Description
Impact of Marketing Strategy Creativity on Organizational Performance via Marketing Strategy
Academic and practitioners study various ways to link marketing strategy creativity (MSC) and marketing strategy implementation effectiveness (MSIE) to identify impact on firm performance. However, in Pakistani context no specific study has been undertaken to investigate the impact of environmental conditions and strategy type on the relationship between marketing strategy creativity (MSC), marketing strategy implementation effectiveness (MSIE) and firm performance.
Middle-East Journal of Scientific Research 16 (2): 264-273, 2013
ISSN 1990-9233
© IDOSI Publications, 2013
DOI: 10.5829/idosi.mejsr.2013.16.02.11641
Corresponding Author: Dr. Masood Ul Hassan, Department of Commerce,
Bahauddin Zakariya University, Multan, Pakistan.
264
Impact of Marketing Strategy Creativity on Organizational
Performance via Marketing Strategy Implementation Effectiveness:
Empirical Evidence from Pakistani Organizations
Masood Ul Hassan, Saif Ullah Qureshi, Sidra Sharif and Aamna Mukhtar
1 1 2 2
Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan
1
Institute of Management Sciences, Bahauddin Zakariya University, Multan, Pakistan
2
Abstract: Academic and practitioners study various ways to link marketing strategy creativity (MSC) and
marketing strategy implementation effectiveness (MSIE) to identify impact on firm performance. However, in
Pakistani context no specific study has been undertaken to investigate the impact of environmental conditions
and strategy type on the relationship between marketing strategy creativity (MSC), marketing strategy
implementation effectiveness (MSIE) and firm performance. The purpose of this research is to investigate the
direct impact of marketing strategy creativity (MSC) and marketing strategy implementation effectiveness
(MSIE) on performance and mediating role of marketing strategy implementation effectiveness on the
relationship between strategy creativity and firm performance. This study also focus on examining the
moderating role of environmental uncertainty (EU) on the relationship between MSC and MSIE and the impact
of MSC and MSIE on the performance across different business strategies (i.e. prospectors, analyzers,
differentiated defenders, low cost defenders and reactors). A survey questionnaire has been used to collect
the data from key sales and marketing personnel of business units in service and manufacturing companies of
Pakistan. The results of regression analysis showed that performance is maximized when an organization
develops a creative strategy and achieves effective implementation. Managerial implications and future research
directions are also discussed.
Key words: Marketing strategy creativity Marketing strategy implementation effectiveness Organizational
Performance Pakistan
INTRODUCTION formulation is a key to gain both i.e. (1) competitive
To achieve alignment with the changing business competencies in strategic areas [4]. These key
environment and to generate superior performance, competencies are difficult to replicate by the competitors
dynamic capabilities are required by managers for the and should support the overall business strategy of an
integration and deployment of physical, human, or organization [4]. Breakthrough Strategies create unique,
organizational capital [1]. Business strategy also plays an customized and practical breakthroughs for strategic,
important role to maximize performance outcomes. operational and people issues. For the effective strategy
Framework proposed by Miles and Snow [2] and Porter [3] implementation, it is important for an organization to
is prevalent to understand strategic decisions. Their translate the theory into action plans. Innovative
typology identified multiple ways in which organizations marketing strategy is essential for an organization to
by considering their entrepreneurial, administrative and position itself in a way that would be difficult for the
technical problems define and approach their product- competitors to replicate [3]. Because doing is harder than
market domains and build structures and processes to dreaming, many scholars argued that effective strategy
successfully implement their marketing strategies. implementation is more important than creative strategy
Marketing researchers believed that unique strategy formulation [5]. Olson [5] suggested that coordinated and
advantage and (2) the development of unique
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
265
appropriate efforts are required for the effective practices in the product category is called strategy
implementation of a strategy. Therefore, without effective creativity. In a today’s changing and turbulent business
implementation, there exists no relationship between environment, every organization runs the risk that its
strategy creativity and performance [6]. Hence, current business model will become outdated. As long as
competencies of an organization such as innovation, there are quality conscious customers, there will be
flexibility and responsiveness are also important to organizations interested in delivering superior quality [13].
achieve competitive advantage [7]. When strategies are Successful strategy creation and implementation requires
not executed well they mostly fail. Effective marketing and sales function to be equally invested. For
implementation of a strategy is as important as developing the achievement of competitive advantage and better
a brilliant strategy [8]. Therefore, integrating marketing performance, organizational resources and capabilities
strategy & formation, organizational culture, structure and need to be unique [14]. The firm that carries out strategy
strategic behaviors into an overall marketing best will make the most profits [15]. Thus, this study
organizational architecture will create the competitive hypothesizes the first hypothesis:
advantage [9].
Although, numerous studies have been conducted in H: Marketing Strategy Creativity (MSC) is positively and
western countries particularly in the United States of significantly associated with performance.
America to determine the relationship between strategy
creativity, effective implementation and business Marketing Strategy Implementation (MSIE): Planning
performance [5, 10, 11, 12]; however, only a few good strategies is only a start toward successful
researches have been done in the context of Pakistan in marketing. By implementing brilliant marketing strategies
this regard. Therefore, to fill this gap, this study within firms can gain competitive advantage. “Marketing
Pakistani Corporate Sector context has the following implementation is the process that turns marketing plans
objectives: into marketing actions to accomplish strategic marketing
To examine the direct impact of marketing strategy the, what and why of marketing activities, implementation
creativity and marketing strategy implementation addresses the who, where, when and how [16]. Moreover,
effectiveness on performance. Many managers think that “doing things right”
To examine the mediating role of strategy (implementation) is as important as, or even more
implementation effectiveness on the relationship important than, “doing the right things” (strategy) [16].
between strategy creativity and firm performance. Hrebiniak and Joyce [17] define implementation as
To examine the moderating role of environmental series of steps regarding organizational structures, key
uncertainty (EU) on the relationship between people actions and control systems designed with respect
marketing strategy creativity and marketing strategy to desired ends. Several viewpoints exist regarding what
implementation effectiveness. is required for effective strategy execution; it requires a fit
To know the impact of marketing strategy creativity between the strategy of the organization and
and marketing strategy implementation effectiveness organizational architecture [5]. At the core of the strategy
on the performance across different business implementation approach is the identification that
strategies (i.e. prospectors, analyzers, differentiated different types of competencies, organizational structures
defenders, low cost defenders and reactors). and systems need to be adjusted in order to effectively
Theory and Hypotheses implementation of strategy includes several key factors
Marketing Strategy Creativity (MSC): Marketing that are inimitable and invisible to competitors [19].
strategies play fundamental role in the creation of Joyce et al. [20] found that success of an organization
marketing plans to reach marketing objectives and to be is significantly associated with an ability to implement
competitive. In order to create value for both the the strategy perfectly. Thus this study further
customers and the organizations, strategy innovation is hypothesizes:
critical [13]. According to Andrew and Smith [6], the
extent to which organizations follow practices that H : Marketing Strategy Implementation Effectiveness is
represent a meaningful difference from existing marketing positively and significantly associated with performance.
1
objectives” [16]. Whereas marketing planning addresses
implement the selected strategy [18]. Effective
2
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
266
The Mediating Role of Marketing Strategy stage of markets development, firm cannot easily create a
Implementation: To create new competitive space and positive image in the buyers mind because of the
superior performance, innovative organizations have an unsettled customer preferences [21]. On the other hand in
opportunity horizon that plays an important role to mature markets, effective execution is more important
imagine new ways to achieve important benefits [21]. because of customer’s stable preferences [28]. Thus, this
Marketing strategy implementation plays an important study further hypothesizes:
role to enhance the performance of the organization.
As, numerous social and contextual factors play an H : Environmental uncertainty acts as a moderator in the
important role to achieve creativity, effective relationship between Marketing Strategy Creativity (MSC)
implementation of the creative plans and strategies are and Marketing Strategy Implementation Effectiveness
critical to achieve competitive advantage [12]. The (MSIE).
success of market strategy creativity depends to some
extent on the implementation and execution of the The Influence of Strategy Type: An organization’s
strategy. Effectively implemented creative strategies business strategy is reflected in the decisions of the
can generate superior performance and competitive organization to gain competitive position. The two main
advantage that would be difficult for the competitors to frameworks of business strategy are provided by Miles
follow. Thus it is logical to further hypothesize: and Snow [2] and the Porter [3], with its focus on strategic
H : Marketing Strategy Implementation Effectiveness Miles and Snow identified five types of strategies that an
3
mediates the relationship between Marketing Strategy organization or business unit may adopt. These strategies
Creativity and performance. include prospectors, analyzers, differentiated defenders,
The Moderating Role of Environmental Uncertainty:
According to contingency theorists, the firm must try to Prospectors: Prospectors try to find new and innovative
match its strategic direction to the ever changing
environment [22]. Environmental uncertainty can be
defined as the function of change with regard to customer
preferences, competitors move and technology [23, 24].
Ever changing preferences of customers are very
important to enhance the performance of the organization.
