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Article
Publication date: 27 April 2023

Xiaoning Liang, Johanna Frösén and Yuhui Gao

Despite the availability of many metrics and tools for marketing performance measurement, the way in which firms use their marketing metrics remains underexplored. This study aims…

Abstract

Purpose

Despite the availability of many metrics and tools for marketing performance measurement, the way in which firms use their marketing metrics remains underexplored. This study aims to address this gap by empirically establishing the differing effects of the diagnostic and interactive uses of marketing metrics on firms’ market-sensing capability, contingent on competitive intensity and focus on market-related metrics.

Design/methodology/approach

This study builds on survey data collected from 210 Irish-based firms, complemented by 21 in-depth interviews with business managers. Survey data are analysed using regression analysis.

Findings

This study finds that firms using marketing metrics interactively to communicate organizational focus are better able to sense their markets, especially under high competition. The authors observe a positive impact of the interactive use of metrics on market-sensing capability, but a U-shaped impact of their diagnostic use, the magnitudes of which further depend on competitive intensity and firms’ focus on market-related metrics.

Research limitations/implications

This study provides a nuanced view of marketing performance measurement (MPM) practices within firms, particularly focussing on diagnostic versus interactive uses of marketing metrics. It also sheds further light on how two diverse uses of marketing metrics – diagnostic and interactive uses – influence a firm’s market-sensing capability. Moreover, the identification of boundary conditions also contributes to the discussion of contextuality in MPM, highlighting the importance of aligning a firm’s uses of marketing metrics with its business environment.

Practical implications

This study provides novel insights into how diverse uses of marketing metrics may benefit firms. The differing effects of diagnostic and interactive uses of marketing metrics on market sensing highlight a primary need for developing the latter and for using the former only with caution. It establishes that all firms would equally benefit from an interactive use of marketing metrics that is pivotal to improving their ability to anticipate, detect and sense market changes.

Originality/value

This study provides novel understanding of the role of marketing metric uses in firms’ market-sensing capability and contributes to the discussion of contextuality in marketing performance measurement. It highlights the importance of aligning a firm’s use of marketing metrics with its business environment.

Article
Publication date: 9 June 2023

Giang Hoang, Tuan Trong Luu, Thuy Thu Nguyen, Thuy Thanh Thi Tang and Nhat Tan Pham

This study aims to investigate the effects of entrepreneurial leadership on service innovation in the hospitality industry and examine the mediating effects of market-sensing

Abstract

Purpose

This study aims to investigate the effects of entrepreneurial leadership on service innovation in the hospitality industry and examine the mediating effects of market-sensing capability and knowledge acquisition. Additionally, the study explores the moderating role of competitive intensity in the relationships between market-sensing capability, knowledge acquisition and service innovation, drawing on the dynamic capability theory and resource dependence theory.

Design/methodology/approach

The data for this study were obtained from 322 employees and 137 leaders working in 103 hotels in Vietnam, using a time-lagged approach. The collected data were analyzed using structural equation modeling in SPSS Amos 28.

Findings

The results of this study reveal a significant positive association between entrepreneurial leadership and service innovation, with mediation effects observed through both knowledge acquisition and market-sensing capability. Moreover, the findings demonstrate that competitive intensity moderates the association between knowledge acquisition and service innovation.

Practical implications

The results of this study provide implications for hospitality firms to cultivate entrepreneurial leadership through leadership training and development programs and enhance their dynamic capabilities (i.e. market-sensing capability and knowledge acquisition) to allow them to survive and develop in a competitive market.

Originality/value

This study advances entrepreneurial leadership research in the hospitality context by identifying mediating and moderating mechanisms that translate entrepreneurial leadership into hospitality firms’ service innovation.

Details

International Journal of Contemporary Hospitality Management, vol. 36 no. 4
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 29 May 2024

Itzhak Gnizy and Yoel Asseraf

This study aims to examine the relevance of strategic marketing planning in this agile era and its effect on firms’ international performance and explores conditions under which…

Abstract

Purpose

This study aims to examine the relevance of strategic marketing planning in this agile era and its effect on firms’ international performance and explores conditions under which the influence of planning changes.

