Marketing capabilities and innovation outcomes as mediators of the relationship between innovativeness and SME performance
(A2019-9074)

AUTHORS

Lucas Finoti, Federal University of Parana; Simone Didonet, Federal University of Paraná; Ana Maria Toaldo, Federal University of Parana

KEYWORDS

Marketing Capability; Innovativeness; Performance

ABSTRACT

The purpose of this study was to test the roles of marketing capabilities and innovation outcomes in the relationship between innovativeness and SMEs performance as a way of understanding this phenomenon. Data were collected in a sample of Brazilian firms in the Information and Communication Technology (ICT) sector. Structural Equation Modelling with Partial Least Square was used to test the study hypotheses. Our results showed that the relationship between innovativeness and performance is mediated by the ‘marketing capability -> innovation outcomes’ path. This is a valuable insight as it helps to explain the mechanisms through which firm performance is improved by innovativeness. Therefore, innovativeness is necessary but not enough to determine firm performance. Companies need to consider the central role of marketing capabilities, which enables them to transform innovativeness into innovation outcomes and, finally, improves firm performance.