Strategic Antecedents and Organisational Consequences of IMC in Different Economy Types

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Journal of Marketing Communications

ISSN: 1352-7266 (Print) 1466-4445 (Online) Journal homepage: https://www.tandfonline.com/loi/rjmc20

Strategic antecedents and organisational


consequences of IMC in different economy types

Vera Butkouskaya, Joan Llonch-Andreu & María-Del-Carmen Alarcón-Del-


Amo

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

To link to this article: https://doi.org/10.1080/13527266.2019.1633551

Published online: 28 Jun 2019.

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JOURNAL OF MARKETING COMMUNICATIONS
https://doi.org/10.1080/13527266.2019.1633551

Strategic antecedents and organisational consequences of


IMC in different economy types
a b
Vera Butkouskaya , Joan Llonch-Andreu and María-Del-Carmen Alarcón-Del-
Amo c
a
Business Department, Universitat Autònoma de Barcelona, Bellaterra, Spain; bBusiness Department,
Universitat Autònoma de Barcelona, Bellaterra, Spain; cMarketing Department, University of Murcia,
Faculty of Economics and Business, Campus de Espinardo, Murcia, Spain

ABSTRACT ARTICLE HISTORY


Successful companies develop competitive advantages over their Received 18 November 2018
rivals. Drawing on the dynamic capabilities theory, Integrated Accepted 15 June 2019
Marketing Communications (IMC) can be considered as a source KEYWORDS
of competitive advantage. Enhanced by the effects of the appro- IMC; strategic orientation;
priate strategic orientation, IMC may positively influence customer, organisational performance;
market and financial performance. However, these proposals need inter-country analysis
further empirical analysis. Based on data from surveyed businesses
in both developed and emerging economies (Spain and Belarus,
respectively), the study uses structural equation modelling (SEM)
to analyse the relationships in the theoretical model. The results
suggest that while market orientation has a direct relationship
with IMC in both countries, the relationship between technology
orientation and IMC can only be found in a developed economy.
In addition, the potential of IMC for business advantage sustain-
ability is verified; in a developed economy, however, the verifica-
tion was for customer and market performance, but not for
financial performance. Conversely, in an emerging economy only
customer performance could be verified, despite IMC having an
indirect relationship with financial performance in both types of
economies. Thus, the economy type moderation effect analysis
clearly supports the differences caused by the implementation of
IMC in developed and emerging economies.

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

CONTACT Vera Butkouskaya [email protected] Business Department, Universitat Autònoma de


Barcelona, Edifici, Bellaterra 08193, Spain
© 2019 Informa UK Limited, trading as Taylor & Francis Group
2 V. BUTKOUSKAYA ET AL.

a business process of cross-functional integration of marketing communications within


