Investigating Marketing Performance of Small Business in Kediri. Does the Role of Marketing Ambidexterity Matter?

Nuril Aulia Munawaroh; Sudarmiatin Sudarmiatin; Ludi Wishnu Wardana

doi:10.55927/fjas.v2i11.6762

Authors

Nuril Aulia Munawaroh Program Doktor Ilmu Manajemen Universitas Negeri Malang
Sudarmiatin Sudarmiatin Jurusan Manajemen Universitas Negeri Malang
Ludi Wishnu Wardana Program Doktor Ilmu Manajemen Universitas Negeri Malang

DOI:

https://doi.org/10.55927/fjas.v2i11.6762

Keywords:

Marketing Ambidexterity, Marketing Performance, Marketing Capability

Abstract

The objective of this research is to investigate the correlation between the development of market knowledge and cross-functional marketing capabilities, along with the concept of marketing ambidexterity. It aims to evaluate the factors that impact marketing performance in the handicraft industry in Kediri, East Java. The research methodology employed in this study is quantitative research and a sampling was carried out using a non-probability sampling technique using 102 samples. The findings of this study demonstrate that market knowledge has a direct impact on enhancing cross-functional marketing capabilities, market knowledge can drive direct marketing ambidexterity and marketing ambidexterity can drive marketing performance. Firms must possess the capability to execute ambidexterity practices and talents within their respective marketplaces to attain exceptional performance.

Downloads

Download data is not yet available.

References

Aren, S., Alpkan, L., Sezen, B., Şanal, M., Sezen, B., & Ayden, Y. (2013). Linking Market Orientation and Ambidexterity to Financial Returns with the Mediation of Innovative Performance. In Journal of Economic and Social Research (Vol. 15, Issue 1). https://www.researchgate.net/publication

Benner, M. J., & Tushman, M. L. (2003). Exploitation, Exploration, and Process Management: The Productivity Dilemma Revisited. The Academy of Management Review, 28(2), 238. https://doi.org/10.2307/30040711

Bustinza, O. F., Vendrell-Herrero, F., & Gomes, E. (2020). Unpacking the effect of strategic ambidexterity on performance: A cross-country comparison of MMNEs developing product-service innovation. International Business Review, 29(6), 101569. https://doi.org/10.1016/j.ibusrev.2019.01.004

Carbonell, P., & Rodriguez, A. I. (2006). The impact of market characteristics and innovation speed on perceptions of positional advantage and new product performance. International Journal of Research in Marketing, 23(1), 1–12. https://doi.org/10.1016/j.ijresmar.2006.01.002

de Visser, M., de Weerd-Nederhof, P., Faems, D., Song, M., van Looy, B., & Visscher, K. (2010). Structural ambidexterity in NPD processes: A firm-level assessment of the impact of differentiated structures on innovation performance. Technovation, 30(5–6), 291–299. https://doi.org/10.1016/j.technovation.2009.09.008

Farzaneh, M., Wilden, R., Afshari, L., & Mehralian, G. (2022). Dynamic capabilities and innovation ambidexterity: The roles of intellectual capital and innovation orientation. Journal of Business Research, 148, 47–59. https://doi.org/10.1016/j.jbusres.2022.04.030

Frösén, J., Tikkanen, H., Jaakkola, M., & Vassinen, A. (2013). Marketing performance assessment systems and the business context. European Journal of Marketing, 47(5/6), 715–737. https://doi.org/10.1108/03090561311306688

García-Hurtado, D., Devece, C., Zegarra-Saldaña, P. E., & Crisanto-Pantoja, M. (2022). Ambidexterity in entrepreneurial universities and performance measurement systems. A literature review. International Entrepreneurship and Management Journal. https://doi.org/10.1007/s11365-022-00795-5

García-Villaverde, P. M., Ruiz-Ortega, M. J., & Ignacio Canales, J. (2013). Entrepreneurial orientation and the threat of imitation: The influence of upstream and downstream capabilities. European Management Journal, 31(3), 263–277. https://doi.org/10.1016/j.emj.2012.11.006

Gibson, C. B., & Birkinshaw, J. (2004). The Antecedents, Consequences, and Mediating Role of Organizational Ambidexterity. Academy of Management Journal, 47(2), 209–226. https://doi.org/10.5465/20159573

