Verhoef 2011 a Cross-National Investigation Into the Marketing Department's Influence Within Firm

8/10/2019 Verhoef 2011 a Cross-National Investigation Into the Marketing Department's Influence Within Firm

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A Cross-National Investigation into

the Marketing Departments Influence

Within the Firm: Toar! Initial"mpirical #enerali$ationsPeter C. Verhoef, Peter S.H. Leeflang, Jochen Reiner, Martin Natter, William Baker,

Amir Grintein, An!er G"tafon, Pamela Morrion, an! John Sa"n!er

ABS#RAC#

This study of the influence of the marketing department (MD), as well as its relationship with firm performance,includes seven industrialized countries and aims to generalize the conceptual model presented by Verhoef and eeflang

(!""#)$ This investigation considers the antecedents of perceived MD influence, top management respect for the MD,

and MD decision influence, as well as the relationships of these three influence variables with market orientation (M%)and business performance (&')$ Metaanalytic procedures reveal initial empirical generalizations *ccountability, MD

innovativeness, and the customer connection capabilities of the MD relate consistently to all three studied MD influencemeasures$ The generalization also shows that MD influence contributes to &' indirectly through its positive relation

ship with M% and directly through its positive direct relationship with &'$

%e&or!s: cross-national' (usiness performance' market orientation' marketing strateg&' empirical generali$ations

)eter C* +erhoef is )rofessor of Marketing' Department of

Marketing' ,niversit& of #roningen e-mail: p*c*verhoef.

rug*nl/* )eter 0*1* 2eeflang is the Frank M* 3ass )rofessor of

Marketing' Department of Marketing' ,niversit& of #ronin-gen' an! hol!s the 3AT-Chair in Marketing at 2,I00 #ui!o

Carli at 4ome e-mail: p*s*h*leeflang.rug*nl/* 5ochen 4einer

nitie engage in e$teni%e !e&ate a&o"t the !eclin'ing role of marketing a a e(arate f"nction )ithinBoth aca!emic an! (ractitioner marketing comm"'

firm *e.g., Am&ler +- We&ter, Malter, an! Ganean

+/0. 1n general, "ch !e&ate a"me that the role ofthe marketing !e(artment *M20 i !eclining, 3et the !i'

c"ion remain mainl3 4"alitati%e, )itho"t trong

em(irical e%i!ence in m"lti(le co"ntrie. Recentl3, Ver'

hoef an! Leeflang *+50 *hereinafter, V6L0 re(orte!

that among 2"tch firm, marketing i re(oni&le for

onl3 a limite! et of !eciion *e.g., a!%ertiing, relation'hi( management, egmentation, targeting, (oitioning0.

#he3 alo t"!ie! the antece!ent of M2 infl"ence an!

re(orte! that M2 inno%ati%ene an! acco"nta&ilit3 are

the mot im(ortant.

i a !octoral t"!ent *e'mail7 8reiner9)i)i."ni'frankf"rt.!e0,

an! Martin Natter i the Han Strothoff Chair of Retail

Marketing *natter9)i)i."ni'frankf"rt.!e0, Goethe :ni%er'

it3 ;rankf"rt. William Baker i Profeor of Marketing an!

Chair of the Marketing 2e(artment, :ni%erit3 of Akron *e'mail7 )&aker9"akron.e!"0. Amir Grintein i Aitant Pro'

feor of Marketing, G"ilfor! Gla


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An im(ortant theoretical an! (ractical 4"etion that

remain i the contri&"tion of infl"ential marketing

f"nction to &"ine (erformance *BP0. Nath an!Maha8an *+?0 ho) that the (reence of a chief mar'

keting officer !oe not ignificantl3 infl"ence BP, an!

V6L imilarl3 fin! no ignificant !irect relationhi(

&et)een the infl"ence of the M2 an! firm (erformance.1ntea!, the3 "gget that market orientation *M@0 (ro'

%i!e the ingle mot im(ortant !ri%er of firm (erform'ance, altho"gh M2 infl"ence ma3 &e relate! to a firm>

M@. Merlo an! A"h *+50 alo !o not fin! a ignifi'

cant !irect relationhi( &et)een M2 infl"ence an! firm

(erformance. #hee re"lt contrat )ith (rior t"!ie

that "gget an infl"ential M2 i &eneficial *Moorman

an! R"t 555 @>S"lli%an an! A&ela +0.

an! BP. #o a!!re thee reearch 4"etion, )e col'

lecte! "r%e3 !ata a&o"t M2 infl"ence in me!i"m' an!

large'iS"lli%an an! A&ela +0.

1n ;ig"re , )e (ro%i!e a conce(t"al mo!el, imilar to

that tete! &3 V6L. #he central %aria&le in thi mo!el

are three M2 infl"ence %aria&le. We t"!3 antece!ent

of thee three M2 infl"ence %aria&le an! their relation'hi( to M@ an! BP. We (ecificall3 a"me that M2

ca(a&ilitie are relate! to M2 infl"ence. Be3on! that,

en%ironmental factor *e.g., channel (o)er0 an! internalfirm factor *e.g., generic trateg30 ma3 &e relate! to

M2 infl"ence *e.g., Hom&"rg, Workman, an! =rohmer

5550. We coni!er three mea"re of M2 infl"ence.;irt, ;ollo)ing Moorman an! R"t *5550, )e incl"!e

(ercei%e! M2 infl"ence, )hich (ertain to the (erce('

A "ch, o"r main aim i to generali 2"tch am(le. We "e a meta'anal3tic

metho! *Roenthal tet0 to ae the general e$(ecte!

ign of the t"!ie! relationhi( for *0 antece!ent ofM2 infl"ence, *+0 relationhi( &et)een M2 infl"ence

an! M@, an! *-0 relationhi( &et)een M2 infl"ence

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Figure 9* Conceptual Mo!el on Antece!ents an! Conseuences of MD Influence +;2/

MD Capa(ilities

Acco"nta&ilit3

1nno%ati%eneC"tomer connection

Creati%it3

1ntegrationcoo(eration )ith other

MD Influence Within

the FirmPercei%e! infl"ence

#o( management re(ect

2eciion infl"ence

M< 3)

