The effects of entrepreneurial orientation, market orientation, and marketing subunit influence on firm performance

The study investigates how an organization’s entrepreneurial orientation moderates the interplay between market orientation and marketing subunit influence on firm performance. The hypothesized model predicts that the positive interaction between market orientation and marketing subunit influence has a weaker effect on firm performance under conditions of high entrepreneurial orientation. The regression and supplementary analyses provide support for most predictions and, most importantly, for a negative three-way interaction effect: At higher levels of entrepreneurial orientation, the positive moderating effect of marketing subunit influence on the market orientation–business performance relationship is reduced. The authors discuss the managerial and theoretical implications of their findings and provide a number of directions for further research.

The influence of firm age and intangible resources on the relationship between entrepreneurial orientation and firm growth among Japanese SMEs

With the relationship between entrepreneurial orientation (EO) and firm performance having broad scholarly acceptance, researchers are now delving with increased focus into the contextual factors that change the nature of the relationship between EO and various manifestations of organizational performance. In this vein, this study adopts the resource based view and investigates the moderating influence of firm age and intangible resources on the EO-firm growth relationship among small to medium sized enterprises (SMEs) in Japan. Further, we propose a three-way interactive model between EO, firm age, and intangible resources to better identify entrepreneurial configurations that promote superior SME growth.     

External environment and the moderating role of export market orientation

This research has two main objectives. The first is to fill the knowledge gap on the role which the external environment plays in the strategic behavior of exporting companies, taking into account the psychological distances between the domestic and foreign markets. The second aim is to clarify the role that market orientation plays in export activity, since the literature review shows conflicting results. The study provides insight into these issues through hypothesis testing of a conceptual model using a sample of 212 Spanish exporting companies. The results lead to two major conclusions: (a) in turbulent environments, exporting firms adapting the marketing mix program to the needs of foreign markets obtain a better export performance in highly competitive and psychologically distant markets; (b) although market orientation has a direct and positive effect on export performance, its main role is to support strategic decision making in exporting companies. In addition, market orientation moderates the relationship between marketing mix adaptation and export performance.     

MARKETING/LOGISTICS RELATIONSHIPS: INFLUENCE ON CAPABILITIES AND PERFORMANCE

Effective marketing/logistics relationships can help to create, develop, and maintain critical capabilities to support long‐term firm success. Recent research focuses on two distinct capabilities—information capabilities and firm‐wide integration. Empirical results are provided confirming the proposed relationship between marketing logistics relationship effectiveness and the two capabilities. Further, the capabilities are shown to positively impact logistics performance.     

The overestimated role of strategic orientations for international performance in smaller firms

This article examines how market orientation (MO) and entrepreneurial orientation (EO) relate to international performance in small firms. Empirically, the article draws on survey data from 188 Swedish SMEs. Results show that strategic orientations have a very limited influence on international performance in these firms. Proactiveness and, to some extent, a market orientation proved positively associated with international performance, while innovativeness and risk taking show no such relationship. Our findings highlight the problems associated with using “traditional” MO and EO constructs in an SME setting and point to the need of developing more appropriate constructs tailored to this context. We also note that the MO construct was developed from a “causal view” of marketing, while successful small international firms rely more on effectuation logic. The article also contributes to the debate between the two dominant perspectives that address firms’ early internationalization processes: the process theory of internationalization and the international new venture perspective, where our results are in favor of the latter.

Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology

This study examines how technology and complementary resources are bundled to form capabilities that foster durable customer relationships. Drawing from the literature in marketing, strategic management, and information systems, the first outcome is a theoretically grounded conceptualization of CRM technology capability comprised of three complementary resources: technology, business, and human resources. The second key finding is that CRM technology capability and customer orientation have a positive association with the development of durable customer relationships. These resources also have a positive interactive effect on customer-linking capability, highlighting the importance of aligning strategic business and technology resources. Finally, the authors find that customer-linking capability has a positive relationship with customer relationship performance and that the rapidity of changes in the external environment moderates this relationship. This study addresses these research questions in a cross-sectional study of 215 organizations using a partial least squares modeling approach.     

Technological turbulence, supplier market orientation, and buyer satisfaction

The channel literature suggests that building a close relationship with key partners is one of the key strategies that channel members use to overcome the challenges of a changing environment. However, such a strategy may be ineffective when high technological turbulence exists in the buyer's market. This study focuses on the buyer's perspective in channel relationships and examines the buyer's satisfaction with outcomes resulting from engaging in relationships with a supplier. The results show that a buyer's performance is enhanced when a buyer develops a close relationship with a supplier whom it perceives to be market oriented but that a close relationship becomes detrimental to performance when technological turbulence increases. These findings suggest that managers need to be aware of the effect of technological turbulence and be alert in managing close relationships even with market-oriented suppliers.     

Liabilities and benefits: Examining the two sides of the foreignness coin from entrepreneurial perspective

This paper provides an in-depth examination of foreignness at the individual level by studying it in the context of entrepreneurs. Based on data collected from 470 domestic and foreign entrepreneurs operating in the U.S., it was concluded that foreignness has a curvilinear relationship with entrepreneurial performance. There was also evidence of moderating effects of entrepreneurial orientation on the relationship between foreignness and performance. Implications of the findings are discussed.     

