Does Advertising Productivity Affect Organizational Performance? Impact of Market Conditions
| Autor: | Mathew Hughes, M. Ángeles Rodríguez-Serrano, Mahabubur Rahman |
|---|---|
| Přispěvatelé: | Rennes School of Business, University Pablo de Olavide, Loughborough University |
| Jazyk: | angličtina |
| Rok vydání: | 2021 |
| Předmět: |
Strategy and Management
media_common.quotation_subject 05 social sciences Sample (statistics) Advertising Contingency approach Affect (psychology) General Business Management and Accounting Organizational performance Management of Technology and Innovation Perception 0502 economics and business [SHS.GESTION]Humanities and Social Sciences/Business administration 050211 marketing Business Dynamism Productivity Capital market 050203 business & management media_common |
| Zdroj: | British Journal of Management British Journal of Management, Wiley, 2021, 32 (4), pp.1359-1383. ⟨10.1111/1467-8551.12432⟩ |
| ISSN: | 1045-3172 1467-8551 |
| DOI: | 10.1111/1467-8551.12432⟩ |
| Popis: | International audience; Advertising is crucial in influencing customers’ perceptions and purchase intentions, and numerous studies have investigated whether advertising expenditure has any significant impact on financial performance. A thorough understanding remains elusive: while several studies document a positive impact, others report that advertising has either a negative or a statistically insignificant effect. Three flaws among existing studies are responsible for this problem: bundling advertising with other forms of marketing, the inadequacy of expenditure as a measure and a failure to consider contingencies. Deviating from earlier studies, we examine the effect of advertising productivity on firm performance rather than the impact of the absolute amount of advertising expenditure. Moreover, adopting a contingency approach, we evaluate how market conditions of market dynamism, market complexity and market munificence moderate the relationship between advertising productivity and organizational performance. Drawing a multi-industry sample from the USA, this study demonstrates that advertising productivity has a positive impact on capital market-based performance measures, conditional on market conditions. We reveal new insights into when, why and to what extent advertising contributes (or not) to organizations’ financial performance. |
| Databáze: | OpenAIRE |
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