IDEAS home Printed from https://ideas.repec.org/a/eee/iburev/v29y2020i5s0969593120300780.html
   My bibliography  Save this article

Is marketing agility important for emerging market firms in advanced markets?

Author

Listed:
  • Khan, Huda

Abstract

Marketing agility has recently gained the attention of international marketing managers and scholars. However, scholars have not examined how this capability directly and indirectly influences firm performance and how the effects change under the complex market conditions facing emerging market (EM) firms in advanced economy (AE) markets. Hence, underpinned by the dynamic capability and complexity theories, this study investigates the direct effect of marketing agility—a dynamic meta-capability involving market sensing, speed, flexibility and responsiveness—on firm performance and its indirect effect via marketing program adaptation. Moreover, it explores changes in these direct and indirect relationships under varying market complexity levels. EM firms are often disadvantaged owing to AE market complexity, such as the presence of low-cost advantage of local AE firms. Hence, investigating this framework in this context is valuable. Using data on Pakistani firms exporting to AE markets, the study finds that marketing agility influences firm performance, and the influence is stronger under high market complexity. When market complexity is low, the influence is mediated by the firms’ ability to adapt their marketing program to meet AE market requirements. Supporting theoretical and managerial implications are offered.

Suggested Citation

  • Khan, Huda, 2020. "Is marketing agility important for emerging market firms in advanced markets?," International Business Review, Elsevier, vol. 29(5).
    • Handle: RePEc:eee:iburev:v:29:y:2020:i:5:s0969593120300780
    DOI: 10.1016/j.ibusrev.2020.101733
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969593120300780
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ibusrev.2020.101733?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. Cacciolatti, Luca & Lee, Soo Hee, 2016. "Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organisational power," Journal of Business Research, Elsevier, vol. 69(12), pages 5597-5610.
    2. Kearney, Colm, 2012. "Emerging markets research: Trends, issues and future directions," Emerging Markets Review, Elsevier, vol. 13(2), pages 159-183.
    3. Marc Mazodier & Dwight Merunka, 2012. "Achieving brand loyalty through sponsorship: the role of fit and self-congruity," Post-Print hal-01822308, HAL.
    4. 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.
    5. Piyush Sharma, 2011. "Country of origin effects in developed and emerging markets: Exploring the contrasting roles of materialism and value consciousness," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 42(2), pages 285-306, February.
    6. Ronaldo Parente & Ke Rong & José-Mauricio G. Geleilate & Everlyne Misati, 2019. "Adapting and sustaining operations in weak institutional environments: A business ecosystem assessment of a Chinese MNE in Central Africa," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(2), pages 275-291, March.
    7. 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.
    8. Battistella, Cinzia & De Toni, Alberto F. & De Zan, Giovanni & Pessot, Elena, 2017. "Cultivating business model agility through focused capabilities: A multiple case study," Journal of Business Research, Elsevier, vol. 73(C), pages 65-82.
    9. Khan, Zaheer & Lew, Yong Kyu, 2018. "Post-entry survival of developing economy international new ventures: A dynamic capability perspective," International Business Review, Elsevier, vol. 27(1), pages 149-160.
    10. Xinshu Zhao & John G. Lynch & Qimei Chen, 2010. "Reconsidering Baron and Kenny: Myths and Truths about Mediation Analysis," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 37(2), pages 197-206, August.
    11. Martin, Silvia L. & Javalgi, Rajshekhar G. & Cavusgil, Erin, 2017. "Marketing capabilities, positional advantage, and performance of born global firms: Contingent effect of ambidextrous innovation," International Business Review, Elsevier, vol. 26(3), pages 527-543.
    12. J. Robert Baum & Stefan Wally, 2003. "Strategic decision speed and firm performance," Strategic Management Journal, Wiley Blackwell, vol. 24(11), pages 1107-1129, November.
    13. Efrat, Kalanit & Gilboa, Shaked & Yonatany, Moshe, 2017. "When marketing and innovation interact: The case of born-global firms," International Business Review, Elsevier, vol. 26(2), pages 380-390.
    14. David J Teece, 2014. "A dynamic capabilities-based entrepreneurial theory of the multinational enterprise," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 45(1), pages 8-37, January.
    15. Rose, Gregory M. & Shoham, Aviv, 2002. "Export performance and market orientation: establishing an empirical link," Journal of Business Research, Elsevier, vol. 55(3), pages 217-225, March.
    16. Philip Anderson, 1999. "Perspective: Complexity Theory and Organization Science," Organization Science, INFORMS, vol. 10(3), pages 216-232, June.
    17. Theodosiou, Marios & Leonidou, Leonidas C., 2003. "Standardization versus adaptation of international marketing strategy: an integrative assessment of the empirical research," International Business Review, Elsevier, vol. 12(2), pages 141-171, April.
    18. 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.