Design/methodology/approach

Based on contingency theory, a conceptual model is tested based on survey data from internationalizing firms. Data were analyzed using partial least squares -structural equation modeling.

Findings

Marketing strategy planning is (still) associated with enhanced performance, and depends on external and internal contingencies. While the planning−performance relationship is amplified by market sensing (external contingency), surprisingly, it is decreased in presence of high tolerance for failure (internal contingency).

Practical implications

Findings seek to transform marketing planning in international business practice by requiring that its implementation receives the attention of senior management.

Originality/value

Marketing strategy planning should not be deemphasized. While planning appears to be undergoing an identity crisis, practitioners’ attention to marketing planning is warranted.

Details

Review of International Business and Strategy, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-6014

Keywords

Article
Publication date: 28 June 2018

Haris Aslam, Constantin Blome, Samuel Roscoe and Tashfeen M. Azhar

This paper positions market sensing, supply chain agility and supply chain adaptability as a coherent cluster of dynamic supply chain capabilities. The purpose of this paper is to…

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Abstract

Purpose

This paper positions market sensing, supply chain agility and supply chain adaptability as a coherent cluster of dynamic supply chain capabilities. The purpose of this paper is to understand how dynamic supply chain capabilities interrelate and their effect on supply chain ambidexterity.

Design/methodology/approach

Based on a survey of Pakistani manufacturing firms, a theoretically-derived model was tested in a structural equation model.

Findings

The results of the study show that a market-sensing capability is an antecedent of supply chain agility and supply chain adaptability. Furthermore, supply chain agility, directly, and supply chain adaptability, indirectly, affect supply chain ambidexterity. Supply chain agility, therefore, mediates the relationship between supply chain adaptability and supply chain ambidexterity.

Originality/value

The contribution of this study lies in: first, identifying dynamic capability clusters relevant for achieving supply chain ambidexterity; second, evaluating performance implications of dynamic capabilities in the supply chain, specifically supply chain agility and adaptability; and third, proposing a unique measurement of supply chain ambidexterity in the light supply chain theory, and empirically evaluating the relationship between dynamic capabilities and supply chain ambidexterity.

Details

International Journal of Operations & Production Management, vol. 38 no. 12
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 4 February 2014

Shyh-Rong Fang, Enchi Chang, Chueh-Chu Ou and Chia-Hui Chou

The purposes of this paper are to examine whether internal market orientation facilitates the development of external market capabilities, before influencing organizational…

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Abstract

Purpose

The purposes of this paper are to examine whether internal market orientation facilitates the development of external market capabilities, before influencing organizational performance, and to investigate whether learning orientation strengthens the aforementioned link.

Design/methodology/approach

This study collected data through a survey and utilized moderated hierarchical regression analysis to examine the hypothesized relationships.

Findings

Internal market orientation facilitates the development of both market capabilities and in turn enhances organizational performance. The result also shows that customer-linking capability is a stronger mediator between internal market orientation and organizational performance. Besides, learning orientation does not moderate the relationship between internal market orientation and external market capabilities.

Research limitations/implications

This study only examines two market capabilities; considers only internal market orientation and does not include other antecedents; and used cross-sectional data, instead of longitudinal data, which consist of information only from 159 services companies in Taiwan.

Practical implications

A company should have international market orientation mechanisms, such as internal market information system and reward systems to keep the internal communications open. For companies stressing external customer relationship, internal marketing is important.

Originality/value

This study provides empirical evidence for the claim that internal marketing influences the formation of an organization's external market capabilities. It also considers two types of market capabilities instead of treating market capabilities as a holistic variable. This study also clarifies learning orientation's relationships with internal market orientation and market capabilities.

