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In reviewing a spectrum of practice across the 60 member firms of the Institute for the Study of Business Markets, those exhibiting an effective and efficient connection between marketing and sales appear to have three “key linkages” in common: linkages in language, linkages in organization, and linkage in systems. This paper seeks to outline these linkages, and explore how they might be strengthened in business‐to‐business firms.

This is a viewpoint paper, developed by the executive director of the Institute for the Study of Business Markets, after a full day‐and‐a‐half meeting of ISBM member firms discussing marketing and sales linkage, expanded with additional qualitative observations of marketing/sales linkage across a selection of the ISBM membership base of 60 firms.

The study finds that effectiveness of the linkage between marketing and sales requires strong communication. Often one sees marketing and sales professionals talking past one another – they are not aligned on the definition of key terms, concepts, the nature of their practice. Firms which pay attention to training and alignment on language achieve better results. Common definitions of key terms and attention to communications issues are key in developing a more effective linkage between marketing and sales. Organizational approaches which favor “mixing” marketing and sales, joint meetings and contact, joint sales calls, and a reduction of the boundaries between marketing and sales seem to produce more favorable results. Finally, firms that have thought through, mapped, and show artifacts of a “demand generation process” where the role of marketing and sales are clearly defined, and how one feeds the other is charted clearly, appear to get much better results.

A better understanding – and further research – of the dimensionality of the connection between marketing and sales, how marketing/sales linkages work, antecedents and consequences of strong linkages, and other approaches which produce better results are clearly indicated.

The “Three Linkages” approach points to practical and actionable approaches for managers in strengthening the effectiveness of their marketing and sales teams, such as: train the teams together to create agreement and clearer understanding of language; map the demand generation process and work as a team to understand, streamline, and strengthen it better ; pay careful attention to “handoffs”; and avoid siloed structures where marketing and sales only interact occasionally: implement joint selling calls, and organization structures which foster connection.

Although much discussion goes on with regard to marketing and sales effectiveness, the three dimensionalities of language, organization, and process surfaces as an approach to better understanding how the marketing and sales teams may be better aligned to produce stronger business results.

The paucity of empirical research on the sales‐marketing interface necessitates a detailed exploration of linkages that can forge stronger connection between these two functions. This paper aims to explicate the boundary conditions that may affect the role played by structure, language, and process linkages in forging sales‐marketing connections, and to identify additional linkages that may play an important role in this interface.

A total of 47 sales and marketing professionals across different organizations in diverse industries were interviewed.

The research finds that certain boundary conditions (e.g. organizational hierarchy, time horizon) may influence how structure, language, and process linkages may operate in this interface. It also extends linkage repertoire by identifying two critical linkages: social and philosophical. Its managerial contribution lies in stressing the importance of: vertical and horizontal communication bridges; marketing's flexibility; interpersonal relationships; and the philosophical bond between the two functions, in forging stronger connections.

This is one of the few qualitative empirical investigations of the sales‐marketing interface. It broadens one's understanding of sales‐marketing linkages, adds to linkage repertoire, and extends the interface literature.

This study aims to examine what types of interfirm linkages a firm enters in relation to its manufacturing strategy. The authors further aim to determine whether heterogeneous resources have different moderating effects on the relationship between a firm’s manufacturing strategy and interfirm linkages.

The sample consists of survey and archival data on 80 publicly listed electronics firms from the semiconductor and optoelectronics industries in Taiwan. Because the dependent variable, interfirm linkage, is a binary term, the authors apply logistic regression in our study.

This paper provides empirical insight into how a firm’s manufacturing strategy affects its probability to engage in specific types of interfirm linkages. The authors find that when a firm pursues an efficiency (flexibility) strategy, it will tend to engage in marketing (technical) interfirm linkages. In addition, absorbed slack strengthens the fit between manufacturing strategy and interfirm linkage type more than unabsorbed slack does.

Because the sample is drawn from the Taiwanese semiconductor and optoelectronic industries, the authors encourage scholars to examine the generalizability of the findings. Future studies can furthermore adopt in-depth interviews to facilitate a better understanding of decision-makers’ considerations when entering interfirm linkages.