    19. 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.
    20. Helm, Roland & Gritsch, Stephanie, 2014. "Examining the influence of uncertainty on marketing mix strategy elements in emerging business to business export-markets," International Business Review, Elsevier, vol. 23(2), pages 418-428.
    21. S Cem Bahadir & Sundar G Bharadwaj & Rajendra K Srivastava, 2015. "Marketing mix and brand sales in global markets: Examining the contingent role of country-market characteristics," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 46(5), pages 596-619, June.
    22. Shaker A. Zahra & Harry J. Sapienza & Per Davidsson, 2006. "Entrepreneurship and Dynamic Capabilities: A Review, Model and Research Agenda," Journal of Management Studies, Wiley Blackwell, vol. 43(4), pages 917-955, June.
    23. Ramamurti, Ravi & Williamson, Peter J., 2019. "Rivalry between emerging-market MNEs and developed-country MNEs: Capability holes and the race to the future," Business Horizons, Elsevier, vol. 62(2), pages 157-169.
    24. Wong, Christina W.Y. & Lai, Kee-hung & Bernroider, Edward W.N., 2015. "The performance of contingencies of supply chain information integration: The roles of product and market complexity," International Journal of Production Economics, Elsevier, vol. 165(C), pages 1-11.
    25. Torben Schubert & Elisabeth Baier & Christian Rammer, 2018. "Firm capabilities, technological dynamism and the internationalisation of innovation: A behavioural approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 49(1), pages 70-95, January.
    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. Ozkan, Kubilay S.L. & Khan, Huda & Deligonul, Seyda & Yeniyurt, Sengun & Gu, Qian (Cecilia) & Cavusgil, Erin & Xu, Shichun, 2022. "Race for market share gains: How emerging market and advanced economy MNEs perform in each other’s turf," Journal of Business Research, Elsevier, vol. 150(C), pages 208-222.
    2. Nadia Zahoor & Francis Donbesuur & Arinze Christian Nwoba & Huda Khan, 2023. "Regional expansion of emerging market SMEs: the roles of domestic market environmental uncertainty and international alliance partner diversity," Asia Pacific Journal of Management, Springer, vol. 40(2), pages 613-643, June.
    3. Sultana, Saida & Akter, Shahriar & Kyriazis, Elias, 2022. "How data-driven innovation capability is shaping the future of market agility and competitive performance?," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    4. Christofi, Michael & Zahoor, Nadia & Hadjielias, Elias & Adomako, Samuel, 2024. "Business model innovation and international performance of emerging market international businesses," Journal of International Management, Elsevier, vol. 30(1).
    5. 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.
    6. Buccieri, Dominic & Park, JiEun, 2022. "Entrepreneurial marketing and reconfiguration towards post-entry performance: Moderating effects of market dynamism and entry mode," Journal of Business Research, Elsevier, vol. 148(C), pages 89-100.
    7. Khan, Zaheer & Amankwah-Amoah, Joseph & Lew, Yong Kyu & Puthusserry, Pushyarag & Czinkota, Michael, 2022. "Strategic ambidexterity and its performance implications for emerging economies multinationals," International Business Review, Elsevier, vol. 31(3).
    8. Khan, Huda & Khan, Zaheer, 2021. "The efficacy of marketing skills and market responsiveness in marketing performance of emerging market exporting firms in advanced markets: The moderating role of competitive intensity," International Business Review, Elsevier, vol. 30(6).
    9. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    10. Zahoor, Nadia & Donbesuur, Francis & Christofi, Michael & Miri, Domnan, 2022. "Technological innovation and employee psychological well-being: The moderating role of employee learning orientation and perceived organizational support," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    11. Asseraf, Yoel & Gnizy, Itzhak, 2022. "Translating strategy into action: The importance of an agile mindset and agile slack in international business," International Business Review, Elsevier, vol. 31(6).
    12. Alghamdi, OmarA. & Agag, Gomaa, 2024. "Competitive advantage: A longitudinal analysis of the roles of data-driven innovation capabilities, marketing agility, and market turbulence," Journal of Retailing and Consumer Services, Elsevier, vol. 76(C).
    13. Boris MILOVIC & Maksim VOJVODIC, 2021. "A Framework For The Development Of International Marketing In Sport," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(1), pages 82-97, May.
    14. Arslan, Ahmad & Kamara, Samppa & Tian, Anna Yumiao & Rodgers, Peter & Kontkanen, Minnie, 2024. "Marketing agility in underdog entrepreneurship: A qualitative assessment in post-conflict Sub-Saharan African context," Journal of Business Research, Elsevier, vol. 173(C).
    15. Khan, Huda & Ozkan, Kubilay S.L. & Deligonul, Seyda & Cavusgil, Erin, 2024. "Redefining the organizational resilience construct using a frame based methodology: A new perspective from the ecology based approach," Journal of Business Research, Elsevier, vol. 172(C).
    16. Khan, Huda & Zahoor, Nadia & Gerged, Ali Meftah & Tarba, Shlomo & Makrides, Anna, 2022. "The efficacy of market sensing and family-controlled board in the new product development performance of family firms in emerging market," Journal of Business Research, Elsevier, vol. 141(C), pages 673-684.

