Impact of industry competitive intensity on brand performance: mediating role of market orientation and organizational learning

Abstract

Purpose The purpose of this paper is to investigate the effect of industry competitive intensity (ICI) on brand performance with the mediating role of market orientation and organizational learning using theoretical and experimental materials in fast-moving consumer goods (FMCGs) firms. Design/methodology/approach To test the research hypotheses, a model was designed and tested on 124 chief executive officers from 30 FMCG firms active in both food and chemical industries using structural equation modeling and partial least squares methodology. Findings The research findings showed that ICI has significant effect on market orientation and organizational learning. It also has significant effect on the firm’s brand performance through developing the market orientation capability as a mediating variable, but the development of organizational learning capability (as a mediating variable) is not effective in the relationship between ICI and brand performance. Originality/value Since the early 1990s, addressing intraorganizational capabilities and resources has been a major topic of strategic and marketing research. In this regard, many theoretical and experimental contents have been presented so far. However, little research has simultaneously addressed the industrial environment and the development of competitive capabilities. A manager’s understanding of the competition rate of an industry has the potential to influence the development of organizational capabilities through strategic responsiveness to his/her perception of the environment. This study attempts to show that managers and firms that consider their industrial environment to be volatile must develop their learning capabilities and market orientation, leading to superior brand performance.

How to flourish under constraints: imitation or innovation? The mediation role of innovation and absorptive capacity on firm performance

“…Because the subject of the study is associated with the relationship between innovation and imitation strategies, ACAP and firm performance, the underpinning theory for this study is derived from the RBV and dynamic capability theory (DCT)− an extension of RBV of the firm. The focal point of both RBV and DCT is on resources and capabilities, which enable firms to differentiate from the other competitors, develop performance and play a crucial part in the organization’s ability to attain competitive advantage (Joensuu-Salo et al , 2023; Talari and Khoshroo, 2022; Helfat and Peteraf, 2009). In alignment with strategic management literature, setting the appropriate strategic orientation, due to the firms’ positioning in markets, is not only a principle for optimizing and making the best use of their resources but also allows firms to organize their resources to grow and sustain competitive advantage and eventually performance, particularly in a changing environment (Teece, 2014).…”

“…While RBV and DCT accentuate the importance of resources and capabilities in enhancing competitiveness (McCartan, 2023; Barney et al , 2011; Talari and Khoshroo, 2022), their applicability to EMs and the necessary strategic directions for local firms to develop exceptional resources and capabilities in the midst of shifting market environments remains constrained. Thus, it is imperative to conduct a meticulous examination of the strategy selected by local firms, as it has a direct impact on their resources and capabilities.…”

“…These contexts are characterized by dynamic markets and firms with highly developed absorptive capacities (Xia and Liu, 2017; Ali, 2021; Leal-Rodríguez et al , 2014; Jansen et al , 2005). In contrast, EM firms looking to establish themselves as credible competitors on a global scale tend to be latecomers from countries with underdeveloped institutions and innovation systems (Bouguerra et al , 2022; Song, 2015; Kale et al , 2019; Aliasghar et al , 2018); as a result, local firms may meet challenges in overcoming technological disadvantages, organizational learning and knowledge asymmetry (Talari and Khoshroo, 2022; Li and Kozhikode, 2008; Cuervo-Cazurra and Rui, 2017). The distinct effects of PACAP and RACAP may vary in different contexts, such as EMs.…”

New Product Development and Industrial Competitiveness in Industrial Sectors :A Systematic Literature Review

“…Six of these studies purposed the value of employing the strategy to structure a company's new product development process successfully used to enhance the new product development process in an actual industrial setting (Youssef & Webster, 2022;Ebarefimia, 2014;Prasetyo et al, 2020a;Ferreira et al, 2021;Talari & Khoshroo, 2023;Abdulkareem & Naimi, 2022). The articles determine the role of innovation in developing new products, which is crucial for any organization functioning in the manufacturing and industrial sectors to achieve sustainable economic growth, it will boost regional competitiveness, productivity, and economic growth, also Recessions are moments of reallocation and disruption that produce new ideas and test the limitations of startup businesses.…”

Organizational resilience as the mediator of relation between brand performance and organizational performance – reflections from the perspective of crisis times

“…Among the factors shaping brand performance market orientation, innovative culture, CSR practices, company's reputation or organizational learning, but also characteristics of the brand itself (such as brand value, loyalty, reputation, image, awareness or equity) are often indicated (Lai et al, 2010;Chernatony et al, 2004;O'Cass and Ngo, 2007;Kowalczyk and Kucharska, 2019;Talari and Khoshroo, 2022). According to Rego et al (2022, p. 583) organizations can use brand equity (that is positively related to brand performance (Lai et al, 2010)) to "resist environmental turbulence, recover from any damage that may result from it, and reinvent themselves to leverage opportunities created by a radically altered external environment".…”