!e(artment *ale, finance, R620

Control +aria(les

Short'term em(hai

Backgro"n! C@

B"ine to &"ine&"ine to

Covariates

con"mer ;irm i


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7ustomer 7onnection$ 8ollowing Moorman and 9ust

(+###), we define the customerconnecting role of the

MD as the e:tent to which the MD can translate cus

tomer needs into customer solutions, as well as the e:tentto which it demonstrates the criticality of e:ternal cus

tomers and their needs to other organizational functions

(;auser, 3imester, and D, finance) (e$g$, 3rivastava, 3hervani,

and 8ahey +##0)$ *s V> reveal, the effects of integration on MD influence also are not clear$

Antece!ent of M2 1nfl"ence7ontrol Variables$ &eyond the main variables under

study, V> control for some additional variables that

they derive from previous research (;omburg, show that the innovativeness of the MDis positively related to MD influence$

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V6L0. #herefore, )e a"me a (oiti%e relationhi(

&et)een M2 infl"ence an! M@.

"ing !ata lit from com(anie "ch a 2"n 6 Bra!'

treet an! Reach. We tri%e! to ha%e manager )ith !if'

ferent f"nction *marketing, finance, C@0 of me!i"m'an! large'i mail'&ae! "r%e3 (ro!"ce! a

re(one rate of E./, com(ara&le to the /.-

re(one rate for the online "r%e3 con!"cte! in the

Netherlan!. Reearcher "e! e%eral comm"nicationmetho! to im(ro%e re(one rate, "ch a e'mail

follo)'"( an! tele(hone remin!er. S)e!ih reearcher

)ere (artic"larl3 "ccef"l in getting a high re(one

rate "ing tele(hone call.

M2 1nfl"ence an! BP

#he econ! cone4"ence of M2 infl"ence i BP. m(irical

e%i!ence of the relationhi( &et)een a trong M2 an! BPremain mi$e! *Merlo an! A"h +5 Moorman an!

R"t 555 V6L +50. An incremental effect of M2

ma3 e$it, a&o%e an! &e3on! that of M@ on BP, &eca"e

the (ecific ca(a&ilitie em&e!!e! in the !e(artment ma3

&e necear3 to increae BP &e3on! the general M@ of the

firm *Moorman an! R"t 5550. 1n line )ith (rior meta'anal3e *e.g., Cano, Carrillat, an! Jaramillo +E =irca,

Ja3achan!ran, an! Bear!en +/0, )e alo a"me that

M@ i (oiti%el3 relate! to BP.

M#H@2@L@G

2ata CollectionPre%io" reearch alo in!icate no ignificant !iffer'

ence in "r%e3 re(one for mail %er" online "r%e3

*e.g., 2e"tken, 2e R"3ter, an! Wet 1nfl"ence Within the ;irm F-


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Ta(le 9* 0ample Descriptions per Countr&

#erman& Netherlan!s ,nite! %ing!om Israel ,nite! 0tates 0e!en Australia

Re(one rate /. /.- ?.+ E./ +. F-. 5.E

2ata collection Mail @nline @nline @nline @nline @nline an! @nline

metho! an! mail tele(hone

Sam(le i


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We tet for mea"rement in%ariance &3 follo)ing

Steenkam( an! Ba"mgartner> *55?0 frame)ork. We

"e m"ltigro"( confirmator3 factor anal3i thatincl"!e M2 acco"nta&ilit3 an! c"tomer connection

characteritic, (ercei%e! marketing infl"ence, to( man'

agement re(ect for the M2, an! M@, all of )hich are

mea"re! )ith reflecti%e m"lti'item cale in all co"n'trie. We !o not incl"!e the creati%it3 mea"re &eca"e

it i not a m"lti'item contr"ct in the :.S. am(le an! inot a%aila&le for S)e!en.+ #he e$act mea"rement

in%ariance tet re"lt a((ear in the A((en!i$ 2.

- +

*-0BP M1 M@Q Q Qcc kc kc c c Q E E,, , , l

k l

QK ( cl e , ,

)here the "&cri(t c refer to each of the e%en co"n'

trie, M1k mea"re marketing infl"ence in three !iffer'

ent manner, M2m are the e%en M2 characteritic*M2 acco"nta&ilit3, inno%ati%ene, c"tomer connec'

tion, creati%it3, an! integration )ith the finance, ale,

or R62 !e(artment0, ;Cf are i$ firm characteritic

*hort'term orientation, C@ &ackgro"n!, &"ine'to'

&"ine %. &"ine'to'c"tomer, er%ice %. goo!,

!ifferentiation trateg3, an! cot lea!erhi( trateg30,an! Cf are t)o en%ironmental characteritic *channel

(o)er an! market t"r&"lence0. 1n 4"ation +, M@

refer to o"r M@ mea"re, e$(laine! &3 the three mar'

keting infl"ence mea"re M1k. 1n 4"ation -, BP relate

to M1k, M@, an! Kl, )here Kl are t)o firm co%ariate*firm i *550 tet, incl"!ing themetho! of a!!ing )eighte! K> *for a((lication of thi

tet, ee 2eleern3!er et al. +5 2eleern3!er et al.

++0.

