IDEAS home Printed from https://ideas.repec.org/a/eee/jbrese/v69y2016i12p5662-5669.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0148296316303915
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jbusres.2016.03.074?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. Kirmani, Amna, 1990. "The Effect of Perceived Advertising Costs on Brand Perceptions," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 17(2), pages 160-171, September.
    2. Weihua Guan, 2003. "From the help desk: Bootstrapped standard errors," Stata Journal, StataCorp LP, vol. 3(1), pages 71-80, March.
    3. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    4. Deborah Dougherty, 1992. "Interpretive Barriers to Successful Product Innovation in Large Firms," Organization Science, INFORMS, vol. 3(2), pages 179-202, May.
    5. Glen L. Urban & Theresa Carter & Steven Gaskin & Zofia Mucha, 1986. "Market Share Rewards to Pioneering Brands: An Empirical Analysis and Strategic Implications," Management Science, INFORMS, vol. 32(6), pages 645-659, June.
    6. Ippolito, Pauline M, 1990. "Bonding and Nonbonding Signals of Product Quality," The Journal of Business, University of Chicago Press, vol. 63(1), pages 41-60, January.
    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. Nebojsa S. Davcik & Rui Vinhas da Silva & Joe F. Hair, 2014. "Towards a Unified Theory of Brand Equity: Conceptualizations, Typologies and Avenues for Future Research," Working Papers Series 2 14-02, ISCTE-IUL, Business Research Unit (BRU-IUL).
    9. Carol J. Simon & Mary W. Sullivan, 1993. "The Measurement and Determinants of Brand Equity: A Financial Approach," Marketing Science, INFORMS, vol. 12(1), pages 28-52.
    10. Peres, Renana & Muller, Eitan & Mahajan, Vijay, 2010. "Innovation diffusion and new product growth models: A critical review and research directions," International Journal of Research in Marketing, Elsevier, vol. 27(2), pages 91-106.
    11. Birger Wernerfelt, 1988. "Umbrella Branding as a Signal of New Product Quality: An Example of Signalling by Posting a Bond," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 458-466, Autumn.
    12. Boulding, William & Kirmani, Amna, 1993. "A Consumer-Side Experimental Examination of Signaling Theory: Do Consumers Perceive Warranties as Signals of Quality?," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 20(1), pages 111-123, June.
    Full references (including those not matched with items on IDEAS)

    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. Fabrice Larceneux & Florence Benoît-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Post-Print hal-00656485, HAL.
    2. Fabrice Larceneux & Florence Benoit-Moreau & Valérie Renaudin, 2012. "Why Might Organic Labels Fail to Influence Consumer Choices? Marginal Labelling and Brand Equity Effects," Journal of Consumer Policy, Springer, vol. 35(1), pages 85-104, March.
    3. Ernst, Holger & Wickede, Anje, 1999. "Einflußfaktoren auf die Glaubwürdigkeit kundenorientierter Produkt-Vorankündigungen: Ein signaltheoretischer Ansatz," Manuskripte aus den Instituten für Betriebswirtschaftslehre der Universität Kiel 515, Christian-Albrechts-Universität zu Kiel, Institut für Betriebswirtschaftslehre.
    4. Michael J. Barone & Thomas E. DeCarlo, 2003. "Emerging Forms of Competitive Advantage: Implications for Agricultural Producers," Center for Agricultural and Rural Development (CARD) Publications 03-mrp5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    5. Gergaud, Olivier & Livat, Florine, 2007. "How do consumers use signals to assess quality?," Working Papers 37296, American Association of Wine Economists.
    6. Michael J. Barone & Thomas E. DeCarlo, 2003. "Emerging Forms of Competitive Advantage: Implications for Agricultural Producers," Midwest Agribusiness Trade Research and Information Center (MATRIC) Publications (archive only) 03-mrp5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    7. Venkatesh Shankar & Pablo Azar & Matthew Fuller, 2008. "—: A Multicategory Brand Equity Model and Its Application at Allstate," Marketing Science, INFORMS, vol. 27(4), pages 567-584, 07-08.
    8. Anil K. Gupta & Paul E. Tesluk & M. Susan Taylor, 2007. "Innovation At and Across Multiple Levels of Analysis," Organization Science, INFORMS, vol. 18(6), pages 885-897, December.
    9. Nohe, Max, 2024. "Retail disruptions and their impact on suppliers in the grocery sector," Other publications TiSEM 2216cd14-a5de-4a9d-bd0d-5, Tilburg University, School of Economics and Management.
    10. Moren Lévesque & Maria Minniti & Dean Shepherd, 2009. "Entrepreneurs’ Decisions on Timing of Entry: Learning from Participation and from the Experiences of Others," Entrepreneurship Theory and Practice, , vol. 33(2), pages 547-570, March.
    11. Jody Hoffer Gittell, 2001. "Supervisory Span, Relational Coordination and Flight Departure Performance: A Reassessment of Postbureaucracy Theory," Organization Science, INFORMS, vol. 12(4), pages 468-483, August.
    12. Kelley, Donna J. & Peters, Lois & O'Connor, Gina Colarelli, 2009. "Intra-organizational networking for innovation-based corporate entrepreneurship," Journal of Business Venturing, Elsevier, vol. 24(3), pages 221-235, May.
    13. Nicolau, Juan L., 2012. "The effect of winning the 2010 FIFA World Cup on the tourism market value: The Spanish case," Omega, Elsevier, vol. 40(5), pages 503-510.
    14. Carlyle Farrell & Gervan Fearon, 2005. "Renting Goodwill in International Marketing Channels: An Analysis of Pricing Strategies and Bargaining Power," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 33(3), pages 285-296, September.
    15. Venugopal Ramachandran, 2011. "Strategic corporate social responsibility: a ‘dynamic capabilities’ perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(5), pages 285-293, September.
    16. Ng, Desmond W., 2011. "Thinking Outside the Box: An Absorptive Capacity Approach to the Product Development Process," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 14(3), pages 1-28, September.
    17. M. Billur Akdeniz & Roger J. Calantone, 2017. "A longitudinal examination of the impact of quality perception gap on brand performance in the US Automotive Industry," Marketing Letters, Springer, vol. 28(1), pages 43-57, March.
    18. repec:dau:papers:123456789/4215 is not listed on IDEAS
    19. Azeem, Muhammad Masood & Sheridan, Alison & Adapa, Sujana, 2022. "Women to women: Enabling innovation and firm performance in developing countries," Emerging Markets Review, Elsevier, vol. 51(PA).
    20. Cambier, Fanny & Poncin, Ingrid, 2020. "Inferring brand integrity from marketing communications: The effects of brand transparency signals in a consumer empowerment context," Journal of Business Research, Elsevier, vol. 109(C), pages 260-270.
    21. Rodríguez-Pinto, Javier & Carbonell, Pilar & Rodríguez-Escudero, Ana I., 2011. "Speed or quality? How the order of market entry influences the relationship between market orientation and new product performance," International Journal of Research in Marketing, Elsevier, vol. 28(2), pages 145-154.

    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:69:y:2016:i:12:p:5662-5669. 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.