IDEAS home Printed from https://ideas.repec.org/a/wly/mgtdec/v43y2022i7p2941-2954.html
   My bibliography  Save this article

The marketing‐finance interface and national well‐being: An operant behavioral economics analysis

Author

Listed:
  • Rafael Barreiros Porto
  • Gordon Robert Foxall

Abstract

The research ascertains which countries' well‐being metrics moderate the effects of marketing investments on corporate financial outcomes. We applied generalized estimating equations to firms in panel data from 131 countries covering 18 years. The results show that marketing investments raise market share regardless of country context, a global pattern. However, their effects are greater when considering economic growth. The impact of marketing on profitability and the companies' value increases when the country improves income distribution. The countries' developments generate higher financial outcomes, regardless of marketing investments. We highlight firsthand the global marketing–finance interface in its macro‐environment, using operant behavioral economics.

Suggested Citation

  • Rafael Barreiros Porto & Gordon Robert Foxall, 2022. "The marketing‐finance interface and national well‐being: An operant behavioral economics analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 2941-2954, October.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:7:p:2941-2954
    DOI: 10.1002/mde.3574
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/mde.3574
    Download Restriction: no
    File URL: https://libkey.io/10.1002/mde.3574?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
    ---><---

    References listed on IDEAS

    as
    1. Tommaso Ciarli & André Lorentz & Maria Savona & Marco Valente, 2010. "The Effect Of Consumption And Production Structure On Growth And Distribution. A Micro To Macro Model," Metroeconomica, Wiley Blackwell, vol. 61(1), pages 180-218, February.
    2. Bae, John & Kim, Sang-Joon & Oh, Hannah, 2017. "Taming polysemous signals: The role of marketing intensity on the relationship between financial leverage and firm performance," Review of Financial Economics, Elsevier, vol. 33(C), pages 29-40.
    3. Zinkhan, George M. & Verbrugge, James A., 2000. "The Marketing/Finance Interface: Two Divergent and Complementary Views of the Firm," Journal of Business Research, Elsevier, vol. 50(2), pages 143-148, November.
    4. John Bae & Sang‐Joon Kim & Hannah Oh, 2017. "Taming polysemous signals: The role of marketing intensity on the relationship between financial leverage and firm performance," Review of Financial Economics, John Wiley & Sons, vol. 33(1), pages 29-40, April.
    5. Murray Brown & Nagesh Revankar, 1971. "A Generalized Theory Of The Firm: An Integration Of The Sales And Profit Maximization Hypotheses," Kyklos, Wiley Blackwell, vol. 24(3), pages 427-443, August.
    6. Donald J. Brown & Caterina Calsamiglia, 2014. "Alfred Marshall’s cardinal theory of value: the strong law of demand," Economic Theory Bulletin, Springer;Society for the Advancement of Economic Theory (SAET), vol. 2(1), pages 65-76, April.
    7. Gordon R. Foxall, 2020. "The theory of the marketing firm," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(2), pages 164-184, March.
    8. Adam P. Balcerzak & Michal Bernard Pietrzak, 2017. "Human Development and Quality of Institutions in Highly Developed Countries," Chapters, in: Mehmet Huseyin Bilgin & Hakan Danis, & Ender Demir & Ugur Can (ed.),Financial Environment and Business Development. Proceedings of the 16th Eurasia Business and Economics Society, edition 1, volume 1, chapter 18, pages 231-241, Institute of Economic Research.
    9. Khaled Elmawazini & Gamal Atallah & Sonny Nwankwo & Yazid Dissou, 2013. "US Foreign Affiliates, Technology Diffusion and Host Country Human Development: Human Development Index versus Human Capital," Industry and Innovation, Taylor & Francis Journals, vol. 20(1), pages 69-91, January.
    10. Stewart, David W., 2009. "Marketing accountability: Linking marketing actions to financial results," Journal of Business Research, Elsevier, vol. 62(6), pages 636-643, June.