the scope of a company’s activities, up to the corporate level, with the aim of bringing
a competitive advantage (Kerr and Patti 2013; Kliatchko and Schultz 2014). Following
this, some authors consider IMC as a company’s capability with a positive influence on
organisational performance (Li and Liu 2014; Luxton et al. 2017).
However, the complexity of the IMC integration framework slows down the develop-
ment of empirical studies in the area, which are still scarce (Tafesse and Kitchen 2017).
To solve the gap and to speed up the theory development, Tafesse and Kitchen (2017)
suggested performing empirical studies focusing on the specific logical elements of the
IMC integrative framework. Thus, following this recommendation and to address the
research gap, this study is based on the strategic and performance-oriented perspectives
of the IMC ‘broad’ definition reasoning from the dynamic capabilities theory context. The
use of the dynamic capabilities theory can be justified because of the specific character-
istic of the modern environment, which is uncertain, due to the fast-paced market and
technological advances (Teece 2007).
An uncertain environment challenges the sustainability of the company’s competitive
advantage provided by IMC implementation (Mikalef and Pateli 2017). The dynamic
capabilities theory represents an attempt to solve this issue (Teece 2007). It suggests
that in an uncertain environment, companies should develop capabilities, including
sensing for information about market and technology changes, seizing internal capabil-
ities by using this information, and continuous transformation in line with the strategy
to address environmental changes and make it difficult for imitators (Teece 2007). This,
in turn, helps to keep the positive impact of IMC on performance. Applying the dynamic
capabilities theory in this research, market orientation (MO) and technology orientation
(TO) were chosen for analysis as antecedents of IMC, following the IMC ‘broad’ definition.
More specifically, MO represents the company’s ability to sense market information
(about customers, competitors, and environmental trends) and integrate it in seizing
internal capabilities, with the aim to increase their effectiveness and gain a competitive
advantage (Šeric, Gil-Saura, and Ozretić-Došen 2015; Teece 2007). Considering the speed
of technology changes, additionally to MO, TO provides companies with extra informa-
tion about environmental trends and brings the possibility of interactive dialog with the
customers. TO also facilitates the dissemination of information within the organisation
and speeds up the decision-making process (Luxton et al. 2017; Reid 2005; Xu et al.
2018). Thus, applying MO and TO together enhances the IMC implementation effective-
ness towards gaining a competitive advantage.
However, the study of the MO influence on IMC is limited by a few studies focusing on
brand orientation and brand performance (Luxton et al. 2017; Reid 2005). In addition, the
influence of TO on IMC as a ‘broad’ concept has not been previously studied. Thus,
considering the impact that MO and TO may have on the IMC, this study analyses the
influence of these two critical strategic antecedents on IMC implementation effectiveness.
Additionally, previous studies have highlighted the gap in building a consistent
performance-results framework of IMC implementation (Reid 2005; Tafesse and
Kitchen 2017). Some studies have found a distinct positive influence of IMC on customer
performance (CUP) (Šeric, Gil-Saura, and Ozretić-Došen 2015) or on market performance
(MP) (Reid 2005). Other research provides evidence for a positive link between either
marketing capabilities and financial performance (FP) (Vorhies and Morgan 2005) or
JOURNAL OF MARKETING COMMUNICATIONS 3

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.

interrelationships between outcomes and their mediation effect on IMC implementation


effectiveness. Moreover, the inter-country context aims to provide a first attempt
towards generalising the results.
From a practical point of view, this research addresses the issue of understanding the
importance of gathering information about both market and technology changes and
using this information to improve companies’ communication – in other words, to
enhance the IMC implementation. It further explores the potential of IMC to provide
a competitive advantage to the firm and positively affect CUP, MP, and FP. It also seeks
to understand whether the individual IMC outcomes (e.g. CUP and MP) may mediate the
IMC effectiveness towards financial outcomes. Moreover, the inter-country applicable
results should be particularly valuable for better decision making in the international
companies that are present in both developed and emerging economies.
Based on the research objectives, the article starts with a literature review. Then, it
describes the methodology, the results of the data collection, the model measurement,
and the multi-group analysis. The paper concludes with a discussion of the theoretical
and practical implications of the paper and future research topics.

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

rejected the acronym IMC and changed it to IC (integrated communications) to under-


line the importance of communications management up to the corporate level. A recent
study by Tafesse and Kitchen (2017) reviewed all previous perspectives from a ‘broad’
IMC definition (integrative, strategic, communication, performance-oriented) and com-
bines them into the ‘IMC integrative framework’ underlying the complexity of the latter.
Thereby, our study follows the ‘broad’ approach to IMC concept definition, keeping the
acronym IMC to avoid future confusion.
The strategic perspective of the ‘broad’ IMC concept definition implies the need to
collect up-to-date customer information to further improve the communication message
with the aim to transform the company’s efforts into a competitive advantage (Šeric, Gil-
Saura, and Ozretić-Došen 2015). This is supported by the dynamic capabilities theory,
which says that under the conditions of an uncertain environment, complicated by the
growth of competition and high speed of innovations, the organisation needs to sense
market and technology changes. This information is critical to further seize firm cap-
abilities, and continuous transformation towards environmental changes in line with
a firm’s strategy can bring a sustainable competitive advantage (Teece 2007). The fact of
being strategic-orientated facilitates the collection of information and its dissemination
within the organisation. Furthermore, it enhances the transformation of IMC for sustain-
ing the advantage under conditions of uncertainty (Li and Liu 2014).
Moreover, communication integration with management activities at the corporate
level justifies the role of the decision-making process in IMC implementation effective-
ness (Balmer 2001; Duncan and Moriarty 1998; Kerr and Patti 2013). The institutional
theory states that companies’ behaviour varies depending on their external environ-
mental conditions (Scott 2008); this means that firms’ reactions to changes and manage-
rial decisions vary depending on their environment.

