IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v109y2020icp545-556.html
   My bibliography  Save this article

Examining the link between marketing controls and firm performance: The mediating effect of market-focused learning capability

Author

Listed:
  • Liang, Xiaoning
  • Frösén, Johanna

Abstract

This study builds on parallel structural equation modeling (SEM) and fuzzy set Qualitative Comparative Analysis (fsQCA) to explore how formal and informal marketing controls affect firm performance by enhancing a firm's market-focused learning capability. The SEM results reveal that formal controls have a direct impact on market-focused learning capability and, thereby, firm performance, while informal controls strengthen this positive impact. Furthermore, results from fsQCA suggest that all configurations associated with high market-focused learning and/or high firm performance reflect high informal controls. Taken together, these results imply that informal controls serve as “hygiene factors” that are necessary but not sufficient to generate market-focused learning capability or firm performance. Finally, a firm's business strategy (i.e., cost leadership, differentiation or a dual strategy) is found to moderate the effectiveness of marketing controls: firms with a dual strategy benefit more from informal controls, while those with a clear strategy reap more benefits from formal controls.

Suggested Citation

  • Liang, Xiaoning & Frösén, Johanna, 2020. "Examining the link between marketing controls and firm performance: The mediating effect of market-focused learning capability," Journal of Business Research, Elsevier, vol. 109(C), pages 545-556.
    • Handle: RePEc:eee:jbrese:v:109:y:2020:i:c:p:545-556
    DOI: 10.1016/j.jbusres.2019.01.021
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296319300207
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2019.01.021?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. Brashear, Thomas G. & Manolis, Chris & Brooks, Charles M., 2005. "The effects of control, trust, and justice on salesperson turnover," Journal of Business Research, Elsevier, vol. 58(3), pages 241-249, March.
    2. Joshi, Ashwin W. & Randall, Sheila, 2001. "The indirect effects of organizational controls on salesperson performance and customer orientation," Journal of Business Research, Elsevier, vol. 54(1), pages 1-9, October.
    3. Dul, Jan, 2016. "Identifying single necessary conditions with NCA and fsQCA," Journal of Business Research, Elsevier, vol. 69(4), pages 1516-1523.
    4. Mary M. Crossan & Marina Apaydin, 2010. "A Multi‐Dimensional Framework of Organizational Innovation: A Systematic Review of the Literature," Journal of Management Studies, Wiley Blackwell, vol. 47(6), pages 1154-1191, September.
    5. Sheth, Jagdish N. & Sisodia, Rajendra S., 2002. "Marketing productivity: issues and analysis," Journal of Business Research, Elsevier, vol. 55(5), pages 349-362, May.
    6. Joël Le Bon & Dwight Merunka, 2006. "The impact of individual and managerial factors on salespeople's contribution to marketing intelligence activities," Post-Print hal-01822294, HAL.
    7. Tóth, Zsófia & Thiesbrummel, Christoph & Henneberg, Stephan C. & Naudé, Peter, 2015. "Understanding configurations of relational attractiveness of the customer firm using fuzzy set QCA," Journal of Business Research, Elsevier, vol. 68(3), pages 723-734.
    8. Kathleen R. Conner & C. K. Prahalad, 1996. "A Resource-Based Theory of the Firm: Knowledge Versus Opportunism," Organization Science, INFORMS, vol. 7(5), pages 477-501, October.
    9. Skarmeas, Dionysis & Leonidou, Constantinos N. & Saridakis, Charalampos, 2014. "Examining the role of CSR skepticism using fuzzy-set qualitative comparative analysis," Journal of Business Research, Elsevier, vol. 67(9), pages 1796-1805.
