Marketing capability, marketing strategy implementation and performance in small firms
by Charles Lagat; Gary L. Frankwick
J. for Global Business Advancement (JGBA), Vol. 10, No. 3, 2017

Abstract: Firm performance depends on many elements. The standard value chain presents value creation flow from inbound goods through operations to outbound goods, with marketing and servicing as final stages, suggesting that marketing capabilities and implementation strategies make significant contributions to firm performance. This study designs and tests a framework to understand relationships among marketing capabilities, marketing strategy, and marketing implementation. Understanding relationships among these variables may help managers to implement a marketing strategy to maximise performance for small firms. This study employs the resource-based view and dynamic capabilities theories to examine relationships among marketing capabilities, marketing strategy implementation, and firm performance. A sample of 296 small firms in Kenya was surveyed using self-administered questionnaires. Regression and bootstrap results of the survey support the proposed model. Key results of the study indicate that marketing strategy implementation effectiveness positively moderates the effect of marketing capability on small firm market performance and financial performance.

Online publication date: Sat, 17-Jun-2017

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