The impact of dynamic marketing capabilities on startup performance: A case of business incubators in Jordan
-
DOIhttp://dx.doi.org/10.21511/im.20(1).2024.12
-
Article InfoVolume 20 2024, Issue #1, pp. 132-145
- Cited by
- 429 Views
-
139 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
Dynamic marketing capabilities provide startups with the platform and market knowledge that entitle them to achieve their goals and survive the competition. The study aims to examine the impact of dynamic marketing capabilities dimensions on startups’ performance in Jordan. This quantitative study employs a questionnaire to solicit answers from respondents who are the incubates that use business incubator services. A total of 302 entrepreneurs from different incubator centers in Jordan participated in the online survey. Using the SmartPLS program version 4, structural equation modeling (PLS-SEM) was used to examine the study model. The findings indicate that startup performance is significantly impacted by dynamic marketing capabilities (β = 0.937, t = 127.2, p = >0.00). Concerning absorptive capacity, both dimensions revealed a significant impact on startup performance: potential absorptive capacity (β = 0.251, t = 7.932, p > 0.000) and realized absorptive capacity (β = 0.177, t = 5.409, p > 0.000). For knowledge management, the results for knowledge acquisition were β = 0.360, t = 11.089, p = >0.000, for knowledge dissemination, β = 0.102, t = 2.367, p = >0.018, and for responsiveness to knowledge β = 0.318, t = 6.852, p = >0.000.
- Keywords
-
JEL Classification (Paper profile tab)M10, M14
-
References65
-
Tables5
-
Figures4
-
- Figure 1. Research model
- Figure 2. Main hypothesis testing
- Figure 3. The impact of absorptive capacity on startup performance
- Figure 4. The impact of knowledge management on startup performance
-
- Table 1. Variance inflation factor (VIF) and tolerance values for variable dimensions
- Table 2. Demographic profile
- Table 3. Factor loadings, Cronbach’s alpha, average variance extracted (AVE), and weight of item loading
- Table 4. Discriminant validity: Fornell-Larcker criterion
- Table 5. Results of hypotheses testing
-
- Abu-Jalil, M. (2017). The role of technological business incubators in supporting and developing marketing capabilities for entrepreneurship business and small projects in Jordan. International Business Research, 10(2), 82-94.
- Ahmed, D., Salloum, S. A., & Shaalan, K. (2021). Knowledge management in startups and SMEs: A systematic review. In M. Al-Emran & K. Shaalan (Eds.), Recent Advances in Technology Acceptance Models and Theories (pp. 389-409). Cham: Springer.
- Alani, E., Alrubaiee, L., Shojaei, A. S., Naji, L., & OweeKowang, T. (2023). The mediating effect of dynamic marketing capabilities on the relationship between customer knowledge management and organizational innovation. FIIB Business Review.
- Ayatse, A., Kwahar, N., & Iyortsuun, S. (2017). Business incubation process and firm performance: An empirical review. Journal of Global Entrepreneurship Research, 7.
- Barrales-Molina, V., Martínez-López, F., & Gázquez-Abad, J. (2014). Dynamic marketing capabilities: Toward an integrative framework. International Journal of Management Reviews, 16(4), 397-416.
- Battistella, C., De Toni, F., & Pessot, E. (2017). Open accelerators for startups success: A case study. European Journal of Innovation Management, 20(1), 80-111.
- Bismala, L., Andriany, D., & Siregar, G. (2020). Development strategy analysis of technology business incubator in small medium enterprises accompaniment. Journal of Critical Reviews, 7(1), 221-225.
- Blank, S., & Dorf, B. (2012). The startup owner’s manual: The step-by-step guide for building a great company. Pennsauken, NJ, USA: Book Baby.
- Bruni, D., & Verona, G. (2009). Dynamic marketing capabilities in science-based firms: An exploratory investigation of the pharmaceutical industry. British Journal of Management, 20, S101-S117.
- Bruno, V., & Leidecker, J. (1988). Causes of new venture failure: 1960’s vs 1980’s. Business Horizons, 31(6), 51-57.
- Cacciolatti, L., & Lee, H. (2016). Revisiting the relationship between marketing capabilities and firm performance: The moderating role of market orientation, marketing strategy and organizational power. Journal of Business Research, 69(12), 5597-5610.
- Cao, Z., Cunningham, L. F., Gao, W., & Liu, Y. (2023). The downsides of specialization: The impact of business incubator’s specialization on startups’ R&D efficiency and venture capital financing. R&D Management, 54(1), 39-59.