We achie%e! mo!erate fit in the config"ral in%ariancemo!el. Mot tan!ar!i

*55, (. +/0 )or!, a reaona&le i!eal,T a con!i'

tion to &e tri%en for, &"t not e$(ecte! to &e f"ll3 real'i


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Ta(le 8* Averages an! 0tan!ar! Deviations of the MDs Influence Measures an! Marketing Drivers

Across Co"ntrie


N ? 8@/ N ? 89B/ N ? 8/ N ? 9/ N ? 99E/ N ? 989/ N ? 8B@/Percei%e! infl"ence -.FF -.F5 -.E E.- E.- -.- -.-

* lo),U an! highU0 *.+?0 *.-0 *.0 *.-/0 *./0 *.-F0 *.50

#o( management re(ect /./ /.- /. /.5+ E.+ /.- E.5

* lo),U an! highU0 *.+/0 *.-0 *.+F0 *.F0 *.-0 *.F0 *.-0

2eciion infl"encea -./ -.F5 E./ E.FF /.5? +.E- -.?5

* lo),U an! U highU0 *.F+0 *.F0 *.F0 *.5-0 *.E0 *.FF0 *.+0

Acco"nta&ilit3 E.E -.?E E.-+ /.+E E.F/ -.? E.5/

* lo),U an! highU0 *.-/0 *.+/0 *.-+0 *.+E0 *.+-0 *./0 *.0

1nno%ati%ene of M2 +./5 +.+ E.F E.+5 -. +.+E -.+

* lo),U an! highU0 *+.+/0 *+.F0 *+.+-0 *+.+0 *+.0 *+.F0 *+.E0

C"tomer connection /.+- E.? E.?? /.// E. E.5 /.+5

* lo),U an! highU0 *.0 *.-0 *.F0 *.50 *./0 *.E?0 *.5+0Creati%it3 -.F E.E -.?- -.E -.-- -.?

* lo),U an! highU0 *.0 *.F0 *.++0 *.-0 *.E0 N.A. *.+50

1ntegration )ith finance /.-- /.E /.-E /.-E E./ /.EF E.5

* lo),U an! highU0 *.-+0 *.-?0 *.-+0 *.-+0 *./0 *.0 *./0

1ntegration )ith ale /.5 E.5 E.5 /. E.F- /./- /.-

* lo),U an! highU0 *.-50 *.E50 *.E/0 *.+-0 *./E0 *.?0 *./-0

1ntegration )ith R62 /.? E.5- E.F- /.+E E./E /.- E.5/

* lo),U an! highU0 *.-F0 *.-E0 *.+50 *.E0 *.EF0 *.?+0 *.-F0

a All co"ntrie other than the :nite! State "e mea"re that !itri&"te (oint acro the %ario" !e(artment. #herefore, the a%erage for the :nite! State can'not &e com(are! )ith the a%erage for other co"ntrie.

Note7 N.A. not a%ai la&le. Stan!ar! !e%iation a((ear in (arenthee.

Antece!ent of M2 1nfl"encea%erage infl"ence (er !eciion (er co"ntr3 *Hom&"rg,Workman, an! =rohmer 555 V6L0 marketing

clearl3 !ominate !eciion a&o"t a!%ertiing, )ith

core a&o%e /. 1n making !eciion a&o"t c"tomer

atifaction an! relationhi( an! lo3alt3 (rogram,

marketing alo ha a trong infl"ence, )ith the ma8orit3

of core a&o%e E. A general e$ce(tion i S)e!en,)here marketing ha a lo)er infl"ence in thee !eci'

ion. 1n general, area "ch a (ricing, c"tomer er%'

ice, (ro!"ct !e%elo(ment, an! !itri&"tion are not

!ominate! &3 marketing. Mot core %ar3 &et)een +

an! - on thee !eciion. @nl3 1rael i an e$ce(tion,

)ith core aro"n! E. 1n general, core on the non'marketing !eciion ten! to %ar3 &et)een + an! - a

)ell, "ggeting a mo!erate infl"ence of the M2.

Again, 1rael i an e$ce(tion, )ith higher core %ar3ing

&et)een - an! /.

1n #a&le EF, )e !i(la3 the tet re"lt for the M2

infl"ence mea"re,F imilar to 2eleern3!er et al. *++0

*for the "n!erl3ing coefficient, ee A((en!i$ 0. When

the Roenthal tet i ignificant, the coefficient in thet"!ie! co"ntrie (oint in a (ecific !irection, )hether

negati%e or (oiti%e. With the relati%el3 fe) co"ntrie in

o"r t"!ie, )e "e a ('%al"e of . a o"r ignificance

threhol!. Accor!ing to the conitentl3 ignificant %al'

"e of the Roenthal tet, all three M2 infl"ence mea'"re relate (oiti%el3 to acco"nta&ilit3 *(ercei%e! infl"'

ence, ( . to( management re(ect, ( . !eciion

infl"ence, ( .0, M2 inno%ati%ene *( . for all

mea"re0, an! c"tomer connection *(ercei%e! infl"'

ence, ( . ( . for the other t)o mea"re0. #here'

fore, thee three ca(a&ilitie are conitentl3 im(ortantan! (oiti%e !ri%er of M2 infl"ence. Creati%it3 ten! to

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Ta(le B* Influence of the MD per Decision

,nite! ,nite!

#erman& Netherlan!s %ing!om Israel 0e!en Australia 0tatesa

N ? 8@/ N ? 89B/ N ? 8/ N ? 9/ N ? 989/ N ? 8B@/ N ? 99E/

Marketing Decisions

A!%ertiing F F5 /5 FF / F5

C"tomer atifaction mea"re'

ment an! im(ro%ement F / E E? -E E FE

Segmentation, targeting,

an! (oitioning EF // EF F E F F-

Relationhi( an! lo3alt3 (rogram EF / -5 F +F /+ F

C"tomer er%ice +? +? + -5 +/ +? F

Pricing+ + +- -? ? +F /

2itri&"tion +/ ? +/ EF + - /5

&ackgro"n! in marketing i conitentl3 relate! (oi'

ti%el3 to all three M2 infl"ence mea"re *( ., .,

.+0. #he relationhi( &et)een a choen generictrateg3 an! M2 infl"ence mea"re i not clear

tho"gh. 2ifferentiation i (oiti%el3 relate! to to(

management re(ect *( .?0 &"t negati%el3 to !eci'

ion infl"ence *( .0. Cot lea!erhi( i alo nega'

ti%el3 relate! to (ercei%e! infl"ence *( .0. ;inall3,market t"r&"lence i (oiti%el3 relate! to !eciion

infl"ence *( .0, an! goo! man"fact"rer ten! to

ha%e higher (ercei%e! infl"ence *( .0 an! !eciion

infl"ence *( .0.

