Strategic Antecedents and Organisational Consequences of IMC in Different Economy Types
Strategic Antecedents and Organisational Consequences of IMC in Different Economy Types
Strategic Antecedents and Organisational Consequences of IMC in Different Economy Types
To cite this article: Vera Butkouskaya, Joan Llonch-Andreu & María-Del-Carmen Alarcón-Del-Amo
(2019): Strategic antecedents and organisational consequences of IMC in different economy types,
Journal of Marketing Communications, DOI: 10.1080/13527266.2019.1633551
Article views: 28
Introduction
In recent decades, the topic of integrated marketing communications (IMC) has been
considered as a research priority (Kumar, Keller, and Lemon 2016; Tafesse and Kitchen
2017). Originally and under a ‘narrow’ approach, IMC was interpreted as a simple
integration of marketing communication elements, making them speak as one, with
the aim to affect consumer behaviour (Nowak and Phelps 1994). The ‘broad’ definition of
IMC, used nowadays, evolved from various studies that conceptualised the IMC frame-
work from different perspectives (integrative, strategic, communication, performance-
oriented) (Tafesse and Kitchen 2017). Under the ‘broad’ approach, IMC is defined as
integrated corporate management and performance (Einwiller and Boenigk 2012); how-
ever, the direct relationship between IMC as a ‘broad’ concept and FP (business profit-
ability) has not been empirically studied. Even though Luxton et al. (2017) considered
the direct relationship between IMC and FP, FP was regarded as part of a bigger scale
called ‘overall brand performance’. Also, some authors suggest that it is useful to think of
the IMC outcomes as interrelated (Luxton, Reid, and Mavondo 2015; Porcu, Del Barrio-
Garcia, and Kitchen 2017; Reid 2005). But previous studies have not analysed the
relationship between the IMC and its different outcomes or their mediating effect on
IMC implementation as a source of competitive advantage (Tafesse and Kitchen 2017).
Thus, following the dynamic capabilities theory and based on the ‘broad’ definition of
IMC, this research focuses on the analysis of three IMC outcomes (CUP, MP, and FP), the
interrelationships between them, and the impact of individual IMC outcomes on the
overall IMC implementation effectiveness.
Moreover, previous research on IMC, on both its antecedents and consequences, has
been carried out in Western developed economies, and little is known about the IMC
implementation in emerging economies (e.g. Luxton et al. 2017; Reid 2005; Šeric, Gil-
Saura, and Ozretić-Došen 2015). Taking into consideration the postulate of institutional
theory, companies’ behaviour may vary in different environments and economy types
(Scott 2008; Shinkle, Kriauciunas, and Hundley 2013). Since there are many differences
between developed markets and emerging ones, this narrow focus limits theoretical
completeness and is a significant gap in the literature (Li and Liu 2014; Zhou and Li
2010). Thus, to make a first attempt to close the gap in generalising the research results,
this study is conducted in two different economic settings – Spain representing
a developed economy, and Belarus representing an emerging economy – as a testing
ground for the inter-country empirical analysis of the IMC theoretical model (Cadogan
2010). Two countries, selected for the comparative analysis, distinctive in MO and
technological innovation levels (Heritage Organization 2017; Marketing.by 2017;
Shinkle, Kriauciunas, and Hundley 2013; Statista 2017) but still not so distant geogra-
phically, both have high level of the society informatization and demonstrate recent
positive economic growth (Dutta et al. 2018; ITU 2017; The Worlds Bank Publications
2018). Even considering only two data points used in the research, it is still a good
starting point for further generalisation of the research results (Cadogan 2010).
In summary, to address the mentioned research gaps, the article follows four key
objectives: from the dynamic capabilities theory perspective and based on the ‘broad’
approach for the IMC definition, (1) to empirically analyse the effects of two critical strategic
orientations (MO and TO) on IMC from the firm-wide perspective; (2) to study the con-
sequences of IMC for three organisational performance criteria (customer, market, and
financial); (3) to analyse the interrelationships between IMC outcomes and their mediation
effect on IMC implementation effectiveness; and, based on the institutional theory, (4) to
analyse the moderating effect of the economy type (developed or emerging) in the
aforementioned relationships. Empirical data were obtained from a survey of 180 firms in
a developed economy (Spain) and 242 firms in a transition economy (Belarus).
