Antecedents and Consequences of Marketing Strategy Making: A Model and a Test

Abstract

There is a strong rekindling of academic and practitioner interest in the marketing strategy making (MSM) process and its effect on firm performance. However, there is a dearth of research on process issues in marketing strategy. This study attempts to fill this important gap in the marketing strategy literature by using a discovery-oriented approach to develop a (1) multifaceted conceptualization of MSM, (2) model of the antecedents and consequences of MSM, and (3) test of this model using data on more than 200 marketing mix-related decisions. After ruling out common method bias, the authors find that innovative culture is the fundamental antecedent of effective MSM. They also find that the components of MSM (situation analysis, comprehensiveness, emphasis on marketing assets and capabilities, cross-functional integration, communication quality, consensus commitment, and resource commitment) have differential effects on the outcomes measured, strategy creativity, organizational learning, and market performance. The authors find that strategy creativity affects market performance and organizational learning directly and as a mediator variable.