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Article
Publication date: 29 February 2020

Xiaoning Liang and Yuhui Gao

Driven by the growing pressure to justify the contributions of marketing activities, marketers have shown considerable interest in improving their marketing performance…

2018

Abstract

Purpose

Driven by the growing pressure to justify the contributions of marketing activities, marketers have shown considerable interest in improving their marketing performance measurement systems (MPMSs). The purpose of this study is to examine the neglected mediating effect of marketing capabilities on the MPMS–firm performance relationship and to focus on specific aspects of MPMSs that have been largely omitted in the prior research, namely, the comprehensiveness and uses of MPMSs.

Design/methodology/approach

A survey was conducted with marketing and senior managers from 210 Irish-based companies. The proposed research model was tested by using the SPSS Process macro and structural equation modeling in AMOS 24.

Findings

The three characteristics of MPMSs influence firm performance in different manners: while the diagnostic use of MPMSs hinders the development of market-linking capability and thus negatively influences firm performance; the comprehensiveness of MPMSs positively influences firm performance through its impact on architectural marketing capability; and the interactive use of MPMSs via externally focused learning and market-linking capabilities.

Research limitations/implications

Although this study used objective firm performance data to validate subjective data, the use of single-informant and self-reported measures may still be a concern, as the strong relationships between variables may be because of single-informant bias.

Practical implications

This study provides insights into how companies can use a comprehensive MPMS to cultivate specific crucial marketing capabilities and thereby enhance firm performance.

Originality/value

This study contributes to the marketing performance measurement literature by proposing and empirically validating the mediating effect of marketing capabilities on the MPMS–firm performance relationship.

Article
Publication date: 31 July 2021

Khaldoon Nusair, Hamed Ibrahim Al-Azri, Usamah F. Alfarhan, Saeed Al-Muharrami and S.R. Nikhashemi

This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of…

Abstract

Purpose

This paper aims to examine small- and medium-sized enterprises’ (SMEs) strategic capabilities in terms of their marketing and management capabilities, their sources of environmental uncertainty and their organizational capabilities. Additionally, to what extent the effect differs across two sectors (manufacturing and service).

Design/methodology/approach

Partial least squares structural equation modeling was used to conduct multigroup analysis for the two sectors. Data was collected from a sample of 315 Omani SMEs, 166 from manufacturing and 149 from services.

Findings

The results show that strategic capabilities have a significant positive effect on customer satisfaction. However, the effect differs between manufacturing and service SMEs; the effect is greater in service than in manufacturing SMEs. Furthermore, the effect of organizational capabilities on customer satisfaction was found to be positive. However, the effect is higher in manufacturing as the difference is statistically significant.

Originality/value

Due to the growing importance of the service and manufacturing SMEs in developing countries and their considerable involvement in economic development, it is important to understand the characteristics of the strategic capabilities in both sectors. Thus, according to the authors’ knowledge, this paper is one of the first to propose a comprehensive framework that measures collectively the direct impact of strategic capabilities, organizational capabilities and environmental uncertainties on SMEs customer satisfaction and effectiveness.

Article
Publication date: 16 February 2015

John A Parnell

With heightened regulations in many nations, increasing political influence, greater emphasis on government-business partnerships, and the rapid development of emerging markets…

Abstract

Purpose

With heightened regulations in many nations, increasing political influence, greater emphasis on government-business partnerships, and the rapid development of emerging markets, the notion of nonmarket strategy (NMS) is now widely viewed as a key component of a firm’s overall strategic orientation. The purpose of this paper is to investigate factors associated with strategic political emphasis (SPE), a key part of NMS.

Design/methodology/approach

A survey instrument including items related to competitive strategy, environmental uncertainty, strategic capability, performance, and SPE was administered to 275 managers in the USA. Strategy along Porter’s typology, strategic capabilities, uncertainty, and performance were measured via existing scales. Items were created to assess SPE.

Findings

Managers in firms with greater SPE also reported greater uncertainty about competition and markets, and lower capabilities with regard to management and technology. Managers in organizations with weaker market orientations (MOs) – including greater uncertainty about competition and markets, and lower capabilities in management and technology – emphasized greater SPE. Managers reporting lower capability levels in their firms were more likely to report higher SPE and to have increased SPE in the last decade. Select uncertainties and capabilities – not competitive strategy per se – appears to have prompted an increase in SPE in these firms.

Originality/value

An effective NMS is vital from the perspectives of both profit maximization for shareholders and the satisfaction of broader, social objectives. However, many executives are trained to excel in the market arena and may not have the skill set and temperament necessary for success in NMS and specifically, the political arena. Moreover, SPE and market strategies are not always consistent, challenging executives to integrate and balance the two orientations.

Article
Publication date: 11 July 2016

Wantao Yu and Ramakrishnan Ramanathan

The purpose of this paper is to provide an initial analysis of the roles of functional capabilities in adopting environmental management practices (EMP) and improving…

1918

Abstract

Purpose

The purpose of this paper is to provide an initial analysis of the roles of functional capabilities in adopting environmental management practices (EMP) and improving environmental performance from an organizational capability perspective.

