Business strategy, marketing organization culture, and performance

Abstract

Drawing on configuration theory, we develop and test a model which posits that overall firm performance will be influenced by how well the marketing organization's cultural orientation (i.e., market, adhocracy, hierarchy, or clan) complements alternative business strategies (i.e., Prospector, Analyzer, Low-Cost Defender, Differentiated Defender) after controlling for other, key firm-level variables. Responses from a sample of senior marketing managers provide partial support for the model and demonstrate that high-performing businesses of one strategy type have a different cultural orientation than high-performing businesses of the other strategy types. And, contrary to previous research, the results of this study show that each of the cultural orientations may play a role in creating superior performance. We conclude with a discussion of the implications for scholars and for managers. © 2010 Springer Science+Business Media, LLC.