Drawing from the dynamic capabilities theory, this research aims to provide empirical
results on the relationship between firms’ strategic orientation (MO and TO) and IMC as
a ‘broad’ firm-wide approach. Additionally, the research aims to determine the effect of
IMC implementation on organisational performance. It further seeks to measure the
4 V. BUTKOUSKAYA ET AL.
Research framework
The IMC concept has been widely discussed in the literature in recent years, and it still
creates confusion and misunderstanding (Kumar, Keller, and Lemon 2016; Tafesse and
Kitchen 2017). IMC concept development passed several stages, and several approaches
can be applied to its definition. The ‘narrow’ approach represents IMC as integration of
the elements of marketing communication to make them speak in ‘one voice’ (Nowak
and Phelps 1994). The ‘firm-wide’ approach suggests that IMC is a ‘business process’ of
marketing communications integration with all the levels of a company’s activities
(Duncan and Moriarty 1998; Schultz and Schultz 1998). Considering the lack of the
strong theoretical conceptualisation of IMC, Kliatchko (2008) combined the ‘narrow’
and ‘firm-wide’ approaches and made a first attempt to provide a ‘broader’ definition
of IMC. He classified four main components of IMC, and, based on integration levels
provided by Schultz and Schultz (1998), he also specified the different levels of integra-
tion for each IMC component. He suggested to define IMC as a stakeholder-centric
concept of the cross-functional process of integration of the following components:
content (‘one voice’ message), channels (all the possible media touchpoints), stake-
holders (customer data), and measurable results (the control of strategic fit).
In parallel, Balmer (2001), in his studies on corporate marketing, claimed the need to
apply the ‘broader’ approach of integration of communications up to the corporate
level. He suggested the need for three integration types: management integration
(cross-department communication), organisational integration (authority in IMC plan-
ning and decision making), and marketing communications integration at the corporate
level. Balmer (2001) claimed the need to change from the traditional marketing view of
IMC focused on product-level to corporate-level concerns. This point of view is also
supported by the scope of more recent studies, both theoretically (Kerr and Patti 2013;
Porcu, Del Barrio-Garcia, and Kitchen 2017) and practically oriented (Kliatchko and
Schultz 2014), which follow a ‘broad’ approach in IMC definition and underline the
need of its connection with the company’s strategy. Einwiller and Boenigk (2012) even
JOURNAL OF MARKETING COMMUNICATIONS 5
applied additionally to MO, can activate the synergy effect and strengthen the IMC
implementation effectiveness.
Hence, drawing on the strategic perspective of a ‘broad’ IMC definition, both MO
and TO, as key firm strategic orientations, encourage the seizing of environmental
changes. TO, being applied together with MO, can help the company to collect even
more up-to-date market information and transform it faster into decisions, in order to
be ahead of competitors in reacting to market changes (Luxton et al. 2017; Reid 2005;
Trainor et al. 2011). Drawing on these points, the present study proposes that
applying an MO or a TO can significantly enhance the potential of IMC as
a dynamic capability. Thus:
Previous research suggests that marketing capabilities positively affect FP (Vorhies and
Morgan 2005). The cross-functional integration as a part of IMC calls for the measure-
ment and evaluation of a company’s communications results to control their congru-
ence with the corporate strategy and to advance further improvements and
transformations (Einwiller and Boenigk 2012). From a strategic perspective, it should
give the company the additional competitive advantage needed by the market and
thereby a superior FP (Finne et al. 2017). Luxton et al. (2017) identified a direct relation-
ship between IMC and FP; however, FP was regarded as part of a larger scale called
‘overall brand performance’. Thus, we propose:
Following the IMC integrative framework, IMC outcomes can be grouped based on the
implementation levels: tactical outcomes, at the marketing communication level; func-
tional outcomes, at the marketing function level; and strategic outcomes, cross-
functionally throughout the organisation (Einwiller and Boenigk 2012; Kerr and Patti
2013; Tafesse and Kitchen 2017). Some authors suggest that three outcome levels are
interrelated, which means that the performance-results framework of IMC implementa-
tion is more complex (Porcu, Del Barrio-Garcia, and Kitchen 2017; Reid 2005; Tafesse and
Kitchen 2017). For instance, a one-time consumer response (tactical outcome) can be
stored and analysed to generate customer knowledge (intermediate outcome). In turn,
this knowledge can be leveraged to drive firm profitability by better serving customers
on an ongoing basis (strategic outcome). This suggestion was used in the recent study
of Luxton, Reid, and Mavondo (2015), in which the authors demonstrated a hierarchical
effect of IMC outcome. The research supports that campaign effectiveness (tactical)
contributed to brand MP (functional), and both of these outcomes, in turn, contributed
to brand FP (strategic). Consequently, we propose that:
Thus, the existence of the aforementioned relationships between the IMC outcomes may
have a further indirect effect on the implementation of IMC as a source of competitive
advantage (Reid 2005). Tafesse and Kitchen (2017) suggest that the integration scope
supposes to have a further effect on the IMC outcomes: tactical, such as customer response
to the communication; functional, such as customer satisfaction and retention; and strate-
gic, such as market growth or improved business performance (Einwiller and Boenigk 2012;
Tafesse and Kitchen 2017). Based on this, we propose the following hypotheses:
Kriauciunas, and Hundley 2013; Su and Si 2015). More specifically, the level of economic
freedom may affect the processes inside the organisations. Su and Si (2015) have
pointed out that organisational objectives, processes, and performance vary according
to the level of economic freedom in a country (from free markets to centrally planned
ones).