Firms’ strategic orientation as an antecedent of IMC


The choice of MO and TO as a key strategic orientation is defined by the choice of
dynamic capabilities theory as the theoretical framework in building this research.
From a strategic point of view, MO is a business orientation that consists of the
generation of market intelligence (about customers, competitors, and environmental
trends), its dissemination within the organisation, and the firm’s responsiveness to
changes in accordance with this market intelligence (Matsuno, Mentzer, and Rentz
2000). However, nowadays market-oriented companies cannot ignore the exogenous
market pressure of technological advancement and the rapidity of innovation (Mikalef
and Pateli 2017; Xu et al. 2018). As a strategic orientation, TO represents companies’
commitment to R&D and innovation and consists of the acquisition and application of
the latest technology in both new product development and marketing practices
(Gatignon and Xuereb 1997). Complementary to MO, TO brings the company more
specific data about the environmental trends. Additionally, through applying innova-
tions within the organisation, being technology-oriented may facilitate the dissemina-
tion of information within the organisation and, as a result, speed up the decision-
making process (Trainor et al. 2011; Xu et al. 2018). Considering the pressure from the
speed of the environmental changes, companies that can collect more information more
quickly will be more successful in seizing their internal capabilities. Consequently, TO,
6 V. BUTKOUSKAYA ET AL.

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:

H1: MO has a positive effect on IMC.

H2: TO has a positive effect on IMC.

IMC and performance


IMC uses information obtained from the sensing of market and technology changes to
seize marketing communications and send up-to-date personalised messages through
the channels preferred by customers (Finne et al. 2017). As a result, a more favourable
customer perception of company communications should have a positive effect on
customer satisfaction and loyalty, and, in turn, on CUP (Mulhern 2009).

H3: IMC has a positive effect on a firm’s CUP.

Moreover, the process of cross-functional integration enables the transformation of data


obtained from customer communications into further improvements. It facilitates the
continuous renewal and updating of communicational messages (Mulhern 2009).
A more effective customer communication should also have a further positive effect
on market share and growth, and thus on MP.

H4: IMC has a positive effect on the firm’s MP.

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:

H5: IMC has a positive effect on the firm’s FP.


JOURNAL OF MARKETING COMMUNICATIONS 7

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:

H6: CUP has a positive effect on MP.

H7: CUP has a positive effect on FP.

H8: MP has a positive effect on FP.

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:

H9: CUP mediates the relationship between IMC and MP.

H10: CUP mediates the relationship between IMC and FP.

H11: MP mediates the relationship between IMC and FP.

The moderating effect of the economy type


The institutional theory states that companies’ behaviour may vary depending on the
economic environment in which they operate (Scott 2008). As in most emerging
economies, the levels of competitive intensity, market dynamism, and technological
turbulence are lower in an emerging economy than in a developed economy (Shinkle,
Kriauciunas, and Hundley 2013). Some authors have related these factors with the levels
of economic freedom, suggesting that countries with a lower level of economic freedom
have lower levels of MO and lower investments in innovation activities (Shinkle,
8 V. BUTKOUSKAYA ET AL.