M2 1nfl"ence an! M@ an! BP

1n #a&le , )e ho) the tet re"lt for the M@ an! theBP e4"ation *for the "n!erl3ing coefficient, ee A((en'

!i$ ;0. #o( management re(ect for M2 an! M2 !eci'

ion infl"ence are conitentl3 (oiti%el3 relate! to M@

We alo fin! ome ignificant relationhi( for the con'

trol %aria&le. Percei%e! M2 infl"ence ten! to &e

higher for firm acti%e in &"ine'to'con"mer than

Marketing 2e(artment> 1nfl"ence Within the ;irm F


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Ta(le * Antece!ents of )erceive! MD Influence Measures "uation 9/

Num(er of Num(er of Average Average)ositive Negative )ositive Negative am(le. 1n #a&le ?, )e lit the main fin!ing of the c"r'

rent t"!3. Ne$t, )e !ic" the !eri%e! initial em(irical

generali


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Ta(le * Antece!ents for Top Management 4espect of the MD "uation 9/

Num(er of Num(er of Average Average)ositive Negative )ositive Negative ca(a&ilit3 of creati%it3 i negati%el3relate! to M2 infl"ence.

-. Ha%ing a C@ )ith a marketing &ackgro"n! i

(oiti%el3 relate! to M2 infl"ence.

MD 2nfluence and M%$ Marketing departments areimportant in inducing a marketoriented culture

within firms$


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Ta(le @* Antece!ents for the Decision Influence of the MD "uation 9/

Num(er of Num(er of Average Average)ositive Negative )ositive Negative


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Ta(le E* 0ummar& of Fin!ings for 0even In!ustriali$e! Countries: 4osenthal Test 4esults

A: Antece!ents of MD Influence

)erceive! Influence Top Management 4espect Decision Influence

Capa(ilities

Acco"nta&ilit3 of M2 Q Q Q

1nno%ati%ene of M2 Q Q Q

C"tomer connection of M2 Q Q Q

Creati%it3

Integration ith


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MD 2nfluence and &'$ %ne of the most important rela

tionships we considered in our study is that between

MD influence and &'$ 'revious research has shown

diverging findings regarding this relationship (e$g$,Merlo and *uh !""#@ Moorman and 9ust +###@ ath

and Maha=an !""0@ %E3ullivan and *bela !""6@ V>)$

%ur crossnational study indicates that MD influencemeasures are positively related to &', beyond the effect

of M% on &'$ ;owever, it only holds for two influencemeasures top management respect and MD decision

influence$ Thus, as our fifth initial empirical generaliza

tion, we assert the following

)o"l! coni!er the re"lt of V6L, ome im(ro(er

im(lication for ho) marketing co"l! regain it infl"'

ence in in!"triali


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thro"gho"t the organi )ork e$(licitl3 in an organi 1nfl"ence Within the ;irm -


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a&o"t the length of the "r%e3. @ne )a3 to re!"ce

length )a to !ro( t)o item of the creati%it3 cale.

!eciion infl"ence. We choe to !o o &eca"e M2

!eciion infl"ence i till a !ifferent infl"ence mea"re

than the other t)o mea"re in that it e$(licitl3foc"e on act"al infl"ence !eciion making )ithin

firm. Moreo%er, e$cl"!ing the :nite! State from

o"r anal3i )o"l! limit the generali generic trategie7

2ifferentiation Cot lea!erhi(

Backgro"n! C@ Marketing &ackgro"n! of C@

B"ine'to'con"mer #he firm> foc" on &"ine'to'con"mer %er" &"ine'to'&"ine market

Ser%ice foc" #he firm> foc" on er%ice %er" goo! market

Channel (o)er 2egree to )hich the firm confront (o)erf"l channel (artner

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Appen!i7 A* Continue!

+aria(les Definition

Market t"r&"lence #he rate of change in c"tomer (reference, (ro!"ction, or er%ice technologie an! mo!e of

com(etition in the firm> (rinci(al in!"trie

3: Antece!ents of M (erformance in the (at three 3earX * no hin!rance at all,U an! hin!ere!

a lotU0 *R0

Short'term orientation *Baker, #he orientation of 3o"r firm i mainl37

Black, an! Hart 5?+0 A hort'term orientation *0 T a long'term orientation *0

Generic trateg3 Pleae in!icate )hich of the follo)ing generic &"ine trategie i mot a((lica&le for 3o"r

*Porter 5?0 firm7

Cot lea!erhi(7 Strateg3 to o&tain the lo)et cot in the market.

2ifferentiation7 ;oc"ing on &eing &etter in !ifferent feat"re of the (ro!"cter%ice that

are im(ortant to c"tomer.

Cot foc"7 #argeting a relati%e mall egment in the market that i cot'concio"ne. 2ifferentiation foc"7 #argeting a relati%el3 mall egment in the market that !eire a

"ni4"e an! goo! (ro!"ct an! that i )illing to (a3 a higher (rice for thi.

Marketing &ackgro"n! of the What i the (rimar3 &ackgro"n! of the C@ )ithin 3o"r firmX

C@ *Hom&"rg, Workman, General management, finance, technical, marketing, la), other

an! =rohmer 5550

B"ine to &"ine %er" Pleae in!icate on the follo)ing ten'(oint cale the e$tent to )hich the t"rno%er of 3o"r firm

&"ine to con"mer rei!e from7

B+B *0 T B+C *0

Goo! %er" er%ice Pleae in!icate on the follo)ing ten'(oint cale the e$tent to )hich the t"rno%er of 3o"r firm

rei!e from7

Goo! *0 T er%ice *0

Market t"r&"lence *Menon Can 3o" in!icate the le%el of change in the lat three 3ear in the mot im(ortant market

et al. 5550 )here 3o"r firm )a acti%e on the follo)ing element7 * no change,U an! %er3Iformati%e fre4"ent changeU0

Pro!"ction(roce technolog3

1ntro!"ction of ne) (ro!"cter%ice

R62 acti%itie

Legal an! (olitical "rro"n!ing

Com(etiti%e intenit3

C"tomer (reference

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Appen!i7 3* Continue!

