The role of marketing and product design in driving firm’s performance

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mónica Canto Primo ◽  
Irene Gil-Saura ◽  
Marta Frasquet-Deltoro
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Product Differentiation ◽  
Structural Equation ◽  
Integrative Model ◽  
Research Approach ◽  
Perceived Effectiveness ◽  
Content Type ◽  
Marketing Orientation ◽  
Design Orientation

Purpose This study aims to suggest an integrative model to investigate design orientation by analyzing its links with market orientation and its ability to generate and maintain a competitive advantage and improve effectiveness. Design/methodology/approach The structural equation technique is used to test the research hypotheses based on data from the Spanish furniture and lighting industries. The data are obtained from the responses of 209 companies to a questionnaire targeted at design and marketing managers. Findings The results suggest that design orientation helps companies to gain competitive advantages in product differentiation and improve business effectiveness. The design orientation is stimulated by proactive market orientation and by marketing-design integration during the development of new products. The design orientation fully mediates the effect of proactive marketing orientation on perceived effectiveness. Originality/value This study uses a quantitative research approach to propose and test an integrative model that relates design orientation with the generation of competitive advantage in product differentiation and perceived effectiveness.

Marketing capabilities for small and medium enterprises that supply large companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Emerson Wagner Mainardes ◽  
Gabriela Pessoa de Oliveira Cisneiros ◽  
Carlos Jorge Taborda Macedo ◽  
Amilson de Araujo Durans
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Structural Equation ◽  
Emerging Market ◽  
Equation Modeling ◽  
Marketing Theory ◽  
Marketing Capabilities ◽  
Online Questionnaire ◽  
Content Type ◽  
Sustained Competitive Advantage

Purpose The purpose of this study is to examine the effect of marketing capabilities on market orientation and sustained competitive advantage from the viewpoint of managers of small and medium-sized enterprises (SMEs) that supply large companies. This paper also analyzes the moderating role of exposure to external turbulence in the relationship between marketing capabilities and sustained competitive advantage, and between marketing capabilities and market orientation for SMEs. Design/methodology/approach Based on the literature, this study develops a model to verify the proposed relationships. An online questionnaire collected data from 423 managers of SMEs that supply large companies to test the model. This paper analyzes the proposed model using structural equation modeling with partial least squares. Findings According to the surveyed managers, marketing capabilities tend to play a significant role in the market orientation and perceived sustained competitive advantage of SMEs that supply large companies. Better-developed marketing capabilities can strengthen the market orientation of SMEs, helping to achieve and maintain a sustained competitive advantage. They will, thus, attract more clients and minimize their risk, regardless of the environment in which they operate. Research limitations/implications This research contributes to marketing theory by highlighting the marketing capabilities of SMEs that supply large companies and demonstrating the importance of such capabilities for their survival. Originality/value The study investigated the views of the SME managers that supply large companies about their company’s marketing capabilities. Traditionally, these companies have had little concern for marketing. This research focuses on an emerging market, that is not usually addressed.

Market orientation, marketing capabilities and sustainable innovation

2017 ◽  
Vol 40 (6) ◽  
pp. 698-724 ◽  
Author(s):  
Shampy Kamboj ◽  
Zillur Rahman
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Structural Equation ◽  
Sustainable Consumption ◽  
Service Firms ◽  
Research Model ◽  
Marketing Capabilities ◽  
Content Type ◽  
Sustainable Innovation ◽  
Technical Innovations

PurposeThis study aims to observe the association between market orientation (MO), marketing capabilities and sustainable innovation and to determine the contributions of marketing capabilities, sustainable consumption and competitive advantage as mediators. Design/methodology/approachThe data for this study were collected by administering a survey, and well-defined scales were used for quantifying the data. Theories propounded by various authors were used to form the theoretical framework of the study while keeping those theories relevant to the Indian context. The study uses structural equation modelling to empirically test proposed hypothesis and research model of the relationships. FindingsThe results indicated that MO has a positive influence on marketing capabilities, including product development, communication, channel linking and pricing. The study also found, albeit with exceptions, a positive association between marketing capabilities and sustainable innovation. These exceptions were communication capability on technical innovations and channel linking capability on non-technical innovations. In addition, findings reveal that marketing capabilities fully mediate MO to performance link while sustainable consumption partially mediates the relation between sustainable innovation and competitive advantage. Competitive advantage also partially mediates marketing capabilities to performance relationship. Research limitations/implicationsThis study deals with four marketing capabilities only and uses cross-sectional data, instead of longitudinal data, that comprises data of 192 service firms in India. Originality/valueThe study sets forth empirical evidence for the argument that specific marketing capabilities lead to sustainable innovation. The study further clarifies contributions of marketing capabilities, sustainable consumption and competitive advantage as mediators in the proposed research model.

