Skip to main content

Who should be in power to encourage product program innovativeness, R&D or marketing?

Abstract

The degree to which the research and development (R&D) department is regarded as more important for product innovativeness than is marketing, with greater potential to influence innovation decisions, appears ambiguous. This study examines how R&D’s level of power, relative to marketing’s, affects product program newness and meaningfulness, and thus market and financial performance. Relying on the motive of enhancement, this study reveals two underlying mechanisms to explain considerations of R&D and marketing depending on R&D’s power. A multi-informant sample of top executives and subordinates from 229 firms indicates distinct effects of R&D’s relative power on product program newness and meaningfulness. Specifically, R&D power exhibits a positive linear relationship with product program newness but a nonlinear effect with meaningfulness. To expand market and financial performance, firms should seek to generate meaningful product innovations through a moderate level of relative R&D power, particularly when their environments are characterized by high competitive intensity.

This is a preview of subscription content, access via your institution.

Fig. 1
Fig. 2
Fig. 3

References

  • Agustin, C., & Singh, J. (2005). Curvilinear effects of consumer loyalty determinants in relational exchanges. Journal of Marketing Research, 42(1), 96–108.

    Article  Google Scholar 

  • Ashforth, B. E., Rogers, K. M., & Corley, K. G. (2011). Identity in organizations: exploring cross-level dynamics. Organization Science, 22(5), 1144–1156.

    Article  Google Scholar 

  • Atuahene-Gima, K. (1996). Differential potency of factors affecting innovation performance in manufacturing and services firms in Australia. Journal of Product Innovation Management, 13(1), 35–52.

    Article  Google Scholar 

  • Atuahene-Gima, K., & Evangelista, F. (2000). Cross-functional influence in new product development: an exploratory study of marketing and R&D perspectives. Management Science, 46(10), 1269–1284.

    Article  Google Scholar 

  • Atuahene-Gima, K., & Ko, A. (2001). An empirical investigation of the effect of market orientation and entrepreneurship orientation alignment on product innovation. Organization Science, 12(1), 54–74.

    Article  Google Scholar 

  • Atuahene-Gima, K., Slater, S. F., & Olson, E. M. (2005). The contingent value of responsive and proactive market orientations for new product program performance. Journal of Product Innovation Management, 22(6), 464–482.

    Article  Google Scholar 

  • Auh, S., & Merlo, O. (2012). The power of marketing within the firm: its contribution to business performance and the effect of power asymmetry. Industrial Marketing Management, 41(5), 861–873.

    Article  Google Scholar 

  • Bagozzi, R., & Yi, Y. (2012). Specification, evaluation, and interpretation of structural equation models. Journal of the Academy of Marketing Science, 40(1), 8–34.

    Article  Google Scholar 

  • Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120.

    Article  Google Scholar 

  • Bidwell, M. J. (2012). Politics and firm boundaries: how organizational structure, group interests, and resources affect outsourcing. Organization Science, 23(6), 1622–1642.

    Article  Google Scholar 

  • Bowen, F. E., Rostami, M., & Steel, P. (2010). Timing is everything: a meta-analysis of the relationships between organizational performance and innovation. Journal of Business Research, 63(11), 1179–1185.

    Article  Google Scholar 

  • Brown, S. L., & Eisenhardt, K. M. (1995). Product development: past research, present findings, and future directions. Academy of Management Review, 20(2), 343–378.

    Google Scholar 

  • Calantone, R., Garcia, R., & Droge, C. (2003). The effects of environmental turbulence on new product development strategy planning. Journal of Product Innovation Management, 20(2), 90–103.

    Article  Google Scholar 

  • Calantone, R. J., Chan, K., & Cui, A. S. (2006). Decomposing product innovativeness and its effects on new product success. Journal of Product Innovation Management, 23(5), 408–421.

    Article  Google Scholar 

  • Calantone, R. J., Harmancioglu, N., & Droge, C. (2010). Inconclusive innovation ‘returns’: a meta-analysis of research on innovation in new product development. Journal of Product Innovation Management, 27(7), 1065–1081.

    Article  Google Scholar 

  • Castaño, R., Sujan, M., Kacker, M., & Sujan, H. (2008). Managing consumer uncertainty in the adoption of new products: temporal distance and mental simulation. Journal of Marketing Research, 45(3), 320–336.