Previous research has managed to demonstrate the moderating effect of environ-
mental dynamism and competitive intensity on the strength of the relationship between
strategic orientation and dynamic capabilities (Zhou and Li 2010). Pressed by the growth
of competition and fast market and technology changes, in developed economies
companies are more motivated to implement best practices inside the organisation in
order to stand out from their competitors (Li and Liu 2014). Contrariwise, emerging
economies with lower levels of economic freedom have lower levels of market rivalry,
marketing activity, and innovations, and they are exposed to relatively minor environ-
mental changes (Estrin 2002; Su and Si 2015).
Additionally, using new technologies and channels in market communication helps
companies to build interactive dialog with customers, which brings extra knowledge
(Mulhern 2009). The low level of environmental dynamism and technological innovation,
together with the low level of marketing communication due to a low level of market
activity, causes a smaller amount of upcoming market information, which slows down
both organisational learning and the acquisition of experience (Shinkle, Kriauciunas, and
Hundley 2013; Zhou and Li 2010). Up-to-date market information is critical for the
implementation of dynamic capabilities (Teece 2007). Thus, in an emerging economy,
the effects of a firm’s strategic orientation on IMC, as a dynamic capability, may be
weaker than in a developed economy (Trainor et al. 2011; Shinkle, Kriauciunas, and
Hundley 2013; Zhou and Li 2010). Following this, we suggest that:
economy, the relationship between IMC and performance may become weaker or even
negative compared to a more developed one (Li and Liu 2014). Drawing on the
discussion above, the following hypotheses are proposed:
Hypothesis 3a: The effect of IMC on CUP is stronger in a developed than in an emerging
economy.
Methodology
Context: spain vs. belarus
Considering the focus of the current research, we had to collect data from two
different economy types, a developed economy and an emerging economy. Spain
was selected as representative of a developed economy and Belarus as an emerging
economy, as a testing ground for the inter-country empirical analysis of the IMC
theoretical model (Cadogan 2010). However, while being different, the countries
selected are geographically close to each other, and both have showed significant
economic growth in recent years (LaCaixa Research 2018; The Worlds Bank
Publications 2018). Spain represents a developed European economy, and Belarus
is an emerging post-Soviet economy still in transition from a central-planning system
(Estrin 2002; Marples 2013). As in most emerging economies, the levels of competi-
tive intensity, market dynamism, and technological turbulence are lower in the
emerging economy of Belarus than in a developed economy such as Spain
(Shinkle, Kriauciunas, and Hundley 2013).
More specifically, Belarus has much lower levels of investment and financial freedom
than Spain (30 and 10 for Belarus and 85 and 70 for Spain, respectively), and it is a less
open market (Heritage Organization 2017). An additional difference between the two is
the percentage of marketing spending over the GDP; this is much higher in Spain
(0.54%) than in Belarus (0.17%) (Marketing.by 2017; Statista 2017). Based on the Global
Innovation Index Report, Belarus has a distinctively lower level of innovations than Spain
(88 and 28 places in the rank, respectively) (Dutta et al. 2018).
However, these two countries also have similarities, which additionally support the
choice for further comparison. Based on the GDP analysis, the Belarusian economy is
much smaller ($0.054 trillion) than the Spanish economy ($1.311 trillion), but both
economies have shown significant economic growth in recent years (The Worlds Bank
Publications 2018). Additionally, based on the ICT Development Index (IDI), both coun-
tries have a high rating of ICT (information-communication technologies) development
(27 for Spain and 32 for Belarus), which characterise the high-information society level
(ITU 2017).
10 V. BUTKOUSKAYA ET AL.
The analysis of the total indirect effect, the specific indirect effects, and the total effect
was based on the PLS-SEM algorithm integrated in the SmartPLS3 software, as sug-
gested by Hair et al. (2017), and was used to test the mediation effect.