    10. Weerawardena, Jay & O'Cass, Aron & Julian, Craig, 2006. "Does industry matter? Examining the role of industry structure and organizational learning in innovation and brand performance," Journal of Business Research, Elsevier, vol. 59(1), pages 37-45, January.
    11. Zhang, Haisu & Wu, Fang & Cui, Anna Shaojie, 2015. "Balancing market exploration and market exploitation in product innovation: A contingency perspective," International Journal of Research in Marketing, Elsevier, vol. 32(3), pages 297-308.
    12. Miao, C. Fred & Evans, Kenneth R., 2012. "Effects of formal sales control systems: A combinatory perspective," International Journal of Research in Marketing, Elsevier, vol. 29(2), pages 181-191.
    13. Skarmeas, Dionysis & Lisboa, Ana & Saridakis, Charalampos, 2016. "Export performance as a function of market learning capabilities and intrapreneurship: SEM and FsQCA findings," Journal of Business Research, Elsevier, vol. 69(11), pages 5342-5347.
    14. Cravens, David W. & Lassk, Felicia G. & Low, George S. & Marshall, Greg W. & Moncrief, William C., 2004. "Formal and informal management control combinations in sales organizations: The impact on salesperson consequences," Journal of Business Research, Elsevier, vol. 57(3), pages 241-248, March.
    15. Olavarrieta, Sergio & Friedmann, Roberto, 2008. "Market orientation, knowledge-related resources and firm performance," Journal of Business Research, Elsevier, vol. 61(6), pages 623-630, June.
    16. Garrett, Robert P. & Covin, Jeffrey G. & Slevin, Dennis P., 2009. "Market responsiveness, top management risk taking, and the role of strategic learning as determinants of market pioneering," Journal of Business Research, Elsevier, vol. 62(8), pages 782-788, August.
    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. Piotr Hadrian & František Milichovský & Pavel Mráček, 2021. "The Concept of Strategic Control in Marketing Management in Connection to Measuring Marketing Performance," Sustainability, MDPI, vol. 13(7), pages 1-21, April.
    2. Liang, Xiaoning & Li, Guoxin & Zhang, Hao & Nolan, Eimear & Chen, Fadong, 2022. "Firm performance and marketing analytics in the Chinese context: A contingency model," Journal of Business Research, Elsevier, vol. 141(C), pages 589-599.
    3. Paola Andrea Ortiz-Rendón & Luz Alexandra Montoya-Restrepo & Jose-Luis Munuera-Alemán, 2020. "A Study of Cognitive Results in Marketing and Finance Students," Simulation & Gaming, , vol. 51(5), pages 666-684, October.
    4. 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. Dimitrios Kafetzopoulos & Evangelos Psomas, 2016. "ORGANISATIONAL LEARNING, NON-TECHNICAL INNOVATION AND CUSTOMER SATISFACTION OF SMEs," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, April.
    2. Donald F. Kuratko & Greg Fisher & James M. Bloodgood & Jeffrey S. Hornsby, 2017. "The paradox of new venture legitimation within an entrepreneurial ecosystem," Small Business Economics, Springer, vol. 49(1), pages 119-140, June.
    3. Issam Laguir & Rebecca Stekelorum & Lamia Laguir & Raffaele Staglianò, 2021. "Managing corporate social responsibility in the bank sector: A fuzzy and disaggregated approach," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(4), pages 1324-1334, July.
    4. Park, Hyewon & Hur, Won-Moo & Kang, Seongho, 2023. "Contribution of sales control in salespeople’s creative selling: Work engagement as a mediator," Journal of Retailing and Consumer Services, Elsevier, vol. 75(C).
    5. Villani, Elisa & Linder, Christian & Lechner, Christian & Muller, Lina, 2021. "How do non-innovative firms start innovation and build legitimacy? The case of professional service firms," Journal of Business Research, Elsevier, vol. 137(C), pages 614-625.