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:

Hypothesis 1a: The effect of MO on IMC is stronger in a developed than in an emerging


economy.

Hypothesis 2a: The effect of TO on IMC is stronger in a developed than in an emerging


economy.

Furthermore, empirical studies demonstrate the moderating effect of market dynamism


on the relationship between dynamic capabilities and organisational performance,
showing that, in a more stable environment, this effect is weaker (Li and Liu 2014; Xu
et al. 2018). In a more dynamic environment with opportunities that pass quickly, and
a high number of competitive threats, which we usually find in developed economies,
the environmental turbulence reduces the competitive position and potential value of
current ordinary capabilities. It forces companies to apply frequent and complex
changes, reinforcing the importance of dynamic capabilities such as IMC (Li and Liu
2014). In such conditions, companies are particularly sensitive to implementing IMC as
a dynamic capability that can sustain a competitive advantage (Teece 2007; Trainor et al.
2011). When the environment is less dynamic, with no significant technological progress
or few changes in the market, as it generally is in emerging economies, transforming
ordinary capabilities into dynamic capabilities is probably too expensive or may come at
a cost that exceeds the benefit (Schreyögg and Kliesch-Eberl 2007). Thus, in an emerging
JOURNAL OF MARKETING COMMUNICATIONS 9

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.

Hypothesis 4a: The effect of IMC on MP is stronger in a developed than in an emerging


economy.

Hypothesis 5a: The effect of IMC on FP 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.

Data collection and analysis


To test the hypotheses, the primary data were obtained from an email survey of
marketing managers in two data points (Belarus and Spain). The questionnaire was
originally created in English and then translated into the other languages (Spanish for
Spain and Russian for Belarus); it was then back translated, with no wording issues
identified. Before sending out the questionnaire, it was pre-tested in Belarus and Spain
among both marketing managers and academic researchers.
Fixing several parameters for both the company profile (industry, type, size, and IMC
management structure) and the senior manager profile (age, gender, and education) allowed
us to create a representative sample (Table 1). To prepare sample database, we used the Sabi
digital database in Spain (Informa Spain) and the BusinessBelarus digital database in Belarus
(Yellow Pages).
Two thousand questionnaires were sent out by email to firms in both countries.
After the analysis of the responses obtained and the elimination of partly com-
pleted, invalid, and outlier replies, the final sample consisted of 242 and 180
responses (in Belarus and in Spain, respectively). Considering the large number
of questions in the survey and that it is usually difficult to collect responses from
top managers, since they are normally quite busy (Lee and Park 2007), the final
response rate is fairly good. In fact, the response rate obtained is similar to those
attained in previous research comparable to ours.
Each of the relevant constructs in the model was assessed based on well-accepted
five-point Likert measurement scales (content validity). The full list of items used is
provided in the Appendix (Table A1).

Table 1. A dataset of companies.


Number of respondents Number of respondents
Belarus Spain Belarus Spain
Company´s profile
Industry Business size (number of employees)
Agriculture 24 5 Micro (<10) 28 22
Construction 21 25 Small (<50) 40 35
Production 98 48 Medium (<250) 60 43
Retail 51 22 Large (≤1000) 32 38
Service 48 80 Extra-large (>1000) 82 42
Total 242 180 Total 242 180
Business type Marketing organisation
B2B 152 95 Marketing specialist 94 58
B2C 90 85 Marketing department 148 122
Total 242 180 Total 242 180
Manager´s profile
Gender Marketing education
Male 111 72 Yes 189 162
Female 131 108 No 53 18
Total 242 180 Total 242 180
Age Education
≤25 34 28 No high education 8 12
25–34 169 140 Graduate degree 189 120
> 46 39 42 Master’s degree or higher 45 48
Total 242 180 Total 242 180
JOURNAL OF MARKETING COMMUNICATIONS 11

