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

Abstract

Purpose

The 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/approach

Integrating 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.

Findings

The 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/implications

This 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 implications

The findings outline several important implications for MNEs seeking into expand to overseas markets.

Originality/value

This paper contributes a novel, combined perspective on marketing assets and marketing dynamic capability.

Citation

Li, H., Xu, L., Zhang, J. and Duan, Y. (2024), "The impact of marketing assets of foreign subsidiaries on marketing dynamic capabilities of multinational enterprises (MNEs): the mediating effect of customer orientation", Cross Cultural & Strategic Management, Vol. 31 No. 4, pp. 637-658. https://doi.org/10.1108/CCSM-01-2024-0006