Results
The results of the structural model analysis (Table 2, Figure 1) demonstrate that the
strategic orientation contributes differently to IMC and that these relationships vary
across economy types. Hypotheses H1, H3, H6, H7, and H8 are supported; H5 is rejected
in both economies; and H2 and H4 are supported in Spain but rejected in Belarus. The
results of the MGA (Table 3) suggest that the economy type moderates some relation-
ships in the theoretical model, supporting hypotheses H1a–H4a and rejecting H5a–H8a.
The results of the indirect effect analysis (Table 3) support H9, H10, and H11,
suggesting the existence of the mediating effects of CUP and MP in both countries.
Finally, the recent reports of the International Monetary Fund support the similarities
in the emerging economy of Belarus and other post-Soviet members of the
Commonwealth of Independent States (CIS), such as Armenia, Azerbaijan, Georgia,
Moldova, the Russian Federation, and Ukraine, among others. This is due to similarities
in their geographies and economic structures (International Monetary Fund 2017; Roaf
et al. 2014). Thus, the current results could be applied to the aforementioned economies,
as well as to other emerging economies.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes on contributors
Vera Butkouskaya is an associate professor of marketing and management at the Autonomous
University of Barcelona (Spain). She holds an international Ph.D. in Entrepreneurship and
Management and MSc in Economy and Marketing. Her areas of specialization are strategic
management, integrated marketing communications (IMC), cross-cultural marketing, and custo-
mer behavior.
Joan Llonch-Andreu is an associate professor of marketing in the Business Department of the
Autonomous University of Barcelona, Spain. He holds a PhD in Economics and Business
Administration and an MBA from IMD in Lausanne (Switzerland). He is an author and/or co-
author of various books, chapters, and papers in both national and international academic
journals, such as the European Management Journal, the International Journal of Market Research,
Higher Education, the International Journal of Contemporary Hospitality Management, the Journal of
Fashion Marketing and Management, Transformations in Business & Economics, the Spanish Journal
of Marketing, and the International Journal of Business Environment, among others. His research
interests are strategic marketing, international marketing, marketing communications, and market-
ing on the Internet. He is a member of the Editorial Review Board of the Journal of Product and
Brand Management. He also serves as an ad hoc reviewer for different academic journals.
María-Del-Carmen Alarcón-Del-Amo is an assistant professor of marketing at the University of
Murcia, Spain. Her main research line is focused on the analysis of online consumer behavior in the
context of social networking sites, electronic commerce, and Web 2.0 and the utilization of social
media by small and medium enterprises, born global enterprises, and social enterprises. She is an
author and/or co-author of different journals, such as Cyberpsychology, Behavior and Social
JOURNAL OF MARKETING COMMUNICATIONS 17
Networking, the International Journal of Market Research, Higher Education, Current Issues on
Tourism, and Information Systems and e-Business Management, among others, and several book
chapters about social media and management in Springer and Emerald editorial. Due to her
research work, she has received several awards: the CajaMurcia research award, the Junior
AEDEMO (Spanish Association of Market Research, Marketing and Opinion) Award, and
the Second QUANDO Young Research Award for her Doctoral Dissertation.
ORCID
Vera Butkouskaya http://orcid.org/0000-0002-6963-3872
Joan Llonch-Andreu http://orcid.org/0000-0002-1624-3133
María-Del-Carmen Alarcón-Del-Amo http://orcid.org/0000-0002-5195-3923
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Appendix
20
Table A1. The assessment of the reliability and validity of the measurement model.
Belarus Spain
Items Variables Factor loading* t-value Factor loading* t-value
(In) our company . . .
MO = Market orientation (Matsuno, Mentzer, and Rentz 2000)
α; CR; AVE 0.805; 0.882; 0.714 0.901; 0.938; 0.835
Market Intelligence Generation 0.823 38.034 0.918 95.595
V. BUTKOUSKAYA ET AL.
MO1. . . . meets with customers at least once a year to find out what products/services they will need in the future.
MO2. . . . does a lot of in-house market research.
MO3. . . . is slow to detect changes in our customers’ preferences.*
MO4. . . . polls end-users at least once a year to assess the quality of our products/services.
MO5. . . . is slow to detect fundamental shifts on competition, technology or regulations.*
MO6. . . . periodically reviews the likely effect of changes in our business environment on customers.
Market Intelligence Dissemination 0.835 48.104 0.884 56.398
MO7.We have interdepartmental meetings at least once a quarter to discuss market trends.