Details

European Journal of Marketing, vol. 48 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 6 November 2017

Markus Chiahan Tsai and Chunhsien Wang

How in essence a firm’s service innovation affects its performance is always an intriguing and important issue to business researchers and practitioners. However little is known…

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Abstract

Purpose

How in essence a firm’s service innovation affects its performance is always an intriguing and important issue to business researchers and practitioners. However little is known about the moderating effects of a firm’s approach to innovation and capability of marketing orientation that influence this aforementioned relationship and the underlying mechanisms. This paper aims to examine how ambidextrous innovation (exploration and exploitation innovation) and market orientation capabilities (market-sensing and customer-linking capabilities) can shape the relationship between service innovation and firm performance. Research model was developed based on theoretical foundation of the resource-based view and the rationed perspective.

Design/methodology/approach

Using an original data set comprising 170 service-oriented firms from Taiwan, the authors found that ambidextrous innovation and market orientation capabilities can significantly enhance performance for service-oriented firms. The authors used the traditional ordinary least squares regression and the zero-inflated Poisson regression to test the five hypotheses.

Findings

The empirical results fully support the hypotheses that ambidextrous innovation and market orientation capabilities can significantly enhance firm performance. These results imply that the benefits of ambidextrous innovation and market orientation capabilities can coexist in a service innovation deployment and that these combined benefit firm performance.

Originality/value

The ambidextrous innovation and market orientation capabilities play catalytic roles during innovative service implementation in the service-oriented sectors. The roles of these factors have rarely been examined together before. Hence, this study addresses the gaps in current understanding and provides valuable insights, particularly in the context of the future service innovation deployment. In addition, the theoretical and managerial implications of the findings provide useful and valuable information for both the researchers and managers of the service-oriented.

Details

Chinese Management Studies, vol. 11 no. 4
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 24 March 2020

Guangming Cao and Na Tian

Evidence in the literature has indicated that customer-linking marketing capabilities such as customer relationship management (CRM) and brand management are important drivers of…

2262

Abstract

Purpose

Evidence in the literature has indicated that customer-linking marketing capabilities such as customer relationship management (CRM) and brand management are important drivers of marketing performance and that marketing analytics use (MAU) enables firms to gain valuable knowledge and insights for improving firm performance. However, there has been little focus on how firms improve their CRM and brand management via MAU. This study aims to draw on the absorptive capacity theory, research on marketing capabilities and marketing analytics to examine the capability-developing mechanisms that enable a firm to use marketing analytics to enhance its CRM and brand management capabilities, thereby improving its marketing performance.

Design/methodology/approach

A research model is developed and tested based on an analysis of 289 responses collected using an online survey from middle and senior managers of Chinese firms with sufficient knowledge and experience in using marketing analytics for survey participation.

Findings

The findings demonstrate that MAU is positively related to both CRM and brand management capabilities, which in turn are positively associated with marketing performance; and that both CRM and brand management capabilities mediate the relationship between MAU and marketing performance.

Research limitations/implications

The study’s outcomes were based on data collected from a survey, which was distributed using mass e-mails. Thus, the study is unable to provide a meaningful response rate. The research results are based on and limited to Chinese firms.

Practical implications

MAU is essential for enhancing customer-linking marketing capabilities such as CRM and brand management, but it alone is not sufficient to improve marketing performance. Firms wishing to improve marketing performance should leverage the knowledge and insights gained from MAU to enhance their critical customer-linking marketing capabilities.

Originality/value

This study explicates the capability-developing mechanisms through which a firm can use its market-sensing capability as manifested by MAU to enhance customer-linking marketing capabilities and to improve its marketing performance. In so doing, this study extends our understanding of the critical role of absorptive capacity in helping firms identify, assimilate, transform and apply valuable external knowledge.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 13 February 2009

Anthony Foley and John Fahy

The purpose of this paper is to examine how conceptualising market orientation within a capabilities framework may assist in developing further understanding of the construct.

