Power dynamics of the international marketing within firms and how they shape international performance

What is it about?

The status of marketing within the firm and its cross-functional interactions continue to draw academics and practitioners' attention. Using power, rather than influence, and power asymmetry concepts in an industrial international marketing (IM) context for the first time, the study examines the interface between IM and non-IM functions and investigates whether powerful IM functions benefit international performance. Findings show that IMs are powerful and enhance performance, however to some extent. Power asymmetry between IM and non-marketing functions is related negatively with performance while power asymmetry between IM and non-international marketing function is not related to performance. However, in the presence of international market orientation (IMO) the negative effect of differences between IM and non-marketing functions powers on performance is weaker. Thus, a strategic decision to adopt an IMO, perceived as a power mechanism, potentially has a reviving effect on the IM function, and IMO and the power distribution activity should not be isolated domains of managerial decision-making. The study accounts simultaneously for IM as a distinct function and as an activity-based process and allows refined observation into the marketing functions' interaction.

Featured Image