    6. Gentina, Elodie & Huarng, Kun-Huang & Sakashita, Mototaka, 2018. "A social comparison theory approach to mothers' and daughters' clothing co-consumption behaviors: A cross-cultural study in France and Japan," Journal of Business Research, Elsevier, vol. 89(C), pages 361-370.
    7. Olya, Hossein G.T. & Al-ansi, Amr, 2018. "Risk assessment of halal products and services: Implication for tourism industry," Tourism Management, Elsevier, vol. 65(C), pages 279-291.
    8. Mikalef, Patrick & Pateli, Adamantia, 2017. "Information technology-enabled dynamic capabilities and their indirect effect on competitive performance: Findings from PLS-SEM and fsQCA," Journal of Business Research, Elsevier, vol. 70(C), pages 1-16.
    9. Subramanian, Nachiappan & Gunasekaran, Angappa & Abdulrahman, Muhammad D. & Qiao, Crystal, 2019. "Out-in, in-out buyer quality innovation pathways for new product outcome: Empirical evidence from the Chinese consumer goods industry," International Journal of Production Economics, Elsevier, vol. 207(C), pages 183-194.
    10. Paul Amadieu & Jean-Laurent Viviani, 2010. "Intangible effort and performance: the case of the French wine industry," Agribusiness, John Wiley & Sons, Ltd., vol. 26(2), pages 280-306.
    11. Coelho, Filipe J. & Evanschitzky, Heiner & Sousa, Carlos M.P. & Olya, Hossein & Taheri, Babak, 2021. "Control mechanisms, management orientations, and the creativity of service employees: Symmetric and asymmetric modeling," Journal of Business Research, Elsevier, vol. 132(C), pages 753-764.
    12. Kim, Stephen K. & Tiwana, Amrit, 2017. "Dual Control of Salesforce in Partially Integrated Channels," Journal of Retailing, Elsevier, vol. 93(3), pages 304-316.
    13. Wang, Hui-Ming Deanna & Sengupta, Sanjit, 2016. "Stakeholder relationships, brand equity, firm performance: A resource-based perspective," Journal of Business Research, Elsevier, vol. 69(12), pages 5561-5568.
    14. Sascha Kraus & Domingo Ribeiro-Soriano & Miriam Schüssler, 2018. "Fuzzy-set qualitative comparative analysis (fsQCA) in entrepreneurship and innovation research – the rise of a method," International Entrepreneurship and Management Journal, Springer, vol. 14(1), pages 15-33, March.
    15. Abed Mahmoudian & Saeed Sadeghi Boroujerdi & Yong Jae Ko & Vahid Delshab, 2024. "The Impact of Perceived Team Reputation on Team Identification in the Context of European Football League Teams," Corporate Reputation Review, Palgrave Macmillan, vol. 27(1), pages 70-85, February.
    16. Srinivas Kolluru & Pundarik Mukhopadhaya, 2017. "Empirical Studies on Innovation Performance in the Manufacturing and Service Sectors Since 1995: A Systematic Review," Economic Papers, The Economic Society of Australia, vol. 36(2), pages 223-248, June.
    17. Natalia Strobel & Jan Kratzer, 2017. "OBSTACLES TO INNOVATION FOR SMEs: EVIDENCE FROM GERMANY," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-28, April.
    18. Zoha Fatima & Adil Khan & Abdul Saboor Mohammad, 2024. "The Efficacy of Salesforce Control Systems: Their Impact on the Pharmaceutical Industry in India," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 49(2), pages 275-292, May.
    19. Skarmeas, Dionysis & Lisboa, Ana & Saridakis, Charalampos, 2016. "Export performance as a function of market learning capabilities and intrapreneurship: SEM and FsQCA findings," Journal of Business Research, Elsevier, vol. 69(11), pages 5342-5347.
    20. Kuester, Sabine & Homburg, Christian & Hildesheim, Andreas, 2017. "The catbird seat of the sales force: How sales force integration leads to new product success," International Journal of Research in Marketing, Elsevier, vol. 34(2), pages 462-479.

    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:109:y:2020:i:c:p:545-556. 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.