Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities

Drawing from the marketing capabilities and innovation literatures, we identify aprocess by which a firm’s entrepreneurial orientation impacts profits and show that it is dependent on marketing capabilities. Using a half-longitudinal design we integrate survey data with performance metrics over two time periods, from a sample of 190 firms. While the effect of entrepreneurial orientation (EO) on innovation is enhanced by architectural marketing capabilities, the effect of innovation outcomes on profits is enhanced by specialized marketing capabilities. Ultimately, the pathway from EO to performance, mediated by innovation, is positively significant at higher levels of both marketing capabilities. The results uncovered using Bayesian conditional process modeling, are robust to alternate model specifications, endogeneity tests, and provide insights into the capabilities-based understanding of entrepreneurism-marketing interface. We discuss resource allocation implications for managers as they attempt to maximize profits through innovation.     

Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages

Our study focuses on the internal process through which market orientation influences performance in export markets, and develops a model of market orientation–marketing capabilities–competitive advantages–performance relationships. Using survey data of 491 export ventures based in China, we find that marketing capabilities mediate the market orientation–performance relationship, while competitive advantages partially mediate the marketing capabilities–performance relationship. Moreover, coordination mechanism strengthens, and cost leadership strategy weakens, the effects of market orientation on new product development and marketing communication capabilities, respectively. Market turbulence attenuates the effect of market orientation on new product development capability while competitive intensity strengthens this effect.     

高新技术产业集群创新能力研究——以部分省会城市高新区为例

数据包络分析在多个输入、多个输出情形下的投入产出效率分析中多有应用,并可进行规模效应分析。以部分省会城市的国家高新区为样本,采用其2008年度财务数据,用数据包络分析方法,对高新区的高新技术产业集群创新能力进行实证分析。得出石家庄国家高新区高新技术产业集群创新能力的培养,应该加大投入力度,吸引高难度科技人才,加强企业与海外市场联系,促进产品的出口创汇。     

Unlocking the power of marketing: understanding the links between customer mindset metrics,behavior, and profitability

Recent evidence about the central role played by perceptual constructs in driving performance outcomes has produced a renewed interest in studying customer mindset metrics (CMMs; e.g., satisfaction, service quality, and loyalty intentions). However, we still lack a proper understanding of how (i.e., process) and to what extent (i.e., magnitude) these CMMs ultimately translate into profitability at the customer level. In this study, we integrate CMMs into an individual-level framework of customer behavior and profitability and provide a conceptual understanding of the process through which these metrics influence customer profitability. Specifically, we propose three mechanisms through which CMMs affect customer behavior and profitability: behavioral effect, marketing effectiveness effect, and marketing efficiency effect. We empirically test this framework across two distinct contexts, a B2B high-tech firm and a B2C telecommunications firm. The results demonstrate that these unobservable CMMs have a significant and multi-dimensional impact on customer behavior and customer profitability. Furthermore, we compute the increases in customer behavior and customer profitability that each firm can expect due to increases in CMMs to help firms improve resource allocation and make better decisions about how much (and when) to invest in CMMs.     

Firm capabilities and growth: the moderating role of market conditions

Using a contingency theory lens, this study explores the impact of multiple firm-level capabilities and their interactions on firm growth under different market conditions, using panel data from 612 U.S. public firms across 16 years in 60 industries. Specifically, this study empirically examines how three key firm capabilities (marketing, R&D, operations) interact to impact firms’ revenue growth and profit growth over time, and how external boundary conditions (market munificence and competitive dynamism) influence the interactive growth effects of these capabilities. The results indicate that firms’ R&D (operations) capabilities positively (negatively) influence the effects of marketing capabilities on firm growth and that such effects vary across different market conditions. This study provides insights to researchers and managers regarding how to manage and deploy resources across multiple capabilities simultaneously under different market conditions to drive firm growth.     

