IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v86y2018icp141-152.html
   My bibliography  Save this article

Facilitating dynamic marketing capabilities development for domestic and foreign firms in an emerging economy

Author

Listed:
  • Xu, Hangjun
  • Guo, Huiling
  • Zhang, Jing
  • Dang, Anh

Abstract

While the strategy literature has long advocated the impact of strong firm dynamic capabilities on new product development, scant research has discussed how to build dynamic marketing capabilities (DMCs), a key component of dynamic capabilities, to improve innovation performance. Focusing on emerging economies, this study develops a framework for exploring the mechanisms of building strong DMCs from the perspective of both external (inter-organizational relationships) and internal (entrepreneurial orientation) factors. Using survey data from firms in China, the authors find that both vertical and horizontal relationship can facilitate the development of DMCs. Moreover, the impact of vertical relationship is stronger than that of horizontal relationships for domestic firms but weaker for foreign firms, because foreign and domestic firms have different levels of resource dependence on their partners. Furthermore, entrepreneurial orientation influences firms' willingness and ability to leverage the benefits from relationships, thus strengthening the impact of vertical relationships but weakening that of horizontal relationships. The study extends DMCs research into the area of international business by suggesting different approaches for firms to develop DMCs in domestic versus overseas markets.

Suggested Citation

  • Xu, Hangjun & Guo, Huiling & Zhang, Jing & Dang, Anh, 2018. "Facilitating dynamic marketing capabilities development for domestic and foreign firms in an emerging economy," Journal of Business Research, Elsevier, vol. 86(C), pages 141-152.
    • Handle: RePEc:eee:jbrese:v:86:y:2018:i:c:p:141-152
    DOI: 10.1016/j.jbusres.2018.01.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296318300389
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2018.01.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Holger Görg & David Greenaway, 2016. "Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?," World Scientific Book Chapters, in: MULTINATIONAL ENTERPRISES AND HOST COUNTRY DEVELOPMENT Volume 53: World Scientific Studies in International Economics, chapter 9, pages 163-189, World Scientific Publishing Co. Pte. Ltd..
    2. Chao, Mike Chen-Ho & Kumar, Vikas, 2010. "The impact of institutional distance on the international diversity-performance relationship," Journal of World Business, Elsevier, vol. 45(1), pages 93-103, January.
    3. Eric (Er) Fang & Shaoming Zou, 2009. "Antecedents and consequences of marketing dynamic capabilities in international joint ventures," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 40(5), pages 742-761, June.
    4. Bruce R. Barringer & Allen C. Bluedorn, 1999. "The relationship between corporate entrepreneurship and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 421-444, May.
    5. Treviño, Len J. & Mixon, Franklin G., 2004. "Strategic factors affecting foreign direct investment decisions by multi-national enterprises in Latin America," Journal of World Business, Elsevier, vol. 39(3), pages 233-243, August.
    6. Stephen C. Graves & Sean P. Willems, 2005. "Optimizing the Supply Chain Configuration for New Products," Management Science, INFORMS, vol. 51(8), pages 1165-1180, August.
    7. Yadong Luo, 2005. "Transactional characteristics, institutional environment and joint venture contracts," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 36(2), pages 209-230, March.
    8. Lisboa, Ana & Skarmeas, Dionysis & Lages, Carmen, 2011. "Innovative capabilities: Their drivers and effects on current and future performance," Journal of Business Research, Elsevier, vol. 64(11), pages 1157-1161.
    9. Luo, Yadong, 2007. "From foreign investors to strategic insiders: Shifting parameters, prescriptions and paradigms for MNCs in China," Journal of World Business, Elsevier, vol. 42(1), pages 14-34, March.
    10. Christine M Chan & Shige Makino, 2007. "Legitimacy and multi-level institutional environments: implications for foreign subsidiary ownership structure," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 38(4), pages 621-638, July.
