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1 – 2 of 2Elena Ehrensperger, Daria Greenberg, Harley Krohmer, Felix Nagel, Wayne Hoyer and Z. John Zhang
The purpose of the study is to introduce the idea of arena-relevant marketing capabilities and examine their impact on firm performance. Arena-relevant marketing capabilities are…
Abstract
Purpose
The purpose of the study is to introduce the idea of arena-relevant marketing capabilities and examine their impact on firm performance. Arena-relevant marketing capabilities are capabilities particularly relevant for success in a specific competitive arena in which rivals from different industries try to satisfy customer needs with alternative products and services. The authors focus on the luxury arena and pose the following research questions: Which are the arena-relevant marketing capabilities in the luxury competitive arena (i.e. luxury-arena-relevant capabilities)? (2) What is the relative importance of luxury-arena-relevant vs general marketing capabilities for firm performance in the luxury competitive arena?
Design/methodology/approach
To identify luxury-arena-relevant marketing capabilities, the authors conduct a qualitative study among 21 top managers of luxury brands. A subsequent large-scale managerial survey empirically tests the effects of luxury-arena-relevant vs general marketing capabilities on firm performance.
Findings
The study identifies four luxury-arena-relevant marketing capabilities: perfection in product creation, exclusive pricing, luxury-congruent storytelling and luxury brand inspiration. It confirms empirically that they have a higher impact on firm performance within the luxury competitive arena than general marketing capabilities.
Originality/value
The study takes an innovative perspective on marketing capabilities by linking them with the concept of a competitive arena and underlines the academic relevance of the concept of arena-relevant marketing capabilities for explaining firm performance.
Details
Keywords
Elena Ehrensperger, Daria Erkhova, Aparna Yadavalli and Harley Krohmer
The purpose of this paper is to identify luxury-specific entrepreneurial success factors that, in addition to the well-established general success factors of startups, drive the…
Abstract
Purpose
The purpose of this paper is to identify luxury-specific entrepreneurial success factors that, in addition to the well-established general success factors of startups, drive the performance of startups in the luxury industry. The study proposes a contingency perspective on the success factors of startups by examining entrepreneurial excellence in one specific context, the luxury context.
Design/methodology/approach
The study uses a qualitative research design, with 24 semi-structured in-depth interviews with senior executives of Swiss luxury startups as key informants. The data is analyzed using the grounded theory approach.
Findings
The study develops a new construct of entrepreneurial luxury excellence consisting of two dimensions, resource-related excellence and strategy-related excellence, and identifies the underlying specific success factors related to these two dimensions of entrepreneurial luxury excellence.
Research limitations/implications
The study advances research on strategic entrepreneurship as it combines a holistic approach to managerial success factors of startups with a contingency perspective on them. It also adds to the existing body of research on luxury management where studies with a focus on industry newcomers are still a new domain.
Practical implications
The study makes important implications for luxury entrepreneurs and other stakeholders (e.g. investors) by showing that the success factors of luxury startups might differ from those of startups in other industries.
Originality/value
The paper identifies a new construct – entrepreneurial luxury excellence.
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