Design/methodology/approach

By combing survey data and archival data from 121 UK-based manufacturing firms, this study explores the relationships among functional capabilities (marketing and operations), EMP and environmental performance.

Findings

The results show that marketing and operations capabilities significantly affect EMP, which in turn leads to improved environmental performance. More specifically, this study finds that EMP fully mediates the relationship between marketing capability and environmental performance.

Practical implications

The results of this study provide guidance for managers considering how to develop environmental capability in order to improve environmental performance.

Originality/value

This study addresses a demonstrable gap in the existing literature that few empirical studies have explored the potential effects of functional capabilities on implementing EMP.

Details

Industrial Management & Data Systems, vol. 116 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 16 March 2010

Jeremy Galbreath

Using the strategic orientation concept of Miles and Snow, the purpose of this paper is to test if differences in levels of corporate social responsibility (CSR) exist between…

2662

Abstract

Purpose

Using the strategic orientation concept of Miles and Snow, the purpose of this paper is to test if differences in levels of corporate social responsibility (CSR) exist between prospectors, defenders, analyzers, and reactors.

Design/methodology/approach

The method included a purpose‐designed survey sent to CEOs. To explore differences in CSR and strategy types, one‐way ANOVA with contrast effect analysis was used.

Findings

The results suggest that differences in levels of CSR do exist between strategy types. Prospectors and defenders demonstrated higher levels of CSR than analyzers. As expected, reactors demonstrated the lowest levels of CSR.

Research limitations/implications

This paper suggests that while institutions appear to be placing increasing demands on firms to demonstrate socially responsible behavior, not all firms demonstrate CSR equally. How firms approach competitive markets and the characteristics that shape how they adapt to the environment – or strategic orientation – appears to be a factor that explains differing levels of CSR.

Practical implications

Firms' strategic orientation might be important to the demonstration of CSR; therefore, understanding the internal dynamics and characteristics of different strategy types will afford managers a better understanding of strategies that are needed to more effectively engage in CSR.

Originality/value

The value of the paper rests in exploring, for the first time, if differences in CSR exist between the Miles and Snow strategy typology. The current study puts forth statistical evidence that differences do exist, thus building on a rich body of research aimed at understanding the impact of strategic orientation on organizational outcomes.

Details

International Journal of Organizational Analysis, vol. 18 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 18 February 2019

John Parnell and Malcolm Brady

The purpose of this paper is to investigate the influence of internal capabilities and environmental turbulence on market (e.g. cost leadership and differentiation) and nonmarket…

Abstract

Purpose

The purpose of this paper is to investigate the influence of internal capabilities and environmental turbulence on market (e.g. cost leadership and differentiation) and nonmarket (e.g. political and social) strategies (NMS), and considers how these strategies impact financial and non-financial performance in firms in the United Kingdom.

Design/methodology/approach

A survey was administered online to 215 practicing managers in the UK. Measures for competitive strategy (i.e. cost leadership and differentiation), NMS, strategic capabilities, market turbulence and firm performance were adopted from or based on previous work. Hypotheses were tested via SmartPLS.

Findings

Findings underscore the impact of market turbulence across all market and nonmarket strategy dimensions. Multiple links between capabilities and strategies were identified. Both cost leadership and differentiation were significantly linked to non-financial performance, but only differentiation was significantly linked to financial performance. An increased emphasis on social NMS was linked to higher financial performance, but not non-financial performance. Political NMS was linked to neither financial nor non-financial performance.

Research limitations/implications

The sample included managers in multiple industries. Self-typing scales were utilized to measure market turbulence, emphasis on capabilities, strategic emphasis and firm performance.

Practical implications

Emphasis on social NMS can promote financial performance, but political NMS does not appear to drive either financial or non-financial performance.

Originality/value

This paper provides empirical support for a UK-based model linking market turbulence, strategic capabilities, market and nonmarket strategies, and both social and firm performance. It supports NMS as a key performance driver, but with caveats.

Details

Journal of Strategy and Management, vol. 12 no. 1
Type: Research Article
ISSN: 1755-425X

Keywords

Article
Publication date: 16 March 2015

John A Parnell, Zhang Long and Don Lester

The purpose of this paper is to investigate linkages among competitive strategy, strategic capabilities, environmental uncertainty, and organizational performance in small and…

5436

Abstract

Purpose

The purpose of this paper is to investigate linkages among competitive strategy, strategic capabilities, environmental uncertainty, and organizational performance in small and medium sized enterprises (SMEs) in China and the USA.

Design/methodology/approach

In China, a survey was administered to managers of SMEs in Shanghai and Guangzhou. In the USA, a survey was administered to managers of SMEs in three major cities. Competitive strategy, capabilities, uncertainty, and performance were measured by previously validated scales.

Findings

Findings support the integrity Miles and Snow generic strategic typology. Performance satisfaction was significantly lower in firms employing a reactor strategy as opposed to those employing prospector, defender, or analyzer strategies. Additional support was found for the concept of strategic clarity, as businesses reporting moderate strategic clarity had lower levels of satisfaction with performance than those reporting either a single strategy or a combination emphasis on three equal strategies.