Technological uncertainty can be defined as an
individual's perception that he/she is unable to predict
accurately or understand some aspects of the
technological environment. In today's unpredictable and
dynamic environments firms can achieve competitive
position in the market place through providing unique and
enhanced features to customers. According to resource-
based view (RBV), unique collection of resources and
competencies play an important role to develop creative
strategies which are critical for an organization to achieve
greater returns and above average performance [1, 25, 26].
Organizational flexibility plays an important role in
turbulent business environment that can be defined as the
ability of the firm to keep pace with unexpected, dynamic
market conditions [27]. A sustainable competitive
advantage derives from the firm’s capacity to incorporate
successfully, discuss and take advantage of the
complexities in its business environment [21]. In the early
4
decisions to gain competitive position in the market place.
low cost defenders and reactors.
market opportunities. They are first to enter in a product
or market segment to take first mover advantage. Buyers
in these market segments are not very much price
sensitive they are ready to pay more for enhanced
features and product quality. An alternative distribution
system may be required by the prospectors in order to
achieve competitive advantage in the market [29].
They compete by providing new and creative products to
customers’ needs and it is not important for prospectors
to think more about effective execution when providing
customers value [30]. Thus, this study hypothesizes:
H5a: For prospectors, Marketing Strategy Creativity
(MSC) is strongly associated with performance than
Marketing Strategy Implementation Effectiveness (MSIE).
Analyzers: Analyzers make market evaluation in advance
and try to hold limited and stable product items. Through
product and market development, analyzers can achieve
substantial amount of growth [2]. In order to be an
initiator analyzer tries to be more efficient while lowering
cost. Analyzers can obtain greater performance by new
product orientation or through effective sales efforts and
promotional mix. Hence, this study further hypothesizes:
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
267
H5b: For analyzers, Marketing Strategy Creativity (MSC) Data Collection & Sample: The sample used for data
and Marketing Strategy Implementation Effectiveness collection included the companies listed in Karachi Stock
(MSIE) both have positive relationship with performance. Exchange (KSE) Pakistan and it represented 9 sectors.
Low Cost Defenders: Low Cost Defenders have emphasis (electrical and electronics, textile, agricultural, fertilizers,
on efficiency through consistent practices rather than on
achieving competitive position through creativity [30].
Low cost defenders are not very much engaged in
marketing activities because their primary objective is to
achieve the lower cost position. It is logical that most low
cost defenders obtain many benefits from effective
execution than from creativity. Hence, this study further
hypothesizes:
H5c: For low cost defenders, Marketing Strategy
Implementation Effectiveness (MSIE) has a positive
influence on performance than Marketing Strategy
Creativity (MSC).
Differentiated Defenders: The emphasis of Differentiated
Defenders is on gaining competitive advantage through
superior service and high quality, rather than on offering
low price. By providing superior product, service or
enhanced features differentiated defenders can
differentiate themselves from competitors. Improved
performance can be achieved through supplier
relationships and effective tools and processes [31].
Hence, this study further hypothesizes:
H5d: Marketing Strategy Creativity (MSC) and Marketing
Strategy Implementation Effectiveness (MSIE) both have
positive relationship with performance for differentiated
defenders.
Reactors: Reactors do not have a consistent business
direction to follow. They are never willing to take any risk
like other competitors. A reactor usually doesn’t have a
consistent business direction that’s why they seldom
perform well, they usually respond to the environment.
Hence, this study finally hypothesizes:
H5e: Marketing Strategy Creativity (MSC) and
Marketing Strategy Implementation Effectiveness
(MSIE) both have similar influence on performance for
reactors.
Research Framework: On the basis of the hypotheses,
research framework has been shown in Figure 1.
A total of 250 companies were selected from 9 sectors
FMCG, pharmaceutical, telecommunications and banking)
operating in four big cities (Karachi, Lahore, Faisalabad
and Multan) of Pakistan. The companies from each sector
were selected according to their proportion in total firms
listed in KSE. Senior level marketing executives were
identified as the most appropriate key informant [32].
Survey packets including a cover letter, a copy of
questionnaire and a postage paid self-addressed return
envelope were mailed to all key informants telling the
project and guaranteeing privacy. Follow-up mails also
sent after three weeks later to non-respondents.
Out of 250 questionnaires, only 130 questionnaires
were received, hence response rate of study is recorded
as 52%. Of the 130 questionnaires, 10 questionnaires were
rejected due to incomplete responses. So, 120 valid and
useable questionnaires have been used to conduct final
data analysis.
Among the respondents 43% were lower managers,
16% were Middle Managers, 8% were Top Level
Managers such as Executives and CMOs.
Measurement Scales: This study has used the measures
from the existing literature. Slater et al. [33] have adapted
these scales to measure: 1) marketing strategy creativity,
10 items [6], 2) marketing strategy implementation
effectiveness, 5 items [34], 3) product-market strategy
(type), 5 items [21], 4) performance, 5 items [5], 5) market
turbulence, 5 items [23], 6) competitive intensity, 6 items
[23] and 7) technological turbulence, 5 items [23].
Competitive intensity, technological turbulence and
market turbulence has been used to measure
environmental uncertainty. We used the 5-point likert
scale to measure all the variables. Coefficient alpha and
factor loading values of these measures in Slater et al.’s
[8] study ranges from .68 to .93 and .52 to .82 respectively
showing reliability and validity of these scales. In
addition, Self typing paragraph approach has been used
to measure the product-market strategy type [22, 35].
Validityand Reliability Analysis of Measurement Scales:
With the help of SPSS 17, excluding product-market
strategy type scale, a two-step approach was used to
assess the validity and reliability of all the measurement
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
268
Fig. 1: Research Framework
Table 1: Factor Analysis
Factor Factor Name Description Factor Loading Scale Reliability (Cronbach’s Alpha)
1 Marketing Strategy Creativity Marketing strategy nothing special .829 .924
(KMO=0.882) Conventional marketing strategy .821
Usual marketing strategy .811
Innovative marketing strategy .810
Unique marketing strategy .805
Revolutionary marketing strategy .801
Commonplace marketing strategy .771
Fresh marketing strategy .734
Novel marketing strategy .685
Dull marketing strategy .648
2 Strategy implementation effectiveness Generally Implementation was considered as
(KMO=0.659) success .857 .769
Effectively implemented .813
Implementation was disappointing .780
Personally Implementation was considered as success .637
Implementation was considered as success in my area .471
3 Market Turbulence (KMO=0.742) Customer tend to look for new product/services .861 .785
to satisfy needs
New customer tend to have different needs .822
ascompared to the existing customers
Demand for our pro/ser is coming from customers .804
who never bought them before
Customer product preferences change quite a .702
bit over time
We have relatively stable customer base .416
4 Competitive Intensity (KMO=0.624) Frequent new moves by competitor .793 .794
There are many "promotional wars" in our industry .792
Offering of one competitor can easily match by others .786
Competition in our industry is "cutthroat" .774
5 Technology Turbulence Technology change provide big opportunities in .894 .787
(KMO=0.659) this industry
Technology in this industry is changing rapidly .825
New product ideas are becoming possible by .792
technological change in this industry
6 Performance (KMO=0.639) Much room is available to improve overall .791 .682
performance of this business
Top management was satisfied with the overall .718
performance of business last year
Overall performance was exceeded than .702
competitors last year
Competitors respect the performance of this business .656
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
269
scales used in this study. For the assessment of validity, This study followed the procedure suggested by
first of all, this study conducted the factor analysis of all Barons and Kenny [36] to test the mediation effect of
measures individually. Secondly, for the assessment of MSIE between MSC and performance. In step 1, marketing
reliability, this study measured the Cronbach’s alpha of strategy implementation effectiveness was regressed on
each scale. Table 1 indicates the results of reliability and marketing strategy creativity. Results showed that
validity of the scales. marketing strategy creativity has significant impact on
As shown in Table 1, in this study, the Cronbach’s marketing strategy implementation effectiveness ( = .382,
alpha values and factor loadings of the scales ranges from p< .01). In step 2, organizational performance was
.682 to .924 and .416 to .907 respectively. Moreover, regressed on marketing strategy creativity and results
Kayser-Meyre-Olkin measure ranges from .624 to .882. showed a significant impact of marketing strategy
Hence, all these values confirm the reliability and validity creativity on organizational performance ( = .235, p<=.01).
of these scales in this study. Moreover, due to low factor When marketing strategy implementation effectiveness is
loadings of two items from competitive intensity and added between the relationship among marketing strategy
technology turbulence each and one item from creativity and organization performance, the mediation
performance measure have been excluded. effect emerged as significant ( = .265, p< .01); however,
RESULTS insignificant ( = .125, p=.192). This shows that the
Correlation Analysis: As indicated in the theoretical organizational performance is fully mediated by marketing
discussion that we looked for relationships between the strategy implementation effectiveness. Thus the results of
marketing strategy creativity (MSC), marketing strategy each step as shown in Table 5 support the hypothesis 3.
