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Article

Douglas W. Vorhies, Michael Harker and C.P. Rao

Although progress has been made in understanding marketdriven businesses from a theoretical perspective, relatively few empirical studies have addressed the capabilities…

Abstract

Although progress has been made in understanding marketdriven businesses from a theoretical perspective, relatively few empirical studies have addressed the capabilities needed to become marketdriven and the performance advantages accruing to firms possessing these capabilities. One of the barriers faced has been in defining what is meant by the term “marketdriven”. Develops a multi‐dimensional measure useful for assessing the degree to which a firm is marketdriven. Presents evidence that marketdriven business units developed higher levels of six vital marketing capabilities (in the areas of market research, pricing, product development, channels, promotion, and market management) than their less marketdriven rivals and significantly outperformed these rival business units on four measures of organizational performance.

Details

European Journal of Marketing, vol. 33 no. 11/12
Type: Research Article
ISSN: 0309-0566

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Article

Raffaele Filieri

The purpose of this paper is to extend the literature on market-driven and market-driving management and analyzes the Benetton’s market orientation change from a market

Abstract

Purpose

The purpose of this paper is to extend the literature on market-driven and market-driving management and analyzes the Benetton’s market orientation change from a market-driving to a market-driven orientation. Additionally, this study uses longitudinal data to measure the degree of success of the market-driven orientation.

Design/methodology/approach

The study is based on a qualitative case study method and it discusses how Benetton has moved from a market-driving to a market-driven orientation.

Findings

The paper analyzes the principal transformations the Benetton Group has gone through to implement a market-driven orientation, including the delocalization of the manufacturing and of trusted suppliers; the downstream integration process; the adoption of a flexible, efficient and responsive logistics; the implementation of a modern information systems infrastructure. Revenues data show that the company has benefited of the new orientation, but only in the short-run. Moreover, the early adoption of the market-driven orientation by competing firms (e.g. Zara) and the economic environment seem to play an influence on the performance of market-driven companies.

Research limitations/implications

The single case study approach may limit the generalizability of the findings. However, this case study is unique and of high importance for managers in different industries.

Originality/value

Although some studies have discussed the benefits of market-driven and market-driving orientations, no study has analysed how companies move from a market-driving to a market-driven orientation. Additionally, existing studies have proved market orientation’s influence on business performance using static measures. This study uses longitudinal data to show the effect of market-driven orientation on a company’s long-term competitive advantage.

Details

Marketing Intelligence & Planning, vol. 33 no. 3
Type: Research Article
ISSN: 0263-4503

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Article

Scott Fung, Hoje Jo and Shih‐Chuan Tsai

The purpose of this paper is to examine the ways in which stock market valuation and managerial incentives jointly affect merger and acquisition (M&A) decisions and…

Abstract

Purpose

The purpose of this paper is to examine the ways in which stock market valuation and managerial incentives jointly affect merger and acquisition (M&A) decisions and post‐M&A performance, and to provide new evidence on the agency implications where such acquisitions are driven by the stock market.

Design/methodology/approach

Utilizing all publicly‐traded US firms in the NYSE, AMEX and NASDAQ during the period from 1992 to 2005 (excluding financial and utility firms), obtained from COMPUSTAT, CRSP, I/B/E/S, and the M&A database provided by SDC Platinum, this paper adopts a two‐stage approach: the first stage, predicts the probability of an M&A based on the market valuation variables; the second stage, regresses the post‐M&A firm performance on the predicted probability of a merger or acquisition from the first stage and other control variables.

Findings

Market valuation has a significant influence on corporate acquisition decisions, particularly for those firms whose compensation packages include less managerial equity ownership, more executive stock options and no long‐term incentive plans, and in those firms where CEOs are serving on the board of directors. The value‐destroying acquisitions made by these types of managers are likely to be financed using the firms' stocks, executed with high premiums and undertaken during periods of high market valuation.

Originality/value

The main finding suggests that marketdriven acquisitions could be value destroying when managers engage in opportunistic acquisitions for reasons of self‐interest. Managerial myopia, overconfidence, misaligned incentives, empire‐building motives and poor corporate governance can all exacerbate the agency problem of marketdriven acquisitions.

Details

Review of Accounting and Finance, vol. 8 no. 4
Type: Research Article
ISSN: 1475-7702

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Article

Tiger Li, J.A.F. Nicholls and Sydney Roslow

Although the impact of marketdriven learning on new product success in export markets is assumed in the literature, its role is not yet empirically tested due to an…

Abstract

Although the impact of marketdriven learning on new product success in export markets is assumed in the literature, its role is not yet empirically tested due to an absence of the concept operationalization. Develops a conceptual framework of marketdriven learning and new product success in export markets to address these issues. The authors further test the model using data collected from US software companies. The findings indicate that both customer and competitor learning processes exert positive impacts on new product success in foreign markets. The results regarding market environmental factors offer some evidence suggesting correlations between these factors and behavioral activities of market learning. Concludes with a discussion of managerial implications and directions for future research.