Practical implications

Chinese SMEs tend to prefer cost-based approaches to their local markets. A differentiation market approach is challenging in most local Chinese economies due to the low wages of most jobs in an economy that is still largely centrally planned. In the USA, more disposable income leads to more market opportunities. While this situation is gradually changing in China, it is not at a point where SMEs feel comfortable pursuing totally differentiated strategies.

Originality/value

Several distinctions in competitive strategy, capabilities, and environmental uncertainty between China and the USA are recognized by analysis. Analyzers and defenders in Chinese SMEs tend to follow industry prospectors with lower prices and/or superior service. They might change strategies after gaining a foothold in the market. Performance for SMEs with low strategic clarity often depends on established guanxi with governmental agencies or stated-owned enterprises, a situation very different from that in the USA.

Details

Management Decision, vol. 53 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 10 July 2007

Wayne S. DeSarbo, C. Anthony Di Benedetto and Michael Song

The resource‐based view (RBV) of the firm has gained much attention in recent years as a means to understand how a strategic business unit obtains a sustainable competitive…

3280

Abstract

Purpose

The resource‐based view (RBV) of the firm has gained much attention in recent years as a means to understand how a strategic business unit obtains a sustainable competitive advantage. In this framework, several research studies have explored the relationships between resources/capabilities and firm performance. This paper seeks to extend this line of research by explicitly modeling the heterogeneity of such relations across firms in various different industries in exploring the interrelationships between capabilities and performance.

Design/methodology/approach

A unique latent structure regression model is developed to provide a discrete representation of this heterogeneity in terms of different clusters or groups of firms who employ different paths to achieve firm performance vis‐à‐vis alternative capabilities. An application of the proposed methodology to a sample of 216 US firms were provided.

Findings

Finds that the derived four group latent structure regression solution statistically dominates the one aggregate sample regression function. Substantive interpretation for the findings is provided.

Originality/value

The paper contributes to the understanding of the performance effects of investing in capabilities in the RBV framework, which has previously been lacking, especially in the areas of information technology capabilities.

Details

Journal of Modelling in Management, vol. 2 no. 2
Type: Research Article
ISSN: 1746-5664

Keywords

Article
Publication date: 8 February 2011

John A. Parnell

This paper aims to assess the influence of strategic capabilities on the business strategy‐performance relationship among retail businesses in Argentina, Peru, and the USA.

8327

Abstract

Purpose

This paper aims to assess the influence of strategic capabilities on the business strategy‐performance relationship among retail businesses in Argentina, Peru, and the USA.

Design/methodology/approach

Zahra and Covin's self‐reported scale was amended and utilized to categorize businesses along Porter's typology. Strategic capability scales were adopted from DeSarbo and associates. Self‐reporting scales to assess relative competitive and objective performance in the present study were adopted from Ramanujam and Venkatraman. A survey containing these scales was administered to 277 attendees at a retail trade show in the USA. The survey – translated into Spanish – was distributed by mail and completed by 136 retailers in Peru and 163 retailers in Argentina.

Findings

Links were assessed among strategic capabilities, generic business strategies, and performance in retail businesses in Argentina, Peru and the USA. Support was found for links between the focus strategy and both marketing and linking capabilities, between the differentiation strategy and technology capabilities, and between the cost leadership strategy and management capabilities. The low cost‐differentiation combination strategy was associated with high performance in strategic groups whose businesses possess strong management and technology capabilities. These findings highlight the importance of developing strategy‐specific capabilities as a foundation for superior performance.

Research limitations/implications

This study relied on self‐reported assessments of competitive strategy, organizational capabilities, and performance. It utilized cluster analysis, assessed only retailers, and considered only three nations.

Originality/value

Extant strategic group research highlights the link between group membership and firm performance. The present study reinforces previous research. In addition, the presence of organization‐specific strategic capabilities helps to explain why some businesses outperform others in the same strategic group.

Details

Management Decision, vol. 49 no. 1
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 6 September 2011

George M. Giaglis and Konstantinos G. Fouskas

The purpose of this paper is to study the impact of managerial perceptions regarding the competitive environment and organizational capabilities on the way firms respond to their…

1523

Abstract

Purpose

The purpose of this paper is to study the impact of managerial perceptions regarding the competitive environment and organizational capabilities on the way firms respond to their rivals' competitive actions.

Design/methodology/approach

The authors draw on competitive dynamics theory to develop a model that is empirically tested in 174 firms from 22 manufacturing, trade and service sectors in Greece.

Findings

The results show an association between managerial perceptions on the one hand and the innovativeness and breadth of competitive responses on the other. More specifically, perceptions of competition intensity, substitution threats and increased buyer powers are associated with broader and more innovative competitive reactions. Similarly, perceptions of strong internal, mediating (managerial) and external (market sensing) capabilities also affect the breadth and innovativeness of competitive responses.

Originality/value

Further to advancing theory in competitive dynamics, the authors contribute to a deeper understanding of the drivers of competitive retaliation that managers can use to anticipate their rivals' retaliation schemes when initiating competitive actions.

1 – 10 of 269