EconPapers    
Economics at your fingertips  
 

Innovation pathway to profitability: the role of entrepreneurial orientation and marketing capabilities

S. Arunachalam (), Sridhar N. Ramaswami (), Pol Herrmann () and Doug Walker ()
Additional contact information
S. Arunachalam: Indian School of Business
Sridhar N. Ramaswami: Ivy College of Business, Iowa State University
Pol Herrmann: Ivy College of Business, Iowa State University
Doug Walker: Kansas State University

Journal of the Academy of Marketing Science, 2018, vol. 46, issue 4, No 9, 744-766

Abstract: Abstract Drawing from the marketing capabilities and innovation literatures, we identify aprocess by which a firm’s entrepreneurial orientation impacts profits and show that it is dependent on marketing capabilities. Using a half-longitudinal design we integrate survey data with performance metrics over two time periods, from a sample of 190 firms. While the effect of entrepreneurial orientation (EO) on innovation is enhanced by architectural marketing capabilities, the effect of innovation outcomes on profits is enhanced by specialized marketing capabilities. Ultimately, the pathway from EO to performance, mediated by innovation, is positively significant at higher levels of both marketing capabilities. The results uncovered using Bayesian conditional process modeling, are robust to alternate model specifications, endogeneity tests, and provide insights into the capabilities-based understanding of entrepreneurism-marketing interface. We discuss resource allocation implications for managers as they attempt to maximize profits through innovation.

Keywords: Marketing capabilities; Innovation; Pathway to profitability; Moderated mediation (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://link.springer.com/10.1007/s11747-017-0574-1 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joamsc:v:46:y:2018:i:4:d:10.1007_s11747-017-0574-1

Ordering information: This journal article can be ordered from
https://www.springer ... gement/journal/11747

DOI: 10.1007/s11747-017-0574-1

Access Statistics for this article

Journal of the Academy of Marketing Science is currently edited by John Hulland, Anne Hoekman and Mark Houston

More articles in Journal of the Academy of Marketing Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2025-03-20
Handle: RePEc:spr:joamsc:v:46:y:2018:i:4:d:10.1007_s11747-017-0574-1