Data on 19,653 firms from 73 emerging economies on four continents were analyzed to examine how a firm's marketing capabilities affect its performance. The results show that the relationship is systematically moderated by the level of institutional development in an emerging market. Economic conditions, legislative institutions and social values all have an impact. Superior marketing capabilities have a stronger performance impact in countries with higher levels of economic development and in individualistic societies. These capabilities have a weaker impact in countries with strong legislative systems.
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