For the analysis, we chose variance-based structural equation modelling (SEM)


using partial least squares (PLS). SEM-PLS is accepted as a key multivariate statis-
tical technique to estimate cause–effect relationships between constructs in inter-
national marketing research and across groups of respondents from different
countries (Henseler, Ringle, and Sarstedt 2016). Additionally, the PLS algorithm is
better suited to our research, as it imposed fewer restrictions on the sample size
and data normality, specifically for the estimation of complex models (Hair et al.
2012). SmartPLS 3.0 software was used to analyse the data.
The two-step PLS model analysis was applied (Anderson and Gerbing 1988) for (1) the
assessment of the reliability and validity of the measurement model and (2) the assessment of
the structural model.
The measurement model assessment was performed for the criteria of internal relia-
bility, and convergent and discriminant validity analysis (Appendix). All the items in the
measurement model fulfilled the critical criteria, and the adequacy of the instrument
was supported (Fornell and Larcker 1981).
To assess the predictive ability of the structural model, the authors calculated the R2
value for the dependent constructs, the predictive relevance (Q2) based on the Stone–
Geisser test (Chin 1998), and the goodness of fit of the model (GoF), as suggested by
Tenenhaus et al. (2005). The results met the critical criteria and supported the predictive
ability of the structural model (Table 2).
Additionally, the three-step analysis of the measurement invariance of composite
models (MICOM) by Henseler, Ringle, and Sarstedt (2016) was run as an important
procedure before the multi-group analysis (MGA) of the economy type moderating
effect. The results illustrate that the significant differences in the group-specific PLS-
SEM results do not stem from differences in the constructs across groups but instead
from the existence of partial invariance, allowing the use of the MGA. For the analysis
of the economy type moderating effect, the MGA method, based on the parametric
test implemented in the SmartPLS3 software, was used (Hair et al. 2018).

Table 2. Results of hypotheses testing: direct and moderating effects.


MGA (economy type moderating
Belarus Spain effect)
H Path β t-value β t-value t[mgp] p
Direct effects
H1 MO –>IMC 0.552 13.280*** S 0.657 14.616*** S H1a 1.780 0.039* S
H2 TO –>IMC 0.079 1.380ns R 0.230 4.477*** S H2a 2.118 0.035** S
H3 IMC –>CP 0.437 9.855*** S 0.753 29.117*** S H3a 5.876 0.000*** S
H4 IMC –>MP -0.043 1.246ns R 0.200 3.481*** S H4a 3.651 0.000*** S
H5 IMC –>FP -0.029 0.689ns R -0.013 0.295ns R H5a 0.253 0.800ns R
H6 CP–>MP 0.744 20.500*** S 0.677 13.020*** S H7a 1.066 0.287ns R
H7 CP–>FP 0.557 11.567*** S 0.647 12.384*** S H6a 1.303 0.193ns R
H8 MP–>FP 0.257 5.068*** S 0.294 5.291*** S H8a 0.507 0.612ns R
MO = Market Orientation, TO = Technology Orientation, IMC = Integrated Marketing Communications, CP =
Customer Performance, MP = Market Performance, FP = Financial Performance. β= Standardized Path
Coefficients; t[mgp] - t-value MGA, ***p<0.01;**p<0.05;*p<0.1; ns = not significant. S-hypothesis supported,
R-hypothesis rejected.
R >0.1; Q2>0; GoF:Belarus=0.387 and GoF:Spain=0.375.
2
12 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.

Discussion and conclusions


This research contributes to the literature in several ways. First, it presents an empirical
analysis of two critical IMC strategic antecedents (MO and TO) from the firm-wide
perspective. Our results confirm the existence of the direct influence of MO on IMC.
This means that the generation of market intelligence, its dissemination within the firm,
and the coordinated response in accordance with the information gathered positively
influence the implementation of IMC practices, such as in the form of controlling the
consistence of content and its integration of channel choices with stakeholder needs.
Furthermore, companies’ future responses to market changes facilitate the integration of
communication results with firm strategies. In addition, our results also suggest the
direct effect of TO on IMC in developed economies alone. In more competitive econo-
mies, proactive R&D attitudes and the use of new technologies quicken market changes,
facilitating dialogue with customers and advancing the collection of relevant

Figure 1. Results of structural model analysis, with significant moderating effects.