Details

International Marketing Review, vol. 16 no. 6
Type: Research Article
ISSN: 0265-1335

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Article

Huda Khan, Susan Freeman and Richard Lee

Ambidexterity’s effects on exploration and exploitation have been widely studied in the innovation literature. However, to date, no studies have determined how combining…

Abstract

Purpose

Ambidexterity’s effects on exploration and exploitation have been widely studied in the innovation literature. However, to date, no studies have determined how combining or balancing the two strategic marketing foci may improve new product performance outcomes. This is an important issue in emerging markets, which have considerable potential to introduce new products, given the rising affordability and intense competition between Western and local firms. These challenges compel managers to offer new products and solutions in these markets. However, firms may adopt different strategic marketing foci for new product development. Using Pakistan as an emerging-market context, this paper aims to provide novel insights into how managers can choose the right balance of a customer-driving versus customer-driven strategy to optimise new-product performance.

Design/methodology/approach

A multi-industry approach surveyed senior strategy managers (N = 106) of Pakistani businesses.

Findings

Using polynomial regression and surface test analyses, the findings showed that balancing the two strategies influenced new-product performance more than either strategy alone. Surprisingly, the imbalance of greater customer-driving over customer-driven strategy or vice versa did not improve new-product performance. Moreover, new-product performance was greater when the level of balance was higher compared to when it was lower.

Originality/value

Grounded in behavioural and strategic adaptation theory, this study extends ambidexterity’s theoretical foundations in marketing by empirically determining the optimal balance of an orientation and performance implication model. The findings can assist emerging market managers in choosing the right balance and combination of the two strategies for better performance of new products.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 3
Type: Research Article
ISSN: 0885-8624

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Article

Louise Bildsten, Anders Björnfot and Erik Sandberg

The purpose of this paper is to hypothesize that value‐driven purchasing of customized kitchen cabinets is more profitable than marketdriven purchasing in industrialised…

Abstract

Purpose

The purpose of this paper is to hypothesize that value‐driven purchasing of customized kitchen cabinets is more profitable than marketdriven purchasing in industrialised housing construction. The hypothesis is examined through a case study of kitchen carpentry at one of the Sweden's largest producers of industrialised prefabricated multi‐storey housing. By comparing characteristics of market‐ vs value‐driven purchasing, this paper aims to further clarify the benefits and drawbacks of these two strategies.

Design/methodology/approach

By comparing characteristics of market‐ vs value‐driven purchasing, a theoretical framework is proposed that clarifies the benefits and drawbacks of the two strategies. An explorative case study of kitchen carpentry at a house manufacturer illustrates purchasing of kitchen cabinets in the industrialised housing industry in relation to the proposed framework.

Findings

The case study results indicate that, from a value perspective, a long‐term relationship with a dedicated local smaller supplier is a preferable choice over a short‐term relationship with a low‐price mass producer.

Research limitations/implications

This is a single case study that should be verified by further empirical work of a test delivery from the local sub‐system manufacturer. Such a study would provide more insights into this area of work and make it possible to thoroughly evaluate potential risks. The indicative results in this paper can be made conclusive through quantification of the proposed lean purchasing characteristics.

Originality/value

A comparison of value‐ and marketdriven purchasing is carried out in theory and applied to a real case study that brings new perspectives to purchasing. In this way, the paper proposes alternative purchasing strategies to the construction industry.

Details

Journal of Financial Management of Property and Construction, vol. 16 no. 1
Type: Research Article
ISSN: 1366-4387

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Article

Bill Merrilees and James H. Tiessen

Builds a relevant model(s) of SME international marketing given the lack of well‐accepted theories to date. Twelve case study firms were analysed using a semi‐structured…

Abstract

Builds a relevant model(s) of SME international marketing given the lack of well‐accepted theories to date. Twelve case study firms were analysed using a semi‐structured survey protocol. Five of the cases are described in depth in the text and summaries are given of the other seven. Four features including niche market power and control over client and agent selection are used to define the two models that emerged from our study: a sales‐driven model and a relationship‐driven model. Four firms were attributed to the sales‐driven model, including firms that have been exporting for a long time. The paper breaks new ground by attempting to develop holistic models of SME international marketing, but importantly in a way that is firmly grounded in the operations, decisions and behaviour of real‐world SMEs.

Details

International Marketing Review, vol. 16 no. 4/5
Type: Research Article
ISSN: 0265-1335

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Article

Andrew G. Parsons and Christoph Schumacher

The purpose of this paper is to examine the regulation of advertising by considering marketdriven firms (those seeking to keep within the boundaries set by social and…

Abstract

Purpose

The purpose of this paper is to examine the regulation of advertising by considering marketdriven firms (those seeking to keep within the boundaries set by social and industry norms) and market drivers (those seeking to stretch boundaries to gain a competitive advantage). Thought is also given to the costs of regulation and tolerance to the social purse, and the benefits gained by compliance and violation.

