The Effect of the Coronavirus Disease Pandemic on Efficiency with the Mediating Role of Marketing Capabilities and Strategic Orientation: A Case Study of Small and Medium-Sized Businesses of Tehran Province
The Effect of the Coronavirus Disease Pandemic on Efficiency with the Mediating Role of Marketing Capabilities and Strategic Orientation: A Case Study of Small and Medium-Sized Businesses of Tehran Province
Subject Areas : Business Management
Dariush Tahmasebi
1
(
Assistant Professor Department of Bank Management, Faculty of Commerce and Finance, university of Tehran, Tehran, Iran
)
Hashem Aghazade
2
(
Associate Professor Department of Business Management, Faculty of Management, University of Tehran, Tehran, Iranr
)
Keywords: Efficiency, strategic orientation, Marketing capabilities, Corona disease pandemic, small and medium-sized businesses,
Abstract :
Today, with the rapid spread of the Corona pandemic, problems have arisen for businesses, especially small and medium-sized businesses. On the other hand, marketing capabilities are considered essential in determining the heterogeneous evaluation of product quality for customers, which helps the strategic direction of small and medium-sized businesses in the critical conditions of the Corona pandemic. Hence, the purpose of the current research was to explain the effect of the Corona pandemic on efficiency considering the mediating role of marketing capabilities and strategic orientation. The direction of the research was applied and descriptive in terms of purpose. The statistical population of the research included 2200 managers and senior employees of small and medium-sized businesses in Tehran province, from among whom, a sample of 335 people was recruited using a stratified sampling procedure. A survey method was used for the data collection and PLS method was used for the data analysis. Based on the results, the effect of the Corona disease pandemic on efficiency, marketing capabilities and strategic orientation and the role of strategic orientation on efficiency were confirmed. Moreover, the indirect role of mediating variables of marketing capabilities and strategic orientation in the relationship between the Corona disease pandemic and efficiency was confirmed. However, the effect of marketing capabilities on performance was rejected. This research advises senior managers of small and medium-sized businesses to pay extra attention to strategic orientation and marketing capabilities in order to reduce threats and increase the possibility of survival and take advantage of future opportunities in the post-corona era.
Abstract
Today, with the rapid spread of the Corona pandemic, problems have arisen for businesses, especially small and medium-sized businesses. On the other hand, marketing capabilities are considered essential in determining the heterogeneous evaluation of product quality for customers, which helps the strategic direction of small and medium-sized businesses in the critical conditions of the Corona pandemic. Hence, the purpose of the current research was to explain the effect of the Corona pandemic on efficiency considering the mediating role of marketing capabilities and strategic orientation. The direction of the research was applied and descriptive in terms of purpose. The statistical population of the research included 2200 managers and senior employees of small and medium-sized businesses in Tehran province, from among whom, a sample of 335 people was recruited using a stratified sampling procedure. A survey method was used for the data collection and PLS method was used for the data analysis. Based on the results, the effect of the Corona disease pandemic on efficiency, marketing capabilities and strategic orientation and the role of strategic orientation on efficiency were confirmed. Moreover, the indirect role of mediating variables of marketing capabilities and strategic orientation in the relationship between the Corona disease pandemic and efficiency was confirmed. However, the effect of marketing capabilities on performance was rejected. This research advises senior managers of small and medium-sized businesses to pay extra attention to strategic orientation and marketing capabilities in order to reduce threats and increase the possibility of survival and take advantage of future opportunities in the post-corona era.