    Article  Google Scholar 

  • Cho, H.-J., & Pucik, V. (2005). Relationship between innovativeness, quality, growth, profitability, and market value. Strategic Management Journal, 26(6), 555–575.

    Article  Google Scholar 

  • Cohen, W. M., & Levinthal, D. A. (1990). Absorptive capacity: a new perspective on learning and innovation. Administrative Science Quarterly, 35(1), 128–152.

    Article  Google Scholar 

  • Cohen, J., Cohen, P., West, S., & Aiken, L. (2003). Applied multiple regression/correlation analysis for the behavioral sciences (3rd ed.). Mahwah: Lawrence Erlbaum Associates.

    Google Scholar 

  • De Luca, L. M., & Atuahene-Gima, K. (2007). Market knowledge dimensions and cross-functional collaboration: examining the different routes to product innovation performance. Journal of Marketing, 71(1), 95–112.

    Article  Google Scholar 

  • DeCelles, K. A., DeRue, D. S., Margolis, J. D., & Ceranic, T. L. (2012). Does power corrupt or enable? When and why power facilitates self-interested behavior. Journal of Applied Psychology, 97(3), 681–689.

    Article  Google Scholar 

  • Engelen, A., & Brettel, M. (2012). A coalitional perspective on the role of the R&D department within the organization. Journal of Product Innovation Management, 29(3), 489–505.

    Article  Google Scholar 

  • Ernst, H., Hoyer, W. D., & Rübsaamen, C. (2010). Sales, marketing, and research-and-development cooperation across new product development stages: implications for success. Journal of Marketing, 74(5), 80–92.

    Google Scholar 

  • Evanschitzky, H., Eisend, M., Calantone, R. J., & Jiang, Y. (2012). Success factors of product innovation: an updated meta-analysis. Journal of Product Innovation Management, 29(S1), 21–37.

    Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • George, J. M., & Bettenhausen, K. (1990). Understanding prosocial behavior, sales performance, and turnover: a group-level analysis in a service context. Journal of Applied Psychology, 75(6), 698–709.

    Article  Google Scholar 

  • Greer, L. L., Caruso, H. M., & Jehn, K. A. (2011). The bigger they are, the harder they fall: linking team power, team conflict, and performance. Organizational Behavior & Human Decision Processes, 116(1), 116–128.

    Article  Google Scholar 

  • Griffin, A., & Hauser, J. R. (1996). Integrating R&D and marketing: a review and analysis of the literature. Journal of Product Innovation Management, 13(3), 191–215.

    Article  Google Scholar 

  • Han, J. K., Kim, N., & Srivastava, R. K. (1998). Market orientation and organizational performance: is innovation a missing link? Journal of Marketing, 62(4), 30–45.

    Article  Google Scholar 

  • Hauser, J., Tellis, G. J., & Griffin, A. (2006). Research on innovation: a review and agenda for marketing science. Marketing Science, 25(6), 687–717.

    Article  Google Scholar 

  • Hayes, A. F., & Preacher, K. J. (2010). Quantifying and testing indirect effects in simple mediation models when the constituent paths are nonlinear. Multivariate Behavioral Research, 45(4), 627–660.

    Article  Google Scholar 

  • Henard, D. H., & Szymanski, D. M. (2001). Why some new products are more successful than others. Journal of Marketing Research, 38(3), 362–375.

    Article  Google Scholar 

  • Hickson, D. J., Hinings, C. R., Lee, C. A., Schneck, R. E., & Pennings, J. M. (1971). A strategic contingencies’ theory of intraorganizational power. Administrative Science Quarterly, 16(2), 216–229.

    Article  Google Scholar 

  • Homburg, C., & Jensen, O. (2007). The thought worlds of marketing and sales: which differences make a difference? Journal of Marketing, 71(3), 124–142.

    Article  Google Scholar 

  • Homburg, C., & Pflesser, C. (2000). A multiple-layer model of market-oriented organizational culture: measurement issues and performance outcomes. Journal of Marketing Research, 37(4), 449–462.

    Article  Google Scholar 

  • Jaiswal, A. K., & Niraj, R. (2011). Examining mediating role of attitudinal loyalty and nonlinear effects in satisfaction-behavioral intentions relationship. Journal of Services Marketing, 25(3), 165–175.

