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Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance

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  • Sharma, Piyush
  • Davcik, Nebojsa S.
  • Pillai, Kishore Gopalakrishna

Abstract

This study combines the signaling theory and dynamic marketing capabilities perspective to investigate the mediating role of product innovation in the influence of R&D expenditure and brand equity on marketing performance. The study shows that MNC firms are able to use R&D expenditure to improve their product innovation and market share to a greater extent compared to SME and retailer firms. However, the stronger brand equity of MNC firms may actually hurt the performance of their new products by inhibiting product innovation. The authors use regression and probit analysis to study a panel data for 1356 food brands. Overall, this research provides fresh insights into the process by which R&D expenditure and brand equity affect product innovation and marketing performance in highly competitive product categories.

Suggested Citation

  • Sharma, Piyush & Davcik, Nebojsa S. & Pillai, Kishore Gopalakrishna, 2016. "Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance," Journal of Business Research, Elsevier, vol. 69(12), pages 5662-5669.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:12:p:5662-5669
    DOI: 10.1016/j.jbusres.2016.03.074
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    13. Vivy Kristinae & Roby Sambung & Meitiana Sahay, 2019. "The Role Of Entrepreneurial Orientation In Product Innovation In Emerging Markets On The Local Products," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(2), pages 35-44, September.
    14. Nardi, Vinicius Antonio Machado & Jardim, William Carvalho & Ladeira, Wagner Júnior & Santini, Fernando, 2020. "A meta-analysis of the relationship between customer participation and brand outcomes," Journal of Business Research, Elsevier, vol. 117(C), pages 450-460.
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    16. Katarina Janošková & Pavol Kral & Anna Krizanova, 2018. "The Impact of Business Innovations on Brand Value," Journal of Innovative Business and Management, DOBA Faculty, vol. 10(2).
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    19. Woojin Yoon & Suyeon Kwon, 2023. "The Impact of Technological and Non-technological Innovative Activities on Technological Competitiveness," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 1-19, March.
    20. Janarthanan Balakrishnan & Pantea Foroudi, 2020. "Does Corporate Reputation Matter? Role of Social Media in Consumer Intention to Purchase Innovative Food Product," Corporate Reputation Review, Palgrave Macmillan, vol. 23(3), pages 181-200, August.
    21. Ngo, Liem Viet & Bucic, Tania & Sinha, Ashish & Lu, Vinh Nhat, 2019. "Effective sense-and-respond strategies: Mediating roles of exploratory and exploitative innovation," Journal of Business Research, Elsevier, vol. 94(C), pages 154-161.
    22. Ben-Jebara, Marouen & Mishra, Saurabh & Modi, Sachin B. & Mahar, Stephen, 2023. "Product personalization focus in the pharmaceutical industry and shareholder wealth: The roles of marketing capability and financial leverage," Journal of Business Research, Elsevier, vol. 159(C).
    23. Adomako, Samuel & Amankwah-Amoah, Joseph & Danso, Albert & Danquah, Joseph Kwadwo & Hussain, Zahid & Khan, Zaheer, 2021. "R&D intensity, knowledge creation process and new product performance: The mediating role of international R&D teams," Journal of Business Research, Elsevier, vol. 128(C), pages 719-727.
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