Gupta, A. K., Smith, K. G., & Shalley, C. E. (2006). The Interplay Between Exploration and Exploitation. Academy of Management Journal, 49(4), 693–706. https://doi.org/10.5465/amj.2006.22083026

Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R. Springer International Publishing. https://doi.org/10.1007/978-3-030-80519-7

He, P., Pei, Y., Lin, C., & Ye, D. (2021). Ambidextrous Marketing Capabilities, Exploratory and Exploitative Market-Based Innovation, and Innovation Performance: An Empirical Study on China’s Manufacturing Sector. Sustainability, 13(3), 1146. https://doi.org/10.3390/su13031146

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

Ho, H. (Dixon), & Lu, R. (2015). Performance implications of marketing exploitation and exploration: Moderating role of supplier collaboration. Journal of Business Research, 68(5), 1026–1034. https://doi.org/10.1016/j.jbusres.2014.10.004

Hortinha, P., Lages, C., & Lages, L. F. (2011). The Trade-off between Customer and Technology Orientations: Impact on Innovation Capabilities and Export Performance. Journal of International Marketing, 19(3), 36–58. https://doi.org/10.1509/jimk.19.3.36

Hult, G. T. M., Ketchen, D. J., & Arrfelt, M. (2007). Strategic supply chain management: Improving performance through a culture of competitiveness and knowledge development. Strategic Management Journal, 28(10), 1035–1052. https://doi.org/10.1002/smj.627

Indarti, N., & Postma, T. (2013). Effect of networks on product innovation: Empirical evidence from Indonesian SMEs. Journal of Innovation Management, 1(2), 140–158. https://doi.org/10.24840/2183-0606_001.002_0010

Jaidi, N., Siswantoyo, Liu, J., Sholikhah, Z., & Andhini, M. M. (2022). Ambidexterity Behavior of Creative SMEs for Disruptive Flows of Innovation: A Comparative Study of Indonesia and Taiwan. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 141. https://doi.org/10.3390/joitmc8030141

Josephson, B. W., Johnson, J. L., & Mariadoss, B. J. (2016). Strategic marketing ambidexterity: antecedents and financial consequences. Journal of the Academy of Marketing Science, 44(4), 539–554. https://doi.org/10.1007/s11747-015-0438-5

Kaleka, A., & Morgan, N. A. (2019). How marketing capabilities and current performance drive strategic intentions in international markets. Industrial Marketing Management, 78, 108–121. https://doi.org/10.1016/j.indmarman.2017.02.001

Kuckertz, A., Brändle, L., Gaudig, A., Hinderer, S., Morales Reyes, C. A., Prochotta, A., Steinbrink, K. M., & Berger, E. S. C. (2020). Startups in times of crisis – A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13, e00169. https://doi.org/10.1016/j.jbvi.2020.e00169

Kyriakopoulos, K., & Moorman, C. (2004). Tradeoffs in marketing exploitation and exploration strategies: The overlooked role of market orientation. International Journal of Research in Marketing, 21(3), 219–240. https://doi.org/10.1016/j.ijresmar.2004.01.001

Lisboa, A., Skarmeas, D., & Lages, C. (2013). Export market exploitation and exploration and performance. International Marketing Review, 30(3), 211–230. https://doi.org/10.1108/02651331311321972

Lu, Y., Wu, J., Peng, J., & Lu, L. (2020). The perceived impact of the Covid-19 epidemic: evidence from a sample of 4807 SMEs in Sichuan Province, China. Environmental Hazards, 19(4), 323–340. https://doi.org/10.1080/17477891.2020.1763902

Lubatkin, M. H., Simsek, Z., Ling, Y., & Veiga, J. F. (2006). Ambidexterity and Performance in Small-to Medium-Sized Firms: The Pivotal Role of Top Management Team Behavioral Integration. Journal of Management, 32(5), 646–672. https://doi.org/10.1177/0149206306290712

March, J. G. (1991). Exploration and Exploitation in Organizational Learning. Organization Science, 2(1), 71–87. https://doi.org/10.1287/orsc.2.1.71

Mom, T. J. M., Van Den Bosch, F. A. J., & Volberda, H. W. (2007). Investigating Managers’ Exploration and Exploitation Activities: The Influence of Top‐Down, Bottom‐Up, and Horizontal Knowledge Inflows*. Journal of Management Studies, 44(6), 910–931. https://doi.org/10.1111/j.1467-6486.2007.00697.x

Morgan, N. A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102–119. https://doi.org/10.1007/s11747-011-0279-9