implementation effectiveness (MSIE), dimensions of Moreover, as seen in Table 6, although marketing
environmental uncertainty (market turbulence, competitive strategy creativity ( =.329, p< .001) and environmental
intensity and technological turbulence) and performance. uncertainty ( =.370, p< .001) accounted for significant
Table 2 presents the mean, standard deviation and variance in marketing strategy implementation
correlation matrix of the overall analysis. As the matrix effectiveness. However, after controlling for these effects,
shows that although all variables have statistically the interaction between marketing strategy creativity and
significant correlation with each another (p<.01), however, environmental uncertainty accounted an additional
strong significant correlation between MSC, MSIE i.e. 0.000% (R change) suggesting a non significant
r=.414 and performance i.e. r=.317 have been found. moderator effect. Further, the beta weight of the
Hence it supports major hypotheses of the study initially. interaction ( =- 1.86) was negative and non significant,
Regression Analysis: This study used the regression moderated the relationship between marketing strategy
analysis to further test the hypotheses. First of all to creativity and marketing strategy implementation
assess H1 and H2, this study tested the effects of MSC effectiveness. Thus, Hypothesis H4 is not supported.
and MSIE on performance (PERF). Results of Table 3 and Table 7 indicates the frequency of the different
Table 4 confirm the hypotheses H1 and H2 that MSC strategy type used by respondent sample. Hypotheses
( =.235; adjusted R =.047; P=0.010) and MSIE ( =.317 H5a through H5e, contrary to our expectations, the
2
adjusted R =.093 P=0.000) are significantly associated results supported only H5b. Results of regression
2
with performance. analysis as shown in Table 8 depict that when business
the relationships between MSC and Performance become
relationship between marketing strategy creativity and
2
suggesting that the environmental uncertainty had not
Table 2: Correlation Matrix
Mean St.dev X1 X2 X3 X4
MSC (X1) 3.155 0.4814 1
MSIE (X2) 3.716 0.5222 .414** 1
EU (X3) 3.813 0.9316 .235** .317** 1
P (x4) 3.754 0.6959 .229* .446** .246** 1
MSC= Marketing Strategy Creativity, MSIE= Marketing Strategy Implementation Effectiveness, EU=
Environmental Uncertainty, P=Performance
**. Correlation is significant at the 0.01 level (2-tailed)
*. Correlation is significant at the 0.05 level (2-tailed)
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
270
Table 3: Relationship between marketing strategy creativity and performance
Dependent variable Independent variable Std Adj.R F-Value Significance
2
Performance Marketing Strategy Creativity 0.24 0.047 6.905 0.01
Table 4: Relationship between marketing strategy implementation effectiveness and performance
Dependent variable Independent variable Std Adj.R F-Value Significance
2
Performance Strategy Implementation Effectiveness .317 .093 13.150 .000
Table 5: Results of mediation analysis between marketing strategy creativity and organizational performance through marketing strategy implementation
effectiveness
Variables S.E Beta t p
Step 1 Marketing Strategy Implementation effectiveness
Marketing Strategy Creativity 0.44 0.382 4.943 0
Step 2 Organizational Performance
Marketing Strategy Creativity 0.6792 0.235 6.498 0.01
Step 3 Organizational Performance
Marketing Strategy Creativity 0.138 0.125 1.312 0.192
Marketing Strategy Implementation effectiveness 0.127 0.265 2.767 0.007
Table 6: The moderating effect of environmental uncertainty on the relationship in MSC and MSIE.
Step Variables R R Change F Change Beta Beta
2 2 a b
1 Marketing Strategy Creativity 0.29 0.302 25.259 .329*** .441***
Environmental Uncertainty .370*** .495***
2 Marketing Strategy Creativity ×Environmental Uncertainty 0.29 0 0.039 -1.86
a Beta from First Step
b Beta from Second Step
*** indicates P<.001; ** P<.01; * P<.05
Table 7: Descriptive Statistics of Strategy Type
Strategy Type Frequency Percent Valid Percent Cumulative %
Prospectors 26 21.7 21.7 21.7
Analyzers 21 17.5 17.5 39.2
Low Cost Defenders 34 28.3 28.3 67.5
Differentiated defenders 16 13.3 13.3 80.8
Reactors 23 19.2 19.2 100.0
Total 120 100.0 100.0
unit performance was regressed by MSC and MSIE for the business should exceed that of its competitors, then not
prospectors, analyzers, defenders and reactors only only top management must design a strategy for
marketing strategy creativity was significantly related to achieving its goals consisting of a marketing strategy and
performance for analyzers ( =1.413; adjusted R =.299; a compatible technology strategy and sourcing strategy
2
t=3.089 P<.001). Hence, MSC and MSIE were not but also must creates a high level of employees
significantly related to any other type of strategy. satisfaction, which contributes to higher effort, which
DISCUSSION AND CONCLUSION which creates higher customer satisfaction, which
This study contributes to the understanding that higher growth and profits, which directs to high
both marketing strategy creativity and marketing strategy stockholder satisfaction, which directs to more investment
implementation effectiveness positively and significantly and so on. Hence, this worthy circle spells profits and
related to organizational performance in the manufacturing growth [15]. All the first three hypotheses of the study are
and service sector of Pakistan. The sample drawn was supported. First and second hypotheses in terms of
250 companies listed KSE. The findings of study support marketing strategy creativity and marketing strategy
the title that if top management wants to formulate its implementation effectiveness both are having a strong
objective with a vision that the overall performance of its and positive link with firm performance. This means that
contributes to higher-quality products and services,
contributes to more repeat business, which extends to
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
271
by implementing brilliant marketing strategies firms can marketing strategy implementation effectiveness. In other
improve its performance, hence, can gain competitive words environmental uncertainty and marketing strategy
advantage dynamically. In addition, this study provides creativity both are acting as main predictors of marketing
empirical evidence to prove the hypothesis H3 that strategy implementation effectiveness. These findings
marketing strategy implementation effectiveness is critical endorsed the market-based view of the company. In this
for success; it mediates the relationship between regard Kotler, Berger and Bickhoff [41] provided that ‘a
marketing strategy creativity and performance. Thus, company can develop the crucial competitive advantages
managers must be careful to develop the innovative by looking to the market, on the one hand. In this case the
strategy; they should also focus on the activities related firm employs what is known as the market-based view
to effective implementation because strategy (MBV). This is all about the opportunities and threats in
implementation is more operational than strategy the markets, which means that only these descriptive
formulation. Kotler and Keller [15] also endorsed these results of the SWOT analysis flow into the
findings by referring McKinsey & Company and provided considerations. In other words, the approach takes an
that ‘strategy is only one of seven elements—all of which outside-in perspective: a company’s position in the
start with the letter s—in successful business practice. market or competitive environment is the crucial
The first three—strategy, structure and systems—are determinant of its success. The focus lies on the
considered the “hardware” of success. The next customer, the market, or the industry and the key
four—style, skills, staff and shared values—are the questions are: What do I need to offer in order to be
“software.” The first “soft” element, style, means successful? What competitive advantages do I need in
company employees share a common way of thinking and order to do this? In this view, the firm’s existing
behaving. The second, skills, means employees have the competencies are not decisive factors’.
skills needed to carry out the company’s strategy. In addition to the above, the findings of this study as
Staffing means the company has hired able people, trained provided above also proved the mediation role of
them well and assigned them to the right jobs. The fourth marketing strategy implementation effectiveness between
element, shared values, means employees share the same the relationship of marketing strategy creativity and
guiding values. When these elements are present, firm performance. In this regard Kotler, Berger and
companies are usually more successful at strategy Bickhoff [41] further provided that ‘on the other hand, a
implementation’. company can develop the crucial competitive advantages
Moreover, creative behaviors depend to some extent by looking at resources. Otherwise known as there
on several contextual and social factors. In today’s source-based view (RBV), this approach considers only
unpredictable work environment; to be competitive, it is the firm’s strengths and weaknesses and the descriptive
important for managers to realize the importance of results of the SWOT analysis upon whose basis these
employee involvement in their work and to generate are assessed. An inside-out perspective like this sets
appropriate products, processes and approaches. out – based on the specific company’s resources – to find
Because organizational creativity depends on individual the markets in which the highest returns can be achieved
creativity [37] and these have been linked to firm with these competencies. The key question here is:
performance and survival [38]. Furthermore, O’Reilly What competitive advantages do I have? Opportunities
&Chatman [39] in this regard provided that organizational outside of the company’s own world are not taken into
culture, structure and management style have a profound account. This perspective finds consideration in the
impact on effective implementation of a strategy. In the concept of “strategy as stretch and leverage”, which
same way, Avinash & Ravipreet [40] asserted that involves setting barely attainable targets (stretch) to be
marketing and sales functions must be equally invested achieved through the innovative use of resources
for successful strategy creation and execution. (leverage)’.