    Article  Google Scholar 

  • James, L. R., Demaree, R. G., & Wolf, G. (1984). Estimating within-group interrater reliability with and without response bias. Journal of Applied Psychology, 69(1), 85–98.

    Article  Google Scholar 

  • Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: antecedents and consequences. Journal of Marketing, 57(3), 53–70.

    Article  Google Scholar 

  • Kock, A., Gemünden, H. G., Salomo, S., & Schultz, C. (2011). The mixed blessings of technological innovativeness for the commercial success of new products. Journal of Product Innovation Management, 28(S1), 28–43.

    Article  Google Scholar 

  • Kohli, A. (1989). Determinants of influence in organizational buying: a contingency approach. Journal of Marketing, 53(3), 50–65.

    Article  Google Scholar 

  • Kumar, N., Stern, L. W., & Anderson, J. C. (1993). Conducting interorganizational research using key informants. Academy of Management Journal, 36(6), 1633–1651.

    Article  Google Scholar 

  • Kuusisto, J. (2008). R&D in services — 17 business case studies. CREST Inform, R&D in Services Working Group, European Commission.

  • Kwang, T., & Swann, W. B., Jr. (2010). Do people embrace praise even when they feel unworthy? A review of critical tests of self-enhancement versus self-verification. Personality & Social Psychology Review, 14(3), 263–280.

    Article  Google Scholar 

  • Leary, M. R. (2007). Motivational and emotional aspects of the self. Annual Review of Psychology, 58(1), 317–344.

    Article  Google Scholar 

  • MacKenzie, S. B., & Podsakoff, P. M. (2012). Common method bias in marketing: causes, mechanisms, and procedural remedies. Journal of Retailing, 88(4), 542–555.

    Article  Google Scholar 

  • Malhotra, D., & Gino, F. (2011). The pursuit of power corrupts: how investing in outside options motivates opportunism in relationships. Administrative Science Quarterly, 56(4), 559–592.

    Article  Google Scholar 

  • Marsh, H. W., Wen, Z., & Hau, K.-T. (2004). Structural equation models of latent interactions: evaluation of alternative estimation strategies and indicator construction. Psychological Methods, 9(3), 275–300.

    Article  Google Scholar 

  • Montoya-Weiss, M. M., & Calantone, R. (1994). Determinants of new product performance: a review and meta-analysis. Journal of Product Innovation Management, 11(5), 397–417.

    Article  Google Scholar 

  • Moorman, C., & Rust, R. T. (1999). The role of marketing. Journal of Marketing, 63(4), 180–197.

    Article  Google Scholar 

  • Muthén, L. K., & Muthén, B. O. (2007). Mplus user’s guide (5th ed.). Los Angeles: Muthén & Muthén.

    Google Scholar 

  • Nath, P., & Mahajan, V. (2011). Marketing in the C-suite: a study of chief marketing officer power in firms’ top management teams. Journal of Marketing, 75(1), 60–77.

    Article  Google Scholar 

  • Olson, E. M., Walker, O. C., Jr., Ruekert, R. W., & Bonner, J. M. (2001). Patterns of cooperation during new product development among marketing, operations and R&D: implications for project performance. Journal of Product Innovation Management, 18(4), 258–271.

    Article  Google Scholar 

  • Papastathopoulou, P., & Hultink, E. J. (2012). New service development: an analysis of 27 years of research. Journal of Product Innovation Management, 29(5), 705–714.

    Article  Google Scholar 

  • Pfeffer, J. (1992). Understanding power in organizations. California Management Review, 34(2), 29–50.

    Article  Google Scholar 

  • Pfeffer, J., & Fong, C. T. (2005). Building organization theory from first principles: the self-enhancement motive and understanding power and influence. Organization Science, 16(4), 372–388.

    Article  Google Scholar 

  • Pfeffer, J., & Salancik, G. A. (1978). The external control of organizations. A resource dependence perspective. New York: Harper & Row.

    Google Scholar 

  • Ping, R. A., Jr. (1996). Estimating latent variable interactions and quadratics: the state of this art. Journal of Management, 22(1), 163–183.

    Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., Jeong-Yeon, L., & Podsakoff, N. P. (2003). Common method biases in behavioral research: a critical review of the literature and recommended remedies. Journal of Applied Psychology, 88(5), 879–903.