On the role of the RBV in marketing

This short note contains some reflections on the relationship between the resource-based view of the firm (RBV) and marketing. I focus on the main proposition of the RBV—that a firm should focus on what it can do better than others—and argue that it has implications for almost all marketing activities and that much thinking in the field already is consistent with it.     

Institutional pressures and marketing ethics initiatives: the focal role of organizational identity

Institutional theory implies that normative societal expectations create pressures for organizations to respond acceptably to important institutional constituents. Although the role of the institutional environment on marketing has been studied, the organizational mechanisms by which firms respond to societal pressures remain under-investigated. We suggest that an important determining factor involves organizational identity, which drives firm response to societal norms and facilitates its quest for legitimacy. Accordingly, this study contributes to organizational theory in marketing by casting identity as the focal mechanism in the firm’s response to the institutional environment. Marketing ethics and CSR issues frame this research given natural synergies with institutional and organizational identity theories and evidence that increasingly, firms must respond to societal expectations involving ethics in their marketing practices. Using game theoretical models and economic experiments, we find that the influence of the institutional environment emerges through firm identity, affecting resource allocation to ethical product augmentation.     

Strategic goal accomplishment in export ventures: the role of capabilities,knowledge, and environment

The management literature suggests that setting strategic goals facilitates the identification of appropriate business strategies and focuses management attention and available resources on their accomplishment, enabling subsequent goal realization. Yet the literature also indicates that firms often find it difficult to realize their strategic goals and may find it even more challenging to do so when operating in foreign markets. However, little is known empirically about the extent to which strategic goals enable desired strategic positions to be achieved and factors that may affect this relationship. We examine this important issue using primary data from a sample of exporting manufacturers. Results support the existence of previously theorized strategic goal–realized strategic position gaps and show that these negatively impact performance. Thus, simply setting strategic goals does not necessarily aid in accomplishing the desired outcomes, and any failure to do so is costly. Drawing on organization theory, we find that internal capabilities and knowledge, and external market factors play important roles in minimizing such strategic goal–realized strategic position gaps. Specifically, we show that businesses with stronger architectural capabilities, those with higher levels of internationalization, and those operating in less dynamic market environments are better able to realize their intended strategic objectives and thereby enjoy superior performance.     

When marketing strategy meets culture: the role of culture in product evaluations

This research investigates how national culture interacts with marketing strategy to influence consumers’ organic post-consumption satisfaction ratings of entertainment products rich in cultural content. Drawing upon a communication theory framework, we develop hypotheses concerning multiple interaction effects between culture and marketing strategies on consumers’ product evaluations. We test these hypotheses by analyzing consumer reviews of 260 movies in 25 country markets. In support of our hypotheses, we find that the cultural congruence between the product and the market improves consumer reviews, and that the effect is stronger in cultures characterized by collectivism, femininity, and uncertainty avoidance, as well as for products more heavily loaded with cultural content. In addition, we find that the negative effect of delay in product launch timing weakens for cultures characterized by long-term orientation, and that the positive effect of advertising spending on consumer evaluations is stronger in cultures characterized by high power distance belief. These results provide practical insights into how managers should make decisions concerning product design, launch timing, and advertising strategies in international markets.     

Ethical correlates of role conflict and ambiguity in marketing: The mediating role of cognitive moral development

Researchers in marketing ethics have identified the importance of cognitive moral development (CMD) in marketing ethics models. This study looks at selected correlates of role conflict and role ambiguity in marketing, especially the mediating role of CMD. Of the correlates examined, the results seem to support the existence of statistically significant relationships between CMD and role conflict and ambiguity. Implications for practitioners are provided. For example, the study could have direct implications for management personnel who have the responsibility of hiring ethical people and helping them address any role conflict or ambiguity that may arise from their job. He received his Ph.D. in marketing from the University of Mississippi. His work has previously appeared in theJournal of Business Ethics, theJournal of Pharmaceutical Marketing and Management, theJournal of Marketing Theory and Practice, theJournal of Promotion Management, Health Marketing Quarterly, and various national proceedings. He received his Ph.D. in marketing from Texas Tech University. His work has previously appeared in theJournal of Business Research, theJournal of Macromarketing, theJournal of Business Ethics, International Marketing Review, theJournal of the Academy of Marketing Science, and various other journals and proceedings. He received his Ph.D. from the University of Oregon. His research has previously appeared in theJournal of Marketing Research and numerous other journals and proceedings. He received his Ph.D. in marketing from Florida State University. His research has been published in theJournal of Business Research, theJournal of Marketing Management, and in various proceedings.     