Table 3. Results of hypotheses testing: indirect and total effects.
Direct effect Indirect effect Total indirect effect Total effect Media-tion
Path β t-value β t-value β t-value β t-value
Belarus
IMC–>MP −0.043 1.246ns 0.326 9.176*** 0.28 6.387*** full
H9 through CP (H3*H7) 0.326 9.176***
IMC–>FP −0.029 0.689ns 0.316 9.130*** 0.289 5.601*** full
H10 through CP (H3*H6) 0.244 8.032***
H11 through MP(H4*H8) −0.012 1.320ns
H3*H7*H8 0.084 4.400***
Spain
b t-value b t-value b t-value b t-value
IMC–>MP 0.200 3.481*** 0.51 13.025*** 0.710 20.366*** partial
H9 through CP (H3*H7) 0.326 9.176***
IMC–>FP −0013 0.295ns 0.695 17.843*** 0.684 18.945*** full
H10 through CP (H3*H6) 0.487 11.489***
H11 through MP(H4*H8) 0.059 2.849***
H3*H7*H8 0.15 8.885***
Notes: IMC = Integrated Marketing Communications, CP = Customer Performance, MP = Market Performance, FP = Financial Performance. β = Standardized Path Coefficients; S-hypothesis
supported, R-hypothesis rejected. ***p < 0.01; **p < 0.05; *p < 0.1; ns = not significant.
JOURNAL OF MARKETING COMMUNICATIONS
13
14 V. BUTKOUSKAYA ET AL.

information, thus making it possible to rapidly update communication strategies.


Emerging markets, in turn, are exposed to save on R&D and are slower in adapting to
technology; this results in fewer market activities and changes. The consequence is that
a smaller amount of upcoming information slows the seizing and transformation process
of IMC (Shinkle, Kriauciunas, and Hundley 2013; Trainor et al. 2011). This result also
represents a clear contribution to the literature because, to the best of our knowledge,
the relationship between TO and IMC has not previously been empirically studied in
either developed or emerging economies.
Second, for the first time, this research attempts to understand the consequences of
IMC on CUP, MP, and FP, and to understand the interrelationships between IMC out-
comes and the mediation effects on IMC implementation that they may cause. The
results support the strong positive influence of IMC on CUP in both developed and
emerging economies, as Šeric, Gil-Saura, and Ozretić-Došen (2015) previously identified.
Thus, it confirms that having a consistent message, the use of market intelligence
towards improving the management of communication channels, and the integration
of the company’s overall strategy positively influence customer satisfaction, value deliv-
ery, and customer retention, and thus CUP. However, the direct effect of IMC on MP is
supported only in developed economies. Although Reid (2005) obtained similar results
for a developed economy, this was the only study to be conducted in an emerging
economy. Moreover, the direct relationship between IMC and FP was not confirmed in
either of the two economies. Thus, although some research provides support for the
positive link between marketing capabilities and FP (Vorhies and Morgan 2005), no
direct link has been found between IMC and FP. To understand these results, a further
analysis of indirect and total effects was applied. It suggests that CUP fully mediates the
relationship between IMC and MP in an emerging economy, and partly in a developed
one. These differences can be explained by the fact that the total effect of IMC on MP is
significant in both economies, but is stronger in a developed one. Moreover, CUP and
MP wholly eliminate the positive effect of IMC on FP in both economies. This better
explains that the effectiveness of IMC implementation on organisational performance
strongly depends on customer satisfaction, the firm’s ability to transfer value to stake-
holders from marketing communication activities, and the capacity for acquiring new
customers and increasing sales.
Third, the research makes a first attempt to close the gap in the lack of IMC research
in an inter-country context, specifically to understand the differences between IMC
implementation in developed and emerging economies. The explanatory approach
adopted adds a new and relevant dimension towards the generalisability of the results
of IMC integrative framework analysis. It confirms, for the first time, the differential
effects of the type of economy on the relationship between the strategic orientation of
the firm (MO and TO) and IMC, as well as between IMC and performance. Thus, it means
that, in emerging economies, the lower level of companies’ activity in the market
regarding customers and competitors together with the lower level of innovation
development compared to developed economies negatively affects the integration of
marketing communications. Underestimating the role of interactive dialog with custo-
mers and overall a smaller amount of market communications due to a low level of
market activeness result in a lack of available customer information. This may happen,
for example, because the company gets less feedback from customers. Less
JOURNAL OF MARKETING COMMUNICATIONS 15