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Abstract

Purpose

The purpose of this paper is to examine how conceptualising market orientation within a capabilities framework may assist in developing further understanding of the construct.

Design/methodology/approach

Compelling issues in the market orientation literature relating to the nature of the market orientation construct, the relationship of the construct with performance, and identifying antecedents to market orientation are discussed. The capabilities perspective is explored in the context of these issues. In particular, a perspective of market orientation based on the market‐sensing capability is proposed, which may provide additional insights into the construct.

Research limitations/implications

The capabilities framework facilitates a more comprehensive approach to understanding the nature of market orientation, which captures the complex interaction of behavioural and cultural factors in the conceptualisation of the construct.

Originality/value

This paper addresses the need to examine how marketing capabilities may contribute to organisation performance.

Details

European Journal of Marketing, vol. 43 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 15 August 2023

A. John William, M. Suresh and Nagamani Subramanian

Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource…

Abstract

Purpose

Small and medium-sized enterprises (SMEs) are a major source of employment and revenue growth in developing nations like India, but they also face challenges from resource shortages, shifting consumer demand and heightened competition. This research aims to discover the aspects that enhance SMEs' competitiveness and performance.

Design/methodology/approach

By analyzing literature and consulting experts, 10 factors that boost a firm's competitiveness were identified. The total interpretive structural modeling (TISM) method was then used to determine their interaction and structural hierarchy. Neutrosophic-MICMAC analysis was employed to assess the driving-dependence power of each factor.

Findings

The study discovered that the factor, namely “entrepreneurial orientation,” was found to be a significant one. “Manufacturing strategy” was found to be extremely dependent on the remaining competitive advantage factors.

Research limitations/implications

This SME-focused framework can be adopted by large businesses to enhance organizational performance by focusing on critical factors. The study depends on experts' judgment, which might be biased. Findings will assist SMEs in identifying significant factors influencing competitive advantage and relationships, increasing awareness of factors contributing to competitive edge.

Practical implications

The results of the research may encourage SME sector managers and practitioners to prioritize the factors that contribute to a firm's competitive advantage.

Originality/value

The majority of research on SME competitive advantage focuses on individual aspects. To add to the body of knowledge on the subject, this study applies the TISM technique to Indian SMEs to identify the contextual interactions among factors that increase long-term competitiveness.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 11 November 2019

Dalila Brown, Pantea Foroudi and Khalid Hafeez

This paper aims to explore the relationship between corporate cultural/intangible assets and marketing capabilities by examining managers’ and entrepreneurs’ perceptions in a…

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Abstract

Purpose

This paper aims to explore the relationship between corporate cultural/intangible assets and marketing capabilities by examining managers’ and entrepreneurs’ perceptions in a retail setting.

Design/methodology/approach

Nineteen face-to-face interviews were conducted with UK small and medium sized enterprise (SMEs) managers and entrepreneurs to identify six sub-capabilities that form marketing capability. The authors further validated the relationship between marketing sub-capabilities and its antecedent tangible and intangible assets. The qualitative approach used provided a deeper insight into the motivations, perceptions and associations of the stakeholders behind these intangible concepts, and their relationships with their customers.

Findings

The research identified that there is a strong relationship between tangible and intangible assets, their components and the following capabilities: corporate/brand identity management, market sensing, customer relationship, social media/communication, design/innovation management and performance management. In addition, companies need to understand clearly what tangible and intangible assets comprise these capabilities. Where performance management is one of the key internal capabilities, companies must highlight the importance of strong cultural assets that substantially contribute to a company’s performance.

Originality/value

Previous work on dynamic capability analysis is too generic, predominantly relating to the manufacturing sector, and/or focussing on using a single case study example. This study extends the concept of marketing capability in a retail setting by identifying six sub-capabilities and describing the relationship of each with tangible and intangible assets. Through extensive qualitative analysis, the authors provide evidence that by fully exploiting their embedded culture and other intangible components, companies can more favourably engage with their customers to attain a sustainable competitive advantage.

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