Mu, J. (2015). Marketing capability, organizational adaptation, and new product development performance. Industrial Marketing Management, 49, 151–166. https://doi.org/10.1016/j.indmarman.2015.05.003

O’Cass, A., Heirati, N., & Ngo, L. V. (2014). Achieving new product success via the synchronization of exploration and exploitation across multiple levels and functional areas. Industrial Marketing Management, 43(5), 862–872. https://doi.org/10.1016/j.indmarman.2014.04.015

O’Reilly, C. A., & Tushman, M. L. (2013). Organizational Ambidexterity: Past, Present, and Future. Academy of Management Perspectives, 27(4), 324–338. https://doi.org/10.5465/amp.2013.0025

Papadopoulos, T., Baltas, K. N., & Balta, M. E. (2020). The use of digital technologies by small and medium enterprises during COVID-19: Implications for theory and practice. International Journal of Information Management, 55, 102192. https://doi.org/10.1016/j.ijinfomgt.2020.102192

Posen, H. E., & Levinthal, D. A. (2012). Chasing a Moving Target: Exploitation and Exploration in Dynamic Environments. Management Science, 58(3), 587–601. https://doi.org/10.1287/mnsc.1110.1420

Prange, C., & Schlegelmilch, B. B. (2009). The Role of Ambidexterity in Marketing Strategy Implementation: Resolving the Exploration-Exploitation Dilemma. BuR Business Research Journal, 2(2). http://ssrn.com/abstract=1568712

Raisch, S., & Birkinshaw, J. (2008). Organizational Ambidexterity: Antecedents, Outcomes, and Moderators. Journal of Management, 34(3), 375–409. https://doi.org/10.1177/0149206308316058

Seo, E., Song, J., & Jin, C. (2023). Heterogeneity of optimal balance between exploration and exploitation:the moderating roles of firm technological capability and industry alliance network position. Industry and Innovation, 30(4), 423–451. https://doi.org/10.1080/13662716.2022.2036598

Slater, S. F., & Narver, J. C. (1995). Market Orientation and the Learning Organization. Journal of Marketing, 59(3), 63. https://doi.org/10.2307/1252120

Sok, P., & O’Cass, A. (2015). Achieving service quality through service innovation exploration–exploitation: the critical role of employee empowerment and slack resources. Journal of Services Marketing, 29(2), 137–149. https://doi.org/10.1108/JSM-03-2014-0085

Vila, O. R., Bharadwaj, S. G., & Bahadir, S. C. (2015). Exploration- and Exploitation-Oriented Marketing Strategies and Sales Growth in Emerging Markets. Customer Needs and Solutions, 2(4), 277–289. https://doi.org/10.1007/s40547-015-0053-0

Vorhies, D. W., Orr, L. M., & Bush, V. D. (2011). Improving customer-focused marketing capabilities and firm financial performance via marketing exploration and exploitation. Journal of the Academy of Marketing Science, 39(5), 736–756. https://doi.org/10.1007/s11747-010-0228-z

Wei, Z., Zhao, J., & Zhang, C. (2014). Organizational ambidexterity, market orientation, and firm performance. Journal of Engineering and Technology Management, 33, 134–153. https://doi.org/10.1016/j.jengtecman.2014.06.001

Wenke, K., Zapkau, F. B., & Schwens, C. (2021). Too small to do it all? A meta-analysis on the relative relationships of exploration, exploitation, and ambidexterity with SME performance. Journal of Business Research, 132, 653–665. https://doi.org/10.1016/j.jbusres.2020.10.018

Wilden, R., Hohberger, J., Devinney, T. M., & Lavie, D. (2018). Revisiting James March (1991): Whither exploration and exploitation? Strategic Organization, 16(3), 352–369. https://doi.org/10.1177/1476127018765031

Xie, X., Wu, Y., Palacios-Marqués, D., & Ribeiro-Navarrete, S. (2022). Business networks and organizational resilience capacity in the digital age during COVID-19: A perspective utilizing organizational information processing theory. Technological Forecasting and Social Change, 177, 121548. https://doi.org/10.1016/j.techfore.2022.121548

Zhang, H., Wu, F., & Cui, A. S. (2015). Balancing market exploration and market exploitation in product innovation: A contingency perspective. International Journal of Research in Marketing, 32(3), 297–308. https://doi.org/10.1016/j.ijresmar.2015.03.004