This study extends resource dependence theory across a firm’s boundary and applies the resource-based view to resource heterogeneity. The findings advance the understanding of the relationships between strategic orientation, slack resources and interfirm linkage choices. The authors show that it is important that firms consider strategic fit when they create linkages outside their existing boundaries.

The purpose of this paper is to test the market linkage and the strength of the linkage between the identity‐preserved (IP) non‐genetically modified organism (non‐GMO) and non‐IP conventional soybean futures markets at the Tokyo Grain Exchange (TGE) when effects from structural breaks are considered.

The Johansen method is used for testing the market linkage and the law of one price (LOP) test is performed to find out the strength of the linkage. The Bai‐Perron test is conducted on the price series to identify the structural breaks. After the breaks are statistically determined by the Bai‐Perron test the Johansen tests are conducted for every break period.

Market linkage exists between the non‐GMO and conventional soybean futures markets but the LOP test suggests that the two markets are not fully linked and the relative price of the two soybeans is not constant. The breaks identified in the study affected the market linkage; the price relationship is lost during the break periods.

The results of this study help explain the value of other new markets where the product traded is a close substitute for an existing market.

This is the first study to apply the market integration theory to an IP market. The TGE non‐GMO soybean contract is the first market price series with sufficient information to appropriately model a price integration linkage for an IP market. The result is valuable in the future when more markets for IP commodities are developed.

The purpose of this paper is to examine information and volatility linkages among real estate, equity, bond and money markets in Australia.

A novel rational expectations framework of financial contagion (Kodres and Pritsker, 2002), along with a combination of robust statistical methods including simple and dynamic correlations and generalized impulse response (Fereidouni et al., 2014) have been employed using data covering three dynamic pre-pandemic economic cycles, namely, global financial crisis (GFC) period, pre-pandemic housing boom and pre-pandemic housing downturn from 2008 (February) to 2019 (December).

Results reveal information linkages across real estate, equity, bond and money markets through correlations in return and volatilities of these series. Finding indicates that the three financial markets (equity, bond and money markets) are interdependent and integrated through information and volatility linkages during the GFC period and pre-pandemic housing downturn period. Financial markets have stronger associations with real estate market during pre-pandemic housing boom. The findings contribute to the general notion that the performances of three financial markets are closely related to the “boom” phase of the real estate cycle.

This research provides an extension of existing literature regarding the information and volatility contagion of the expanded set of core investment markets in Australia. The findings could assist household buyers and investors in designing strategic investment portfolios/hedging strategies and minimizing asset specific risks through diversification over short-term and long-term. In addition, results could support the maintenance, growth and development of a combination of competitive balanced investment markets including real estate, equity, bond and money markets in post-pandemic economy.

This study focuses on the impact of foreign direct investment (FDI) on local firms in host economies. We examine both backward and forward linkages and their effects on domestic firms. Data collection was undertaken over a three-year period whereby qualitative in-depth interviews were carried out with senior managers in UK headquarters, subsidiaries and ‘linked’ local firms in order to facilitate a multi-perspective approach to examining this topic. Results indicate that linkages do exist, contrary to earlier belief. The main factors which facilitate linkage formation were found to be subsidiary-related variables, mainly the mode of entry into the local market, subsidiary autonomy, level of embeddedness and subsidiary role. It was also found that government regulation and policy had some impact on the formation of linkages. Over time the impact on local firms was found to be positive with increased employment, productivity and significant upgrading of skills and competencies. The key contribution of this chapter is to extend the literature on linkages to consider services while developing a conceptual framework in this area. Overall, our study confirms the importance of the subsidiary in linkage formation and also shows how the externalities occurring from linkage formation in the service sector may benefit local firms and subsequently aid local economic development as a whole.

The authors aim to report empirical linkages between the US and Brazil, Russia, India and China (BRIC) financial stress indices catalyzing catalyzing dependent economic policy initiatives (an extended version of Singh and Singh, 2017a).

