How Can International Ventures Utilize Marketing Capability in Emerging Markets? Its Contingent Effect on New Product Development

Abstract

Whether international ventures can benefit from their marketing capability in emerging markets is a critical but underresearched issue. Drawing on the resource-based view (RBV), the authors propose that marketing capability can enhance international ventures’ new product performance. However, its effect is contingent on environmental forces (i.e., market uncertainty and technological turbulence) in the highly uncertain and turbulent environments of emerging markets. Using survey data of international ventures in high-tech industries in China, the authors find that marketing capability is less effective for new product development when firms face high levels of market uncertainty or technological turbulence. At that time, enhancing knowledge breadth represents a critical strategic solution to address the decreased efficacy of marketing capability in driving innovation.

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