communication activates results in a lower effectiveness of marketing communications


(Einwiller and Boenigk 2012; Trainor et al. 2011). More specifically, with little information
available, less up-to-date information about customer needs appears in the market. It
slows down both organisational learning and gaining experience (Shinkle, Kriauciunas,
and Hundley 2013; Zhou and Li 2010). Thus, it starts to be more difficult to seize
communications and further complicates the IMC transformation. It reduces the com-
pany’s capacity for effective IMC implementation, which decreases IMC’s positive effect
on organisational performance and creates an obstacle impeding the company’s com-
petitive position in the market.
From a managerial perspective, this research confirms the importance of collecting
market information and sharing this information within the organisation to integrate the
communication channels according to customer needs, and to control the consistency
of its messages with the overall strategy. Furthermore, companies that are able to
transform themselves based on their market knowledge and properly respond to market
changes can see IMC results, analyse them, and better align with the firm’s overall
strategy. The availability of new technologies in the market, investment in R&D, and
the application of technology in marketing activities also have a positive effect on
communication integration. However, with the availability of other opportunities to
improve, senior managers in emerging economies often avoid investing much in R&D
(Shinkle, Kriauciunas, and Hundley 2013). Thus, to achieve effective IMC, firms from
emerging economies should adopt practices from more developed ones.
Regarding IMC effectiveness, this research suggests that integration, cross-functional
coordination, and continuous transformation of marketing communications have a positive
effect on CUP. Thus, consistent messages and media choices, coherent communications,
analysis of communication results, and a uniform company image positively affect customer
satisfaction and customer retention. Furthermore, although the direct effect of IMC on MP
was supported only in Spain and was not supported in either type of economy for FP, the
results suggest that IMC has a positive indirect effect on both MP and FP in both countries.
Thus, they confirm that IMC is a valuable capability. However, considering the existence of
CUP’s strong mediation effect, it initially follows a customer-centric approach. Thus, it
subsequently achieves market growth and reaches its financial goals as a result of IMC
implementation, which itself requires the company to prioritise customer satisfaction and
control the transfer of customer value.
Additionally, the inter-country analysis suggests differences in IMC implementation
within economy types. In a more dynamic environment with a higher level of economic
freedom, such as developed economies, with opportunities that pass quickly and a high
number of competitive threats, applying frequent and complex changes within compa-
nies successfully reinforces IMC capabilities. However, transforming ordinary capabilities
into dynamic capabilities is likely too expensive or may even come at a cost that exceeds
its benefits for firms in emerging economies (Schreyögg and Kliesch-Eberl 2007).
Another explanation of the different intensities of the outcomes of IMC in emerging
markets may come from the tendency of companies in such types of economies to avoid
risks, especially investment-related risks (Shinkle, Kriauciunas, and Hundley 2013; Su and
Si 2015). Thus, the relationship between IMC and organisational performance may
become weaker or even negative in those types of economies compared to developed
economies.
16 V. BUTKOUSKAYA ET AL.

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.