Construct 0ourceJ3ase!

on/ K4eflective vs* FormativeL Items

Channel (o)er *Slater an! @"r firm ha a trong negotiation (oition to)ar! o"r c"tomer. *R0Nar%er 55E0 @"r c"tomer ha%e a trong negotiation (o)er.

Iformati%e @"r c"tomer are more (o)erf"l than the "((lier.

Perce(tion of the infl"ence of #he f"nction (erforme! &3 the marketing !e(artment are generall3 coni!ere! to &e more

the M2 *Moorman an! R"t critical than other f"nction.

5550 #o( management coni!er the marketing !e(artment to &e le im(ortant than other

Ireflecti%e f"nction. *R0

Marketing ten! to !ominate other f"nction in !eciion'making.

#he marketing !e(artment i coni!ere! to &e more infl"ential than other !e(artment.

#o( management re(ect #he to( management of o"r firm T

*Van Br"ggen an! Wierenga Ha little re(ect for the acti%itie of the marketing !e(artment. *R0

+/0 Ireflecti%e Coni!er the marketing !e(artment an e$(eni%e !e(artment. *R0

Recogni tate! o&8ecti%e, ho) i 3o"r firm (erforming on7 * m"ch

Iformati%e )ore,U an! m"ch &etterU0

Relati%e to 3o"r com(etitor, ho) 3o"r firm (erforming on7 * m"ch )ore,U an!

m"ch &etterU0

C"tomer atifaction

C"tomer lo3alt3

#"rno%er

Profita&ilit3

Market hare

Cot le%el

;irm i


21/29

Appen!i7 C* Construct 4elia(ilit& per Countr&

A: Coefficient a


BP .5 .? .?5 .?E .5+ .5- .?F

M@ .?/ .?F .?? .?E .5E .5 .?

Percei%e! infl"ence of M2 .? ./ .? .5 .F? .?/ .?+

#o( management re(ect . .?+ ./ .F ./ .?/ .

Acco"nta&ilit3 .?- ./ .? . .F .? .5

C"tomer connection .FF .5 .5 . ./E .? .F

Creati%it3 .?F .?5 .5 .?- O O .?5

1ntegration )ith ale .?+ .?F .? . .?E .?E .?F

1ntegration )ith finance .5 .? .?- .? .?/ .5 .??

1ntegration )ith R62 .? .?+ ./ .?- .?E .? .5+

3: Composite 4elia(ilit&


M@ .?E .?/ .?/ .?- .?/ .?/ .?/

Percei%e! infl"ence of M2 .E .+ ./ . .F .F ./

#o( management re(ect .FF .?E .F5 .FF . . .F5

Acco"nta&ilit3 . . . .F5 .F . .F5

C"tomer connection . .? .E . .FE . .

Creati%it3 .5 .?- .? .? O O .?

Note7 #he creati%it3 mea"re )a not a%aila&le for S)e!en an! onl3 a one'item mea"re in the :nite! State.

Appen!i7 D* Measurement Invariance Test 0tatistics

Compare!

Mo!el Invariance 2evel Mo!el 8 !*f* 8 !*f* 4M0"A CFI #FI Conclusion

A Config"ral in%ariance -/-E. +-- . .5F .?? Baeline mo!el ha

acce(ta&le fit

in%ariance

B Metric in%ariance A /?5.?/ --+ F//.E 55 .5F .5E .? Significant increae in

+ 7 Some factor loa!'

ing !iffer acro

co"ntrie

C Partial metric A -/EE.? +F .F -E .F .5F .5 #)o factor loa!ing

in%ariance (er contr"ct are

in%ariant

2 Partial calar B -/F?.F +5- +-.?5 +F ./ .5/ .5 #)o interce(t (er

in%ariance contr"ct are in%ariant

Note7 RMS A root mean 4"a re error of a((ro$imation , C;1 com(arati%e fit in!e$, an! G;1 goo!ne'of'fit in!e$.

? Jo"rnal of 1nternational Marketing


22/29

Appen!i7 "* MD "stimates per Countr&


Decision Influence of the MD

1nterce(t +./YYY .++ .E +.5FY E.+YYY .+ .5

*.?+0 *.+0 *.E0 *.+0 *./50 *./E0 *.50

Acco"nta&ilit3 .FYY .--YYY . .+ .-/YYY .+ .Y

*.0 *.50 *.0 *.F0 *./0 *.0 *.0

C"tomer connection .+/YYY .- . ./YY .+YY . .+?YY

*.?0 *.0 *.F0 *.+0 *./0 *.0 *.-0

1nno%ati%ene of the M2 .--YYY .+5YYY .+YYY .-FYYY .FYYY .-YYY .-YYY

*.E0 *.E0 *./0 *.?0 *.+0 *./0 *.E0

Creati%it3 of the M2 .?YY .E .F .+-Y .+?YYY YYY .5YY

*.0 *.?0 *.0 *.E0 *.E0 *0 *.0

1ntegration )ith ale .F .- .- .5 ./ .+ ./

*.F0 *.0 *.0 *./0 *.E0 *.+0 *.0

1ntegration )ith finance .- . .E .F ./ .+ .E

*.F0 *.?0 *.-0 *.F0 *./0 *.E0 *.?0

1ntegration )ith R62 ./ .+ .- .+YYY .+ .Y

*.F0 *.?0 *.E0 *.-0 *./0 *.0 *.50

Short term .E .+ ./ ./ . .E .5

*.E0 *.0 *.50 *.+0 *.+0 *.?0 *.F0

B"ine to con"mer .E . ./ ./ .+ .E

*.-0 *.-0 *.E0 *./0 *.0 *./0 *.-

C@ .+ .+E .E .?/Y .+-Y ./YYY ./

*.+0 *.-E0 *.-?0 *.E0 *.-0 *.-+0 *.-?0

Ser%ice .+ . .+ .?Y .-YYY .+ .+

*.+0 *.-0 *.E0 *./0 *.0 *.E0 *.-0

Market t"r&"lence . .- .E .? .E+YYY .+-YY .E*.50 *.0 *./0 *.?0 *./0 *.0 *.0

Channel (o)er .+Y ./ .+ .+ . ./ .Y

*.0 *.0 *.0 *.E0 *.0 *.0 *.F0

Cot lea!erhi( .+E .+5 .-YY .? ./ .-5 .--

*.+50 *.-0 *.E-0 *.5+0 *.E0 *./?0 *.-50

2ifferentiation trateg3 .- . .+- .+ .EYYY .++ .E-YY

*.+0 *.+0 *.-E0 *.E0 *.50 *.+/0 *.++0

.E5 .E .+? .- .E? ./+ .-?R+

A!8"te! R+ .EF .-/ .+ .+ .E .E/ .-E

)erceive! Influence of the MD

1nterce(t +./YYY +.-FYYY .?FYY E.5YYY +.?YYY .F- .-YY*.E0 *.?+0 *.??0 *.+0 *.E-0 *.E/0 *.?0

