The value relevance of digital marketing capabilities to firm performance

Abstract

Digital transformation of the marketing organization forces firms to develop new digital marketing capabilities (DMCs) to remain competitive. However, despite considerable academic and managerial interest, the value relevance of DMCs beyond the value achieved through classic marketing capabilities (CMCs) remains unclear. Similarly, research investigating the interaction effect of DMCs and CMCs is scarce. We address both research gaps by drawing on a mixed-methods approach combining in-depth interviews and a multi-industry, multisource dataset. The results reveal that DMCs significantly contribute to firm profitability beyond the influence of CMCs. Drawing on the contingent view of resource-based theory, we investigate the moderating influence of organizational and environmental contingencies on the interaction effect of DMCs and CMCs. This investigation reveals important tradeoffs that result in actionable managerial implications for realizing the complementarity potential—and preventing the substitutive potential—of a firm’s DMCs and CMCs.

Consulting on the Cusp of Digitalization

“…Our interviews with senior managers indicate that there are several logical reasons behind this significant relationship between the market value and investment in digital technologies. Consistent with previous studies (Homburg & Wielgos, 2022;Van Veldhoven & Vanthienen, 2022), this study has also shown that the first reason is that with the growth of digital technologies, organizations achieve a level of complexity that will cause the competition to be unable to imitate them. This acts as an important strategic flank for organizations to achieve a high level of competitive advantage (Mosca, Gianecchini & Campagnolo, 2021;Thornhill, White & Raynor, 2021;Beugelsdijk, 2022).…”

Product development capabilities-based export channel selection and export performance

“…In addition, RBV research argues that the value created by resources/capabilities can be affected by other resources/capabilities owned by the firm (e.g. Homburg and Wielgos, 2022; Zahoor et al. , 2022).…”

“…, 2001). RBV indicates that other resources/capabilities owned by the firm can affect the utilisation of particular resources/capabilities (Homburg and Wielgos, 2022; Zahoor et al. , 2022).…”

“…Although valuable resources/capabilities can offer firms competitive advantages, their value is not constant and might increase or decrease under certain contexts (Barney et al, 2001). RBV indicates that other resources/capabilities owned by the firm can affect the utilisation of particular resources/capabilities (Homburg and Wielgos, 2022;Zahoor et al, 2022). A key differentiator is EO, which captures how a firm intends to compete (Hughes and Morgan, 2007).…”

Estrategias de marketing digital y su incidencia en el crecimiento sostenible de la micro y pequeña empresa: Análisis de casos

“…La transformación digital de la organización de marketing obliga a las empresas a desarrollar nuevas capacidades de marketing digital para seguir siendo competitivas (Homburg & Wielgos, 2022;Iniesta-Alemán et al, 2020). El marketing digital es una apuesta necesaria en tiempos de confinamiento, debido a que las oportunidades de negocio son infinitas, además de el hecho de que nuevos usuarios se hayan unido a la digitalización de las compras ya abre un nuevo mercado, por eso las marcas se ven obligadas a buscar alternativas, lo que por obviedad abre puertas a los profesionales del marketing (Toledo Chambilla, 2021).…”