    11. repec:bla:kyklos:v:24:y:1971:i:3:p:427-43 is not listed on IDEAS
    12. Carmen Herrero & Ricardo Mart�nez & Antonio Villar, 2012. "A Newer Human Development Index," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 13(2), pages 247-268, May.
    13. Jeni Klugman & Francisco Rodríguez & Hyung-Jin Choi, 2011. "The HDI 2010: new controversies, old critiques," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 9(2), pages 249-288, June.
    14. Cheng, Louis T.W. & Chan, Ricky Y.K. & Leung, T.Y., 2018. "Impact of perk expenditures and marketing expenditures on corporate performance in China: The moderating role of political connections," Journal of Business Research, Elsevier, vol. 86(C), pages 83-95.
    15. Penrose, Edith, 2009. "The Theory of the Growth of the Firm," OUP Catalogue, Oxford University Press, edition 4, number 9780199573844.
    16. Du, Ding & Osmonbekov, Talai, 2020. "Direct effect of advertising spending on firm value: Moderating role of financial analyst coverage," International Journal of Research in Marketing, Elsevier, vol. 37(1), pages 196-212.
    17. Peter E. Rossi, 2014. "Invited Paper —Even the Rich Can Make Themselves Poor: A Critical Examination of IV Methods in Marketing Applications," Marketing Science, INFORMS, vol. 33(5), pages 655-672, September.
    18. Raden Pardede & Shirin Zahro, 2017. "Saving not Spending: Indonesia’s Domestic Demand Problem," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 53(3), pages 233-259, September.
    19. Omar Vila & Sundar Bharadwaj & S. Bahadir, 2015. "Exploration- and Exploitation-Oriented Marketing Strategies and Sales Growth in Emerging Markets," Customer Needs and Solutions, Springer;Institute for Sustainable Innovation and Growth (iSIG), vol. 2(4), pages 277-289, December.
    20. repec:bla:jfinan:v:59:y:2004:i:6:p:2835-2870 is not listed on IDEAS
    21. Edeling, Alexander & Srinivasan, Shuba & Hanssens, Dominique M., 2021. "The marketing–finance interface: A new integrative review of metrics, methods, and findings and an agenda for future research," International Journal of Research in Marketing, Elsevier, vol. 38(4), pages 857-876.
    22. Rosalia Castellano & Gaetano Musella & Gennaro Punzo, 2017. "Structure of the labour market and wage inequality: evidence from European countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(5), pages 2191-2218, September.
    23. Gordon R. Foxall & Steven R. Hursh & Peter G. Roma, 2016. "Behavioral Economics and the Analysis of Consumption and Choice," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 37(4-5), pages 224-238, 06-07.
    24. Foxall, Gordon R., 1999. "The marketing firm," Journal of Economic Psychology, Elsevier, vol. 20(2), pages 207-234, April.
    25. Gordon R. Foxall & Gordon R. Foxall, 2016. "Operant Behavioral Economics," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 37(4-5), pages 215-223, 06-07.
    26. Mann, Manveer & Byun, Sang-Eun, 2017. "To retrench or invest? Turnaround strategies during a recessionary time," Journal of Business Research, Elsevier, vol. 80(C), pages 24-34.
    27. Muhammad A. Cheema & Yimei Man & Kenneth R. Szulczyk, 2020. "Does Investor Sentiment Predict the Near‐Term Returns of the Chinese Stock Market?," International Review of Finance, International Review of Finance Ltd., vol. 20(1), pages 225-233, March.
    28. Jones, Thomas M. & Felps, Will, 2013. "Stakeholder Happiness Enhancement: A Neo-Utilitarian Objective for the Modern Corporation," Business Ethics Quarterly, Cambridge University Press, vol. 23(3), pages 349-379, July.
    29. Rafael Barreiros Porto & Gordon Robert Foxall, 2020. "Marketing firm performance: When does marketing lead to financial gains?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(2), pages 191-202, March.
    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. Zhong, Bin & Soh, Wei Ni & Ong, Tze San & Muhamad, Haslinah & He, ChunXi, 2024. "Analysis of the impact of managers' psychological deviation on information disclosure and irrational overseas investment after IFRS convergence," Finance Research Letters, Elsevier, vol. 64(C).

