Intermediate-level outside-in marketing capabilities, technological innovation, and management innovation

Abstract

Purpose This study aims to build a theoretical model including intermediate-level outside-in marketing capabilities (ILOIMC), radical and incremental technological innovations and management innovation. Design/methodology/approach This research used 272 pairs of survey questionnaires from Chinese firms’ managers to examine the hypotheses. Findings The results indicate that ILOIMC enhance management innovation by stimulating radical technological innovation. Furthermore, the mediating effect of incremental technological innovation depends on technological turbulence. Research limitations/implications This study may have several limitations which future research could try to overcome: cross-sectional data, Chinese samples, exclusive focus on ILOIMC, sociotechnical approach to innovation typology and measuring ILOIMC as a first-order variable. Practical implications ILOIMC can significantly improve innovations in technology and management systems by using customer value and market information. Originality/value This study proposes a new taxonomy to classify marketing capabilities into lower-level inside-out marketing capabilities, ILOIMC and higher-level outside-in marketing capabilities. It also provides an explicit discussion and examination of the influence of ILOIMC on technological and management innovations and the contingency effect of technological turbulence. Thus, it responds to Musarra and Morgan’s (2020) call for more research into the mechanism that explains when (the conditions under which) and how (the process by which) outside-in marketing capabilities could contribute to firm innovation.