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

Xiaoning Liang and Johanna Frösén

Journal of Business Research, 2020, vol. 109, issue C, 545-556

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.

Keywords: Marketing controls; Market-focused learning capability; Structural equation modeling; Configuration analysis (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:109:y:2020:i:c:p:545-556

DOI: 10.1016/j.jbusres.2019.01.021

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