The influence of formal and informal control on market and financial results

  1. Daniel Espinosa Sáez 1
  2. Paola Andrea Ortiz Rendón 2
  3. José Luis Munuera Alemán 1
  1. 1 Universidad de Murcia
    info

    Universidad de Murcia

    Murcia, España

    ROR https://ror.org/03p3aeb86

  2. 2 Institución Universitaria Colegio Mayor de Antioquia
    info

    Institución Universitaria Colegio Mayor de Antioquia

    Medellín, Colombia

    ROR https://ror.org/0289gr697

Revista:
Spanish journal of marketing-ESIC

ISSN: 2444-9695,  2444-9709

Año de publicación: 2022

Volumen: 26

Número: 1

Páginas: 44-60

Tipo: Artículo

DOI: 10.1108/SJME-04-2021-0072 DIALNET GOOGLE SCHOLAR lock_openAcceso abierto editor

Otras publicaciones en: Spanish journal of marketing-ESIC

Objetivos de desarrollo sostenible

Resumen

Purpose – This paper aims to examine the relationship between control mechanisms and marketing performance based on a sample of marketing managers. To that end, this paper focuses on the relationship between the types of controls used in marketing and the market and business results. Methodology – This study collected the data through a survey among marketing professionals with experience and decision-making capacity involving marketing budgets and plans, in practical terms a sample of 97 marketing managers and analyzed the data via a structural equation model using Smart PLS 3. Findings – The findings confirm that marketing control mechanisms have a significant impact on business results, demonstrating the relationship of formal controls with market results and the relationship between informal controls with financial results. Likewise, the authors were able to prove that there is a relationship between formal and informal control. Practical implications – The implementation of the control mechanisms should be based on the development of a detailed evaluation system of the activities carried out by the marketing employees and an analysis of their capabilities and abilities. In addition, managers should integrate formal control decisions into their marketing strategy to improve organizational results. Originality – The results of this study help explain the relationship between marketing control mechanisms and organizational results and allow to understand what the level of influence is that marketing control mechanisms have on market and financial results.