Moreover, the findings of this study showed that Finally stunning results have been obtained with
although marketing strategy creativity and environmental regard to strategy. The testing of hypothesis H5 show
uncertainty accounted for significant variance in that only for analyzers marketing strategy creativity has
marketing strategy implementation effectiveness. a significant relationship with performance, which are in
However, the testing of hypothesis H4 revealed that the sharp contrast to all the previous findings [5, 8, 22, 42, 43,
environmental uncertainty had not moderated the 44, 45, 46]. Finally, in Pakistani environment, it may be
relationship between marketing strategy creativity and concluded that creativity in marketing strategy and its
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
272
effective implementation have either positive/negative or 9. Barney, J., 1995. Look Inside for Competitive
no role in improving performance of the businesses with Advantage. Academy of Management Executive,
diverse strategic orientations. 9: 49-61.
This research provides guidance to managers 10. Tikkanen, H., A. Kujala and K. Artto, 2007. The
regarding the conditions necessary to pursue either marketing strategy of a project based firm: The four
creative strategy or effective strategy execution. In the portfolios framework. Industrial Marketing
words of Kotler and Keller [15], the main implication for Management, 36(2): 194-205.
marketing managers is that ‘even a great marketing 11. Lucio Lamberti, G.N., 2010. Marketing strategy and
strategy can be sabotaged by poor implementation’. marketing performance. European Management
Therefore, if the marketing manager has decided to attain Journal, 28: 139-152.
high organizational performance in shape of technological 12. Scott, P.S., Patrick Gibbons and Joseph
leadership, it must strengthen its R&D department, gather Coughlan. 2010. Developing subsidiary contribution
technological intelligence, develop leading-edge to the.
products, train its technical sales force and communicate 13. Greenhalgh, T., G. Robert, F. Macfarlane, P. Bate and
its technological leadership. However, it is recommended O. Kyriakidou, 2004. Diffusion of innovations in
that firms should invest more in critical activities but not service organizations: systematic review and
neglect the others. recommendations. Milbank Quarterly, 82(4): 581-629.
Convenient data collection technique has been used 14. Barney, J., 1997. Gaining and Sustaining Competitive
for this study. However, the use of cross sectional Advantage. Addison-Wesley: Reading, MA.
research design may increase the generaliziability. For this 15. Kotler, P. and K. Keller, 2012. Marketing management
study we have used single respondent from each (14 Edition), Prentice Hall, One Lake Street,Upper
organization, while the use of multiple respondents may Saddle River, New Jersey.
increase the reliability of the results. 16. Armstrong, G. and P. Kotler, 2005. Marketing: An
REFERENCES 17. Hrebiniak, Lawrence G. and Wil-liam F. Joyce, 1984.
1. Barney and Jay, 1991. Firm Resources and Sustained 18. Homburg, C., H. Krohmer and J.P.W. Jr., 2004.
Competitive Advantage. Journal of Management, A Strategy Implementation Perspective of Market
pp: 17-21. Orientation. Journal of Business Res., 57: 1331-1340.
2. Miles, R. and C. Snow, 1978. Organization Strategy, 19. Hrebiniak and Lawrence, 2005. Making
Structure and Process., NY, McGraw-Hill. Strategy Work. Philadelphia, Wharton School
3. Porter, 1980. Competitive Strategy, New York: Free Publishing.
Press. 20. Joyce, W., N. Nohria and B .Roberson, 2003. What
4. Day, G., 1994. The Capabilities of Market-Driven (Really) Works? Harper Business.
Organizations. J. Mark, 58: 37-51. 21. Slater, S.F., G.T.M. Hult and E.M. Olson, 2010.
5. Olson, E.M., S.F. Slater and G.T.M. Hult, 2005. The Factors influencing the relative importance of
Importance of Structure and Process to Strategy marketing strategy creativity and marketing strategy
Implementation. Business Horizons, 48: 47-54. implementation effectiveness. Industrial Marketing
6. Andrew, J. and D.C. Smith, 1996. In Search Of The Management, 39(4): 551-559.
Marketing Imagination: Factors Affecting The 22. Mckee, D.O., P.R.Varadarajan and P. William, 1989.
Creativity of Marketing Programs for Mature Strategic Adaptability and Firm Performance: A
Products. Journal of Marketing Research, 33: 174-187. market-Contingent Perspective. Journal of marketing,
7. Neill, S. and G.M. Roset, 2006. The Effect of Strategic 53: 21-35.
Complexity on Marketing Strategy and Organizational 23. Jaworski, B.J. and A.K. Kohli, 1993. Market
Performance. Journal of Business Research, 59: 1-10. Orientation: Antecedents and Consequences. Journal
8. Slater, S.F., G.T.M. Hult and E.M. Olson, 2010a. of Marketing, 57: 53-70.
Factors Influencing the Relative Importance of 24. Miller, D., 1983. “Relating Porter’s Business
Marketing Strategy Creativity and Marketing Strategies to Environment and Structure: Analysis
Strategy Implementation Effectiveness. Industrial and Performance Implications,” Academy of
Marketing Management, 39: 551-559. Management Journal, 31: 280-308.
th
Introduction, 7/e, Pearson Education, India.
Implementing Strategy. New York: Macmillan.
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
273
25. Grant, R.M., 1991. The Resource-Based Theory of 37. Amabile, T.M., 1988. A model of creativity and
Competitive Advantage: Implications for Strategy innovation in organizations. In: B.M. Staw and L.L.
Formulation. California Management Review, Cummings (Eds.), Research in Organizational
33(3): 114-135. Behavior, 10: 123-167. Greenwich, CT: JAI Press.
26. Wu, S.J., S.A. Melnyk and B.B. Flynn, 2010. 38. Nystrom, H., 1990. Technological and Market
Operational capabilities: A secret ingredient. Innovation. Chichester, John Wiley.
Decision Sciences, 41(4): 721-754. 39. O’Reilly, Charles A. and A. Chatman, Jennifer, 1996.
27. Beer, M., S.M.L. Voelpel and T. Eb, 2005. Strategic Culture as social control: Corporations, cults and
Management as Organizational Learning: Developing commitment. Research in Organizational Behavior,
Fit and Alignment through a Disciplined Process. 18: 157-200.
Long Range Planning, 38: 445-65. 40. Avinash, M. and Ravipreet S. Sohi, 2009. What
28. Day, G. and R. Wensley, 1988. Assessing Advantage: makes strategy making across the sales-marketing
A Framework for Diagnosing Competitive interface more successful? Journal of the Academy of
Superiority. Journal of Marketing, 52: 1-20. Marketing Science, 37(4): 400-421.
29. Moore, G., 1991. Crossing the Chasm, Marketing and 41. Kotler, P., R. Berger and N. Bickhoff, 2008. The
Selling Technology Products to Mainstream Quintessence of Strategic Management: What You
Customers. New York: Harper Collins. Really Need to Know to Survive in Business.
30. Walker, O. and R .Ruekert, 1987. Marketing's Role in Springer-Verlag, Translation: Claire Jokubauskas,
the Implementation of Business Strategies: A Critical London.
Review and Conceptual Framework. Journal of 42. Conant, Jeffrey, Mokwa, Michael and Varadarajan,
Marketing, 51: 15-33. Rajan P., 1990. Strategic types, distinctive marketing
31. Hackman, R.J. and R. Wageman, 1995. Total Quality competencies and organizational performance: A
Management: Empirical, Conceptual and Practical multiple measures-based study. Strategic
Issues. Administrative Science Quarterly, 40: 309-342. Management Journal, 11(5): 365-383.
32. Campbell, D.T., 1955. The Informant in Quantitative 43. Matsuno, Ken and T. Mentzer, John, 2000. The
Research. The American Journal of Sociology, effects of strategy type on the market
60: 339-342. orientation–performance relationship. Journal of
33. Slater, S.F., G.T.M. Hult and E.M. Olson, 2010. Marketing, 64(4): 1-16.
Factors influencing the relative importance of 44. Slater, S.F. and E.M. Olson, 2000. Strategy Type and
marketing strategy creativity and marketing strategy Performance: The Influence of Sales-Force
implementation effectiveness. Industrial Marketing Management. Strategic Management Journal, 21: 813-
Management, 39(4): 551-559. 829.
34. Noble, C.H. and M.P. Mokwa, 1999b. Implementing 45. Slater, Stanley and M. Olson, Eric, 2001. Marketing's
Marketing Strategies: Developing and Testing a contribution to the implementation of business
Managerial Theory. Journal of Marketing, 63: 57-73. strategy: An empirical analysis. Strategic
35. Vorhies, D. and N. Morgan, 2003. A Configuration Management Journal, 22(11): 1055-1068.
Theory Assessment of Marketing Organization fit 46. Slater, Stanley, Hult, G., M. Tomas and M. Olson,
With Business Strategy and Its Relationship Eric, 2007. On the importance of matching strategic
with Market Performance. Journal of Marketing, behavior and target market selection to business
67: 100-115. strategy in high-tech markets. Journal of the
36. Baron, R.M. and D.A. Kenny, 1986. The moderator- Academy of Marketing Science, 35(1): 5-17.
mediator variable distinction in social psychological
research: Conceptual, strategic and statistical
considerations. Journal of Personality and Social
Psychology, 51: 1173-1182.
doc_565489128.pdf
Impact of Marketing Strategy Creativity on Organizational Performance via Marketing Strategy
Academic and practitioners study various ways to link marketing strategy creativity (MSC) and marketing strategy implementation effectiveness (MSIE) to identify impact on firm performance. However, in Pakistani context no specific study has been undertaken to investigate the impact of environmental conditions and strategy type on the relationship between marketing strategy creativity (MSC), marketing strategy implementation effectiveness (MSIE) and firm performance.