Bifurcating the dynamic dominant logic: technical and evolutionary patterns of action

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chandra Dwipayana ◽  
Ruslan Prijadi ◽  
Mohammad Hamsal
Keyword(s):  
Structural Equation ◽  
Dynamic Capabilities ◽  
Digital Transformation ◽  
Superior Performance ◽  
Integrative Model ◽  
Equation Modeling ◽  
Content Type ◽  
Dominant Logic ◽  
Term Performance ◽  
Evolutionary Fitness

PurposeThis study proposed the integrative model of dynamic dominant logic (DL) with exploitation (EP) and exploration (ER) as a pattern of actions in endeavoring firm performance (FP). This study also intended to explain the multiple patterns of DL in creating technical and evolutionary fitness simultaneously.Design/methodology/approachThis study used a cross-sectional quantitative analysis of the Indonesian commercial banking population facing digital transformation and was analyzed using covariance-based structural equation modeling through parceling.FindingsThe model confirmed that DL positively affects EP and ER. It also revealed that DL indirectly impacts FP through EP, indicating changes in the traditional banking business through the strong acceptance of “new realities” in adapting to the rapid growth of technology. Hence, this study discovered that during the recent banking digital transformation, the beneficial inertia of the technical pattern of action might lose effectiveness in creating superior performance.Practical implicationsDL is vital in locking short-term performance while maintaining long-term performance opportunities through EP and ER to promote digital transformation. Accordingly, it induced banks to adopt new technology for value creation and fortifying competitive advantage.Originality/valueThis study provided a theory about how DL links the firm's decision-making process by promoting multiple patterns of action in achieving technical and evolutionary fitness. It highlighted the DL as a resource conceptualization that promotes resource development through EP and ER as microfoundation of dynamic capabilities during the tension of institutionalization and digital transformation.

Rural women entrepreneurs in Oman: problems and opportunities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Suhail M. Ghouse ◽  
Omar Durrah ◽  
Gerard McElwee
Keyword(s):  
Rural Women ◽  
Women Entrepreneurs ◽  
Structural Equation ◽  
Equation Modeling ◽  
Research Approach ◽  
Content Type ◽  
Business Opportunities ◽  
Survey Responses ◽  
The Impact ◽  
Traditional Roles

PurposeThis paper examines the challenges associated with rural women entrepreneurs in Oman. The study is based on women living in rural and highland areas who aim to move beyond their traditional roles in the family seeking avenues for growth and development. It identifies several problems encountered by rural women entrepreneurs and the impact on their future business opportunities.Design/methodology/approachA mixed research approach involving quantitative and qualitative elements was adopted for the study. The research is based on 183 survey responses and personal interviews with 8 rural women entrepreneurs. Partial least squares structural equation modeling (PLS-SEM) was adopted to analyse the quantitative responses and depict a model featuring the intensity of the problems affecting business opportunities. Seven short cases based upon the interviews with rural women entrepreneurs are also detailed.FindingsSeveral problems experienced by rural women entrepreneurs were identified hampering their business ventures, linked to personality, family, educational, socio-cultural, facilities, legal, financial and economic, organizational and geographical, out of which household, organizational and geographical linked problems were most significant. Entrepreneurial opportunities for rural women entrepreneurs are discussed.Practical implicationsThe research suggests that the policymakers should holistically consider how the rural women engaged in informal business for various means can be better supported and sustained by overcoming associated problems, can achieve business opportunities and contribute to regional socio-economic development.Originality/valueThere is a limited literature available on rural women entrepreneurship in an Arab context. The study provides an overview of the challenges and problems experienced by these women and the support areas required to overcome them for their sustainability in this region.

Impact of social media usage on performance of construction businesses (CBs) in Abuja, Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Luqman Oyekunle Oyewobi ◽  
Olufemi Seth Olorunyomi ◽  
Richard Ajayi Jimoh ◽  
James Olabode Bamidele Rotimi
Keyword(s):  
Social Media ◽  
Social Interaction ◽  
Structural Equation ◽  
Building Materials ◽  
Positive Impact ◽  
Research Approach ◽  
Cross Sectional ◽  
Content Type ◽  
Business Interest ◽  
The Impact