Small but Sincere: How Firm Size and Gratitude Determine the Effectiveness of Cause Marketing Campaigns

Cause-Marketing (CM) has gained momentum in recent years, both in marketing research and practice. However, while CM aims to influence consumers on an emotional or affective level, research into the emotional and affective response to CM campaigns is scarce. The current research fills this void by showing that a CM campaign is a win–win–win strategy. Though the tangible benefits of CM campaigns go to the firm and the philanthropic cause, our perspective is novel by arguing that the consumer benefits as well, albeit intangibly; CM campaigns provide an opportunity to do good, and hence induce feelings of gratitude in consumers. However, this effect depends on several contingencies. In particular, consumers perceive greater effort by small firms, relative to large firms, that engage in CM campaigns, leading them to assess the underlying motives as more sincere and then experience stronger feelings of gratitude for the opportunity to donate. Four experiments confirm this greater CM effectiveness for small compared with large firms. In turn, this study offers substantive contributions for both marketing research and practice: It proposes a cost-effective strategy for enhancing CM effectiveness, and specifies concrete strategies for both small and large companies.     

Paving the way for “distinguished marketing”

Over the last six decades, marketing concepts, tools, and knowledge have gone through tremendous developments. A general trend toward formalization has affected orientation and decision making and has clarified the relationship between marketing efforts and performance measures. This evolution has received strong support from concurrent revolutions in data collection and research techniques. This article outlines the formalization of the marketing discipline and proposes steps that will pave the way for future developments in marketing, toward what I call “distinguished marketing”.     

Marketing accountability: Linking marketing actions to financial results

This plenary address to the Society for Marketing Advances calls on the marketing discipline to be accountable, link its contributions to financial performance, and assert the value it contributes to the firm. The paper suggests a process for developing causal links among marketing activities, intermediate marketing outcomes, and financial performance metrics.     

External technology acquisition and firm performance: A longitudinal study

External technology acquisition has been viewed as an important method used by firms to achieve higher economic returns. However, only a few studies have evaluated the contribution of external technology acquisition to firm performance. This lack of research is surprising because the benefits of external technology acquisition to innovation output have been emphasized extensively in the literature. This study therefore investigates the extent to which external technology acquisition effects a firm's performance, and how this effect is moderated by internal R&D efforts. This analysis concentrates on the electronics-manufacturing industry, taking advantage of the relative abundance of data on longitudinal investigation variables. A longitudinal sample allows this examination to control extraneous effects and to provide more convincing evidence for the relationship between external technology acquisition and firm performance. The analytical sample comprises a total of 341 Taiwanese electronics-manufacturing firms over the period from 1998 to 2002. The least square dummy variable analysis method reveals that external technology acquisition does not provide a significant contribution to firm performance per se; however, the positive impact of external technology acquisition on firm performance increases with the level of internal R&D efforts. Verifications for robustness and the split-sample analyses both validate the results in the setting of larger firms.     

Re-Evaluation of the MARKOR Scale Dimensions in the Brazilian Context

ABSTRACT

In Brazil, despite the common utilization of the MARKOR scales of market orientation, few studies have questioned specifically its validity or proposed revisions in the scales. For this purpose, this article presents the details of a research which had the objective of validating the MARKOR scale as well as making a critical analysis of the proposed structure of its theoretical dimensions using, as a base, the Brazilian retail apparel and the electrical-electronic industries. Results of the exploratory and confirmatory factor analyses pointed to a unidimensionality of the market orientation construct indicating the necessity of re-evaluating the theoretical structure subdivision of the construct dimensions.

RESUMEN. En el Brasil, a pesar del relativo uso de las escalas de orientación al mercado, ningún estudio empírico ha cuestionado hasta el momento la validez de dichas escalas (o señaló la necesidad de revisarlas). Dentro de este contexto, este artículo presenta los detalles de una investigación realizada sobre la validez de la escala MARKOR (Kohli, Jaworski y Kumar, 1993) y de la estructura teórica de sus dimensiones en dos importantes sectores económicos brasileños: el comercio minorista de confección y la industria electro-electrónica. Los resultados de los análisis factorial exploratorio y confirmatorio parecen indicar la uní dimensionalidad del constructor de orientación al mercado, indicando que se debe revaluar la estructura de sus dimensiones teóricas.

RESUMO. No Brasil, apesar da relativa utilização das escalas de orientação para o mercado, nenhum trabalho questionou ainda especificamente a validade ou propôs revis[otilde]es dessas escalas. Neste sentido, este artigo apresenta os detalhes de uma pesquisa que objetivou validar a escala MARKOR, bem como tecer uma análise crítica à estrutura proposta de suas dimens[otilde]es teóricas, tomando como base o Varejo de Confecç[otilde]es e a Indústria Eletro-Eletrônica brasileiros. Os resultados das análises fatoriais exploratória e confirmatória apontam para a unidimensionalidade do construto de Orientação para o Mercado, indicando a necessidade de reavaliação da subdivisão da estrutura teórica das dimens[otilde]es do construto.     

The impact of internal,external, and competitor factors on marketing strategy performance

ABSTRACT

Strategy formulation is commonly understood as the match between a firm’s internal resources and skills and its external environment. Marketing strategy performance is the function of a dynamic, interactive process incorporating internal firm resources, external environmental factors, and competitive actions. The study aims to assess the impact of competitor actions on marketing strategy performance. We develop a model that accommodates the effects of 29 variables (comprising internal marketing strategy variables, external environmental factors and competitors’ marketing mix variables) on business performance. We empirically test the model using simultaneous equation modelling of time-series data on UK car manufacturers collected from publically available resources and annual reports. The results show that external factors, in particular competitors’ marketing mix elements, have a greater influence on a company’s business performance than internal (marketing and non-marketing) strategy variables. Implications for marketing theory and management are discussed.