Middle-East Journal of Scientific Research 16 (2): 264-273, 2013
ISSN 1990-9233
© IDOSI Publications, 2013
DOI: 10.5829/idosi.mejsr.2013.16.02.11641
Corresponding Author: Dr. Masood Ul Hassan, Department of Commerce,
Bahauddin Zakariya University, Multan, Pakistan.
264
Impact of Marketing Strategy Creativity on Organizational
Performance via Marketing Strategy Implementation Effectiveness:
Empirical Evidence from Pakistani Organizations
Masood Ul Hassan, Saif Ullah Qureshi, Sidra Sharif and Aamna Mukhtar
1 1 2 2
Department of Commerce, Bahauddin Zakariya University, Multan, Pakistan
1
Institute of Management Sciences, Bahauddin Zakariya University, Multan, Pakistan
2
Abstract: Academic and practitioners study various ways to link marketing strategy creativity (MSC) and
marketing strategy implementation effectiveness (MSIE) to identify impact on firm performance. However, in
Pakistani context no specific study has been undertaken to investigate the impact of environmental conditions
and strategy type on the relationship between marketing strategy creativity (MSC), marketing strategy
implementation effectiveness (MSIE) and firm performance. The purpose of this research is to investigate the
direct impact of marketing strategy creativity (MSC) and marketing strategy implementation effectiveness
(MSIE) on performance and mediating role of marketing strategy implementation effectiveness on the
relationship between strategy creativity and firm performance. This study also focus on examining the
moderating role of environmental uncertainty (EU) on the relationship between MSC and MSIE and the impact
of MSC and MSIE on the performance across different business strategies (i.e. prospectors, analyzers,
differentiated defenders, low cost defenders and reactors). A survey questionnaire has been used to collect
the data from key sales and marketing personnel of business units in service and manufacturing companies of
Pakistan. The results of regression analysis showed that performance is maximized when an organization
develops a creative strategy and achieves effective implementation. Managerial implications and future research
directions are also discussed.
Key words: Marketing strategy creativity Marketing strategy implementation effectiveness Organizational
Performance Pakistan
INTRODUCTION formulation is a key to gain both i.e. (1) competitive
To achieve alignment with the changing business competencies in strategic areas [4]. These key
environment and to generate superior performance, competencies are difficult to replicate by the competitors
dynamic capabilities are required by managers for the and should support the overall business strategy of an
integration and deployment of physical, human, or organization [4]. Breakthrough Strategies create unique,
organizational capital [1]. Business strategy also plays an customized and practical breakthroughs for strategic,
important role to maximize performance outcomes. operational and people issues. For the effective strategy
Framework proposed by Miles and Snow [2] and Porter [3] implementation, it is important for an organization to
is prevalent to understand strategic decisions. Their translate the theory into action plans. Innovative
typology identified multiple ways in which organizations marketing strategy is essential for an organization to
by considering their entrepreneurial, administrative and position itself in a way that would be difficult for the
technical problems define and approach their product- competitors to replicate [3]. Because doing is harder than
market domains and build structures and processes to dreaming, many scholars argued that effective strategy
successfully implement their marketing strategies. implementation is more important than creative strategy
Marketing researchers believed that unique strategy formulation [5]. Olson [5] suggested that coordinated and
advantage and (2) the development of unique
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
265
appropriate efforts are required for the effective practices in the product category is called strategy
implementation of a strategy. Therefore, without effective creativity. In a today’s changing and turbulent business
implementation, there exists no relationship between environment, every organization runs the risk that its
strategy creativity and performance [6]. Hence, current business model will become outdated. As long as
competencies of an organization such as innovation, there are quality conscious customers, there will be
flexibility and responsiveness are also important to organizations interested in delivering superior quality [13].
achieve competitive advantage [7]. When strategies are Successful strategy creation and implementation requires
not executed well they mostly fail. Effective marketing and sales function to be equally invested. For
implementation of a strategy is as important as developing the achievement of competitive advantage and better
a brilliant strategy [8]. Therefore, integrating marketing performance, organizational resources and capabilities
strategy & formation, organizational culture, structure and need to be unique [14]. The firm that carries out strategy
strategic behaviors into an overall marketing best will make the most profits [15]. Thus, this study
organizational architecture will create the competitive hypothesizes the first hypothesis:
advantage [9].
Although, numerous studies have been conducted in H: Marketing Strategy Creativity (MSC) is positively and
western countries particularly in the United States of significantly associated with performance.
America to determine the relationship between strategy
creativity, effective implementation and business Marketing Strategy Implementation (MSIE): Planning
performance [5, 10, 11, 12]; however, only a few good strategies is only a start toward successful
researches have been done in the context of Pakistan in marketing. By implementing brilliant marketing strategies
this regard. Therefore, to fill this gap, this study within firms can gain competitive advantage. “Marketing
Pakistani Corporate Sector context has the following implementation is the process that turns marketing plans
objectives: into marketing actions to accomplish strategic marketing
To examine the direct impact of marketing strategy the, what and why of marketing activities, implementation
creativity and marketing strategy implementation addresses the who, where, when and how [16]. Moreover,
effectiveness on performance. Many managers think that “doing things right”
To examine the mediating role of strategy (implementation) is as important as, or even more
implementation effectiveness on the relationship important than, “doing the right things” (strategy) [16].
between strategy creativity and firm performance. Hrebiniak and Joyce [17] define implementation as
To examine the moderating role of environmental series of steps regarding organizational structures, key
uncertainty (EU) on the relationship between people actions and control systems designed with respect
marketing strategy creativity and marketing strategy to desired ends. Several viewpoints exist regarding what
implementation effectiveness. is required for effective strategy execution; it requires a fit
To know the impact of marketing strategy creativity between the strategy of the organization and
and marketing strategy implementation effectiveness organizational architecture [5]. At the core of the strategy
on the performance across different business implementation approach is the identification that
strategies (i.e. prospectors, analyzers, differentiated different types of competencies, organizational structures
defenders, low cost defenders and reactors). and systems need to be adjusted in order to effectively
Theory and Hypotheses implementation of strategy includes several key factors
Marketing Strategy Creativity (MSC): Marketing that are inimitable and invisible to competitors [19].
strategies play fundamental role in the creation of Joyce et al. [20] found that success of an organization
marketing plans to reach marketing objectives and to be is significantly associated with an ability to implement
competitive. In order to create value for both the the strategy perfectly. Thus this study further
customers and the organizations, strategy innovation is hypothesizes:
critical [13]. According to Andrew and Smith [6], the
extent to which organizations follow practices that H : Marketing Strategy Implementation Effectiveness is
represent a meaningful difference from existing marketing positively and significantly associated with performance.
1
objectives” [16]. Whereas marketing planning addresses
implement the selected strategy [18]. Effective
2
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
266
The Mediating Role of Marketing Strategy stage of markets development, firm cannot easily create a
Implementation: To create new competitive space and positive image in the buyers mind because of the
superior performance, innovative organizations have an unsettled customer preferences [21]. On the other hand in
opportunity horizon that plays an important role to mature markets, effective execution is more important
imagine new ways to achieve important benefits [21]. because of customer’s stable preferences [28]. Thus, this
Marketing strategy implementation plays an important study further hypothesizes:
role to enhance the performance of the organization.
As, numerous social and contextual factors play an H : Environmental uncertainty acts as a moderator in the
important role to achieve creativity, effective relationship between Marketing Strategy Creativity (MSC)
implementation of the creative plans and strategies are and Marketing Strategy Implementation Effectiveness
critical to achieve competitive advantage [12]. The (MSIE).
success of market strategy creativity depends to some
extent on the implementation and execution of the The Influence of Strategy Type: An organization’s
strategy. Effectively implemented creative strategies business strategy is reflected in the decisions of the
can generate superior performance and competitive organization to gain competitive position. The two main
advantage that would be difficult for the competitors to frameworks of business strategy are provided by Miles
follow. Thus it is logical to further hypothesize: and Snow [2] and the Porter [3], with its focus on strategic
H : Marketing Strategy Implementation Effectiveness Miles and Snow identified five types of strategies that an
3
mediates the relationship between Marketing Strategy organization or business unit may adopt. These strategies
Creativity and performance. include prospectors, analyzers, differentiated defenders,
The Moderating Role of Environmental Uncertainty:
According to contingency theorists, the firm must try to Prospectors: Prospectors try to find new and innovative
match its strategic direction to the ever changing
environment [22]. Environmental uncertainty can be
defined as the function of change with regard to customer
preferences, competitors move and technology [23, 24].
Ever changing preferences of customers are very
important to enhance the performance of the organization.