Purpose Many construction businesses are currently building and keeping social media pages for their enterprises to be visible to the public to improve their social interaction, promote business interest, build trust and relationships with their targeted audience on social media. The purpose of this study is to examine the impact of social mediausage on performance of construction businesses (CBs) in Abuja, Nigeria. Design/methodology/approach This study used a quantitative research approach by identifying constructs that reveal three aspects of organisation’s physiognomies that impact the process of espousing, implementing and using technological innovations in conducting businesses. Well-structured questionnaire was used to obtain data from 113 purposively sampled building materials’ merchant operating in Dei-Dei Market, Abuja, Nigeria. This study used partial least squares structural equation modelling technique to establish the relationship among the constructs. Findings The results of this study indicated that technology has significant relationship with social media adoption, whereas social media adoption has a very strong positive impact on organisation’s performance (P < 0.001) with respect to improved customer relations and services and enhanced information accessibility. Research limitations/implications This study has implications for CBs that wish to adopt social media to promote their businesses by presenting to them the opportunity to understand the impact of technology, environment and organisational potential in improving business performance. This study is cross-sectional in nature, and this calls for caution in interpreting the results. Originality/value This paper developed and tested a conceptual framework presented to understand the interrelationships amongst the constructs, which would be of great significance to business owners in developing their social interaction and promote business interest via social media. The outcome of this research is beneficial to researchers to further study how the different social media tools could help in influencing business decisions.

Predicting sustainable consumption of package-free bath products among students in higher education institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alvin Patrick M. Valentin
Keyword(s):  
Higher Education ◽  
Structural Equation ◽  
Environmental Behavior ◽  
Higher Education Institutions ◽  
The Philippines ◽  
Integrative Model ◽  
Purchase Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
Intention To Purchase

Purpose This study aims to examine the applicability of an extended version of the theory of planned behavior (TPB) in predicting pro-environmental behavior, specifically the purchase behavior (PB) of package-free bath products, among students in higher education institutions (HEIs). Design/methodology/approach Using a non-experimental survey research design, this study empirically tested an extended TPB model through structural equation modeling. The dataset was obtained through a survey of undergraduate students in three HEIs in the Philippines. Findings Environmental knowledge (EK) predicted attitudes toward purchasing package-free bath products. Attitudes, subjective norms and pro-environmental self-identity (PSI) predicted intention to purchase package-free bath products. Furthermore, the intention to purchase package-free bath products and perceived behavioral control predicted PB of the said item. Research limitations/implications The results imply that the addition of EK and PSI to the TPB is applicable in predicting pro-environmental behavior, specifically the purchase of package-free bath products. Practical implications The results showed how HEIs can encourage their students to purchase package-free bath products. Social implications The results highlight how social and economic factors play a role in promoting or inhibiting pro-environmental behavior among HEI students. Originality/value The findings support the inclusion of EK and PSI to the TPB for an integrative model that aims to improve the prediction of the purchase of package-free bath products.

Impact of marketing effectiveness and capabilities, and export market orientation on export performance

2016 ◽  
Vol 28 (5) ◽  
pp. 532-559 ◽  
Author(s):  
Aydin Kayabasi ◽  
Thandiwe Mtetwa
Keyword(s):  
Market Orientation ◽  
Structural Equation ◽  
Structural Model ◽  
Export Performance ◽  
Export Market ◽  
Marketing Capabilities ◽  
Content Type ◽  
Marketing Effectiveness ◽  
Confirmatory Factor

Purpose The purpose of this paper is to examine the relationships between marketing effectiveness, marketing capabilities, export market orientation and export performance. Design/methodology/approach The research analyses whether export market orientation, marketing effectiveness and marketing capabilities are antecedents of export performance with structural equation modelling. Data to test the model were obtained through a structured survey of 443 export companies operating in the Aegean region of Turkey. After explanatory and confirmatory factor analysis, the structural model was tested. Findings The findings suggest that export market orientation has a significant impact on marketing capabilities and marketing effectiveness, and that marketing effectiveness has a significant impact on export performance. This indicates that export market orientation is central to the development of marketing capabilities, while marketing effectiveness contributes to explaining export performance. Research limitations/implications There are several limitations of the research. The first significant limitation is that the variables had various sub-dimensions. The second limitation is about sampling of the research that it is not specific to a particular sector. Practical implications This paper provides useful insights to exporters on market orientation, focal dimensions of marketing effectiveness and marketing capabilities that would help them enhance their export performance. Originality/value Using the resource-based view, this paper contributes to the explanation for export performance by assessing the role of export market orientation behaviour on marketing capabilities and marketing effectiveness.