    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. 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.
    2. Buccieri, Dominic & Javalgi, Raj G. & Cavusgil, Erin, 2023. "Role of opportunity creation between reconfiguration and innovation: Insights from emerging market international new ventures," International Business Review, Elsevier, vol. 32(4).
    3. Quan Anh Nguyen & Gillian Sullivan Mort, 0. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 0, pages 1-23.
    4. Victoria Eugenia Sanchez-Garcia & Cristina Gallego & Juan Antonio Marquez & Elena Peribáñez, 2024. "The Green Entrepreneurial Self-Efficacy as an Innovation Factor That Enables the Creation of New Sustainable Business," Sustainability, MDPI, vol. 16(16), pages 1-14, August.
    5. Jose L. Barbero & Alicia Ramos & Catherine Chiang, 2017. "Restructuring in dynamic environments: a dynamic capabilities perspective," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 26(4), pages 593-615.
    6. Quan Anh Nguyen & Gillian Sullivan Mort, 2021. "Conceptualising organisational-level and microfoundational capabilities: an integrated view of born-globals’ internationalisation," International Entrepreneurship and Management Journal, Springer, vol. 17(4), pages 1781-1803, December.
    7. Wohlgemuth, Veit & Wenzel, Matthias & Berger, Elisabeth S.C. & Eisend, Martin, 2019. "Dynamic capabilities and employee participation: The role of trust and informal control," European Management Journal, Elsevier, vol. 37(6), pages 760-771.
    8. Sadeghi, Arash & Aliasghar, Omid & Bouguerra, Abderaouf, 2023. "Unpacking the relationship between post-entry speed of internationalization and export performance of SMEs: A capability-building perspective," Journal of International Management, Elsevier, vol. 29(1).
    9. Björn Michaelis & Shalini Rogbeer & Lars Schweizer & Zafer Özleblebici, 2021. "Clarifying the boundary conditions of value creation within dynamic capabilities framework: a grafting approach," Review of Managerial Science, Springer, vol. 15(6), pages 1797-1820, August.
    10. Fainshmidt, Stav & Nair, Anil & Mallon, Mark R., 2017. "MNE performance during a crisis: An evolutionary perspective on the role of dynamic managerial capabilities and industry context," International Business Review, Elsevier, vol. 26(6), pages 1088-1099.
    11. Buccieri, Dominic & Park, JiEun, 2022. "Entrepreneurial marketing and reconfiguration towards post-entry performance: Moderating effects of market dynamism and entry mode," Journal of Business Research, Elsevier, vol. 148(C), pages 89-100.
    12. FeCheng Ma & Farhan Khan & Kashif Ullah Khan & Si XiangYun, 2021. "Investigating the Impact of Information Technology, Absorptive Capacity, and Dynamic Capabilities on Firm Performance: An Empirical Study," SAGE Open, , vol. 11(4), pages 21582440211, November.
    13. Yi-Ju Lo & Tung Hung, 2015. "Structure offshoring and returns on offshoring," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 443-479, June.
    14. Amandine Maus & Sylvie Sammut, 2018. "Business model innovation in incubators: the role played by dynamic capabilities theory," Post-Print hal-02466175, HAL.
    15. Viktora-Jones, Magdalena & Parente, Ronaldo & Drori, Netanel & Zhao, Yue, 2024. "Firm performance drivers within a dynamic emerging market ecosystem," Journal of International Management, Elsevier, vol. 30(1).
    16. Darshana Mudalige & Noor Azizi Ismail & Marlin Abdul Malek, 2016. "Exploratory Study on Relationship between Entrepreneur Characteristics and Dynamic Capabilities in Export SMES," Paradigm, , vol. 20(2), pages 113-130, December.
    17. Khalid, Saba & Bhatti, Khalid, 2015. "Entrepreneurial competence in managing partnerships and partnership knowledge exchange: Impact on performance differences in export expansion stages," Journal of World Business, Elsevier, vol. 50(3), pages 598-608.
    18. Ayden, Yuksel & Tatoglu, Ekrem & Glaister, Keith W. & Demirbag, Mehmet, 2021. "Exploring the internationalization strategies of Turkish multinationals: A multi-perspective analysis," Journal of International Management, Elsevier, vol. 27(3).
    19. Claudia D’Annunzio & Mariela Carattoli & Dolores Dupleix, 2015. "Dynamic Capabilities Associated with a Firm’s Growth in Developing Countries. A Comparative Study of Argentinean SMEs in the Software and Tourism Industries," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 11(4), pages 25-62.
    20. Ahsan, Mujtaba & Fernhaber, Stephanie A., 2019. "Multinational Enterprises: Leveraging a Corporate International Entrepreneurship Lens for New Insights Into Subsidiary Initiatives," Journal of International Management, Elsevier, vol. 25(1), pages 51-65.

    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:iburev:v:29:y:2020:i:5:s0969593120300780. 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/wps/find/journaldescription.cws_home/133/description#description .

    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.