    11. Jeffrey H. Dyer, 1997. "Effective interim collaboration: how firms minimize transaction costs and maximise transaction value," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 535-556, August.
    12. McDougall, Patricia P., 1989. "International versus domestic entrepreneurship: New venture strategic behavior and industry structure," Journal of Business Venturing, Elsevier, vol. 4(6), pages 387-400, November.
    13. Mike W Peng & Denis Y L Wang & Yi Jiang, 2008. "An institution-based view of international business strategy: a focus on emerging economies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(5), pages 920-936, July.
    14. Armstrong, J. Scott & Overton, Terry S., 1977. "Estimating Nonresponse Bias in Mail Surveys," MPRA Paper 81694, University Library of Munich, Germany.
    15. Kathleen M. Eisenhardt & Jeffrey A. Martin, 2000. "Dynamic capabilities: what are they?," Strategic Management Journal, Wiley Blackwell, vol. 21(10‐11), pages 1105-1121, October.
    16. Zhou, Kevin Zheng & Li, Caroline Bingxin, 2010. "How strategic orientations influence the building of dynamic capability in emerging economies," Journal of Business Research, Elsevier, vol. 63(3), pages 224-231, March.
    17. Sethi, Deepak & Judge, William, 2009. "Reappraising liabilities of foreignness within an integrated perspective of the costs and benefits of doing business abroad," International Business Review, Elsevier, vol. 18(4), pages 404-416, August.
    18. Wiklund, Johan & Shepherd, Dean, 2005. "Entrepreneurial orientation and small business performance: a configurational approach," Journal of Business Venturing, Elsevier, vol. 20(1), pages 71-91, January.
    19. Jakki Mohr & Robert Spekman, 1994. "Characteristics of partnership success: Partnership attributes, communication behavior, and conflict resolution techniques," Strategic Management Journal, Wiley Blackwell, vol. 15(2), pages 135-152, February.
    20. Bill McEvily & Alfred Marcus, 2005. "Embedded ties and the acquisition of competitive capabilities," Strategic Management Journal, Wiley Blackwell, vol. 26(11), pages 1033-1055, November.
    21. Ranjay Gulati, 1999. "Network location and learning: the influence of network resources and firm capabilities on alliance formation," Strategic Management Journal, Wiley Blackwell, vol. 20(5), pages 397-420, May.
    22. Andreas Rauch & Johan Wiklund & G.T. Lumpkin & Michael Frese, 2009. "Entrepreneurial Orientation and Business Performance: An Assessment of past Research and Suggestions for the Future," Entrepreneurship Theory and Practice, , vol. 33(3), pages 761-787, May.
    23. Luo, Yadong, 2007. "A coopetition perspective of global competition," Journal of World Business, Elsevier, vol. 42(2), pages 129-144, June.
    24. García-Canal, Esteban & Duarte, Cristina López & Criado, Josep Rialp & Llaneza, Ana Valdés, 2002. "Accelerating international expansion through global alliances: a typology of cooperative strategies," Journal of World Business, Elsevier, vol. 37(2), pages 91-107, July.
    25. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    26. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    27. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    28. Naresh K. Malhotra & Sung S. Kim & Ashutosh Patil, 2006. "Common Method Variance in IS Research: A Comparison of Alternative Approaches and a Reanalysis of Past Research," Management Science, INFORMS, vol. 52(12), pages 1865-1883, December.
    29. Zahra, Shaker A. & Garvis, Dennis M., 2000. "International corporate entrepreneurship and firm performance: The moderating effect of international environmental hostility," Journal of Business Venturing, Elsevier, vol. 15(5-6), pages 469-492.
    30. Miotti, Luis & Sachwald, Frederique, 2003. "Co-operative R&D: why and with whom?: An integrated framework of analysis," Research Policy, Elsevier, vol. 32(8), pages 1481-1499, September.
    31. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    32. Julie Juan Li & Laura Poppo & Kevin Zheng Zhou, 2008. "Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms," Strategic Management Journal, Wiley Blackwell, vol. 29(4), pages 383-400, April.
    33. Jeffrey G. Covin & Dennis P. Slevin, 1989. "Strategic management of small firms in hostile and benign environments," Strategic Management Journal, Wiley Blackwell, vol. 10(1), pages 75-87, January.