Design/methodology/approach

The authors develop a conceptual argument for boundary stretching where market drivers are present in a marketplace dominated by marketdriven firms. The authors then apply a game theory model to examine the conditions, the firm responses, and Government responses. In doing so the authors investigate incentives for non‐compliant behavior in a self‐regulated market and show that a firm can achieve a market advantage by stretching advertising boundaries.

Findings

Results suggest that when government takes a “wait‐and‐see” approach of partial tolerance, then the market driver can become the focal point for the marketdriven, and a shift will take place in the regulatory boundary. If the government is the boundary shifter then social engineers are taking advantage of artificial boundaries they know will not be enforced, with implications for campaigns such as drink‐driving, smoking, and domestic violence. Also, the market driver will gain a competitive advantage by entering a marketdriven marketplace through boundary shifts, even after incurring an initial penalty.

Research limitations/implications

The research demonstrates a need for research into marketing regulation to consider firm types, violation types, and tolerance levels. The study contributes to our understanding of marketer activity with two implications; first the firm is shifting the boundaries and redefining the market focal point as themselves, rather than violating the boundaries and setting themselves outside the rules. Second, depending on the level of tolerance that government has with the regulation of advertising, there is a cost to both the social purse and to marketdriven firms associated with boundary shifters.

Practical implications

A market driver, looking for growth opportunities, should try to enter markets dominated by marketdriven firms, and which have self‐regulation, while market driven firms should either look for regulatory protection or act collectively to wield power over third parties – for example forcing media outlets not to carry market driver advertising.

Originality/value

By introducing the concept of boundary stretching and allowing for market drivers and market driven firms, the authors show the effects of regulation (or tolerance) in a realistic setting and allow for the real‐world dynamics of a marketplace where new ideas create new focal points for social acceptance. This study also provides a clear illustration of the usefulness of game theory in marketing studies.

Details

European Journal of Marketing, vol. 46 no. 11/12
Type: Research Article
ISSN: 0309-0566

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Article

Bill Merrilees, James Tiessen and Dale Miller

This paper examines the nature of SME (Small to Medium Sized Enterprise) international marketing strategies, using a framework developed by Merrilees and Tiessen (1999)…

Abstract

This paper examines the nature of SME (Small to Medium Sized Enterprise) international marketing strategies, using a framework developed by Merrilees and Tiessen (1999). This framework highlights two main types of marketing strategies: relationship‐driven and sales‐driven. The original study was developed using case studies of Canadian SMEs exporting to Japan whilst this current paper employs a quantitative survey of 182 SMEs. The addition of this quantitative sample enables a more analytical approach to be employed to aid our understanding of the particular nature of SME relationship marketing in an international context. Two different methodologies, factor analysis and cluster analysis are used for this purpose. Finally, the paper investigates the link between relationship activities and export performance. The paper confirms the usefulness of the Merrilees‐Tiessen classification of SME international marketing strategies, develops a new classification of SME international relationship marketing, and establishes a link between superior relationship activities and superior export performance.

Details

Journal of Research in Marketing and Entrepreneurship, vol. 2 no. 1
Type: Research Article
ISSN: 1471-5201

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Article

Devon S. Johnson, Laurent Muzellec, Debika Sihi and Debra Zahay

This paper aims to improve understanding of data-driven marketing by examining the experiences of managers implementing big data analytics in the marketing function…

Abstract

Purpose

This paper aims to improve understanding of data-driven marketing by examining the experiences of managers implementing big data analytics in the marketing function. Through a series of research questions, this exploratory study seeks to define what big data analytics means in marketing practice. It also seeks to uncover the challenges and identifiable stages of big data analytics implementation.

Design/methodology/approach

A total of 15 open-ended in-depth interviews were conducted with marketing and analytics executives in a variety of industries in Ireland and the USA. Interview transcripts were subjected to open coding and axial coding to address the research questions.

Findings

The study reveals that managers consider marketing big data analytics to be a series of tools and capabilities used to inform product innovation and marketing strategy-making processes and to defend the brand against emerging risks. Additionally, the study reveals that big data analytics implementation is championed at different organizational levels using different types of dynamic learning capabilities, contingent on the champion’s stature within the organization.

Originality/value

From the qualitative analysis, it is proposed that marketing departments undergo five stages of big data analytics implementation: sprouting, recognition, commitment, culture shift and data-driven marketing. Each stage identifies the key characteristics and potential pitfalls to be avoided and provides advice to marketing managers on how to implement big data analytics.

Details

Journal of Research in Interactive Marketing, vol. 13 no. 2
Type: Research Article
ISSN: 2040-7122

Keywords

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