Abstract
This book chapter draws on the dynamic capability approach to specify the elements of the dynamic capability innovation communication necessary to maintain the management of communication processes, tools and activities regarding the communication of a corporation’s or collaborative network’s innovation portfolio in the innovation economy. Dynamic capabilities can facilitate enterprise performance in a continuously changing environment with rapid innovation and globally spread resources, capacities, and stakeholders. In this context, innovation communication enables systematically planned transactional information transmissions related to innovations, context-issues of innovations and innovative capability and addresses communication markets, resource markets and sales markets based on a chosen innovation communication strategy. As one of a corporation’s dynamic capabilities, innovation communication may not only positively influence an innovation’s diffusion or innovation reputation in environmental dynamics but may also re-shape different markets and collaborative networks as well as create and extend strategic assets to communicate innovations in a highly competitive innovation economy. After introducing a foundation of sustainable enterprise performance by dynamic capabilities in the innovation economy, this book chapter presents a conceptual definition and description of the elements of the cross-functional dynamic capability innovation communication including a classification system as a fundamental basis on which future research might build on, in particular to specify the dynamic capability innovation communication for empirical research studies. Based on the characteristics of innovation communication, strategies and strategic tools for organizations and collaborative networks are also provided to support decision-making in strategic corporate communication management.
Author’s Note:
This book chapter represents ideas from the Ph.D. thesis work by Nicole Pfeffermann and thus is based on the publication (pending process).
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Appendix: Illustration of Definitions of Organizational Communication Competence and Marketing Capability (sorted in chronological and then alphabetical order and is not to be understood as a complete review)
Appendix: Illustration of Definitions of Organizational Communication Competence and Marketing Capability (sorted in chronological and then alphabetical order and is not to be understood as a complete review)
Type | Definition | Source |
---|---|---|
Marketing capabilities | “The marketing capabilities include product development, the process to develop and manage product and service offerings; pricing, the strategy to extract the optimal revenue from firm’s sales; channel management, the course of action to establish and maintain the channels of distribution that effectively and efficiently deliver value to end-user customers; marketing communications, the ability to manage customer value perceptions; selling, the activity to fulfill customer orders; market information management, the practice to acquire and use market knowledge; marketing planning, the ability to create marketing strategies that optimize the match between the firm’s resources and its marketplace; marketing implementation, the process to transform marketing strategy into realized resource deployments” (p. 153; based on Vorhies and Morgan 2005) | Akdeniz et al. (2010) |
Marketing capability | “… marketing capability to be firm’s ability derived from two prominent components: marketing planning ability and marketing implementation ability.” (p. 850) | Chang et al. (2010) |
Marketing capability | “Marketing capability is defined as the integrative process, in which a firm uses its tangible and intangible resources to understand complex consumer specific needs, achieve product differentiation relative to competition, and achieve superior brand equity” (p. 319; based on Day 1994; Dutta et al. 1999; Song et al. 2005, 2008). | Nath et al. (2010) |
Dynamic marketing capabilities | “Dynamic marketing capabilities reflect human capital, social capital and the cognition of managers involved in the creation, use and integration of market knowledge and marketing resources in order to match and create market and technological change” (p. 103) | Bruni and Verona (2009) |
Marketing capability model | “… we focus on capabilities that are consistent with both Day’s (1994) marketing capability model and Srivastava et al.’s (1998) framework linking market-based assets with cash-flow growth”. = market-sensing capability; CRM capabilities, and brand management capabilities (p. 285) | Morgan et al. (2009a) |
Two interrelated marketing capability areas | “Two interrelated marketing capability areas have been identified: capabilities concerning individual ‘marketing mix’ processes, such as product development and management, pricing, selling, marketing communications, and channel management (e.g. Vorhies and Morgan 2005), and capabilities concerned with the processes of marketing strategy development and execution (e.g. Morgan et al. 2003). These capabilities may be rare, valuable, non-substitutable, and inimitable sources of advantage that can lead to superior firm performance (e.g. Vorhies and Morgan 2005). Further, as knowledge-based processes that become embedded over time, such capabilities may be difficult for competitors to imitate (e.g. Teece et al. 1997)” (pp. 910–911) | Morgan et al. (2009b) |
Architectural marketing capabilities and marketing capability integration | “… to simultaneously model the ways that product-market strategy influences specialized and architectural marketing capabilities and marketing capability integration” (p. 1321) | Vorhies et al. (2009) |
Marketing capabilities | Marketing capabilities are divided into inside-out capabilities, spanning capabilities, and outside-in capabilities (based on Day 1994) | Jones and Tollin (2008) |
“Marketing capabilities – such as skill in segmentation, Organizational Capabilities Information Technology Capabilities and Strategic Types 9 targeting, pricing, and advertising – enable the organization to take advantage of its market-sensing and technological capabilities and to implement effective marketing programs” (pp. 8). | Song et al. (2008) | |