Instituting the marketing concept in a multinational setting: The role of national culture

A growing concern among international marketing managers is how to increase the market orientation and thereby performance of their transnational organizations. This study broaches this issue by investigating how the marketing concept, the heart of the market orientation, may be established in a multinational setting and the effects of national culture on that process. From a wide array of literature, the authors construct a theoretical framework and propositions on how global organizations may transform this philosophy from an abstract platitude to an operational reality. Their findings suggest that the process consists of complex, interdependent steps—interpretation, adoption, and implementation of the marketing concept. Cultural values shape interpretation and facilitate or impede adoption and implementation. The overall framework and findings can be used to guide institutionalization of the marketing concept across the organizational span, in particular by anticipating culture-based reactions from international subsidiaries. Cheryl Nakata is an assistant professor of marketing at the University of Illinois at Chicago and received her doctorate from the same institution in 1997. Her work appears in theJournal of Marketing, Journal of International Business Studies, Journal of Product Innovation and Management, Marketing Science Institute Working Paper Series, International Marketing Review, and other publications. Her primary interests are in global marketing and marketing management and strategy. K. Sivakumar (Ph.D., Syracuse University, 1992) is the Arthur Tauck Professor of international marketing and logistics at Lehigh University. His research interests include pricing, international marketing, and technology management. His research has been published or is forthcoming in theJournal of the Academy of Marketing Science, International Marketing Review, Journal of Business Research, Journal of International Business Studies, Journal of Marketing, Journal of Marketing Theory & Practice, Journal of Product Innovation Management, Marketing Letters, Pricing Strategy & Practice, and other journals. He has won several awards for research and is on the editorial boards of six scholarly journals.     

Extending the competitive marketing strategy paradigm: The role of strategic reference points theory

The purpose of this article is to extend and integrate the new strategic reference points theory (SRP), developed in the strategic management area, into the discipline of strategic marketing management. The major new tenets of the theory are the inclusion of cognitive, organizational processes and benchmarking simultaneously. First, the authors describe the impact of the marketing SRP on marketing strategic choice behavior captured in the tradeoff between risk and return (risk avert vs. risk lover) as was proposed by prospect theory. Then, they explore the performance consequences of integrating the newly formed stages while considering organizational process and implementation issues of reference points such as content, configuration, consensus, and change. Aviv Shoham is a senior lecturer of marketing at the William Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Technion City, Haifa. Avi Fiegenbaum is an associate professor of management at the William Davidson Faculty of Industrial Engineering and Management, Technion-Israel Institute of Technology, Technion City, Haifa.     

Machiavellianism and personal success in marketing: The moderating role of latitude for improvisation

According to theory, the success of Machiavellians rests, in part, on the situational factor “latitude for improvisation”—the freedom to improvise in order to successfully manipulate others. In their study of Machiavellianism and marketing, Hunt and Chonko concluded that Machiavellianism is unrelated to success; however, the analysis did not include latitude for improvisation as a moderating variable. The data are reanalyzed with a measure of latitude for improvisation included. Theory predicts that Machiavellianism is positively related to success when latitude for improvisation is high. The results of this analysis suggest that Machiavellianism is unrelated to personal success in marketing when latitude for improvisation is high but is negatively related to success when latitude for improvisation is low. His research interests include marketing ethics, advertising, and marketing communication.     