    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. Gensler, Sonja & Oehring, Karlo & Wiesel, Thorsten, 2024. "Reported and communicated shifts in strategic emphasis and firm performance," International Journal of Research in Marketing, Elsevier, vol. 41(2), pages 220-240.
    2. Eman Fathi Attia & Hamsa hany Ezz Eldeen & Sameh said Daher, 2023. "Size-Threshold Effect in the Capital Structure–Firm Performance Nexus in the MENA Region: A Dynamic Panel Threshold Regression Model," Risks, MDPI, vol. 11(2), pages 1-13, January.
    3. Nicola Amendola & Giacomo Gabbuti & Giovanni Vecchi, 2023. "On some problems of using the Human Development Index in economic history," European Review of Economic History, European Historical Economics Society, vol. 27(4), pages 477-505.
    4. Oh, Kwangwuk & Song, Sujin, 2023. "Do female CMOs enhance firm performance? Power matters," Journal of Business Research, Elsevier, vol. 158(C).
    5. Prados de la Escosura, Leandro, 2023. "Health, income, and the preston curve: A long view," Economics & Human Biology, Elsevier, vol. 48(C).
    6. Mariano Luque & Salvador Pérez-Moreno & Beatriz Rodríguez, 2016. "Measuring Human Development: A Multi-criteria Approach," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(3), pages 713-733, February.
    7. Panagiotis Ravanos & Giannis Karagiannis, 2021. "A VEA Benefit-of-the-Doubt Model for the HDI," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(1), pages 27-46, May.
    8. Lv, Xin & Liu, Tianyu & Dong, Weijia & Su, Wenjun, 2023. "The market value of green innovation: A comparative analysis of global renewable energy firms," Finance Research Letters, Elsevier, vol. 51(C).
    9. Hoffmann, Arvid O.I. & Pennings, Joost M.E. & Wies, Simone, 2011. "Relationship marketing's role in managing the firm-investor dyad," Journal of Business Research, Elsevier, vol. 64(8), pages 896-903, August.
    10. Tommaso Luzzati & Bruno Cheli & Gianluca Gucciardi, 2017. "Communicating the uncertainty of synthetic indicators: a reassessment of the HDI ranking," Discussion Papers 2017/228, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    11. Sirinya Phulkerd & Cut Novianti Rachmi & Mohd Jamil Sameeha & Elaine Q. Borazon & Anne-Marie Thow & Helen Trevena & Adila Fahmida Saptari & Yong Kang Cheah & Che Aniza Che Wel & Vanessa T. Marquez & T, 2022. "Identifying Opportunities for Strategic Policy Design to Address the Double Burden of Malnutrition through Healthier Retail Food: Protocol for South East Asia Obesogenic Food Environment (SEAOFE) Stud," IJERPH, MDPI, vol. 19(1), pages 1-15, January.
    12. 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).
    13. Albino Prada & Patricio Sánchez-Fernández, 2019. "Transforming Economic Growth into Inclusive Development: An International Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 145(1), pages 437-457, August.
    14. Wang, Hanjie & Feil, Jan-Henning & Yu, Xiaohua, 2023. "Let the data speak about the cut-off values for multidimensional index: Classification of human development index with machine learning," Socio-Economic Planning Sciences, Elsevier, vol. 87(PA).
    15. Chung, Tuck Siong & Low, Angie, 2022. "CEO regulatory focus and myopic marketing management," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 247-267.
    16. Muhammad Akhtar & Kong Yusheng & Muhammad Haris & Qurat Ul Ain & Hafiz Mustansar Javaid, 2022. "Impact of financial leverage on sustainable growth, market performance, and profitability," Economic Change and Restructuring, Springer, vol. 55(2), pages 737-774, May.
    17. Schneider, Susan M & Sanguinetti, Angela, 2021. "Positive reinforcement is just the beginning: Associative learning principles for energy efficiency and climate sustainability," Institute of Transportation Studies, Working Paper Series qt02n7j1cn, Institute of Transportation Studies, UC Davis.
    18. Saurabh Ambulkar & S. Arunachalam & Raghu Bommaraju & Sridhar Ramaswami, 2023. "Should a firm bring a supplier into the boardroom?," Production and Operations Management, Production and Operations Management Society, vol. 32(1), pages 28-44, January.
    19. Md. Mominur Rahman & Bilkis Akhter, 2021. "The impact of investment in human capital on bank performance: evidence from Bangladesh," Future Business Journal, Springer, vol. 7(1), pages 1-13, December.
    20. Myint Moe Chit, 2018. "Political openness and the growth of small and medium enterprises: empirical evidence from transition economies," Empirical Economics, Springer, vol. 55(2), pages 781-804, September.

    More about this item

    Statistics

    Access and download statistics

    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:wly:mgtdec:v:43:y:2022:i:7:p:2941-2954. 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: Wiley Content Delivery (email available below). General contact details of provider: http://www3.interscience.wiley.com/cgi-bin/jhome/7976 .

    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.