    Article  Google Scholar 

  • Podsakoff, P. M., MacKenzie, S. B., & Podsakoff, N. P. (2012). Sources of method bias in social science research and recommendations on how to control it. Annual Review of Psychology, 63(1), 539–569.

    Article  Google Scholar 

  • Preacher, K. J., & Hayes, A. F. (2004). SPSS and SAS procedures for estimating indirect effects in simple mediation models. Behavior Research Methods, Instruments, & Computers, 36(4), 717–731.

    Article  Google Scholar 

  • Raven, B. H. (1992). A power/interaction model of interpersonal influence: French and Raven 30 years later. Journal of Social Behavior & Personality, 7(2), 217–244.

    Google Scholar 

  • Rubera, G., & Kirca, A. H. (2012). Firm innovativeness and its performance outcomes: a meta-analytic review and theoretical integration. Journal of Marketing, 76(3), 130–147.

    Article  Google Scholar 

  • Salancik, G. A., & Pfeffer, J. (1974). The bases and use of power in organizational decision making: the case of a university. Administrative Science Quarterly, 19(4), 453–473.

    Article  Google Scholar 

  • Song, X. M., & Parry, M. E. (1992). The R&D-marketing interface in Japanese high-technology firms. Journal of Product Innovation Management, 9(2), 91–112.

    Google Scholar 

  • Stock, R. (2011). How does product program innovativeness affect customer satisfaction? A comparison of goods and services. Journal of the Academy of Marketing Science, 39(6), 813–827.

    Article  Google Scholar 

  • Stock, R., & Zacharias, N. (2011). Patterns and performance outcomes of innovation orientation. Journal of the Academy of Marketing Science, 39(6), 870–888.

    Article  Google Scholar 

  • Szymanski, D. M., Kroff, M. W., & Troy, L. C. (2007). Innovativeness and new product success: insights from the cumulative evidence. Journal of the Academy of Marketing Science, 35(1), 35–52.

    Article  Google Scholar 

  • Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533.

    Article  Google Scholar 

  • Titah, R., & Barki, H. (2009). Nonlinearities between attitude and subjective norms in information technology acceptance: a negative synergy? MIS Quarterly, 33(4), 827–844.

    Google Scholar 

  • Troy, L. C., Hirunyawipada, T., & Paswan, A. K. (2008). Cross-functional integration and new product success: an empirical investigation of the findings. Journal of Marketing, 72(6), 132–146.

    Article  Google Scholar 

  • Verhoef, P. C., & Leeflang, P. S. H. (2009). Understanding the marketing department’s influence within the firm. Journal of Marketing, 73(2), 14–37.

    Article  Google Scholar 

  • Workman, J. P., Jr., & Webb, K. L. (1999). Variations in the power of marketing between consumer and industrial firms. Journal of Business-to-Business Marketing, 6(2), 1–37.

    Article  Google Scholar 

  • Zhao, X., Lynch, J. G., Jr., & Chen, Q. (2010). Reconsidering Baron and Kenny: myths and truths about mediation analysis. Journal of Consumer Research, 37(2), 197–206.

    Article  Google Scholar 

  • Zheng Zhou, K., Yim, C. K., & Tse, D. K. (2005). The effects of strategic orientations on technology- and market-based breakthrough innovations. Journal of Marketing, 69(2), 42–60.

    Article  Google Scholar 

Download references

Acknowledgments

The authors thank Gisela Bieling, Lisa Scheer, and Nicolas Zacharias for their helpful comments. Financial support from the Förderverein für Marktorientierte Unternehmensführung, Marketing und Personalmanagement e.V. (Association of Supporters of Market-Oriented Management, Marketing, and Human Resource Management) is gratefully acknowledged. We thank four anonymous reviewers for their insightful comments and suggestions throughout the review process.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ruth Maria Stock.

Appendix: Items and scale sources

Appendix: Items and scale sources

Table 5 ᅟ

Rights and permissions

Reprints and Permissions

About this article

Cite this article

Stock, R.M., Reiferscheid, I. Who should be in power to encourage product program innovativeness, R&D or marketing?. J. of the Acad. Mark. Sci. 42, 264–276 (2014). https://doi.org/10.1007/s11747-013-0354-5

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11747-013-0354-5

Keywords

  • Relative R&D power
  • Product program innovativeness
  • Nonlinear effects
  • Motive of enhancement