The Influence of Marketing Capability in Mexican Social Enterprises

Abstract

Social enterprises need to develop processes that create social value to solve social problems. The purpose of this investigation was to examine the effect of marketing capability on social innovation and its effect on social and economic value creation, while controlling for firm size among social enterprises in Mexico. An explanatory and cross-sectional design was used to test the hypotheses: 118 social business managers were interviewed and structural equation modeling was used to test our research hypotheses. The results supported our proposition that marketing capability influenced social innovation, which then had a positive influence on social, though not on economic value creation. An indirect effect from marketing capability to social value was also found. This study validated the relevance of defining and entailing marketing capabilities with social innovation strategies and their effect on the social value of social enterprises. This paper contributes to a better understanding of marketing capability and its effects on social innovation in social enterprises. In addition, it shows social innovation to be a robust predictor of social value, with important implications for social and economic sustainability.

Antecedents and Consequences of Three Selling Strategies in Social Enterprises

“…Second, the importance of a long-term strategic orientation in adaptive marketing, customer orientation and relationship marketing is confirmed. And third, although previous studies have included sales among the key aspects for understanding the management and growth of social enterprises (Cavazos-Arroyo & Puente-Diaz, 2019;Ge et al, 2019), this research contributes to the knowledge by corroborating the idea that dynamic selling capability has a positive impact on the three different selling strategy approaches studied. In particular, the results expose the importance of developing strategic relationship marketing in social enterprises in order to optimize their social impact.…”

“…Our research contributes to the advancement of knowledge in the field of social enterprise management as it deepens the understanding of the long-term strategic orientation and the role of capabilities and strategies, particularly three selling strategies supported by different marketing paradigms (adaptive marketing/adaptive selling, market orientation/customer orientation, and relationship marketing/ relational selling), as key aspects for the generation of a social impact. Thus, it responds to the need to deepen the understanding of research on the impact and growth of social enterprises (Ge et al, 2019), and it responds to the need for an empirical application of advances in the understanding of the marketing capabilities of social enterprises (Cavazos-Arroyo & Puente-Diaz, 2019).…”

The effect of network capabilities, trust and pricing and selling capabilities on the impact of social enterprise

“…Trust not only contributes to collaborative dynamics, but also to resource sharing routines and several interdependent and integrated capabilities (Fawcett et al , 2017), as is the case of marketing capabilities. For many social enterprises, pricing and selling are challenging, as both require responding nimbly, dynamically and efficiently to market and competitive changes (Cavazos-Arroyo and Puente-Diaz, 2019). Therefore, trust in network partners can benefit the response to variables that impact costs, as well as the fulfillment of the sales plan and the development of the commercial network.…”

“…Previous research has highlighted the role of pricing and selling as specialized marketing capabilities that involve resources, complex routines and coordination mechanisms specific to the organization, developing over time (Liozu, 2015). However, we still need to examine the effect of complex relationship networks on these marketing capabilities (Pratono, 2018), and the performance of social enterprises (Cavazos-Arroyo and Puente-Diaz, 2019). Therefore, this research aims to examine the effect of structural and relational network capabilities on trust, and its effect on pricing and selling capabilities, as well as their influence on the enterprise social impact.…”

Strategic Capabilities and Performance of Selected Media Firms in Kenya

“…A firm's marketing linking capability bears the possibilities of improving in the existence of a combined understanding and separate skills of employees with existing firm's resources. Arroyo and Diaz (2019) opine that a firm bears the capabilities of improving market detection capability through enhancing the level of interactions with prevailing customers. Market linking capabilities according to Abidemiet al, (2017) comprise of customers and competition knowledge, and skills in targeting and segmenting markets in pricing and advertising, and in the integration of marketing activities.…”