Technological uncertainty can be defined as an
individual's perception that he/she is unable to predict
accurately or understand some aspects of the
technological environment. In today's unpredictable and
dynamic environments firms can achieve competitive
position in the market place through providing unique and
enhanced features to customers. According to resource-
based view (RBV), unique collection of resources and
competencies play an important role to develop creative
strategies which are critical for an organization to achieve
greater returns and above average performance [1, 25, 26].
Organizational flexibility plays an important role in
turbulent business environment that can be defined as the
ability of the firm to keep pace with unexpected, dynamic
market conditions [27]. A sustainable competitive
advantage derives from the firm’s capacity to incorporate
successfully, discuss and take advantage of the
complexities in its business environment [21]. In the early
4
decisions to gain competitive position in the market place.
low cost defenders and reactors.
market opportunities. They are first to enter in a product
or market segment to take first mover advantage. Buyers
in these market segments are not very much price
sensitive they are ready to pay more for enhanced
features and product quality. An alternative distribution
system may be required by the prospectors in order to
achieve competitive advantage in the market [29].
They compete by providing new and creative products to
customers’ needs and it is not important for prospectors
to think more about effective execution when providing
customers value [30]. Thus, this study hypothesizes:
H5a: For prospectors, Marketing Strategy Creativity
(MSC) is strongly associated with performance than
Marketing Strategy Implementation Effectiveness (MSIE).
Analyzers: Analyzers make market evaluation in advance
and try to hold limited and stable product items. Through
product and market development, analyzers can achieve
substantial amount of growth [2]. In order to be an
initiator analyzer tries to be more efficient while lowering
cost. Analyzers can obtain greater performance by new
product orientation or through effective sales efforts and
promotional mix. Hence, this study further hypothesizes:
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
267
H5b: For analyzers, Marketing Strategy Creativity (MSC) Data Collection & Sample: The sample used for data
and Marketing Strategy Implementation Effectiveness collection included the companies listed in Karachi Stock
(MSIE) both have positive relationship with performance. Exchange (KSE) Pakistan and it represented 9 sectors.
Low Cost Defenders: Low Cost Defenders have emphasis (electrical and electronics, textile, agricultural, fertilizers,
on efficiency through consistent practices rather than on
achieving competitive position through creativity [30].
Low cost defenders are not very much engaged in
marketing activities because their primary objective is to
achieve the lower cost position. It is logical that most low
cost defenders obtain many benefits from effective
execution than from creativity. Hence, this study further
hypothesizes:
H5c: For low cost defenders, Marketing Strategy
Implementation Effectiveness (MSIE) has a positive
influence on performance than Marketing Strategy
Creativity (MSC).
Differentiated Defenders: The emphasis of Differentiated
Defenders is on gaining competitive advantage through
superior service and high quality, rather than on offering
low price. By providing superior product, service or
enhanced features differentiated defenders can
differentiate themselves from competitors. Improved
performance can be achieved through supplier
relationships and effective tools and processes [31].
Hence, this study further hypothesizes:
H5d: Marketing Strategy Creativity (MSC) and Marketing
Strategy Implementation Effectiveness (MSIE) both have
positive relationship with performance for differentiated
defenders.
Reactors: Reactors do not have a consistent business
direction to follow. They are never willing to take any risk
like other competitors. A reactor usually doesn’t have a
consistent business direction that’s why they seldom
perform well, they usually respond to the environment.
Hence, this study finally hypothesizes:
H5e: Marketing Strategy Creativity (MSC) and
Marketing Strategy Implementation Effectiveness
(MSIE) both have similar influence on performance for
reactors.
Research Framework: On the basis of the hypotheses,
research framework has been shown in Figure 1.
A total of 250 companies were selected from 9 sectors
FMCG, pharmaceutical, telecommunications and banking)
operating in four big cities (Karachi, Lahore, Faisalabad
and Multan) of Pakistan. The companies from each sector
were selected according to their proportion in total firms
listed in KSE. Senior level marketing executives were
identified as the most appropriate key informant [32].
Survey packets including a cover letter, a copy of
questionnaire and a postage paid self-addressed return
envelope were mailed to all key informants telling the
project and guaranteeing privacy. Follow-up mails also
sent after three weeks later to non-respondents.
Out of 250 questionnaires, only 130 questionnaires
were received, hence response rate of study is recorded
as 52%. Of the 130 questionnaires, 10 questionnaires were
rejected due to incomplete responses. So, 120 valid and
useable questionnaires have been used to conduct final
data analysis.
Among the respondents 43% were lower managers,
16% were Middle Managers, 8% were Top Level
Managers such as Executives and CMOs.
Measurement Scales: This study has used the measures
from the existing literature. Slater et al. [33] have adapted
these scales to measure: 1) marketing strategy creativity,
10 items [6], 2) marketing strategy implementation
effectiveness, 5 items [34], 3) product-market strategy
(type), 5 items [21], 4) performance, 5 items [5], 5) market
turbulence, 5 items [23], 6) competitive intensity, 6 items
[23] and 7) technological turbulence, 5 items [23].
Competitive intensity, technological turbulence and
market turbulence has been used to measure
environmental uncertainty. We used the 5-point likert
scale to measure all the variables. Coefficient alpha and
factor loading values of these measures in Slater et al.’s
[8] study ranges from .68 to .93 and .52 to .82 respectively
showing reliability and validity of these scales. In
addition, Self typing paragraph approach has been used
to measure the product-market strategy type [22, 35].
Validityand Reliability Analysis of Measurement Scales:
With the help of SPSS 17, excluding product-market
strategy type scale, a two-step approach was used to
assess the validity and reliability of all the measurement
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
268
Fig. 1: Research Framework
Table 1: Factor Analysis
Factor Factor Name Description Factor Loading Scale Reliability (Cronbach’s Alpha)
1 Marketing Strategy Creativity Marketing strategy nothing special .829 .924
(KMO=0.882) Conventional marketing strategy .821
Usual marketing strategy .811
Innovative marketing strategy .810
Unique marketing strategy .805
Revolutionary marketing strategy .801
Commonplace marketing strategy .771
Fresh marketing strategy .734
Novel marketing strategy .685
Dull marketing strategy .648
2 Strategy implementation effectiveness Generally Implementation was considered as
(KMO=0.659) success .857 .769
Effectively implemented .813
Implementation was disappointing .780
Personally Implementation was considered as success .637
Implementation was considered as success in my area .471
3 Market Turbulence (KMO=0.742) Customer tend to look for new product/services .861 .785
to satisfy needs
New customer tend to have different needs .822
ascompared to the existing customers
Demand for our pro/ser is coming from customers .804
who never bought them before
Customer product preferences change quite a .702
bit over time
We have relatively stable customer base .416
4 Competitive Intensity (KMO=0.624) Frequent new moves by competitor .793 .794
There are many "promotional wars" in our industry .792
Offering of one competitor can easily match by others .786
Competition in our industry is "cutthroat" .774
5 Technology Turbulence Technology change provide big opportunities in .894 .787
(KMO=0.659) this industry
Technology in this industry is changing rapidly .825
New product ideas are becoming possible by .792
technological change in this industry
6 Performance (KMO=0.639) Much room is available to improve overall .791 .682
performance of this business
Top management was satisfied with the overall .718
performance of business last year
Overall performance was exceeded than .702
competitors last year
Competitors respect the performance of this business .656
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
269
scales used in this study. For the assessment of validity, This study followed the procedure suggested by
first of all, this study conducted the factor analysis of all Barons and Kenny [36] to test the mediation effect of
measures individually. Secondly, for the assessment of MSIE between MSC and performance. In step 1, marketing
reliability, this study measured the Cronbach’s alpha of strategy implementation effectiveness was regressed on
each scale. Table 1 indicates the results of reliability and marketing strategy creativity. Results showed that
validity of the scales. marketing strategy creativity has significant impact on
As shown in Table 1, in this study, the Cronbach’s marketing strategy implementation effectiveness ( = .382,
alpha values and factor loadings of the scales ranges from p< .01). In step 2, organizational performance was
.682 to .924 and .416 to .907 respectively. Moreover, regressed on marketing strategy creativity and results
Kayser-Meyre-Olkin measure ranges from .624 to .882. showed a significant impact of marketing strategy
Hence, all these values confirm the reliability and validity creativity on organizational performance ( = .235, p<=.01).
of these scales in this study. Moreover, due to low factor When marketing strategy implementation effectiveness is
loadings of two items from competitive intensity and added between the relationship among marketing strategy
technology turbulence each and one item from creativity and organization performance, the mediation
performance measure have been excluded. effect emerged as significant ( = .265, p< .01); however,
RESULTS insignificant ( = .125, p=.192). This shows that the
Correlation Analysis: As indicated in the theoretical organizational performance is fully mediated by marketing
discussion that we looked for relationships between the strategy implementation effectiveness. Thus the results of
marketing strategy creativity (MSC), marketing strategy each step as shown in Table 5 support the hypothesis 3.