Key Words: Corona disease pandemic, efficiency, marketing capabilities, strategic orientation, small and medium-sized businesses
Ahmadzadeh fard, M., Gholami karin, M., Taghavi, A., & Sadeghi, A. (2018). Impact of Strategic Orientation on Business Performance through Marketing Capabilities (Case of Study: Mehr Eghtesad Bank Branches in Isfahan). New Marketing Research Journal, 8(2), 87-104. In Persian. doi:10.22108/nmrj.2018.107552.1466
Abbasi, H., Zartoshtian, S., & Fattahian, N. (2020). Analysis for strategic guidance for organizational performance with the mediating role of organizational innovation using the standard model of construction (Case study: sports provinces of Hamadan province). Journal of Sports Management and Motor Behavior, 16 (31), 81-100. In Persian. doi:10.22080/JSMB.2019.12440.2646
Behzadnia P, Sanoubar N. (2019) The Impact of Marketing Capabilities on Export Performance (The Case of Iranian Entrepreneurial Exporter Companies of Agricultural Products). jea. 6 (11), 58-67. In Persian. doi:10.29252/jea.6.11.58
Beliaeva, T., Shirokova, G., Wales, W., & Gafforova, E. (2020). Benefiting from economic crisis? Strategic orientation effects, trade-offs, and configurations with resource availability on SME performance, 16(7), 165-194. doi:10.1007/s11365-018-0499-2
Carbo Valverde, S. (2003). Predicted and actual costs from individual bank mergers. Journal of Economics and Business, 56(2): 137-157.
Cortez, R. and Johnston, W. (2020). The coronavirus crisis in B2B settings: crisis uniqueness and managerial implications based on social exchange theory. Industrial Marketing Management, 88, 125-135. doi:10.1016/ j.indmarman.2020.05.004
Doyle, P., & Hooley, G. J. (1992). Strategic orientation and corporate per-formance. International Journal of Research in Marketing, 9(1), 59–73. doi:10.1016/0167-8116(92)90029-K
Egbetokun, A.A. (2015). Interactive learning and firm-level capabilities in latecomer settings: the Nigerian manufacturing industry. Technological Forecasting and Social Change, Vol. 99 No. C, pp. 231-241. doi:10.1016/ j.techfore.2015.06.040
Eisend, M., Evanschitzky, H. and Calantone, R.J. (2016). The relative advantage of marketing over technological capabilities in influencing new product performance: the moderating role of country institutions. Journal of International Marketing, Vol. 24 No. 1, pp. 41-56.
Garcia-Pont, C., & Nohria, N. (2002). Local versus Global Mimetism: The Dynamics of Alliance Formation in the Automobile Industry. Strategic Management Journal, 23(4), 307-321. doi: 10.1002/smj.225
Hajipour, B., Jafarizadeh, F., & Rahimi, F. (2016). Effects of Strategic Orientation and Marketing Capabilities on Export Performance. Journal of Business Management Perspective, 14(2), 87-105. In PersianHamid, M., Abdulwahab, A., Waliulhasanat, M., & Kamruzzaman, M. (2020). Impact of Coronavirus (COVID-19) and Employees’ Reaction to Changes on Employee Performance of Bangladesh. the international journal of business & management, 8(8), 1-11.doi:10.24940/theijbm/2020/v8/i8/BM2008-013
Jayadev, M. & Sensarma, R. (2007). Mergerrs in Indian Banking. Journal of Banking and Finance and Management, 1-41.
Kraus, S., Clauss, T., Breier, M., Gast, J., Zardini, A. and Tiberius, V. (2020). The economics of COVID-19: initial empirical evidence on how family firms in five European countries cope with the corona crisis. International Journal of Entrepreneurial Behavior and Research, 26(5), 1067-1092. doi:10.1108/IJEBR-04-2020-0214
Kuckertz, A., Breandle, L., Gaudig, A., Hinderer, S., Reyes, C.A.M., Prochotta, A. and Berger, E.S. (2020). Startups in times of crisis–A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13, 1-39. doi:10.1016/j.jbvi.2020.e00169
Kanibir, H., Saydan, R. and Nart, S. (2014). Determining the antecedents of marketing competencies of SMEs for international market performance. Procedia–Social and Behavioral Sciences, Vol. 50, pp. 12-23. doi:10.1016/ j.sbspro.2014.09.003
