Societal Marketing Orientation And Marketing Performance : The Mediating Role Of Key Market-Based Capabilities And The Moderating Effect Of Institutional Context
Loading...
Date
2011-08
Authors
Ibrahim Balal, Siddig Balal
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
Societal issues appear to be increasingly important in today’s business climate.
Response to these issues by adopting societal marketing orientation is expected to
enable firms to gain better competitive advantage. However, literature search reveals
that there is a lack of research offering valid measurement and a systematic
framework that demonstrates the underlying mechanisms and contingencies through
which societal marketing orientation can help firms to achieve that end. Using a priori
approach the study intended to propose a valid measure of societal marketing
orientation and to investigate the extent of this orientation among large manufacturing
firms in Malaysia. Drawing on the resource-based view and institutional theory, the
study posited that societal marketing orientation, marketing performance and key
market-based capabilities are positively interrelated. In addition, the study suggested
key market-based capabilities mediate societal marketing on marketing performance
and institutional context moderates societal marketing orientation and market-based
capabilities relationships. To test the hypotheses, the study performs hierarchical
regression analysis on data gathered from 133 useable responses out of the 745 mailed
questionnaires distributed to key informants of multiple business units. Findings
revealed that there are four components of societal marketing orientation, namely,
customer concern, economic concern, social concern and environmental concern. The
result suggested that large manufacturing firms in Malaysia implemented these
components to a different extent. The findings provided some empirical support for
the theoretical framework. The results provided evidence that some components of
societal marketing orientation played an important role in influencing marketing
performance and key market-based capabilities. The results of the study demonstrate
mixed support for the effects of the four market-based capabilities on firm marketing
performance. This study demonstrated that there are some of the market-based
capabilities were more effective in mediating the relationship between the four
components of societal marketing orientation and three dimensions of marketing
performance. This study also provided evidence to support the moderating effect of
the three dimensions of institutional context but in varying ways. Based on the study’s
findings, discussions of the existing findings as well as the theoretical, practical
implications and limitations, of the study were provided.
Description
Keywords
Societal marketing orientation , and marketing performance