MO8 . . . .marketing personnel spend time discussing customers’ future needs with other functional departments.
MO9.When something important happens to a major customer or market, the whole company knows about it in a short time.
MO10 . . . .data on customer satisfaction are disseminated at all levels regularly.
MO11.When one department finds out something important about competitors, it is slow to alert other departments.*
Market Intelligence Response 0.876 81.040 0.938 136.555
MO12.It takes us forever to decide how to respond to competitor price changes.*
MO13.For one reason or another we tend to ignore changes in our customers’ product/service needs.*
MO14.We periodically review our product/service development efforts to ensure that they are in line with what customers want.
MO15. Several departments get together periodically to plan a response to changes taking place in our business environment.
MO16.If a major competitor were to launch an intensive campaign targeted at our customers, we would implement an immediate response.
MO17 . . . .the activities of the different departments are well coordinated.
MO18 . . . .customer complaints fall on deaf ears. *
MO19.Even if we came up with a great marketing plan, we probably would not be able to implement it in a timely fashion.*
MO20 . . . .when we find that customers would like us to modify a product/service, we make concerted efforts to do so.
*Reverse items.
TO = Technology orientation (Gatignon and Xuereb 1997)
α; CR; AVE 0.851; 0.895; 0.681 0.913; 0.939; 0.793
Technologies in New Products Development 0.788 24.546 0.822 41.593
(Continued)
Table A1. (Continued).
Belarus Spain
Items Variables Factor loading* t-value Factor loading* t-value
TO1. . . . uses sophisticated technologies in its new product/service development.
TO2. . . . new products/services are always up-to-date to the technology.
TO5. . . . has built a large and strong network of relationships with suppliers of technology equipment.
The Rapidity of Technologies Integration 0.865 32.286 0.907 89.799
TO7. . . . is very proactive in the new technologies development.
TO8. . . . has an aggressive technology patent strategy.
TO12. . . . . is very pro-active in the construction of new technical solutions to answer users’ needs.
Developing New Technologies 0.819 15.987 0.905 68.971
TO3. . . . has better industrial methods than our competition.
TO6 . . . . has a better competitive knowledge than our competitors.
TO11. . . . is always the first one to use a new technology for its new product development.
Generating New Product Ideas 0.828 18.865 0.925 104.025
TO4. . . . has the wit and the capacity to build and to market a technology breakthrough.
TO9.Relative to our competitors, our new products are more ambitious.
TO10.Relative to our competitors, our research and development programmes are more ambitious.
IMC = Integrated marketing communications (Lee and Park 2007; Balmer 2001)
α; CR; AVE 0.883; 0.895; 0.681 0.912; 0.921; 0.741
Content 0.798 31.062 0.800 39.767
MC1. . . . carefully examines whether our intended message is consistently delivered through all communications tools and channels (e.g. advertising, packaging, and website).
MC2 . . . maintains consistency in all visual components of communication (e.g. trademarks, logos, and colour).
MC3 . . . maintains consistency in all linguistic components of communication (e.g. slogans and mottos).
MC4. Ensuring a consistent brand image is one of the most important goals of our marketing communications programme.
MC5 . . . does not alter the brand image, even as its context changes, but maintains its consistency from the long-term.
Channels 0.873 60.362 0.902 65.493
MC6. Our marketing communications strategy differentiates the buyer and the user if the two are not the same.
MC7 . . . carefully deliberates whether a creating more than two target customer group is desirable.
MC8 . . . .the issue of whether to maintain a single brand image or to create multiple brand images of the product is thoroughly discussed.
MC9. Our marketing communications strategy is based on a close scrutiny of the stages of the customers’ buying process such as brand awareness, information search, showroom/
website visit, and purchase.
MC10 . . . employs the marketing communications tools that are most appropriate for each stage of the consumers’ buying process.
Stakeholders 0.833 50.946 0.876 68.315
MC11. Our marketing communications activities are designed to induce customers’ actions (e.g. telephone order, showroom/website visit, etc.).
JOURNAL OF MARKETING COMMUNICATIONS
MC12 . . . follows up on consumer responses to our marketing communications activities (e.g. mailing promos to those who participated before in the company-sponsored events).
MC13 . . . sees to it that the consumer information that is generated in the course of marketing communications activities is compiled.
MC14 . . . integrates customer information collected or generated from different divisions into a unified database.
Results 0.732 20.767 0.891 62.236
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(Continued)
Table A1. (Continued).
Belarus Spain
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