    34. Ritter, Thomas & Gemunden, Hans Georg, 2004. "The impact of a company's business strategy on its technological competence, network competence and innovation success," Journal of Business Research, Elsevier, vol. 57(5), pages 548-556, May.
    35. Constance E. Helfat, 1997. "Know‐how and asset complementarity and dynamic capability accumulation: the case of r&d," Strategic Management Journal, Wiley Blackwell, vol. 18(5), pages 339-360, May.
    36. Dovev Lavie, 2007. "Alliance portfolios and firm performance: A study of value creation and appropriation in the U.S. software industry," Strategic Management Journal, Wiley Blackwell, vol. 28(12), pages 1187-1212, December.
    37. Roy, Abhik & Walters, Peter G. P. & Luk, Sherriff T. K., 2001. "Chinese puzzles and paradoxes: conducting business research in China," Journal of Business Research, Elsevier, vol. 52(2), pages 203-210, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shamim, Saqib & Zeng, Jing & Shafi Choksy, Umair & Shariq, Syed Muhammad, 2020. "Connecting big data management capabilities with employee ambidexterity in Chinese multinational enterprises through the mediation of big data value creation at the employee level," International Business Review, Elsevier, vol. 29(6).
    2. Xiyan Mao & Peiyu Wang, 2023. "Import–export nexus and China's emerging trade in environmental goods," Growth and Change, Wiley Blackwell, vol. 54(1), pages 157-181, March.
    3. Yanina Rashkova & Ludovica Moi, 2023. "Moving forward better marketing for a better world: a path for new research opportunities," Italian Journal of Marketing, Springer, vol. 2023(3), pages 413-428, September.
    4. Khan, Huda, 2020. "Is marketing agility important for emerging market firms in advanced markets?," International Business Review, Elsevier, vol. 29(5).
    5. Nadia Zahoor & Yong Kyu Lew, 2022. "Sustaining superior international performance: Strategic orientations and dynamic capability of environmentally concerned small‐ and medium‐sized enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1002-1017, March.
    6. Jaffar Abbas & Saqlain Raza & Mohammad Nurunnabi & Mohd Sobri Minai & Shaher Bano, 2019. "The Impact of Entrepreneurial Business Networks on Firms’ Performance Through a Mediating Role of Dynamic Capabilities," Sustainability, MDPI, vol. 11(11), pages 1-28, May.
    7. Guo, Huiling & Xu, Hangjun & Tang, Chuanyi & Liu-Thompkins, Yuping & Guo, Zhaoyang & Dong, Baobao, 2018. "Comparing the impact of different marketing capabilities: Empirical evidence from B2B firms in China," Journal of Business Research, Elsevier, vol. 93(C), pages 79-89.
    8. Velásquez, Iris María Cantillo & Vargas, Yamile León, 2022. "Tendencias de investigación en los negocios internacionales," Revista Tendencias, Universidad de Narino, vol. 23(2), pages 273-302, July.
    9. Deszczyński, Bartosz & Beręsewicz, Maciej, 2021. "The maturity of relationship management and firm performance – A step toward relationship management middle-range theory," Journal of Business Research, Elsevier, vol. 135(C), pages 358-372.
    10. Ludovica Moi & Francesca Cabiddu, 2021. "Leading digital transformation through an Agile Marketing Capability: the case of Spotahome," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 25(4), pages 1145-1177, December.
    11. Baojun Yu & Hangjun Xu & Feng Dong, 2019. "Vertical vs. Horizontal: How Strategic Alliance Type Influence Firm Performance?," Sustainability, MDPI, vol. 11(23), pages 1-14, November.
    12. Naseer Ahmad & Ali Raza Elahi, 2023. "The Effectiveness of Promotion through Brochure Advertising on Merchandise Sales: A Case Study of Multiple Retail Stores of Pakistan," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 732-740.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Engelen, Andreas & Kube, Harald & Schmidt, Susanne & Flatten, Tessa Christina, 2014. "Entrepreneurial orientation in turbulent environments: The moderating role of absorptive capacity," Research Policy, Elsevier, vol. 43(8), pages 1353-1369.
    2. Jan Lampe & Priscilla Sarai Kraft & Andreas Bausch, 2020. "Mapping the Field of Research on Entrepreneurial Organizations (1937–2016): A Bibliometric Analysis and Research Agenda," Entrepreneurship Theory and Practice, , vol. 44(4), pages 784-816, July.
    3. Samuel Adomako, 2018. "The Moderating Effects Of Adaptive And Intellectual Resource Capabilities On The Relationship Between Entrepreneurial Orientation And Financial Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(03), pages 1-35, April.