The role of marketing in the introduction of technologically new products: the case of the electric car

The energy and environmental crises are important problems facing the United States today. With less than 6% of the world's population, the U.S. accounts for 47% of the world's automobiles and nearly 35% of the total energy demand. Automobiles consume nearly 14.5% of the total energy demand and are the major source of air pollution. Whiel there are many potential solutions for the energy and environmental crises, this paper specifically focuses on how the electric car can be a partial answer to the complex problem of personal transportation. The paper specifically discusses the role of marketing in bridging the gap between technology and the consumer. On the basis of an extensive exploratory study, the authors contend that there is sufficient interest among consumers for an economical, pollution-free, electric car. Understanding the consumer's need and developing a product that is feasible, considering existing technology, is the role that marketing must play.     

Coping with organizational role stress: Intrinsic motivational orientation,perceived role benefits,and psychological withdrawal

Researchers have long recognized that individuals in stressful marketing roles find ways to cope with organizational role stress. This study examines the effects of three psychological coping strategies—intrinsic motivational orientation, perceived role benefits, and psychological withdrawal—in a model of organizational role stress. Results indicate that intrinsic motivational orientations reduce perceptions of role conflict and role ambiguity, and increase job satisfaction; that perceived role benefits positively influence job satisfaction; and that job dissatisfaction is the primary cause of psychological withdrawal. The study supports the importance of coping efforts in models of organizational role stress among marketing personnel. Dr. Keaveney’s research interests focus on retailing issues including retail buyer behavior, retail store image, and retail price promotions. Dr. Keaveney has also published in the areas of marketing organizational behavior, services marketing, and international marketing. She is co-author with Philip R. Cateora ofMarketing: An International Perspective, which has been published both in English and in Japanese. Dr. Keaveney has published articles in theJournal of the Academy of Marketing Science, Journal of Retailing, Journal of Promotion Management, Journal of Marketing Channels, andJournal of Volunteer Administration. Dr. Nelson’s research interests include topics in marketing research, consumer behavior, and advertising. He has published in theJournal of Marketing, Journal of Advertising, Journal of Business Research, Journal of Marketing Research, and serves as occasional reviewer to these publications as well as to theJournal of the Academy of Marketing Science. He teaches courses in marketing management, marketing research, and multivariate statistics.     

Implementation of market orientation in the subsidiaries of global companies: the role of institutional factors

Drawing upon the market orientation literature and institutional theory, this study examines the factors that affect the implementation of market orientation in the subsidiaries of global companies, using data gathered from multiple informants and multiple sources in 79 subsidiaries located in 45 countries. Findings indicate that the market orientation of subsidiaries is positively related to the legal institutions, local competition in the host country market, and the market orientation of headquarters. The findings also indicate that the headquarters’ market orientation has more pronounced effects on the implementation of market orientation for subsidiaries that strongly identify with headquarters. Moreover, the study demonstrates that cultural distance between home and host countries of the subsidiary strengthens the positive effects of competitive intensity on market orientation implementation. As such, this research addresses an important concern among researchers and managers that is related to how to increase the market orientation and, thereby, the performance of their subsidiaries located in foreign countries.     

The evolving role of managerial ties and firm capabilities in an emerging economy: evidence from China

As emerging economies experience unprecedented market and institutional changes, where should firms focus their attention to address new marketing challenges: network-based resources (e.g., managerial ties) or market-based capabilities? Building on institutional theory, this study examines the evolving roles of managerial ties and firm capabilities, as well as their interplay, in China. A longitudinal survey of 166 Chinese firms reveals that over time, the positive role of ties with the government (i.e., political ties) declines, whereas the positive effect of ties with the business partners (i.e., business ties) persists; marketing capability has a persistent effect, and technology capability exerts a stronger impact on performance. Moreover, as market development progresses, marketing capability positively interacts with business ties, whereas technology capability positively interacts with political ties, in fostering performance.