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The Development and Impact of Marketing Capabilities in Central Europe

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Abstract

The industrial organisation and evolutionary economics traditions in international business and the resource-based view of the firm in strategic management provide a rich and related set of perspectives on the question of performance in an international environment. This paper draws on these perspectives to examine the nature of marketing capabilities across a range of firm types in Hungary, Poland and Slovenia. A number of key strategic capabilities are examined including market orientation, the time horizon of strategic decision making and positioning capability. The study finds that firms with foreign participation have been able to develop a sophisticated level of marketing capability with a resulting positive impact on financial and market performance. Wholly-owned subsidiaries and international joint ventures emerge as equally effective mechanisms for the transfer of marketing capability. Conclusions are drawn and implications from the research are outlined.

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*John Fahy is Professor of Marketing at the University of Limerick. He and his colleagues, below, have been engaged in an extensive program of work in Central Europe that has been going on for the past eight years and has been widely reported at conferences and in leading marketing and international business journals.

**Graham Hooley is Professor of Marketing and Director of Research at Aston Business School.

***Tony Cox is Senior Lecturer in Marketing at Aston Business School.

****Joszef Beracs is Professor of Marketing and Chair of the Marketing Department at the Budapest University of Economic Sciences.

*****Kryzsztof Fonfara is President of the Wielkopolska Business School.

******Boris Snoj is Professor of Marketing at the University of Maribor.

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Fahy, J., Hooley, G., Cox, T. et al. The Development and Impact of Marketing Capabilities in Central Europe. J Int Bus Stud 31, 63–81 (2000). https://doi.org/10.1057/palgrave.jibs.8490907

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  • DOI: https://doi.org/10.1057/palgrave.jibs.8490907

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