Initially, the study develops financial stress indices for the respective BRIC financial markets. Later, it captures linkages among the said US-BRIC indices by using Johansen cointegration, vector autoregression/vector error correction models (VECM), generalized impulse response functions, Toda–Yamamoto Granger causality, variance decomposition analyses and bivariate generalized autoregressive conditional heteroskedasticity (GARCH) model under constant conditional correlation framework, in general. Markov regime switching and efficient causality tests proposed by Hill (2007) are also used.

Overall, there are both short-run and long-run dynamic interactions observed between the US and Indian financial stress indices. For rest of the markets, only short-run interactions are found to be in existence. The time-varying co-movement coefficients report financial contagion impact of the US financial crisis on Russian and Indian financial systems only. Contrary to this, Brazilian and Chinese financial systems are largely exhibiting interdependence with the US financial system. Efficient causality tests report indirect impact of the Russian financial system on Brazilian via auxiliary Indian financial system.

The present study is the first of its kind capturing linkages among the US-BRIC financial stress indices by using diverse econometric models. The results support different market participants and policymakers in understanding effectiveness and implementation of economic policies while considering their cross-market interactions as well.

This study aims to investigate the role of market orientation (MO) in improving learning for innovation in small and medium-sized enterprises (SMEs) through the facilitation of the organisational structure and links to innovation.

The data for this research were collected through a survey that was applied to a sample of 169 SMEs in Ecuador. Existing scales were used to measure all the studied variables, i.e. MO, organisational structure for innovation, linkages and learning for innovation. The last three variables correspond to the characteristics of the innovation management process. Partial least square path modelling was used to analyse the data using the SmartPLS 2.0 software.

The results showed that MO enhances the learning for innovation in firms both directly and indirectly through improving organisational structure and linkages towards innovation. The research finding also showed that organisational structure for innovation is more important to enhance learning than linkages. Specifically, the mediation between MO and learning through linkages is smaller than the mediation through the organisational structure.

The study informs executives of the relevance of developing MO as a way of improving learning for innovation, which in turn, is favoured by an organisational structure that supports creativity and technological changes and by the internal and external linkages for innovation in market-oriented firms.

The findings of this study provide new insights regarding how MO can work together in an innovative context and highlight the importance of MO as an enabler of innovation characteristics in SMEs. This study also contributes to the existent innovation literature by shedding light on strategic questions regarding the development of innovation process in market-oriented SMEs. Specifically, it provides some evidence regarding the nature of innovation process in SMEs, which can orient future studies focused on the understanding of how successful innovation occurs.

The purpose of this paper is to explore the determinants of the cross‐market transmission mechanism for terrorist shocks, focusing on two major terrorist events and 68 national stock markets.

The paper generates daily abnormal returns from a three‐factor world asset‐pricing model. Abnormal returns are then regressed on proxies of three transmission mechanisms; a world integration channel, a bilateral integration channel, and a liquidity channel.

The findings indicate that terrorism shocks are diffused cross‐nationally in a non‐uniform manner. This paper finds empirical support for all three channels when considered separately. The bilateral integration channel contains the highest explanatory power since it is found that a third country's trade linkages with the “ground‐zero” country explain about 24 percent of the stock market reaction. A country's share in the world trade, a proxy for the world integration channel, is able to explain about 12 percent of abnormal‐return variation, while the liquidity channel exhibits the lowest predictive power, with the value of stock trading explaining about 6 percent. A hybrid model, where proxies for all channels are included, shows that only the bilateral trade linkages with the “ground‐zero” country are significant determinants of the stock market reaction.

Provides evidence useful for portfolio management and authorities' assessment of terrorist shocks' impact on capital markets.

It is the first study that investigates the determinants of cross‐market transmission of terrorist shocks.

This study explores the price linkage between the Chinese commodity futures market and other dominant futures markets, and examines the forces behind the price linkages. The contribution by the trading hour innovations in the United States (or United Kingdom) market to the overnight price changes in the Chinese market is larger in scale than the contribution by the daytime information from the Chinese market to the overnight returns of the corresponding US (or UK) market. Several futures have significant interactions of the domestic and foreign factors in the price linkages while the Chinese domestic factors explain better the global market price linkage in some futures (aluminum, gold, and corn), demonstrating the leading role of the Chinese futures markets in these world markets.