge management in project marketing is still largely unexplored. This study examines the links between knowledge management and project marketing activities in a project where the seller wants to convince the potential buyer about a demanding investment project. An in-depth case study illustrates this in a situation hampered by a technical knowledge gap between the parties. The buyer is committed when they can trust the seller's capability to successfully accomplish the project. The seller must criticize and communicate its core and project specific knowledge of technologies and customer needs through project marketing. A framework and implications on knowledge management and project marketing activities in different project phases is presented. It is proposed that knowledge management is a pertinent tool for project marketing as it helps to understand the roles of different knowledge types.     

The digital marketing capabilities gap

Over the past two decades, digitalization has revolutionized not only consumer marketing but also industrial marketing. Both industrial marketing scholars and industrial marketers seek insights to understand how our knowledge and practice of digital marketing has been structured and configured. To address this gap, we adopt the resource-based perspective as an organizing framework and systematically review 129 articles spanning two decades of research to identify different digital marketing capabilities in industrial firms. From this analysis, we identify four themes: channels, social media, digital relationships, and digital technologies. We then stress-test this knowledge with managerial practices by conducting an online survey of 169 managers, designed to establish the repertoire of current and future marketing capability needs of industrial firms. Herein, we identify two marketing capabilities gaps: the practice gap—which identifies the deficit between managers' ‘current’ practices and their ‘ideal’ digital marketing capabilities; and, the knowledge gap—which demonstrates a significant divide between the digital marketing transformations in industrial firms and the extant scholarly knowledge that underpins this. Based on these results, we build an agenda for future research on digital marketing capabilities.     

Balancing exploration and exploitation capabilities in high technology firms: A multi-source multi-context examination

Based on the dynamic capability view, this study examined the balance between exploration and exploitation capability. With this, we proposed a framework that synthesizes the impact of new product creativity and marketing program creativity on new product quality (internal product quality and external product quality), and further understanding the path to performance of new products in a select number of industrial and consumer products. The main findings revealed that the effect of new product creativity in consumer product firms through internal and external product quality was less dominant than those in industrial product firms. In contrast, the effect of marketing program creativity in industrial product firms through only external product quality was less dominant than those in consumer product firms. Additionally, this paper also discusses the research limitations, future research directions, and theoretical and practical implications.     

Marketing metrics' usage: Its predictors and implications for customer relationship management

This research aims to determine the conditions that foster use of marketing metrics in customer relationship management (CRM) and identify the organizational factors that strengthen/weaken the impact of usage of marketing metrics on CRM performance. Based on the customer value-based theory of the firm and the contingency perspective, a research framework was developed to shed light on the predictor roles of customer value-based organizational culture and processes in determining usage of marketing metrics, and foster an understanding of the moderating roles of marketing-supply chain conflict, and innovative value proposition on the marketing metric-performance relationships. Empirical evidence from a sample of 209 business firms confirmed the main effect that customer value-based organizational culture and processes support a firm's use of marketing metrics that in turn enhance its CRM performance. Notable moderating effects were also identified. Although marketing-supply chain conflict weakens the impact of marketing metrics usage in achieving superior CRM performance, innovative value proposition strengthens the conversion of marketing-metric-related knowledge into superior CRM performance.     

Risk and capital structure in Asian project finance

We develop and test hypotheses derived from a multi-level theoretical framework for understanding factors shaping the credit risk and capital structure of a quintessentially Asian form of investment known as project finance. It differs from other corporate financing approaches. A project company is separate and bankruptcy remote from the investing firm sponsors that create it. The project company relies extensively on debt capital provided by creditors to fund project operations. Creditors provide more (less) debt as a percentage of overall project capital when there is less (more) risk of project failure and non-repayment. We define a target risk framework identifying country-, industry-, syndicate-, firm-, and project-related factors shaping Asian project finance company credit risk and thus, project debt. In a sample of 238 project finance companies announced in 13 Asian countries from 1995–2004, we observe substantial effects on project capital structure with respect to country-level factors linked to institutional and macroeconomic theories, syndicate structure factors linked to agency theory, and lead sponsor experience and project size factors linked to learning and transaction cost theories. We argue that these and other determinants of project finance company credit risk and capital structure in Asia since the mid-1990s anticipate similar relationships now emerging elsewhere around the globe.

Organizational structuring and project team structuring in integrated product development project

For a superior project result, integrated product development (IPD) project need to have stage-specific management approaches where the front-end structuring supports and strengthens the management of the project and the team during the execution stages. In the current study we focus on relationships on the organizational level variable during the front-end stage of the project, organizational structuring, with a project execution level variable, project team structuring to study the impact on product design glitches and project performance in the concurrent project environment. We hypothesize that managing the overall product development projects with integrated organizational structuring at the front stage and project team structuring during the development and project implementation stages can lead to reduced product glitches which can enhance the overall IPD project performance. We test our hypothetical model using data collected from the US automotive industry. Our data supports all the three proposed hypotheses. Discussion and implication of the empirical results, limitations of the current study, and recommendations for future studies are also provided.     