Acco"nta&ilit3 .+YYY .5YYY .--YYY .E?YYY .+FYYY .+/YYY .5YYY

*.F0 *.0 *.0 *.0 *.E0 *.?0 *.0

C"tomer connection .E . .F . .YYY .-/YYY .E

*.0 *.?0 *.0 *.E0 *.E0 *.50 *.50

Marketing 2e(artment> 1nfl"ence Within the ;irm 5


23/29

Appen!i7 "* Continue!


1nno%ati%ene of the M2 .-YYY .YYY .5YYY .E .?YYY .F .5YYY

*.E0 *.-0 *.-0 *.F0 *.+0 *.E0 *.-0

Creati%it3 of the M2 .? . ./ .E .+YYY .EYYY ./

*.F0 *.F0 *.F0 *.0 *.-0 *./0

1ntegration )ith ale *./0 .+ .? .-YYY .5 .E

*.F0 *.0 *.0 *.-0 *.0 *./0

1ntegration )ith finance .? .- .YY .+/YY .YYY . .E

*.F0 *.0 *.0 *.0 *.E0 *.+0 *.F0

1ntegration )ith R62 .? .- .? .+ .FYYY .- .?

*.F0 *.0 *.?0 *.50 *.E0 *.50 *.0

Short term .E .Y . .- . .E

*.-0 *.F0 *./0 *.?0 *.+0 *.F0 *.E0

B"ine to con"mer .EY .YYY .E .-YYY .+ .FYY

*.+0 *.-0 *.+0 *.E0 *.0 *.E0 *.+0C@ .5 .+- .FYYY .F .EEYYY .- .+YY

*.50 *.+?0 *.+-0 *.-+0 *.50 *.+0 *.+?0

Ser%ice .+ . ./YY .FY . .+

*.+0 *.+0 *.+0 *.-0 *.0 *.-0 *.+0

Market t"r&"lence .5 ./ .5YY .+ .?YY .+YY .+

*.?0 *.50 *.50 *.+0 *.E0 *.?0 *.?0

Channel (o)er ./ .- .+ . .+ .EYY .

*.0 *.?0 *.0 *.0 *.0 *.F0 *./0

Cot lea!erhi( .-/ .5 .+F . .E .+ ./?YY

*.+F0 *.+/0 *.+/0 *.F0 *.0 *.E50 *.+50

2ifferentiation trateg3 .-Y .+ . .-YY . .+? ./

*.?0 *.+0 *.+0 *.--0 *.0 *.+0 *.F0.-E .+ .-5 .-E .-F ./ .+5R+

A!8"te! R+ .- ./ .-+ .+E .-/ .EE .+E

Top Management 4espect

1nterce(t .??YY E.EYYY +.5YY -./?YYY .YYY .-E +.YYY

*./0 *.?50 *.50 *.5?0 *.E0 *./0 *.50

Acco"nta&ilit3 ./YY .+YYY . .+ .5YYY .+EYYY .-

*.F0 *.0 *.0 *.50 *.-0 *.50 *.?0

C"tomer connection .EY .? . .-YYY .YYY .--YYY .5

*.0 *.50 *.0 *.0 *.E0 *.0 *.0

1nno%ati%ene of the M2 ./ .E .?YY .-YY . .?YY

*.E0 *.-0 *.-0 *./0 *.0 *.E0 *.-0

Creati%it3 of the M2 .? .Y .E .E .+ .+

*.F0 *.F0 *.0 *.?0 *.-0 *.F0

1ntegration )ith ale ./YYY .- ./ .+ .?YYY .F .-

*./0 *.F0 *.0 *.50 *.-0 *.0 *.F0

1ntegration )ith finance .+-YYY .+EYYY .+YY .+ .+YYY .-FYYY .5

*.F0 *.0 *.?0 *.50 *.-0 *.-0 *.0

? Jo"rnal of 1nternational Marketing


24/29

Appen!i7 "* Continue!


1ntegration )ith R62 .? .5YY .+YYY .?YY .+ .+YYY

*.F0 *.0 *.50 *.?0 *.E0 *.0 *.?0

Short term ./ .+FYYY .Y .+ . .F .?YYY

*.-0 *.F0 *.F0 *.0 *.+0 *.0 *./0

B"ine to con"mer .- .YY .- .E . .

*.+0 *.-0 *.+0 *.-0 *.0 *.E0 *.-0

C@ . .-E ./FYY .EEY .5YY .+ .-

*.50 *.-0 *.+E0 *.+F0 *.50 *.-0 *.-0

Ser%ice .FYY .EY.- .+

*.+0 *.+0 *.+0 *.-0 *.0 *.-0 *.+0

Market t"r&"lence .E .+YY . .E . .-

*.?0 *.50 *.50 *.0 *.E0 *.50 *.50

Channel (o)er .+ .- . .- .E .E .

*.0 *.50 *.0 *.?0 *.0 *.0 *./0

Cot lea!erhi( . .E .++ .E .- .+F .-

*.+F0 *.+0 *.+F0 *.E50 *.0 *./E0 *.--0

2ifferentiation trateg3 .? .- .++ .+/ .Y .+E .++

*.?0 *.+-0 *.+0 *.+F0 *.F0 *.+-0 *.?0

.+F .+5 .-- .+ .E .F .+FR+

A!8"te! R+ .+ .+- .+F .F .E ./E .+

Y( ..YY( ./.