Referencias bibliográficas

  • Ambler, T., Kokkinaki, F. and Puntoni, S. (2004), “Assessing marketing performance: reasons for metrics selection”, Journal of MarketingManagement, Vol. 20 Nos 3/4, pp. 475-498.
  • Anderson, E. and Oliver, R.L. (1987), “Perspectives on behavior-based versus outcome-based salesforce control systems”, Journal of Marketing, Vol. 51 No. 4, pp. 76-88.
  • Baldauf, A., Cravens, D.W. and Piercy, N.F. (2001), “Examining the consequences of sales management control strategies in European field sales organizations”, International Marketing Review, Vol. 18 No. 5, pp. 474-508.
  • Bande, B., Kimura, T., Fern�andez-Ferrín, P. and Jaramillo, F. (2021), “Capability management control and salesperson turnover: a double-edged sword in a product complexity scenario”, Industrial MarketingManagement, Vol. 96, pp. 100-112.
  • Barwise, P. and Farley, J.U. (2004), “Marketing metrics: status of six metrics in five countries”, EuropeanManagement Journal, Vol. 22 No. 3, pp. 257-262.
  • Bedford, D.S. (2015), “Management control systems across different modes of innovation: implications for firm performance”,Management Accounting Research, Vol. 28, pp. 12-30.
  • Best, R. (2012),Market-BasedManagement (Sixth), Pearson Higher Ed., Upper Saddle River, NJ.
  • Cacciolatti, L. and Lee, S.H. (2016), “Revisiting the relationship between marketing capabilities and firm performance: the moderating role of market orientation, marketing strategy and organisational power”, Journal of Business Research, Vol. 69 No. 12, pp. 5597-5610.
  • Challagalla, G.N. and Shervani, T.A. (1996), “Dimensions and types of supervisory control: effects on salesperson performance and satisfaction”, Journal ofMarketing, Vol. 60 No. 1, pp. 89-105.
  • Clark, B.H. (1999), “Marketing performance measures: history and interrelationships”, Journal of MarketingManagement, Vol. 15 No. 8, pp. 711-732.
  • Clatworthy, M.A. and Peel, M.J. (2013), “The impact of voluntary audit and governance characteristics on accounting errors in private companies”, Journal of Accounting and Public Policy, Vol. 32 No. 3, pp. 1-25.
  • Cravens, D.W., Lassk, F.G., Low, G.S., Marshall, G.W. and Moncrief, W.C. (2004), “Formal and informal management control combinations in sales organizations. The impact on salesperson consequences”, Journal of Business Research, Vol. 57 No. 3, pp. 241-248.
  • Duh, R.R., Chow, C.W. and Chen, H. (2006), “Strategy, IT applications for planning and control and firm performance: the impact of impediments to IT implementation”, Information and Management, Vol. 43 No. 8, pp. 939-949.
  • Edeling, A. and Fischer, M. (2016), “Marketing’s impact on firm value: generalizations from a Metaanalysis”, Journal of Marketing Research, Vol. 53 No. 4, pp. 515-534.
  • Farley, J.U., Hoenig, S., Lehmann, D.R. and Nguyen, H.T. (2008), “Marketing metrics use in a transition economy: the case of Vietnam”, Journal of Global Marketing, Vol. 21 No. 3, pp. 179-190.
  • Fonseca, L., Amaral, A. and Oliveira, J. (2021), “Quality 4.0: the EFQM 2020 model and industry 4.0 relationships and implications”, Sustainability, Vol. 13 No. 6, p. 3107.
  • Gong, M.Z. and Ferreira, A. (2014), “Does consistency in management control systems design choices influence firm performance? An empirical analysis”, Accounting and Business Research, Vol. 44 No. 5, pp. 497-522.
  • Hair, J. Anderson, R., Tatham, R. and Black, W. (2014), Multivariate Data Analysis, 7th ed., Pearson Prentice Hall, NewYork, NY.
  • Hanssens, D.M. and Pauwels, K.H. (2016), “Demonstrating the value of marketing”, Journal of Marketing, Vol. 80 No. 6, pp. 173-190.
  • Henri, J.-F. (2006), “Organizational culture and performance measurement systems”, Accounting, Organizations and Society, Vol. 31 No. 1, pp. 77-103.
  • Homburg, C., Artz, M. and Wieseke, J. (2012), “Marketing performance measurement systems: does comprehensiveness really improve performance? ”, Journal of Marketing, Vol. 76 No. 3, pp. 56-77.
  • Jaworski, B.J. (1988), “Toward a theory of marketing control: environmental context, control types and consequences”, Journal of Marketing, Vol. 52 No. 3, pp. 23-39.
  • Jaworski, B.J., Stathakopoulos, V. and Shanker Krishnan, H. (1993), “Control combinations in marketing: conceptual framework and empirical evidence”, Journal of Marketing, Vol. 57 No. 1, pp. 57-69.
  • Katsikeas, C.S., Morgan, N.A., Leonidou, L.C. and Hult, G.T.M. (2016), “Assessing performance outcomes in marketing”, Journal of Marketing, Vol. 80 No. 2, pp. 1-20.
  • Liang, X. and Gao, Y. (2020), “Marketing performance measurement systems and firm performance: are marketing capabilities the missing links?”, European Journal of Marketing, Vol. 54 No. 4, pp. 885-907.
  • Liang, X. and Frösén, J. (2020), “Examining the link between marketing controls and firm performance: the mediating effect of market-focused learning capability”, Journal of Business Research, Vol. 109, pp. 545-556.
  • Malek, S.L., Sarin, S. and Jaworski, B.J. (2018), “Sales management control systems: review, synthesis and directions for future exploration”, Journal of Personal Selling and Sales Management, Vol. 38 No. 1, pp. 30-55.
  • Malmi, T. and Brown, D.A. (2008), “Management control systems as a package — opportunities, challenges and research directions”, Management Accounting Research, Vol. 19 No. 4, pp. 287-300.
  • Marketing Science Institute (2014), 2014-2016 Research Priorities, Marketing Science Institute, Cambridge, MA.
  • Markovitch, D.G., Huang, D. and Ye, P. (2020), “Marketing intensity and firm performance: contrasting the insights based on actual marketing expenditure and its SG&A proxy”, Journal of Business Research, Vol. 118, pp. 223-239.
  • Miao, C.F. and Evans, K.R. (2012), “Effects of formal sales control systems: a combinatory perspective”, International Journal of Research inMarketing, Vol. 29 No. 2, pp. 181-191.
  • Miao, C.F. and Evans, K.R. (2014), “Motivating industrial sales force with sales control systems: an interactive perspective”, Journal of Business Research, Vol. 67 No. 6, pp. 1233-1242.
  • Morgan, N.A. Vorhies, D.W. andMason, C.H. (2009), “Market orientation, marketing capallivan”.
  • O’Sullivan, D. and Abela, A.V. (2007), “Marketing performance measurement ability and firm performance”, Journal of Marketing, Vol. 71 No. 2, pp. 79-93.
  • Ortiz-Rend�on, P., Restrepo, L.M. and Munuera-Alem�an, J. (2020), “The relationship between marketing control mechanisms and firm performance”, Proceedings of the European Marketing Academy, Vol. 48, p. 8495.
  • Pan Fagerlin, W. and Lövstål, E. (2020), “Top managers’ formal and informal control practices in product innovation processes”, Qualitative Research in Accounting and Management, Vol. 17 No. 4, pp. 497-524.
  • Rust, R.T., Ambler, T., Carpenter, G.S., Kumar, V. and Srivastava, R.K. (2004), “Measuring marketing productivity: current knowledge and future directions”, Journal of Marketing, Vol. 68 No. 4, pp. 76-89.
  • Statista (2020), “Annual growth rate of the investment in digital marketing in Spain between 2015 to 2019”, October 2020, available at: www.statista.com/statistics/756885/marketing-spending-inspain/
  • Thomas, H. (2007), “Business school strategy and the metrics for success”, Journal of Management Development, Vol. 26 No. 1, pp. 33-42.
  • Verhoef, P. and Leeflang, P. (2009), “Understanding the marketing department’s influence within the firm”, Journal of Marketing, Vol. 73 No. 2, pp. 14-37.
Fuente de los datos: Dialnet