- Ciszewska-Mlinarič, M., Siemieniako, D., & Wójcik, P. (2023). International dynamic marketing capabilities and international performance during the pandemic: A study of export manufacturers from Poland. International Marketing Review.
- Cohen, M., & Levinthal, A. (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128-152.
- Darroch, J. (2005). Knowledge management, innovation and firm performance. Journal of Knowledge Management, 9(3), 101-115.
- Easterby-Smith, M., & Prieto, M. (2008). Dynamic capabilities and knowledge management: An integrative role for learning? British Journal of Management, 19(3), 235-249.
- Emhamad, E. (2014). Business incubators in the Arab World. World Journal of Science, Technology and Sustainable Development, 11(4), 282-293.
- Fang, E., & Zou, S. (2009). Antecedents and consequences of marketing dynamic capabilities in international joint ventures. Journal of International Business Studies, 40(5), 742-761.
- Flatten, C., Engelen, A., Zahra, A., & Brettel, M. (2011). A measure of absorptive capacity: Scale development and validation. European Management Journal, 29(2), 98-116.
- Games, D., Kartika, R., Sari, D. K., & Assariy, A. (2021). Business incubator effectiveness and commercialization strategy: A thematic analysis. Journal of Science and Technology Policy Management, 12(2), 176-192.
- Grandinetti, R. (2016). Absorptive capacity and knowledge management in small and medium enterprises. Knowledge Management Research & Practice, 14(s2), 159-168.
- Gray, C. (2006). Absorptive capacity, knowledge management and innovation in entrepreneurial small firms. International Journal of Entrepreneurial Behavior & Research, 12(6), 345-360.
- Hair, J. F., Ringle, C. M., & Sarstedt, M. (2012). Partial least squares: The better approach to structural equation modeling? Long Range Plan, 45(5-6), 312-319.
- Hair, J., Hult, G., Ringle, C., & Sarstedt, M. (2014). A primer on partial least squares (PLS) structural equation modeling. New York, NY, USA: Sage Publications.
- Hanandeh, A. (2021, December 2). King meets startup founders, voices pride in young Jordanian entrepreneurs. Jordan News Agency.
- Hoque, T., Ahammad, F., Tzokas, N., & Gabay, G. (2021). Dimensions of dynamic marketing capability and export performance. Journal of Knowledge Management, 25(5), 1219-1240.
- Hult, M., & Sjölund, J. (2017). Dynamic marketing capabilities – Organizational renewal towards social media marketing (Unpublished Master’s Thesis). Uppsala University.
- Indiran, L., Nallaluthan, K., Baskaran, S., & Dalayga, B. (2021). Business incubator: The genesis, evolution, and innovation invigoration. International Journal of Academic Research in Business and Social Sciences, 11(7), 342-354.
- Jansen, P., Van den Bosch, J., & Volberda, W. (2005). Managing potential and realized absorptive capacity: How do organizational antecedents matter? Academy of Management Journal, 48(6), 999-1015.
- Kachouie, R., Mavondo, F., & Sands, S. (2018). Dynamic marketing capabilities view on creating market change. European Journal of Marketing, 52(5/6), 1007-1036.
- Karitu, B., & Muathe, S. (2023). The new venture creation approach: The role of business incubators in Kenya. International Journal of Research and Innovation in Social Science, VII(V).
- Khalid F., Gilbert, D., & Huq, A. (2012). Investigating the underlying components in business incubation process in Malaysian ICT incubators. Asian Journal of Social Sciences and Humanities Configurations, 1(1), 88-102.
- Kim, H. (2019). Multicollinearity and misleading statistical results. Korean Journal of Anesthesiology, 72(6), 558-569.
- Kiran, R., & Bose, S. C. (2020). Stimulating business incubation performance: Role of networking, university linkage and facilities. Technology Analysis & Strategic Management, 32(12), 1407-1421.
- Krpálek, P., & Krpálková Krelová, K. (2016). Possibilities for developing business potential in economic education. Examples of implementation in Slovakia and the Czech Republic. Economics and Sociology, 9(4), 119-133.
- Krumina, I., Krumins, G., & Rozentale, S. (2015). Vidzeme region of Latvia: Knowledge management in micro enterprises. Procedia – Social Behavior Sciences, 213, 781-786.
- Laurie, J. (1997). Harnessing the power of intellectual capital. Training and Development, 51(12), 25-30.
- Leguina, A. (2015). A primer on partial least squares structural equation modeling (PLS-SEM). International Journal of Research & Method in Education, 38(2), 220-221.