Marketing-mix capabilities | “… the capabilities used to orchestrate marketing-mix capabilities and their resource inputs involving market information management and marketing strategy development and execution” (p. 82) | Vorhies and Morgan (2005) |
Marketing planning capability | “… marketing planning capability, we focus on specific elements fundamental to the overall marketing planning process” (p. 372) | Slotegraaf and Dickson (2004) |
Organizational communication competence along three dimensions (and an overview of several conceptualizations/definitions) | “… conceptualize organizational communication competence along three dimensions: competence assessment criteria, competence levels, and ecological systems. Such a conceptualization acknowledges the cognitive and behavioral components of communication competence, the developmental nature of communication competence, and the embeddedness of communication competence at various levels of analysis” (p. 833) | Jablin and Sias (2004) |
Architectural marketing capabilities | “Architectural marketing capabilities are defined in the literature as the processes by which firms plan appropriate combinations of available knowledge and other resources to deploy into their marketplace(s) and execute these planned resource deployments, transforming them into realized value offerings for target market(s).” (p. 293) | Morgan et al. (2003) |
Two types of marketing capabilities | “We identified and assessed two types of marketing capabilities: specialized capabilities regarding the specific marketing mix-based work routines used to transform available resources into valuable outputs […] and architectural capabilities regarding the marketing strategy formulation and execution work routines used to develop and coordinate specialized capabilities and their resource inputs …” (p. 106) | Vorhies and Morgan (2003) |
Marketing capability | “… marketing capability is defined as integrative processes designed to apply the collective knowledge, skills, and resources of the firm to the market-related needs of the business, enabling the business to add value to its goods and services and meet competitive demands.” (p. 19) | Weerawardena (2003) |
Four functional export marketing capabilities | “… we focus on four functional export marketing capabilities: pricing capability, product development capability, distribution capability, and communication capability” (p. 36) | Zou et al. (2003) |
External marketing capability and internal marketing capability | MAC = Marketing Capability “… External MAC is a function of the extension of a firm’s network positions and weak ties, and of such more individual competencies like the networking ability of key managers (or the owner–manager in micro firms), and their ability to develop valid cognitive maps of interrelated nets. … second MAC is labelled Strategic marketing capability. It is composed of two principal sub-capabilities, (1) market targeting and positioning capabilities, and (2) relationship developing capability.” (p. 20) | Äyväri and Möller (1999) |
Marketing capability | “Marketing Capability. A firm with a strong marketing capability – exhibiting superiority in identifying customer’s needs and in understanding the factors that influence consumer choice behavior – will be able to achieve better targeting and positioning of its brands relative to competing brands.” (p. 8) | Dutta et al. (1999) |
Marketing capabilities | “… marketing capabilities are the integrative processes designed to apply the collective knowledge, skills and resources of the firm to the market-related needs of the business, enabling the business to add value to its goods and services, adapt to market conditions, take advantage of market opportunities and meet competitive threats (Day 1994).” (p. 4) | Vorhies (1998) |
Marketing capability (inside-out, outside-in, and spanning processes) | “… marketing capability represents both the upstream or outside-in processes as well as the downstream or inside-out and spanning processes in regard tp business processes.” (p. 73) | Tuominen (1997) |
Inside-out capability, outside-in capability, and spanning capabilities | “Capabilities can be usefully sorted into three categories, depending on the orientation and focus of the defining processes […]. At one end of the spectrum are those that are deployed from the inside out and activated by market requirements, competitive challenges, and external opportunities. […] At the other end of the spectrum are those capabilities whose focal point is almost exclusively outside the organization. The purpose of these outside-in capabilities is to connect the processes that define the other organizational capabilities to the external environment and enable the business to compete by anticipating market requirements ahead of competitors and creating durable relationships with customers, channel members, and suppliers. Finally, spanning capabilities are needed to integrate the inside-out and outside-in capabilities” (p. 41) | Day (1994) |
Organizational communication competence | Conceptual definition of organizational communication competence consists of 13 related categories based on telephone interviews listing: friends; personal manner; successful behaviors; good leadership skills; understanding human nature; motivation; professionalism; organizational involvement; organized; feedback; interaction skills; effective verbal style; demonstration of knowledge (pp. 524–529) | Wellmon (1988) |
Marketing capability | “The marketing capability of a firm is a multi-faceted phenomenon. It is a complex combination of the human resources or assets, market assets, and organisational assets of a firm” (p. 187) | Möller and Anttila (1987) |
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Pfeffermann, N. (2011). Innovation Communication as a Cross-Functional Dynamic Capability: Strategies for Organizations and Networks. In: Hülsmann, M., Pfeffermann, N. (eds) Strategies and Communications for Innovations. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-17223-6_18
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