Power, conflict, and cooperation: The impact of guanxi in Chinese marketing channels

This paper tests the impact of guanxi on behaviors among firms in a Chinese marketing channel. Guanxi is operationalized in this paper as emotional closeness and interactive state. We find that the emotional closeness between channel-boundary personnel of firms has a positive impact on their exercise of noncoercive power, a negative impact on their exercise of coercive power, and a negative impact on the perceived conflict between them. In addition, emotional closeness has an indirect but positive impact on perceived cooperation. Interactive state between the boundary personnel of two firms has a positive impact on a firm exercising noncoercive power and a negative impact on perceived conflict between them. At the same time, it is positively related to a firm exercising coercive power. This shows not only the significant influence of guanxi on a firm's channel behaviors but also the constructive effects of both emotional closeness and interactive state on marketing channel behaviors in China.     

Industrial marketing in Romania

This article by Dr. Lilian Cre?u facilitates an understanding of industrial marketing procedures in Romania. In the author's country industrial marketing has been, until recently, the least developed branch of marketing activity. However, as the Romanian economy develops (with a predicted 48% of industrial production in 1975 consisting of new or modernized products), classical central planning may become insufficient for accurately predicting and meeting Romania's need for industrial goods. Some autonomous decisionmaking by economic subunits may become necessary. It is possible, therefore, that industrial marketing activity at the microeconomic level will increase. Lilian Cre?u attempts to demonstrate this last point by indicating the changes in the concept and modus operandi of management which are taking place under the impetus of economic expansion.     

The effects of environmental focus and program timing on green marketing performance and the moderating role of resource commitment

Should firms adopt sustainable marketing policy and develop green products? Most popular press says yes, but industry remains slow to act upon such initiatives. Drawing upon recent research in the Industrial Marketing Management Sustainability Special Issue, this research investigates the impact of green initiatives on firm performance and how the related commitment of resources impacts the effectiveness of those initiatives. The goal of this paper is to explore the effectiveness of green marketing on firm performance, in terms of financial performance, market performance, and service quality. Further, resource commitment is examined as a possible boundary condition of these relationships. Using multi-source data, the findings suggest that the commitment of proper resources is critical to the success of any green initiative. This study also supports the notion that being the first firm in an industry to initiate a green program provides few tangible benefits. More importantly, even firms with an environmental focus neglect to realize superior performance unless the specific strategy is matched with consistent support from top management.     

Implications of service processes outsourcing on firm value

Outsourcing is one of the important strategies acknowledged by firms recently. With an increase in globalization and the proliferation of information technology, more and more firms outsource not only their production but also their service processes including back office business processes and information technology functions to external suppliers. Recognizing the criticality of outsourcing service processes in marketing management, the authors build on the outsourcing literature and integrate it with the finance literature on market efficiency to develop a conceptual framework. The authors collect outsourcing announcements from the Wall Street Journal and business news available at Lexis-Nexis between 1995 and 2005 to conduct an event analysis. Results indicate that outsourcing in general creates positive firm value, i.e., cumulative abnormal returns; however, such effects vary depending upon different levels and dimensions of an outsourcing decision. The authors conclude with managerial implications and future research at the end.     

An applied theory for marketing industrial services

When the area of industrial marketing is discussed in the literature on marketing and marketing management, only the marketing of goods to industrial buyers are considered. However, a vast amount of services are also marketed in the industrial sector. There is some, although very limited, literature on professional or consultancy services, but the area is usually not thought of as a part of industrial marketing [1–3]. Recently, a few papers have been published where these services are treated as an integral part of industrial marketing [4, 5]. The purpose of this article is to suggest some frameworks concerning the marketing of industrial services.     

Relationship factors and firms' willingness-to-pay: A comparison of east-west settings

The aim of this study is to examine the underlying mechanism that explains the effects of supplier firms' sustained competitive advantage (SCA) on customer firms' willingness-to-pay a price premium (WTP) across Eastern and Western settings. Drawing upon the relationship marketing (RM) paradigm, we posit that SCA influences WTP via calculative commitment and relationship quality (RQ). A survey involving executives from Australian (n = 336) and Chinese (n = 360) firms was conducted to test the theoretical model. The findings reveal that the effect of SCA on WTP is mediated by RQ and calculative commitment among Chinese firms. Among Australian firms, however, the effect of SCA on WTP is mediated only by RQ and not calculative commitment. The study contributes to the literature by distinguishing the role of ‘rational’ (i.e., calculative commitment) and ‘emotional’ (i.e., affective commitment and RQ) relationship factors in influencing WTP, and by validating a multidimensional RQ model that is applicable to culturally diverse contexts. To marketing practitioners, this research helps to identify the conditions under which RM practices can be effective for B2B firms that operate across diverse cultures.     

Value innovation,deliberate learning mechanisms and information from supply chain partners

Although marketing scholars have emphasized both the importance of internal learning mechanisms and of external learning through supply chain partners research findings on how these factors influence each other are merely lacking. Analyzing survey data of 182 industrial firms, we examine how information provision by upstream and downstream supply chain parties moderates the effect of internal deliberate learning mechanisms on value innovation ability. Results of the PLS analysis suggest that internal learning mechanisms and external information exchange do not always work symbiotically. Our findings provide interesting results for (the management of) innovation processes and supply chain relations.     