Li, Y., Ye, F., Sheu, C., & Yang, Q. (2018). Linking green market orientation and performance: Antecedents and processes. Journal of Cleaner Pro-duction, 192, 924–931. doi:10.1016/j.jclepro.2018.05.052
Liu, Y., Shankar, V. and Yun, W. (2017). Crisis management strategies and the long-term effects of product recalls on firm value. Journal of Marketing, Vol. 81, pp. 30-48. doi:10.1509/jm.15.053
Medase, K., & Barasa, L. (2019). Absorptive capacity, marketing capabilities, and innovation commercialisation in Nigeria. European Journal of Innovation Management, Vol. 22 No. 5, pp. 790-820. doi:10.1108/EJIM-09-2018-0194
Müller, J.M., Buliga, O. and Voigt, K.I. (2018). Fortune favors the prepared: how SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change, Vol. 132, pp. 2-17. doi:10.1016/j.techfore.2017.12.019
Morgan, N.A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, Vol. 40 No. 1, pp. 102-119. doi:10.1007/s11747-011-0279-9
Morgan, N.A., Feng, H. and Whitler, K.A. (2018). Marketing capabilities in international marketing. Journal of International Marketing, Vol. 26 No. 1, pp. 61-95. doi:10.1509/jim.17.0056
McKelvey, B. (1975). Guidelines for the Empirical Classification of Organizations. Administrative Science Quarterly, 20 (4), 509-525. doi:10.1509/jim.17.0056
Nopasandasiel, S., Ramazan pour, A., Attari Asl, P. (2016). The Effect of Marketing, Innovation and Learning Capabilities on Organization’s Performance (Case study: Tabriz Petrochemical Company). The Journal of Productivity Management, 10(36), 95-124.( In Persian).
Nath, P., Nachiappan, S. and Ramanathan, R. (2010). The impact of marketing capability, operations capability and diversification strategy on performance: a resource-based view. Industrial Marketing Management, Vol. 39 No. 2, pp. 317-329. doi:10.1016/j.indmarman.2008.09.001
Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M. and Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): a review. International Journal of Surgery, Vol. 78 No. 1, pp. 185-193. doi:10.1016/j.ijsu.2020.04.018
Rahimnia, F., Sajjad, A. (2015). The impact of Strategic Orientations on the Performance of Khorasan Science and Technology Park`s Companies by Mediating Role of Organizational Innovation. Innovation Management Journal, 4(2), 87-114. In Persian.
Ren, S., Eisingerich, A.B. and Tsai, H.-T. (2015). How do marketing, research and development capabilities, and degree of internationalisation synergistically affect the innovation performance of small and medium-sized enterprises (SMEs)? A panel data study of Chinese SMEs. International Business Review, Vol. 24 No. 4, pp. 642-651.doi:10.1016/ j.ibusrev.2014.11.006
Sok, P., O’Cass, A. and Sok, K.M. (2013). Achieving superior SME performance: overarching role of marketing, innovation, and learning capabilities. Australasian Marketing Journal, Vol. 21 No. 3, pp. 161-167. doi:10.1016/j.ausmj.2013.04.00
Soltani, M., & Tahmasebi Aghbelaghi, D. (2020). Explaining the Role of Tejarat Bank's Strategic Alliance with FinTechs in Efficiency Mediated by Technological Developments and Digital Banking. Journal of Business Management, 12(3), 800-832. in Persian. doi:10.22059/JIBM.2020.296288. 3753
Sharma, P., Leung, T.Y., Kingshott, R.P., Davcik, N.S. and Cardinali, S. (2020). Managing uncertainty during a global pandemic: an international business perspective. Journal of Business Research, Vol. 116 No. 1, pp. 188-192. doi:10.1016/j.jbusres.2020.05.026
Sharma, M.K. and Bhagwat, R. (2006). Practice of information systems: evidence from select Indian SMEs. Journal of Manufacturing Technology Management, Vol. 17 No. 2, pp. 199-223.
doi:10.1108/ 17410380610642278
Sun, W., & Ding, Y. (2020). Corporate social responsibility and cash flow volatility: The curvilinear moderation of marketing capability. Journal of Business Research, 116, 48–59. doi:10.1016/j.jbusres.2020.05.016
Taheri Namhil, E. (2020). Examining the consequences of the corona virus on the economy of Iran and the world. Supreme governance Journal, 2(1), 171-181. In Persian.
Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 96(12), 5611-5619. doi:10.1016/j.jbusres.2016.03.068
Theodosiou. M, Kehagias.J, Katsikea.E (2012). Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations. Industrial Marketing Management, 41(7), 1058-1070. doi:10.1016/j.indmarman. 2012.01.001
Toresdahl, B. and Asif, I. (2020). Coronavirus disease 2019 (Covid-19): considerations for the competitive athlete. Sport Health, Vol. 12 No. 3, pp. 221-224. doi:10.1177/1941738120918876
Vijande, L.S., Pérez, M.J., Trespalacios, J.A., & Rodríguez, N.G. (2012). Marketing Capabilities Development in Small and Medium Enterprises: Implications for Performance. Journal of CENTRUM Cathedra, 5(1), 24-42. doi:10.7835/jcc-berj-2012-0065
Vorhies, D.W. and Morgan, N.A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, Vol. 69 No. 1, pp. 80-94. doi:10.1509/jmkg.69.1.80.55505
Yadav, P., & Marwah, C. (2015). The Concept of Productivity. International Journal of Engineering and Technical Research (IJETR), Volume-3, Issue-5, 192-196. https://api.semanticscholar.org/CorpusID:212493071
Zahiri, H., Amirhosseini, Z., Faridchehr, E. (2016). Effect of Marketing Capabilities, Innovation, Entrepreneurship Tendency through Social Network Sites Variable on The Performance (Case Study: Qavamin Bank). Public Policy In Administration, 7(3), 45-60. In Persian. https://ijpa.srbiau.ac.ir/article_9865.html?lang=f
_||_Ahmadzadeh fard, M., Gholami karin, M., Taghavi, A., & Sadeghi, A. (2018). Impact of Strategic Orientation on Business Performance through Marketing Capabilities (Case of Study: Mehr Eghtesad Bank Branches in Isfahan). New Marketing Research Journal, 8(2), 87-104. In Persian. doi:10.22108/nmrj.2018.107552.1466
Abbasi, H., Zartoshtian, S., & Fattahian, N. (2020). Analysis for strategic guidance for organizational performance with the mediating role of organizational innovation using the standard model of construction (Case study: sports provinces of Hamadan province). Journal of Sports Management and Motor Behavior, 16 (31), 81-100. In Persian. doi:10.22080/JSMB.2019.12440.2646
Behzadnia P, Sanoubar N. (2019) The Impact of Marketing Capabilities on Export Performance (The Case of Iranian Entrepreneurial Exporter Companies of Agricultural Products). jea. 6 (11), 58-67. In Persian. doi:10.29252/jea.6.11.58
Beliaeva, T., Shirokova, G., Wales, W., & Gafforova, E. (2020). Benefiting from economic crisis? Strategic orientation effects, trade-offs, and configurations with resource availability on SME performance, 16(7), 165-194. doi:10.1007/s11365-018-0499-2
Carbo Valverde, S. (2003). Predicted and actual costs from individual bank mergers. Journal of Economics and Business, 56(2): 137-157.
Cortez, R. and Johnston, W. (2020). The coronavirus crisis in B2B settings: crisis uniqueness and managerial implications based on social exchange theory. Industrial Marketing Management, 88, 125-135. doi:10.1016/ j.indmarman.2020.05.004
Doyle, P., & Hooley, G. J. (1992). Strategic orientation and corporate per-formance. International Journal of Research in Marketing, 9(1), 59–73. doi:10.1016/0167-8116(92)90029-K
Egbetokun, A.A. (2015). Interactive learning and firm-level capabilities in latecomer settings: the Nigerian manufacturing industry. Technological Forecasting and Social Change, Vol. 99 No. C, pp. 231-241. doi:10.1016/ j.techfore.2015.06.040
Eisend, M., Evanschitzky, H. and Calantone, R.J. (2016). The relative advantage of marketing over technological capabilities in influencing new product performance: the moderating role of country institutions. Journal of International Marketing, Vol. 24 No. 1, pp. 41-56.