implementation effectiveness (MSIE), dimensions of Moreover, as seen in Table 6, although marketing
environmental uncertainty (market turbulence, competitive strategy creativity ( =.329, p< .001) and environmental
intensity and technological turbulence) and performance. uncertainty ( =.370, p< .001) accounted for significant
Table 2 presents the mean, standard deviation and variance in marketing strategy implementation
correlation matrix of the overall analysis. As the matrix effectiveness. However, after controlling for these effects,
shows that although all variables have statistically the interaction between marketing strategy creativity and
significant correlation with each another (p<.01), however, environmental uncertainty accounted an additional
strong significant correlation between MSC, MSIE i.e. 0.000% (R change) suggesting a non significant
r=.414 and performance i.e. r=.317 have been found. moderator effect. Further, the beta weight of the
Hence it supports major hypotheses of the study initially. interaction ( =- 1.86) was negative and non significant,
Regression Analysis: This study used the regression moderated the relationship between marketing strategy
analysis to further test the hypotheses. First of all to creativity and marketing strategy implementation
assess H1 and H2, this study tested the effects of MSC effectiveness. Thus, Hypothesis H4 is not supported.
and MSIE on performance (PERF). Results of Table 3 and Table 7 indicates the frequency of the different
Table 4 confirm the hypotheses H1 and H2 that MSC strategy type used by respondent sample. Hypotheses
( =.235; adjusted R =.047; P=0.010) and MSIE ( =.317 H5a through H5e, contrary to our expectations, the
2
adjusted R =.093 P=0.000) are significantly associated results supported only H5b. Results of regression
2
with performance. analysis as shown in Table 8 depict that when business
the relationships between MSC and Performance become
relationship between marketing strategy creativity and
2
suggesting that the environmental uncertainty had not
Table 2: Correlation Matrix
Mean St.dev X1 X2 X3 X4
MSC (X1) 3.155 0.4814 1
MSIE (X2) 3.716 0.5222 .414** 1
EU (X3) 3.813 0.9316 .235** .317** 1
P (x4) 3.754 0.6959 .229* .446** .246** 1
MSC= Marketing Strategy Creativity, MSIE= Marketing Strategy Implementation Effectiveness, EU=
Environmental Uncertainty, P=Performance
**. Correlation is significant at the 0.01 level (2-tailed)
*. Correlation is significant at the 0.05 level (2-tailed)
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
270
Table 3: Relationship between marketing strategy creativity and performance
Dependent variable Independent variable Std Adj.R F-Value Significance
2
Performance Marketing Strategy Creativity 0.24 0.047 6.905 0.01
Table 4: Relationship between marketing strategy implementation effectiveness and performance
Dependent variable Independent variable Std Adj.R F-Value Significance
2
Performance Strategy Implementation Effectiveness .317 .093 13.150 .000
Table 5: Results of mediation analysis between marketing strategy creativity and organizational performance through marketing strategy implementation
effectiveness
Variables S.E Beta t p
Step 1 Marketing Strategy Implementation effectiveness
Marketing Strategy Creativity 0.44 0.382 4.943 0
Step 2 Organizational Performance
Marketing Strategy Creativity 0.6792 0.235 6.498 0.01
Step 3 Organizational Performance
Marketing Strategy Creativity 0.138 0.125 1.312 0.192
Marketing Strategy Implementation effectiveness 0.127 0.265 2.767 0.007
Table 6: The moderating effect of environmental uncertainty on the relationship in MSC and MSIE.
Step Variables R R Change F Change Beta Beta
2 2 a b
1 Marketing Strategy Creativity 0.29 0.302 25.259 .329*** .441***
Environmental Uncertainty .370*** .495***
2 Marketing Strategy Creativity ×Environmental Uncertainty 0.29 0 0.039 -1.86
a Beta from First Step
b Beta from Second Step
*** indicates P<.001; ** P<.01; * P<.05
Table 7: Descriptive Statistics of Strategy Type
Strategy Type Frequency Percent Valid Percent Cumulative %
Prospectors 26 21.7 21.7 21.7
Analyzers 21 17.5 17.5 39.2
Low Cost Defenders 34 28.3 28.3 67.5
Differentiated defenders 16 13.3 13.3 80.8
Reactors 23 19.2 19.2 100.0
Total 120 100.0 100.0
unit performance was regressed by MSC and MSIE for the business should exceed that of its competitors, then not
prospectors, analyzers, defenders and reactors only only top management must design a strategy for
marketing strategy creativity was significantly related to achieving its goals consisting of a marketing strategy and
performance for analyzers ( =1.413; adjusted R =.299; a compatible technology strategy and sourcing strategy
2
t=3.089 P<.001). Hence, MSC and MSIE were not but also must creates a high level of employees
significantly related to any other type of strategy. satisfaction, which contributes to higher effort, which
DISCUSSION AND CONCLUSION which creates higher customer satisfaction, which
This study contributes to the understanding that higher growth and profits, which directs to high
both marketing strategy creativity and marketing strategy stockholder satisfaction, which directs to more investment
implementation effectiveness positively and significantly and so on. Hence, this worthy circle spells profits and
related to organizational performance in the manufacturing growth [15]. All the first three hypotheses of the study are
and service sector of Pakistan. The sample drawn was supported. First and second hypotheses in terms of
250 companies listed KSE. The findings of study support marketing strategy creativity and marketing strategy
the title that if top management wants to formulate its implementation effectiveness both are having a strong
objective with a vision that the overall performance of its and positive link with firm performance. This means that
contributes to higher-quality products and services,
contributes to more repeat business, which extends to
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
271
by implementing brilliant marketing strategies firms can marketing strategy implementation effectiveness. In other
improve its performance, hence, can gain competitive words environmental uncertainty and marketing strategy
advantage dynamically. In addition, this study provides creativity both are acting as main predictors of marketing
empirical evidence to prove the hypothesis H3 that strategy implementation effectiveness. These findings
marketing strategy implementation effectiveness is critical endorsed the market-based view of the company. In this
for success; it mediates the relationship between regard Kotler, Berger and Bickhoff [41] provided that ‘a
marketing strategy creativity and performance. Thus, company can develop the crucial competitive advantages
managers must be careful to develop the innovative by looking to the market, on the one hand. In this case the
strategy; they should also focus on the activities related firm employs what is known as the market-based view
to effective implementation because strategy (MBV). This is all about the opportunities and threats in
implementation is more operational than strategy the markets, which means that only these descriptive
formulation. Kotler and Keller [15] also endorsed these results of the SWOT analysis flow into the
findings by referring McKinsey & Company and provided considerations. In other words, the approach takes an
that ‘strategy is only one of seven elements—all of which outside-in perspective: a company’s position in the
start with the letter s—in successful business practice. market or competitive environment is the crucial
The first three—strategy, structure and systems—are determinant of its success. The focus lies on the
considered the “hardware” of success. The next customer, the market, or the industry and the key
four—style, skills, staff and shared values—are the questions are: What do I need to offer in order to be
“software.” The first “soft” element, style, means successful? What competitive advantages do I need in
company employees share a common way of thinking and order to do this? In this view, the firm’s existing
behaving. The second, skills, means employees have the competencies are not decisive factors’.
skills needed to carry out the company’s strategy. In addition to the above, the findings of this study as
Staffing means the company has hired able people, trained provided above also proved the mediation role of
them well and assigned them to the right jobs. The fourth marketing strategy implementation effectiveness between
element, shared values, means employees share the same the relationship of marketing strategy creativity and
guiding values. When these elements are present, firm performance. In this regard Kotler, Berger and
companies are usually more successful at strategy Bickhoff [41] further provided that ‘on the other hand, a
implementation’. company can develop the crucial competitive advantages
Moreover, creative behaviors depend to some extent by looking at resources. Otherwise known as there
on several contextual and social factors. In today’s source-based view (RBV), this approach considers only
unpredictable work environment; to be competitive, it is the firm’s strengths and weaknesses and the descriptive
important for managers to realize the importance of results of the SWOT analysis upon whose basis these
employee involvement in their work and to generate are assessed. An inside-out perspective like this sets
appropriate products, processes and approaches. out – based on the specific company’s resources – to find
Because organizational creativity depends on individual the markets in which the highest returns can be achieved
creativity [37] and these have been linked to firm with these competencies. The key question here is:
performance and survival [38]. Furthermore, O’Reilly What competitive advantages do I have? Opportunities
&Chatman [39] in this regard provided that organizational outside of the company’s own world are not taken into
culture, structure and management style have a profound account. This perspective finds consideration in the
impact on effective implementation of a strategy. In the concept of “strategy as stretch and leverage”, which
same way, Avinash & Ravipreet [40] asserted that involves setting barely attainable targets (stretch) to be
marketing and sales functions must be equally invested achieved through the innovative use of resources
for successful strategy creation and execution. (leverage)’.