YYY( ..

Note7 S tan!ar! error a((ear in (arenthee.

Appen!i7 F* M< an! 3) "stimates per Countr&


M 1nfl"ence Within the ;irm,U Jo"rnal of

Marketing, F- *A(ril0, .2ekim(e *++0, Ho) Canni&alitic 1 the 1nternet ChannelX

A St"!3 of the Ne)(a(er 1n!"tr3 in the :nite! =ing!om

an! the Netherlan!,U 1nternational Jo"rnal of Reearch in

Marketing, 5 *E0, --E?.

Horn, John L. *550, Comment on Z1"e in ;actorial

1n%ariance,>U in Bet Metho! for the Anal3e of Change,

L.M. Collin an! John L. Horn, e!. Wahington, 2C7 Ameri'

can P3chological Aociation, E+/.2eh(an!D, Rohit an! John :. ;arle3 *550, Mea"ring Mar'

ket @rientation7 Generali 1nfl"ence Within the ;irm ?-


27/29

Malt #o( Manage'

ment #eam,U Jo"rnal of Marketing, + *Jan"ar30, F/?.

N"nnall3, J"m an! 1ra Berntein *55E0, P3chometric #heor3, Verhoef, Peter C. an! Peter S.H. Leeflang *+50, :n!ertan!'

-! e!. Ne) ork7 McGra)'Hill. ing the Marketing 2e(artment> 1nfl"ence Within the ;irm,U

Fournal of Marketing, 6- (March), +5/-6$

@>S"lli%an, 2on an! An!re) V. A&ela *+0, Marketing Per'

formance Mea"rement A&ilit3 an! ;irm Performance,U Jo"r'

nal of Marketing, *A(ril0, 55-.

OOO an! OOO *+0, Acco"nta&ilit3 a a Main 1ngre!i'

ent of Getting Marketing Back in the Boar! Room,U Market'

ing Re%ie) St. Gallen, -, +F-+.Porter, Michael . *5?0, Com(etiti%e Strateg3. Ne) ork7 #he

;ree Pre. We&ter, ;re!erick ., Jr., Alan J. Malter, an! Shankar Ganean

*+/0, #he 2ecline an! 2i(erion of Marketing Com(e'

tence,U M1# Sloan Management Re%ie), EF *E0, -/E-.Rin!fleich, Aric, Alan J. Malter, Shankar Ganean, an! Chri'

tine Moorman *+?0, Cro'Sectional Ver" Longit"!inal

S"r%e3 Reearch7 Conce(t, ;in!ing, an! G"i!eline,U Jo"r'

nal of Marketing Reearch, E/ *J"ne0, +F5. #H A:#H@RS

)eter C* +erhoef is )rofessor of Marketing in the Depart-

ment of Marketing' Facult& of "conomics' ,niversit& of

#roningen' the Netherlan!s* 1e o(taine! his )hD in

89 at the 0chool of "conomics' "rasmus ,niversit&

4otter!am' the Netherlan!s* 1is research interests per-

tain to customer management* 1e has pu(lishe! e7ten-

sivel& in lea!ing 6ournals' such as 5ournal of Marketing'

Roenthal, Ro&ert *550, Meta'Anal3tic Proce!"re for Social

9esearch$ ewbury 'ark, 7* 3age 'ublications$

R"t, Rolan!. #., #im Am&ler, Gregor3 S. Car(enter, V. ="mar,

an! Ra8en!ra =. Sri%ata%a *+E0, Mea"ring Marketing

Pro!"cti%it37 C"rrent =no)le!ge an! ;"t"re 2irection,UFournal of Marketing, 10 (%ctober), 61/0#$

Fournal of Marketing 9esearch, Marketing 3cience, andOOO, Valarie A. Keithaml, an! =atherine N. Lemon *+0,2nternational Fournal of 9esearch in Marketing$ ;e is an

editorial board member of multiple leading marketing=ournals$ ;e is involved in e:ecutive teaching on cus

tomer management$ ;e is also the director and founder

of the 7ustomer 2nsights 7enter, Gniversity of Aroningen$

Driving 7ustomer CHuity ;ow 7ustomer ifetime Value 2s

9eshaping 7orporate 3trategy$ ew Iork The 8ree 'ress$

Slater, Stanle3 ;. an! John C. Nar%er *55E0, 2oe Com(etiti%e

n%ironment Mo!erate the Market @rientationPerformance

Relationhi(XU Jo"rnal of Marketing, /? *Jan"ar30, EF//.

)eter 0*1* 2eeflang is the Frank M* 3ass )rofessor of

Marketing at the ,niversit& of #roningen an! mem(erOOO an! OOO *55/0, Market @rientation an! the Learn'

ing @rgani


28/29

of the Ro3al Netherlan! Aca!em3 of Art an! Science.

Since March +, he ha hel! the BA#'Chair in Market'

ing at the L:1SS G"i!o Carli :ni%erit3 in Rome. 1n Se('tem&er +, he alo 8oine! Aton B"ine School a a

Reearch Profeor. He i the firt )inner of the MAC

2iting"ihe! Marketing Scholar A)ar!. He ha

a"thore! or coa"thore! +/ &ook an! ("&lihe! e$ten'i%el3 in, among other, Jo"rnal of Marketing, Jo"rnal of

Marketing Reearch, 1nternational Jo"rnal of Reearchin Marketing, Management Science, Marketing Science,

an! "ro(ean Jo"rnal of Marketing. Amir er%e a an

aociate e!itor for "ro(ean Jo"rnal of Marketing. He

ha a BA in conomic an! B"ine an! a mater>!egree an! a Ph2 in B"ine A!minitration from the

He&re) :ni%erit3. Before 8oining Ben'G"rion :ni%er'

it3, he )a a (ot!octorate fello) at Har%ar! B"ine

School.

