Marketing Activities, Strategic Competition, and Firm Value
Document Type
Article
Publication Date
12-1-2018
School
Health Professions
Abstract
This study extends the prior literature on the effect of marketing activities on firm value by investigating whether the nature of strategic competition affects financial outcomes differentially. Using the competitive strategy measure (CSM), we show that marketing spending is beneficial (detrimental) to firm value when the firm is in strategic substitutes (complements) and the efficacy is a decreasing function of the degree of industry competition. The relative competitive position of a firm in the industry—whether it is a leader or a follower—matters in the quality and size of the effect of marketing spending. By bifurcating the nature of strategic competition into strategic substitutes and complements, we disentangle the dichotomous effects of marketing activities on firm value.
Publication Title
Canadian Journal of Administrative Sciences
Volume
35
Issue
4
First Page
577
Last Page
591
Recommended Citation
Ryoo, J.,
Lee, C.,
Jeon, J. Q.,
Choi, H. W.
(2018). Marketing Activities, Strategic Competition, and Firm Value. Canadian Journal of Administrative Sciences, 35(4), 577-591.
Available at: https://aquila.usm.edu/fac_pubs/16774