    4. Wei Jiang & Felix Mavondo & Weihong Zhao, 2020. "The impact of business networks on dynamic capabilities and product innovation: The moderating role of strategic orientation," Asia Pacific Journal of Management, Springer, vol. 37(4), pages 1239-1266, December.
    5. Yen-Chun Chen & Ya-Hui Lin & Hsien-Tung Tsai, 2020. "Toward Greater Understanding of the Relationship Between Entrepreneurial Orientation and International Performance," Management International Review, Springer, vol. 60(2), pages 211-245, April.
    6. Byungjoo Paek & Heesang Lee, 2018. "Strategic entrepreneurship and competitive advantage of established firms: evidence from the digital TV industry," International Entrepreneurship and Management Journal, Springer, vol. 14(4), pages 883-925, December.
    7. García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Ignacio Canales, J., 2013. "Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities," European Management Journal, Elsevier, vol. 31(3), pages 263-277.
    8. Parente, Ronaldo C. & Baack, Daniel W. & Hahn, Eugene D., 2011. "The effect of supply chain integration, modular production, and cultural distance on new product development: A dynamic capabilities approach," Journal of International Management, Elsevier, vol. 17(4), pages 278-290.
    9. Richard Arend, 2013. "Ethics-focused dynamic capabilities: a small business perspective," Small Business Economics, Springer, vol. 41(1), pages 1-24, June.
    10. Tânia Gonçalves & Mário Sérgio Teixeira & José G. Dias & Sofia Gouveia & Ricardo Jorge Correia, 2021. "Commitment to exporting as an antecedent of organizational skills and firm performance," Journal of Business Economics, Springer, vol. 91(7), pages 1063-1084, September.
    11. Bradley A. George & Louis Marino, 2011. "The Epistemology of Entrepreneurial Orientation: Conceptual Formation, Modeling, and Operationalization," Entrepreneurship Theory and Practice, , vol. 35(5), pages 989-1024, September.
    12. Morgan, Todd & Anokhin, Sergey Alexander, 2020. "The joint impact of entrepreneurial orientation and market orientation in new product development: Studying firm and environmental contingencies," Journal of Business Research, Elsevier, vol. 113(C), pages 129-138.
    13. Richard Arend, 2014. "Entrepreneurship and dynamic capabilities: how firm age and size affect the ‘capability enhancement–SME performance’ relationship," Small Business Economics, Springer, vol. 42(1), pages 33-57, January.
    14. Jörg Freiling & Christoph Lütke Schelhowe, 2014. "The Impact of Entrepreneurial Orientation on the Performance and Speed of Internationalization," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 10(4), pages 169-199.
    15. Muhammad Shahid Qureshi & Nergis Aziz & Sarfraz A. Mian, 2017. "How marketing capabilities shape entrepreneurial firm’s performance? Evidence from new technology based firms in turkey," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 7(1), pages 1-15, December.
    16. Maurice J. Lyver & Ta-Jung Lu, 2018. "Sustaining Innovation Performance in SMEs: Exploring the Roles of Strategic Entrepreneurship and IT Capabilities," Sustainability, MDPI, vol. 10(2), pages 1-27, February.
    17. Man Zhang & Patriya Tansuhaj & James McCullough, 2009. "International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China," Journal of International Entrepreneurship, Springer, vol. 7(4), pages 292-322, December.
    18. Arun Rai & Xinlin Tang, 2010. "Leveraging IT Capabilities and Competitive Process Capabilities for the Management of Interorganizational Relationship Portfolios," Information Systems Research, INFORMS, vol. 21(3), pages 516-542, September.
    19. Rodrigo-Alarcón, Job & García-Villaverde, Pedro M. & Ruiz-Ortega, María J. & Parra-Requena, Gloria, 2018. "From social capital to entrepreneurial orientation: The mediating role of dynamic capabilities," European Management Journal, Elsevier, vol. 36(2), pages 195-209.
    20. Jean, Ruey-Jer “Bryan” & Sinkovics, Rudolf R. & Kim, Daekwan & Lew, Yong Kyu, 2015. "Drivers and performance implications of international key account management capability," International Business Review, Elsevier, vol. 24(4), pages 543-555.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jbrese:v:86:y:2018:i:c:p:141-152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jbusres .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.