Dynamic marketing capabilities view on creating market change

Reza Kachouie, Felix Mavondo, Sean Sands

Research output: Contribution to journalArticleResearchpeer-review

Abstract

Purpose: The purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs. Design/methodology/approach: A questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation. Findings: The findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals. Practical implications: The research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied. Originality/value: This study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.

Original languageEnglish
Pages (from-to)1007-1036
Number of pages30
JournalEuropean Journal of Marketing
Volume52
Issue number5-6
DOIs
Publication statusPublished - 2018

Keywords

  • Customer value
  • Dynamic capabilities
  • Dynamic marketing capabilities
  • Induced market turbulence
  • Proactive market orientation
  • Value innovation

Cite this

Kachouie, Reza ; Mavondo, Felix ; Sands, Sean. / Dynamic marketing capabilities view on creating market change. In: European Journal of Marketing. 2018 ; Vol. 52, No. 5-6. pp. 1007-1036.
@article{2f7231cd77df49bd8921fcec6f945f13,
title = "Dynamic marketing capabilities view on creating market change",
abstract = "Purpose: The purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs. Design/methodology/approach: A questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation. Findings: The findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals. Practical implications: The research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied. Originality/value: This study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.",
keywords = "Customer value, Dynamic capabilities, Dynamic marketing capabilities, Induced market turbulence, Proactive market orientation, Value innovation",
author = "Reza Kachouie and Felix Mavondo and Sean Sands",
year = "2018",
doi = "10.1108/EJM-10-2016-0588",
language = "English",
volume = "52",
pages = "1007--1036",
journal = "European Journal of Marketing",
issn = "0309-0566",
publisher = "Emerald",
number = "5-6",

}

Dynamic marketing capabilities view on creating market change. / Kachouie, Reza; Mavondo, Felix; Sands, Sean.

In: European Journal of Marketing, Vol. 52, No. 5-6, 2018, p. 1007-1036.

Research output: Contribution to journalArticleResearchpeer-review

TY - JOUR

T1 - Dynamic marketing capabilities view on creating market change

AU - Kachouie, Reza

AU - Mavondo, Felix

AU - Sands, Sean

PY - 2018

Y1 - 2018

N2 - Purpose: The purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs. Design/methodology/approach: A questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation. Findings: The findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals. Practical implications: The research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied. Originality/value: This study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.

AB - Purpose: The purpose of this paper is to examine the indirect relationship between dynamic capabilities (DCs) and organizational outcomes through matching and creating market change. In addition, the research aims to gain a deeper understanding of the role of marketing in DCs and to extend beyond a simplistic discussion of DCs by studying proactive market orientation and value innovation as specific DCs. Design/methodology/approach: A questionnaire was developed and data were collected from 270 senior executives. After ensuring reliability and validity, the hypotheses were examined by applying structural equation modeling and Monte Carlo simulation. Findings: The findings indicate that dynamic marketing capabilities (DMCs) are critical in the reconfiguration of operational marketing capabilities, which in turn lead to enhanced organizational performance. The results also suggest that organizations with enhanced DMCs are able to initiate market disruption and achieve superior performance by out-competing their rivals. Practical implications: The research provides guidelines for managers wanting to exploit their DMCs by showing that organizations can match the environment, create market turbulence or combine both strategies to fully exploit their DMCs. This study also provides managers with actionable tools that are specific, robust and easily applied. Originality/value: This study is one of the few to incorporate induced market turbulence into the DC literature and conceptualize, develop and validate scales to measure it. The study provides empirical evidence for the claim that operational marketing capabilities are necessary to utilize the benefits of DMCs.

KW - Customer value

KW - Dynamic capabilities

KW - Dynamic marketing capabilities

KW - Induced market turbulence

KW - Proactive market orientation

KW - Value innovation

UR - http://www.scopus.com/inward/record.url?scp=85043473002&partnerID=8YFLogxK

U2 - 10.1108/EJM-10-2016-0588

DO - 10.1108/EJM-10-2016-0588

M3 - Article

VL - 52

SP - 1007

EP - 1036

JO - European Journal of Marketing

JF - European Journal of Marketing

SN - 0309-0566

IS - 5-6

ER -