Joan Llonch i Andreu, Josep Rialp Criado
Drawing from institutional theory and research-based view, this paper investigates for the first time the link between the marketing capabilities (market orientation and competitive advantages across the marketing mix) and performance of state-owned enterprises (SOEs) in a very early transition economy. A survey of 254 Cuban SOEs found a positive influence of both marketing capabilities on traditional business performance. Furthermore, in such an environment, competitive advantages across the marketing mix mediates between market orientation and traditional business performance; hence, if SOEs jointly apply a market orientation (MO) and a competitive marketing mix, they attain a better performance than by just focusing on MO. Finally, results also show a direct link between traditional performance and other criteria like environmental performance. In summary, marketing capabilities play a key role in the success of SOEs from the very beginning of an economic transition.
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