TY - JOUR
T1 - Examining the link between marketing controls and firm performance
T2 - The mediating effect of market-focused learning capability
AU - Liang, Xiaoning
AU - Frösén, Johanna
PY - 2019/1/23
Y1 - 2019/1/23
N2 - 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.
AB - 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.
KW - 512 Business and Management
KW - Marketing controls
KW - Market-focused learning capability
KW - Structural equation modeling
KW - Configuration analysis
KW - Marketing Effectiveness and Profitability
UR - http://www.scopus.com/inward/record.url?scp=85060278614&partnerID=8YFLogxK
U2 - 10.1016/j.jbusres.2019.01.021
DO - 10.1016/j.jbusres.2019.01.021
M3 - Article
SN - 0148-2963
JO - Journal of Business Research
JF - Journal of Business Research
ER -