Moreover, the findings of this study showed that Finally stunning results have been obtained with
although marketing strategy creativity and environmental regard to strategy. The testing of hypothesis H5 show
uncertainty accounted for significant variance in that only for analyzers marketing strategy creativity has
marketing strategy implementation effectiveness. a significant relationship with performance, which are in
However, the testing of hypothesis H4 revealed that the sharp contrast to all the previous findings [5, 8, 22, 42, 43,
environmental uncertainty had not moderated the 44, 45, 46]. Finally, in Pakistani environment, it may be
relationship between marketing strategy creativity and concluded that creativity in marketing strategy and its
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
272
effective implementation have either positive/negative or 9. Barney, J., 1995. Look Inside for Competitive
no role in improving performance of the businesses with Advantage. Academy of Management Executive,
diverse strategic orientations. 9: 49-61.
This research provides guidance to managers 10. Tikkanen, H., A. Kujala and K. Artto, 2007. The
regarding the conditions necessary to pursue either marketing strategy of a project based firm: The four
creative strategy or effective strategy execution. In the portfolios framework. Industrial Marketing
words of Kotler and Keller [15], the main implication for Management, 36(2): 194-205.
marketing managers is that ‘even a great marketing 11. Lucio Lamberti, G.N., 2010. Marketing strategy and
strategy can be sabotaged by poor implementation’. marketing performance. European Management
Therefore, if the marketing manager has decided to attain Journal, 28: 139-152.
high organizational performance in shape of technological 12. Scott, P.S., Patrick Gibbons and Joseph
leadership, it must strengthen its R&D department, gather Coughlan. 2010. Developing subsidiary contribution
technological intelligence, develop leading-edge to the.
products, train its technical sales force and communicate 13. Greenhalgh, T., G. Robert, F. Macfarlane, P. Bate and
its technological leadership. However, it is recommended O. Kyriakidou, 2004. Diffusion of innovations in
that firms should invest more in critical activities but not service organizations: systematic review and
neglect the others. recommendations. Milbank Quarterly, 82(4): 581-629.
Convenient data collection technique has been used 14. Barney, J., 1997. Gaining and Sustaining Competitive
for this study. However, the use of cross sectional Advantage. Addison-Wesley: Reading, MA.
research design may increase the generaliziability. For this 15. Kotler, P. and K. Keller, 2012. Marketing management
study we have used single respondent from each (14 Edition), Prentice Hall, One Lake Street,Upper
organization, while the use of multiple respondents may Saddle River, New Jersey.
increase the reliability of the results. 16. Armstrong, G. and P. Kotler, 2005. Marketing: An
REFERENCES 17. Hrebiniak, Lawrence G. and Wil-liam F. Joyce, 1984.
1. Barney and Jay, 1991. Firm Resources and Sustained 18. Homburg, C., H. Krohmer and J.P.W. Jr., 2004.
Competitive Advantage. Journal of Management, A Strategy Implementation Perspective of Market
pp: 17-21. Orientation. Journal of Business Res., 57: 1331-1340.
2. Miles, R. and C. Snow, 1978. Organization Strategy, 19. Hrebiniak and Lawrence, 2005. Making
Structure and Process., NY, McGraw-Hill. Strategy Work. Philadelphia, Wharton School
3. Porter, 1980. Competitive Strategy, New York: Free Publishing.
Press. 20. Joyce, W., N. Nohria and B .Roberson, 2003. What
4. Day, G., 1994. The Capabilities of Market-Driven (Really) Works? Harper Business.
Organizations. J. Mark, 58: 37-51. 21. Slater, S.F., G.T.M. Hult and E.M. Olson, 2010.
5. Olson, E.M., S.F. Slater and G.T.M. Hult, 2005. The Factors influencing the relative importance of
Importance of Structure and Process to Strategy marketing strategy creativity and marketing strategy
Implementation. Business Horizons, 48: 47-54. implementation effectiveness. Industrial Marketing
6. Andrew, J. and D.C. Smith, 1996. In Search Of The Management, 39(4): 551-559.
Marketing Imagination: Factors Affecting The 22. Mckee, D.O., P.R.Varadarajan and P. William, 1989.
Creativity of Marketing Programs for Mature Strategic Adaptability and Firm Performance: A
Products. Journal of Marketing Research, 33: 174-187. market-Contingent Perspective. Journal of marketing,
7. Neill, S. and G.M. Roset, 2006. The Effect of Strategic 53: 21-35.
Complexity on Marketing Strategy and Organizational 23. Jaworski, B.J. and A.K. Kohli, 1993. Market
Performance. Journal of Business Research, 59: 1-10. Orientation: Antecedents and Consequences. Journal
8. Slater, S.F., G.T.M. Hult and E.M. Olson, 2010a. of Marketing, 57: 53-70.
Factors Influencing the Relative Importance of 24. Miller, D., 1983. “Relating Porter’s Business
Marketing Strategy Creativity and Marketing Strategies to Environment and Structure: Analysis
Strategy Implementation Effectiveness. Industrial and Performance Implications,” Academy of
Marketing Management, 39: 551-559. Management Journal, 31: 280-308.
th
Introduction, 7/e, Pearson Education, India.
Implementing Strategy. New York: Macmillan.
Middle-East J. Sci. Res., 16 (2): 264-273, 2013
273
25. Grant, R.M., 1991. The Resource-Based Theory of 37. Amabile, T.M., 1988. A model of creativity and
Competitive Advantage: Implications for Strategy innovation in organizations. In: B.M. Staw and L.L.
Formulation. California Management Review, Cummings (Eds.), Research in Organizational
33(3): 114-135. Behavior, 10: 123-167. Greenwich, CT: JAI Press.
26. Wu, S.J., S.A. Melnyk and B.B. Flynn, 2010. 38. Nystrom, H., 1990. Technological and Market
Operational capabilities: A secret ingredient. Innovation. Chichester, John Wiley.
Decision Sciences, 41(4): 721-754. 39. O’Reilly, Charles A. and A. Chatman, Jennifer, 1996.
27. Beer, M., S.M.L. Voelpel and T. Eb, 2005. Strategic Culture as social control: Corporations, cults and
Management as Organizational Learning: Developing commitment. Research in Organizational Behavior,
Fit and Alignment through a Disciplined Process. 18: 157-200.
Long Range Planning, 38: 445-65. 40. Avinash, M. and Ravipreet S. Sohi, 2009. What
28. Day, G. and R. Wensley, 1988. Assessing Advantage: makes strategy making across the sales-marketing
A Framework for Diagnosing Competitive interface more successful? Journal of the Academy of
Superiority. Journal of Marketing, 52: 1-20. Marketing Science, 37(4): 400-421.
29. Moore, G., 1991. Crossing the Chasm, Marketing and 41. Kotler, P., R. Berger and N. Bickhoff, 2008. The
Selling Technology Products to Mainstream Quintessence of Strategic Management: What You
Customers. New York: Harper Collins. Really Need to Know to Survive in Business.
30. Walker, O. and R .Ruekert, 1987. Marketing's Role in Springer-Verlag, Translation: Claire Jokubauskas,
the Implementation of Business Strategies: A Critical London.
Review and Conceptual Framework. Journal of 42. Conant, Jeffrey, Mokwa, Michael and Varadarajan,
Marketing, 51: 15-33. Rajan P., 1990. Strategic types, distinctive marketing
31. Hackman, R.J. and R. Wageman, 1995. Total Quality competencies and organizational performance: A
Management: Empirical, Conceptual and Practical multiple measures-based study. Strategic
Issues. Administrative Science Quarterly, 40: 309-342. Management Journal, 11(5): 365-383.
32. Campbell, D.T., 1955. The Informant in Quantitative 43. Matsuno, Ken and T. Mentzer, John, 2000. The
Research. The American Journal of Sociology, effects of strategy type on the market
60: 339-342. orientation–performance relationship. Journal of
33. Slater, S.F., G.T.M. Hult and E.M. Olson, 2010. Marketing, 64(4): 1-16.
Factors influencing the relative importance of 44. Slater, S.F. and E.M. Olson, 2000. Strategy Type and
marketing strategy creativity and marketing strategy Performance: The Influence of Sales-Force
implementation effectiveness. Industrial Marketing Management. Strategic Management Journal, 21: 813-
Management, 39(4): 551-559. 829.
34. Noble, C.H. and M.P. Mokwa, 1999b. Implementing 45. Slater, Stanley and M. Olson, Eric, 2001. Marketing's
Marketing Strategies: Developing and Testing a contribution to the implementation of business
Managerial Theory. Journal of Marketing, 63: 57-73. strategy: An empirical analysis. Strategic
35. Vorhies, D. and N. Morgan, 2003. A Configuration Management Journal, 22(11): 1055-1068.
Theory Assessment of Marketing Organization fit 46. Slater, Stanley, Hult, G., M. Tomas and M. Olson,
With Business Strategy and Its Relationship Eric, 2007. On the importance of matching strategic
with Market Performance. Journal of Marketing, behavior and target market selection to business
67: 100-115. strategy in high-tech markets. Journal of the
36. Baron, R.M. and D.A. Kenny, 1986. The moderator- Academy of Marketing Science, 35(1): 5-17.
mediator variable distinction in social psychological
research: Conceptual, strategic and statistical
considerations. Journal of Personality and Social
Psychology, 51: 1173-1182.
doc_565489128.pdf