The value relevance of digital marketing capabilities to firm performance

Homburg, Christian ; Wielgos, Dominik M.

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URN: urn:nbn:de:bsz:180-madoc-619725
Document Type: Article
Year of publication: 2022
The title of a journal, publication series: Journal of the Academy of Marketing Science
Volume: 50
Issue number: 4
Page range: 666-688
Place of publication: New York, NY
Publishing house: Springer Science + Business Media LLC
ISSN: 0092-0703 , 1552-7824
Publication language: English
Institution: Business School > Business-to-Business Marketing, Sales & Pricing (Homburg 1998-)
Pre-existing license: Creative Commons Attribution 4.0 International (CC BY 4.0)
Subject: 330 Economics
Keywords (English): digital marketing , digital marketing capabilities , marketing strategy , 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.

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