Product innovation as a mediator in the impact of R&D expenditure and brand equity on marketing performance

Piyush Sharma, Nebosja S. Davcik, Kishore Gopalakrishna Pillai

Research output: Contribution to journalArticle

47 Citations (Scopus)
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Abstract

This study combines the signaling theory and dynamic marketing capabilities perspective to investigate the mediating role of product innovation in the influence of R&D expenditure and brand equity on marketing performance. The study shows that MNC firms are able to use R&D expenditure to improve their product innovation and market share to a greater extent compared to SME and retailer firms. However, the stronger brand equity of MNC firms may actually hurt the performance of their new products by inhibiting product innovation. The authors use regression and probit analysis to study a panel data for 1356 food brands. Overall, this research provides fresh insights into the process by which R&D expenditure and brand equity affect product innovation and marketing performance in highly competitive product categories.
Original languageEnglish
Pages (from-to)5662–5669
Number of pages8
JournalJournal of Business Research
Volume69
Issue number12
Early online date20 May 2016
DOIs
Publication statusPublished - Dec 2016

Keywords

  • Brand equity
  • Marketing performance
  • Market share
  • Product innovation
  • R&D expenditure
  • dynamic marketing capabilities
  • Signaling theory

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