Garcia-Pont, C., & Nohria, N. (2002). Local versus Global Mimetism: The Dynamics of Alliance Formation in the Automobile Industry. Strategic Management Journal, 23(4), 307-321. doi: 10.1002/smj.225
Hajipour, B., Jafarizadeh, F., & Rahimi, F. (2016). Effects of Strategic Orientation and Marketing Capabilities on Export Performance. Journal of Business Management Perspective, 14(2), 87-105. In PersianHamid, M., Abdulwahab, A., Waliulhasanat, M., & Kamruzzaman, M. (2020). Impact of Coronavirus (COVID-19) and Employees’ Reaction to Changes on Employee Performance of Bangladesh. the international journal of business & management, 8(8), 1-11.doi:10.24940/theijbm/2020/v8/i8/BM2008-013
Jayadev, M. & Sensarma, R. (2007). Mergerrs in Indian Banking. Journal of Banking and Finance and Management, 1-41.
Kraus, S., Clauss, T., Breier, M., Gast, J., Zardini, A. and Tiberius, V. (2020). The economics of COVID-19: initial empirical evidence on how family firms in five European countries cope with the corona crisis. International Journal of Entrepreneurial Behavior and Research, 26(5), 1067-1092. doi:10.1108/IJEBR-04-2020-0214
Kuckertz, A., Breandle, L., Gaudig, A., Hinderer, S., Reyes, C.A.M., Prochotta, A. and Berger, E.S. (2020). Startups in times of crisis–A rapid response to the COVID-19 pandemic. Journal of Business Venturing Insights, 13, 1-39. doi:10.1016/j.jbvi.2020.e00169
Kanibir, H., Saydan, R. and Nart, S. (2014). Determining the antecedents of marketing competencies of SMEs for international market performance. Procedia–Social and Behavioral Sciences, Vol. 50, pp. 12-23. doi:10.1016/ j.sbspro.2014.09.003
Li, Y., Ye, F., Sheu, C., & Yang, Q. (2018). Linking green market orientation and performance: Antecedents and processes. Journal of Cleaner Pro-duction, 192, 924–931. doi:10.1016/j.jclepro.2018.05.052
Liu, Y., Shankar, V. and Yun, W. (2017). Crisis management strategies and the long-term effects of product recalls on firm value. Journal of Marketing, Vol. 81, pp. 30-48. doi:10.1509/jm.15.053
Medase, K., & Barasa, L. (2019). Absorptive capacity, marketing capabilities, and innovation commercialisation in Nigeria. European Journal of Innovation Management, Vol. 22 No. 5, pp. 790-820. doi:10.1108/EJIM-09-2018-0194
Müller, J.M., Buliga, O. and Voigt, K.I. (2018). Fortune favors the prepared: how SMEs approach business model innovations in Industry 4.0. Technological Forecasting and Social Change, Vol. 132, pp. 2-17. doi:10.1016/j.techfore.2017.12.019
Morgan, N.A. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, Vol. 40 No. 1, pp. 102-119. doi:10.1007/s11747-011-0279-9
Morgan, N.A., Feng, H. and Whitler, K.A. (2018). Marketing capabilities in international marketing. Journal of International Marketing, Vol. 26 No. 1, pp. 61-95. doi:10.1509/jim.17.0056
McKelvey, B. (1975). Guidelines for the Empirical Classification of Organizations. Administrative Science Quarterly, 20 (4), 509-525. doi:10.1509/jim.17.0056
Nopasandasiel, S., Ramazan pour, A., Attari Asl, P. (2016). The Effect of Marketing, Innovation and Learning Capabilities on Organization’s Performance (Case study: Tabriz Petrochemical Company). The Journal of Productivity Management, 10(36), 95-124.( In Persian).
Nath, P., Nachiappan, S. and Ramanathan, R. (2010). The impact of marketing capability, operations capability and diversification strategy on performance: a resource-based view. Industrial Marketing Management, Vol. 39 No. 2, pp. 317-329. doi:10.1016/j.indmarman.2008.09.001
Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M. and Agha, R. (2020). The socio-economic implications of the coronavirus pandemic (COVID-19): a review. International Journal of Surgery, Vol. 78 No. 1, pp. 185-193. doi:10.1016/j.ijsu.2020.04.018
Rahimnia, F., Sajjad, A. (2015). The impact of Strategic Orientations on the Performance of Khorasan Science and Technology Park`s Companies by Mediating Role of Organizational Innovation. Innovation Management Journal, 4(2), 87-114. In Persian.