- Loasby, B. (2010). Capabilities and strategy: Problems and prospects. Industrial and Corporate Change, 19(4), 1301-1316.
- López-Nicolás, C., & Meroño-Cerdán, Á. (2011). Strategic knowledge management, innovation and performance. International Journal of Information Management, 31(6), 502-509.
- Mitręga, M. (2020). Dynamic marketing capability – Refining the concept and applying it to company innovations. Journal of Business & Industrial Marketing, 35(2), 193-203.
- Morgan, N. (2012). Marketing and business performance. Journal of the Academy of Marketing Science, 40(1), 102-119.
- National Business Incubation Association (NBIA). (2009). What is business incubation?
- National Business Incubation Association (NBIA). (2014). The history of business incubation: What is business incubation?
- Nayal, K., Raut, R. D., Mangla, S. K., Kumar, M., Tuček, D., & Gavurova, B. (2023). Achieving market performance via industry 4.0 enabled dynamic marketing capability, sustainable human resource management, and circular product design. Industrial Marketing Management, 115, 86-98.
- Nunnally, J. C. (1978). Psychometric theory. New York, NY: McGraw-Hill.
- Otto, W. (1999). Entrepreneurship training at the Joint Research Centre, European Commission: A pilot concept for scientists in a public research centre. Industry and Higher Education, 13(6), 390-396.
- Pérez-Cabañero, C., Cruz-Ros, S., & González-Cruz, T. (2015). The contribution of dynamic marketing capabilities to service innovation and performance. International Journal of Business Environment, 7(1), 61-78.
- Pinto, C., & Rua, O. (2023). Incubators’ practices influence in the born global startup’s internationalization process. Journal of Open Innovation: Technology, Market, and Complexity, 9(3), 100134.
- Priem, R., & Butler, J. (2001). Is the resource-based ‘view’ a useful perspective for strategic management research? Academy of Management Review, 26(1), 22-40.
- Rakthin, S., Calantone, R. J., & Wang, J. F. (2016). Managing market intelligence: The comparative role of absorptive capacity and market orientation. Journal of Business Research, 69(12), 5569-5577.
- Sanyal, S., & Hisam, M. (2018). The role of business incubators in creating an entrepreneurial ecosystem: A study of the sultanate of Oman. Indian Journal of Commerce & Management Studies, 9(3), 10-17.
- Sarstedt, M., Ringle, C. M., Smith, D., Reams, R., & Hair, J. F. (2014). Partial least squares structural equation modeling (PLS-SEM): A useful tool for family business researchers. Journal of Family Business Strategy, 5(1), 105-115.
- Sedita, R., Apa, R., Bassetti, T., & Grandinetti, R. (2019). Incubation matters: Measuring the effect of business incubators on the innovation performance of startups. R&D Management, 49(4), 439-454.
- Shepard, J. (2013). Small business incubators in the USA: A historical review and preliminary research findings. Journal of Knowledge-Based Innovation in China, 5(3), 213-233.
- Silvianita, A., & Pradana, M. (2022). Absorptive capacity and knowledge management as antecedents to innovation capability. Journal of Innovation and Entrepreneurship.
- Slesarev, A. (2022). Business incubators in Russia: 2020 survey in international comparative perspective. MGIMO Review of International Relations, 15(4), 102-129.
- Stephens, S., & Onofrei, G. (2012). Measuring business incubation outcomes: An Irish case study. The International Journal of Entrepreneurship and Innovation, 13(4), 277-285.
- Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill-building approach (7th ed.). Wiley & Sons.
- Teece, D., & Pisano, G. (1994). The dynamic capabilities of firms: An introduction. Industrial and Corporate Change, 3(3), 537-556.
- Teece, D., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509-533.
- Vincent, V. Z., & Zakkariya, K. A. (2021). Role of business incubation on the financial and non- financial performance of technology startups: A multivariate multiple regression analysis. Journal of Entrepreneurship Education, 24(5), 1-16.
- Voisey, P., Gornall, L., Jones, P., & Thomas, B. (2006). The measurement of success in a business incubation project. Journal of Small Business and Enterprise Development, 13(3), 454-468.
- Wang, H., & Yang, Y. (2016). Investigating the success of knowledge management: An empirical study of small and medium-sized enterprises. Asia Pacific Management Review, 21(2), 79-91.
- Zahra, S., & George, G. (2002). Absorptive capacity: A review, re-conceptualization and extension. Academy of Management Review, 27(2), 185-203.