Limitations and future research


This article has several limitations, which create possibilities for future research. First, the
analysis of the moderating effects is based on data from only two countries. Future
research could analyse the same model with data from additional countries to ensure
the richness of the results. Second, this research analyses only the moderating effect of
the economy type; however, future research could consider additional endogenous
moderators (i.e. Einwiller and Boenigk 2012), such as the effect of ownership structure.
Regarding the ownership structure, considering that the privatisation process has not
been finished in Belarus (Marples 2013; Svejnar 2002), the Belarusian sample included
some partially or fully government-owned organisations, whereas the Spanish sample
consisted mainly of companies with 100% private ownership.

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
21

(Continued)
Table A1. (Continued).
Belarus Spain
22

Items Variables Factor loading* t-value Factor loading* t-value


MC15 . . . actively carries out marketing communications activities, which strengthen the relationship with existing customers (e.g. sending birthday cards).
MC16 . . . emphasises that maintaining and strengthening relationships with existing customers is as important as expanding the market share by recruiting new customers.
MC17.Our marketing communications strategy places heavy emphasis on generating continuous business from our existing customers by enhancing their satisfaction level.
MC18 . . . makes efforts to generate a continuous flow of profits from individual customers in the long run by solidifying relationships with them.
Strategy 0.876 46.737 0.831 47.553
MC19 . . . managers from different departments communicate with each other.
MC20 . . ., we create long-term communications with both internal and external stakeholders (consumers, partners, employees and others).
MC21 . . ., different marketing communications tools for one product are planned by the same manager.
MC22 . . . creates corporate brand equity, company identity and reputation of the organisation.
CP = Customer performance (Vorhies and Morgan 2005)
V. BUTKOUSKAYA ET AL.

α; CR; AVE 0.873; 0.913; 0.724 0.943; 0.959; 0.854


CP1.Customer satisfaction. 0.771 23.824 0.910 56.979
CP2.Delivering value to your customers 0.872 59.236 0.922 81.241
CP3.Delivering what your customers want. 0.907 76.492 0.953 86.632
CP4.Retaining valued customers. 0.848 45.600 0.910 25.283
MP = Market performance (Vorhies and Morgan 2005)
α; CR; AVE 0.884; 0.920; 0.742 0.918; 0.942; 0.803
MP1.Market share growth relative to competitors. 0.879 50.590 0.942 149.751
MP2.Growth in sales revenue. 0.875 70.596 0.842 56.704
MP3.Acquiring new customers. 0.895 81.118 0.929 115.433
MP4.Increasing sales to existing customers. 0.793 26.717 0.868 46.413
FP = Financial performance (Vorhies and Morgan 2005)
α; CR; AVE 0.869; 0.911; 0.721 0.951; 0.965; 0.873
FP1.Company unit profitability. 0.883 68.486 0.975 175.807
FP2 Return on investment (ROI). 0.762 29.529 0.890 49.776
FP3.Return on sales (ROS). 0.854 44.027 0.945 66.271
FP4.Reaching financial goals. 0.891 77.164 0.925 86.753
α – Cronbach’s alpha, AVE – Average Variance Extracted, CR – Composite Reliability. *The significance of the loadings is checked with a re-sampling procedure (500 sub-samples) for
obtaining t-statistic values. They are all significant (p < 0.01).
Discriminant validity
Belarus Spain
CP FP IMC MO MP TO CP FP IMC MO MP TO
CP 0.851 CP 0.924
FP 0.731 0.849 FP 0.88 0.934
IMC 0.437 0.287 0.824 IMC 0.753 0.682 0.861
MO 0.486 0.241 0.587 0.845 MO 0.809 0.715 0.801 0.914
MP 0.725 0.652 0.282 0.475 0.862 MP 0.827 0.820 0.710 0.778 0.896
TO 0.545 0.529 0.325 0.446 0.528 0.825 TO 0.785 0.822 0.643 0.628 0.732 0.891
Diagonal elements are the square root of the average variance extracted (AVE) between the constructs and their measures. Off-diagonal elements are correlations between constructs.

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