Antecedents of strategic thinking and its impact on competitive advantage

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shubham Dixit ◽  
Shiwangi Singh ◽  
Sanjay Dhir ◽  
Swati Dhir
Keyword(s):  
Knowledge Management ◽  
Competitive Advantage ◽  
Direct Effect ◽  
Corporate Culture ◽  
Structural Equation ◽  
Strategic Thinking ◽  
Mediating Effect ◽  
Content Type ◽  
Modelling Methodology ◽  
The Impact

Purpose This study aims to identify the antecedents of strategic thinking and its relationship with competitive advantage. Further, this study analyses the mediating effect of strategic thinking between its antecedents and competitive advantage. Design/methodology/approach A self-reported questionnaire with 51 questions was floated among 220 professionals from various industries in India. The response was analysed using the partial least squares-structural equation modelling methodology using SmartPLS software. Findings The direct effect of creativity, corporate culture and knowledge management are established with strategic thinking, as well as a competitive advantage. Also, the study finds a significant relationship between strategic thinking and competitive advantage. The study finds no mediation (direct effect) in the case of creativity, corporate culture and knowledge management. Further, no mediation (no relationship) is found in the case of vision. Practical implications Business must start adopting strategic thinking practices in their decision-making process to create a competitive advantage. Further, the influence of corporate culture, creativity and knowledge management on strategic thinking highlights their importance. Originality/value The study establishes the impact of antecedents of strategic thinking on competitive advantage. The study highlights the importance of other factors along with strategic thinking for achieving competitive advantage.

Analysing the importance of international knowledge, orientation, networking and commitment as entrepreneurial culture and market orientation in gaining competitive advantage and international performance

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Falahat ◽  
Pedro Soto-Acosta ◽  
T. Ramayah
Keyword(s):  
Competitive Advantage ◽  
Market Orientation ◽  
Critical Role ◽  
Government Support ◽  
Superior Performance ◽  
Content Type ◽  
International Performance ◽  
Entrepreneurial Culture ◽  
International Knowledge ◽  
Depth Interviews

PurposeThis study argues that having an entrepreneurial culture and market orientation are critical for young enterprises to gain competitive advantage and superior international performance. We investigate how young entrepreneurial companies despite their limited resources and experience expand rapidly in foreign markets almost from their inception.Design/methodology/approachThis investigation uses a mixed-methods approach, combining in-depth interviews and survey data. In-depth interviews lead us to conceptualise a model highlighting the importance of international knowledge, international orientation, international networking and international commitment as entrepreneurial culture and market orientation for gaining competitive advantage and, in return, superior performance in the international market. Then, the derived conceptual model is empirically tested on a sample of Malaysian Small and Medium Enterprises (SMEs).FindingsResults show that entrepreneurial culture is positively associated with competitive advantage and international performance, while market orientation is positively related to competitive advantage but not to international performance. In addition, government support strengthens the positive effect of competitive advantage on international performance.Originality/valueThis study investigation analyses the importance of entrepreneurial culture and market orientation in contributing to competitive advantage and superior performance. In addition, this study examines the critical role of government support in the relationships between entrepreneurial culture and competitive advantage and between competitive advantage and international performance.

Auditing and credit granting to SMEs: an integrative perceptual model

2019 ◽  
Vol 35 (1) ◽  
pp. 152-174
Author(s):  
Estefanía Palazuelos ◽  
Ángel Herrero Crespo ◽  
Javier Montoya del Corte
Keyword(s):  
Perceived Risk ◽  
Structural Equation ◽  
Information Quality ◽  
Accounting Information ◽  
Bank Loan ◽  
Integrative Model ◽  
Medium Size ◽  
Content Type ◽  
Loan Officers ◽  
Credit Granting

Purpose The purpose of this study is to develop an integrative model of credit granting to small- and medium-size enterprises (SMEs) incorporating the loan officers’ perceptual factors about SMEs (risk and trust) and accounting information (quality and usefulness). Moreover, the role of auditing on credit granting has been studied. Design/methodology/approach The structural equation modelling (SEM) approach is used to test the joint effect of explanatory variables. Empirical evidence is obtained from a questionnaire administered to 471 bank loan officers in Spain. The questions are asked for both audited and not-audited firms. Findings The results obtained confirm that perceived risk and trust have a significant influence on the probability that SMEs can get access to credit and obtain better financing conditions. Additionally, this research supports the relevance of presenting high-quality accounting information, as it increases information usefulness for loan officers, which improves the perceived risk and trust on SMEs and leads to better credit granting. There are no significant differences on the model between the sub-groups of audited and not-audited SMEs, although the valuations are significantly better for the former. Research limitations/implications This study shows the need to consider subjective variables to understand properly the cognitive process underlying credit-granting decisions. Practical implications This research has relevant implications for the management of relationships between SMEs and banks. Originality/value This study contributes to the previous literature by proposing an integrative model of the variables that affect loan officers’ lending decision to SMEs, considering the influence of perceptual variables such as risk and trust, as well as the evaluation of the information available.

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