Ren, S., Eisingerich, A.B. and Tsai, H.-T. (2015). How do marketing, research and development capabilities, and degree of internationalisation synergistically affect the innovation performance of small and medium-sized enterprises (SMEs)? A panel data study of Chinese SMEs. International Business Review, Vol. 24 No. 4, pp. 642-651.doi:10.1016/ j.ibusrev.2014.11.006
Sok, P., O’Cass, A. and Sok, K.M. (2013). Achieving superior SME performance: overarching role of marketing, innovation, and learning capabilities. Australasian Marketing Journal, Vol. 21 No. 3, pp. 161-167. doi:10.1016/j.ausmj.2013.04.00
Soltani, M., & Tahmasebi Aghbelaghi, D. (2020). Explaining the Role of Tejarat Bank's Strategic Alliance with FinTechs in Efficiency Mediated by Technological Developments and Digital Banking. Journal of Business Management, 12(3), 800-832. in Persian. doi:10.22059/JIBM.2020.296288. 3753
Sharma, P., Leung, T.Y., Kingshott, R.P., Davcik, N.S. and Cardinali, S. (2020). Managing uncertainty during a global pandemic: an international business perspective. Journal of Business Research, Vol. 116 No. 1, pp. 188-192. doi:10.1016/j.jbusres.2020.05.026
Sharma, M.K. and Bhagwat, R. (2006). Practice of information systems: evidence from select Indian SMEs. Journal of Manufacturing Technology Management, Vol. 17 No. 2, pp. 199-223.
doi:10.1108/ 17410380610642278
Sun, W., & Ding, Y. (2020). Corporate social responsibility and cash flow volatility: The curvilinear moderation of marketing capability. Journal of Business Research, 116, 48–59. doi:10.1016/j.jbusres.2020.05.016
Taheri Namhil, E. (2020). Examining the consequences of the corona virus on the economy of Iran and the world. Supreme governance Journal, 2(1), 171-181. In Persian.
Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 96(12), 5611-5619. doi:10.1016/j.jbusres.2016.03.068
Theodosiou. M, Kehagias.J, Katsikea.E (2012). Strategic orientations, marketing capabilities and firm performance: An empirical investigation in the context of frontline managers in service organizations. Industrial Marketing Management, 41(7), 1058-1070. doi:10.1016/j.indmarman. 2012.01.001
Toresdahl, B. and Asif, I. (2020). Coronavirus disease 2019 (Covid-19): considerations for the competitive athlete. Sport Health, Vol. 12 No. 3, pp. 221-224. doi:10.1177/1941738120918876
Vijande, L.S., Pérez, M.J., Trespalacios, J.A., & Rodríguez, N.G. (2012). Marketing Capabilities Development in Small and Medium Enterprises: Implications for Performance. Journal of CENTRUM Cathedra, 5(1), 24-42. doi:10.7835/jcc-berj-2012-0065
Vorhies, D.W. and Morgan, N.A. (2005). Benchmarking marketing capabilities for sustainable competitive advantage. Journal of Marketing, Vol. 69 No. 1, pp. 80-94. doi:10.1509/jmkg.69.1.80.55505
Yadav, P., & Marwah, C. (2015). The Concept of Productivity. International Journal of Engineering and Technical Research (IJETR), Volume-3, Issue-5, 192-196. https://api.semanticscholar.org/CorpusID:212493071
Zahiri, H., Amirhosseini, Z., Faridchehr, E. (2016). Effect of Marketing Capabilities, Innovation, Entrepreneurship Tendency through Social Network Sites Variable on The Performance (Case Study: Qavamin Bank). Public Policy In Administration, 7(3), 45-60. In Persian. https://ijpa.srbiau.ac.ir/article_9865.html?lang=f