An!ers #ustafsson is )rofessor of 3usiness A!ministra-

tion in the 0ervice 4esearch Center *ctf*kau*se/ at

%arlsta! ,niversit&' 0e!en* Dr* #ustafsson also hol!s

a part-time position as a )rofessor at 3I Noregian

0chool of 3usiness' Nora&* 1e is con!ucting research

on customer orientation' customer satisfaction an! lo&-

alt&' ne service !evelopment' service infusion in manu-

facturing' an! management of customer relationships*

Dr* #ustafsson has pu(lishe! more than 9 aca!emic

articles' (ook chapters' an! in!ustr& reports* 1e has

pu(lishe! articles in 6ournals such as 5ournal of Market-

ing' 5ournal of "conomic )s&cholog&' 5ournal of 3usi-ness 4esearch' an! 5ournal of 0ervice 4esearch* Dr*

#ustafsson is an author of nine (ooks' inclu!ing Com-

peting in a 0ervice "conom&: 1o to Create a Competi-

tive A!vantage through 0ervice Development an! Inno-

vation 5osse&-3ass' 8B/' Improving Customer

0atisfaction' 2o&alt& an! )rofit: An Integrate! Mea-

surement an! Management 0&stem 5osse&-3ass' 8/'

an! Con6oint MeasurementMetho!s an! Applications

Kuantitative Marketing and Cconomics, and Fournal of

Cconometrics$ ;e serves on the editorial boards of Fournal of Marketing 9esearch, Marketing 3cience, and

2nternational Fournal of 9esearch in Marketing$

5ochen 4einer is a !octoral stu!ent in Marketing at the

0trothoff Chair of 4etailing at the #oethe ,niversit&

Frankfurt' #erman&* 1is research interests inclu!e

e7citing commerce' entertainment shopping auctions'

an! marketing organi$ation*

Martin Natter is the 1ans 0trothoff Chair of 4etail

Marketing at the #oethe ,niversit& Frankfurt' #er-

man&* 1e receive! his )hD from +ienna ,niversit& of

"conomics an! 3usiness A!ministration' Austria* 1is

research interests inclu!e retail pricing' ne pro!uct

!ecisions' an! competitive anal&sis* 1is research papers

have (een pu(lishe! in 6ournals such as Management

0cience' 5ournal of Marketing' an! Marketing 0cience* *S(ringer, +, Eth e!.0.

William 3aker is )rofessor of Marketing an! Chair of

the Marketing Department at the ,niversit& of Akron*

Formerl&' 3ill as a mem(er of the facult& at 0an Diego0tate ,niversit& an! the ,niversit& of +ermont* Dr*

3aker is an aar!-inning' internationall& knon

author on the su(6ects of a!vertising effectiveness' mem-

or& an! learning' an! the role of organi$ational learning

an! culture on marketing program effectiveness* 1e has

pu(lishe! in 6ournals inclu!ing 5ournal of the Aca!em&

of Marketing 0cience' 5ournal of Consumer )s&cholog&'

)amela Morrison is the 1ea! of 0chool an! )rofessor of

Marketing in the 0chool of Management' Marketing

an! International 3usiness at Australian National ,ni-versit&* 0he has pu(lishe! in 6ournals such as Marketing

0cience an! 5ournal of 3usiness 4esearch*

5ohn 0aun!ers research appears in marketing 5ournal

of Marketing' 5ournal of Marketing 4esearch' Market-

ing 0cience' an! International 5ournal of 4esearch in

Marketing/ an! allie! !isciplines Management Infor-

mation 0&stems uarterl& an! 5ournal of International

3usiness 0tu!ies/* 3efore 6oining A,D"NCIA' he as

Dean of 2ough(orough an! Aston 3usiness 0chool an!

)ro-+ice Chancellor of Aston ,niversit&* 1is consulting

inclu!es clients such as 0ingapore #overnment' NestlO'

4olls 4o&ce' an! ,nilever* 1is communit& contri(u-

tions inclu!e "!itor of International 5ournal of

4esearch in Marketing' )resi!ent of the "MAC' an!

Dean of the CIM* 1e is a Fello of the CIM' 3AM'

"MACP a Freeman of the Cit& of 2on!onP mem(er of

the Worshipful Compan& of MarketorsP an! an Ass30

Companion*

Fournal of 'roduct 2nnovation Management, and Four

nal of *dvertising$

Amir #rinstein is Assistant )rofessor of Marketing at

3en-#urion ,niversit&* Amirs research interests focus

on to core issues: 9/ the interface (eteen marketingan! societ& in various social an! environmental conte7ts

an! 8/ marketing strateg&' inclu!ing the stu!& of strate-

gic orientations an! international marketing* 1is ork

has (een pu(lishe! in 5ournal of Marketing' Inter-

national 5ournal of 4esearch in Marketing' 5ournal of

the Aca!em& of Marketing 0cience' 4esearch )olic&'

Marketing 2e(artment> 1nfl"ence Within the ;irm ?/


29/29

AC=N@WL2GMN#S

#he a"thor ackno)le!ge the Marketing Science 1nti'

t"te for it financial "((ort of thi (ro8ect *Grant No.

E'/?0. #he3 thank (artici(ant at eminar at :ni'

%erit3 of #e$a at A"tin, Aton :ni%erit3, Nor)e'

gian School of Management, Goethe :ni%erit3

;rankf"rt, :ni%erit3 of Nottingham, #il&"rg :ni%erit3,

Maatricht :ni%erit3, an! a (ecial eion at MAC

+5 in Nante. #he3 alo thank Marnik 2ekim(e for

hel(f"l "ggetion. ;inall3, the3 thank the three anon3'

mo" J1M re%ie)er for their "((orti%e comment.

?F Jo"rnal of 1nternational Marketing

Co(3right of Jo"rnal of 1nternational Marketing i the (ro(ert3 of American Marketing Aociation an! it

content ma3 not &e co(ie! or emaile! to m"lti(le ite or (ote! to a liter% )itho"t the co(3right hol!er\

e$(re )ritten (ermiion. Ho)e%er, "er ma3 (rint, !o)nloa!, or email article for in!i%i!"al "e.

Documents

Verhoef 2011 a Cross-National Investigation Into the Marketing Department's Influence Within Firm