A Causal Model of the Impact of Skills, Synergy, and Design Sensitivity on New Product Performance

Notwithstanding the best efforts of outstanding managers, project team members, researchers, and consultants, no product development plan can guarantee success. Every new products organization will experience its fair share of failures, but a firm can take steps to ensure that its failures do not outweigh its successes. By benchmarking the competition, a firm can gain insight into best practices–the factors that lead most directly to new product success. To help identify these best practices, X. Michael Song, William E. Souder, and Barbara Dyer develop and test a causal model of the relationships among the key variables leading to new product performance. The proposed model identifies five factors that lead to marketing and technical proficiency: process skills, project management skills, alignment of skills with needs, team skills, and design sensitivity. According to the model, marketing and technical proficiency directly determine product quality, and ultimately lead to new product success or failure. The causal model was tested using information on 65 completed projects–34 successes and 31 failures–from 17 large, multi-divisional Japanese firms. The study participants develop, manufacture, and market high-technology consumer and industrial products. These firms judged the success or failure of the projects in this study by using seven criteria: return on investment, profit, market share, sales, opportunities for technical leadership, market dominance, and customer satisfaction. These firms generally assigned the greatest importance to customer satisfaction, opportunity creation, and long-term growth. For the most part, the responses from these firms support the relationships presented in the causal model. According to the respondents, marketing proficiency and product quality have a strong, positive influence on their new product performance, as do process skills, project management skills, and alignment of skills and needs. The responses highlight the importance to these firms of responsiveness to customer wants and needs, as well as ensuring a close fit between project needs and the firm's skills in marketing, R&D, engineering, and manufacturing. Somewhat surprisingly, the responses do not support the model's suggested relationships between skills/needs alignment and technical proficiency or between technical proficiency and product quality.     

Configuring quality management and marketing implementation and the performance implications for industrial marketers

This study empirically examines if different configurations of quality management and marketing (Q&M) implementation exist in various industrial organizations and explores their implications for firm performance. We survey 304 organizations that have operational quality management systems and conduct in-depth interviews with selected groups of respondent organizations to understand their market-oriented behaviors. We perform cluster analysis of the survey data to empirically construct taxonomic configurations of Q&M implementation that may exist in these organizations. The results show three distinct configurations with each configuration displaying specific implementation characteristics. We label the corresponding organizations as reactive firms, progressive firms, and proactive firms, respectively. In other words, each configuration represents a different extent of implementing Q&M in organizations. We also find that the empirically-derived configurations, corroborated with in-depth interview data, are associated with various firm performance measures. The analysis reveals that proactive firms in which Q&M are implemented at a high level attain the best firm performance. Despite the exploratory nature of this study, the taxonomy developed yields valid and reliable findings that have significant theoretical and practical implications for industrial marketers.     

How firms learn in NPD networks: The 4S model

This paper examines how firms learn in new product development (NPD) networks. While existing research in business and industrial marketing has significantly advanced our understanding of learning within single firms and in dyadic relationships, our knowledge of inter-firm learning across direct and indirect business relationships in NPD networks remains limited. We address this limitation by conducting multiple case study research to develop a more holistic understanding of learning in NPD networks that is captured in the proposed 4S model. Drawing on an integrated theoretical perspective and the empirical results of three case studies, we propose that firms engage in iterative cycles of syndicated, situated, selected and synergised modes of learning in NPD networks.     

The Role of Marketing Resources in Radical Innovation Activity: Antecedents and Payoffs

While radical product innovations represent significant engines of firm growth, questions remain over whether marketing helps or hurts (1) a firm's radical product innovation activity and (2) its rewards from radical product innovation activity. By attaching an attention‐based view of the firm to a market‐based assets view of marketing, this paper examines the role of three marketing resources—market knowledge, reputation, and relational resources—on radical innovation activity. Our conceptual framework posits differentiated effects among marketing resources as antecedents of radical innovation activity and as moderators of its impact on firms' financial performance. Using a survey of a broad set of high‐tech business‐to‐business (B2B) firms to test hypotheses, it is found that firms with strong relational resources enjoy a higher propensity for, and stronger financial rewards from, radical innovation activity. Reputational resources come with a trade‐off as they hurt the incidence of radical innovation but enhance its financial rewards. However, market knowledge resources appear to hurt both radical innovation activity and its financial rewards. Our results point to the multifaceted role of marketing in radical innovation activity, which is unlikely to come with a single benefit or liability as prior work often posits. Rather, our research heightens the alertness of managers to assess their firms' marketing strength as a bundle of stocks of several marketing resources. Managers must understand the distinct benefits and drawbacks of each resource in developing and launching radical innovations. Our research underscores the differentiated value of marketing in radical innovation activity in B2B high‐tech contrary to the entrenched idea of a limited or even stifling role of marketing in this context.