Yıl 2017, Cilt 4 , Sayı 3, Sayfalar 359 - 371 2017-09-30

IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY

Mehmet Caglar [1] , Rauf Nurettin Nisel [2]


Purpose- In this research it is aimed to investigate the impact of marketing and research and development (R&D) expenditures of companies on their financial performance in manufacturing industry. 

Methodology- Data of 41 manufacturing companies listed on Borsa İstanbul (BIST) was gathered for the period of 2009-2015 from their financial statements. Since the data set is a panel data, methods of panel regression analysis have been performed. 

Findings- As a result of the analysis, impact of marketing and R&D expenditures on firms’ performance differentiate according to financial performance measures and it is founded that they have no effect on some financial performance indicators.

Conclusion- Test results imply that marketing and R&D expenditures have positive contribution to manufacturing companies’ some of the financial performance indicators. However, manufacturing companies cannot use marketing and R&D budgets in an effective and efficient way. Manufacturing companies are not able to manage marketing and R&D activities successfully. 

Marketing expenditures, research and development expenditures, panel data analysis, financial performance
  • Aaker, D. A., & Jacobson, R. 1994. “The financial information content of perceived quality”, Journal of Marketing Research, vol. 31, no. 2, pp. 191–201.
  • Andras, T. L., & Srinivasan, S. S. 2003. “Advertising Intensity And R&D Intensity: Differences across Industries and Their Impact on Firm’s Performance", International Journal of Business and Economics, vol. 2, no. 2, pp. 167-176.
  • Artz, K. W., Norman, P. M., Hatfield, D. E., & Cardinal, L. B. 2010. “A longitudinal study of the impact of R&D, patents, and product innovation on firm performance”, Journal of Product Innovation Management, vol. 27, no. 5, pp. 725-740.
  • Baltagi, B. H., & Wu, P. X. 1999. “Unequally Spaced Panel Data Regressions with AR (1) Disturbances”, Econometric Theory, vol. 15, no. 6, pp. 814-823.
  • Bettis, R. A., & Hitt, M. A. 1995. “The new competitive landscape”, Strategic Management Journal, vol. 16, no. S1, pp. 7-19.
  • Bhargava, A., Franzini, L., & Narendranathan, W. 1982. “Serial Correlation and the Fixed Effects Model”, The Review of Economic Studies, vol. 49, no. 4, pp. 533-549.
  • Bowen, F. E., Rostami, M., & Steel, P. 2010. “Timing is everything: A meta-analysis of the relationships between organizational performance and innovation”, Journal of Business Research, vol. 63, no. 11, pp. 1179–1185
  • Brown, M. B., & Forsythe, A. B. (1974). “Robust tests for the equality of variances”. Journal of the American Statistical Association, 69(346), 364-367.
  • Cohen, W. M., & Levinthal, D. A. 1989. “Innovation and learning: The two faces of R&D” The Economical Journal, vol. 99, no. 397, pp. 569– 596
  • Danneels, E., & Kleinschmidt, E. J. 2001. “Product innovativeness from the firm's perspective: Its dimensions and their relation with project selection and performance”, Journal of Product Innovation Management, vol. 18, no. 6, pp. 357–373
  • Day, G. S. 1994. “The capabilities of market-driven organizations”, Journal of Marketing, vol. 58, no. 1, pp. 37–52.
  • De Luca, L. M., & Atuahene-Gima, K. 2007. “Market knowledge dimensions and crossfunctional collaboration: Examining the different routes to product innovation performance”, Journal of Marketing, vol. 71 no. 1, pp. 95–112.
  • Driscoll, J., and A. C. Kraay. 1998. “Consistent Covariance Matrix Estimation with Spatially Dependent Data”, Review of Economics and Statistics, vol. 80 no. 4, pp. 549–560.
  • Dutta, S., Narashiman, O., & Surendra, R. 1999. “Success in high technology markets: Is marketing capability critical?”, Marketing Science, vol. 18, no. 4, pp. 547–568.
  • Edvinsson, L., & Malone, M. S. 1997. “Intellectual Capital: Realizing Your Company's True Value by Finding Its Hidden Brainpower”.
  • Eicker, F. (1967), ‘‘Limit Theorems for Regressions with Unequal and Dependent Errors,’’ Proceedings of the Fifth Berkeley Symposium on Mathematical Statistics and Probability 1, 59–82. Berkeley: University of California Press.
  • Frees, E. W. 1995. “Assessing Cross-Sectional Correlation in Panel Data”, Journal of Econometrics, vol. 69, no. 2, pp. 393-414.
  • Friedman, M. (1937). “The Use of Ranks to Avoid the Assumption of Normality Implicit in the Analysis Of Variance”, Journal of The American Statistical Association, 32(200), 675-701.
  • Gupta, A. K., Raj, S., & Wilemon, D. 1986. “A model for studying R&D — Marketing Interface in the product innovation process”, Journal of Marketing, vol. 50, no. 2, pp. 7–17.
  • Hausman, J. A. 1978. “Specification Tests in Econometrics”, Econometrica, vol. 46, no. 6, pp. 1251-1271.
  • Helfat, C. E., & Peteraf, M. A. 2003. “The dynamic resource‐based view: Capability lifecycles”, Strategic Management Journal, vol. 24, no. 10, pp. 997-1010.
  • Hsu, F. J., Chen, M. Y., Chen, Y. C., & Wang, W. C. 2013. “An empirical study on the relationship between R&D and financial performance”, Journal of Applied Finance and Banking, vol. 3, no. 5, pp. 107-119
  • Huber, P. J. (1967), ‘‘The Behavior of Maximum Likelihood Estimates under Nonstandard Conditions,’’ in Proceedings of the Fifth Berkeley Symposium in Mathematical Statistics, Volume 1. Berkeley: University of California Press, 221–233.
  • Krasnikov, A., & Jayachandran, S. 2008. “The Relative Impact of Marketing, Research-And-Development, and Operations Capabilities on Firm Performance”, Journal of Marketing, vol. 72, no. 4, pp. 1-11.
  • Lantz, J. S., & Sahut, J. M. 2005. “R&D investment and the financial performance of technological firms”, International Journal of Business, vol. 10, no. 3, pp. 251-270.
  • Levene, H. (1960). “Robust tests for equality of variances”. Contributions to Probability and Statistics, 1, 278-292.
  • Liao, T. S., & Rice, J. 2010. “Innovation investments, market engagement and financial performance: A study among Australian manufacturing SMEs”, Research Policy, vol. 39, no.1, pp. 117–125
  • Lynn, G. S. 1998. “New product team learning: Developing and profiting from your knowledge”, California Management Review, vol. 3, no. 38, pp. 74–93.
  • Mizik, N., & Jacobson, R. 2003. “Trading off between Value Creation and Value Appropriation: The Financial Implications of Shifts in Strategic Emphasis”, Journal of Marketing, vol. 67, no. 1, pp. 63–76.
  • Narsimhan, O., Rajiv, S., & Dutta, S. 2006. “Absorptive capacity in high technology markets: The competitive advantage of the haves”, Marketing Science, vol. 25, no. 5, pp. 510–524
  • Nath, P., Nacchiapan, S., & Ramanathan, R. 2010. “The impact of marketing capability, operations capability and diversification strategy on performance: A resource-based view”, Industrial Marketing Management, vol. 39, no. 2, pp. 307–329
  • Ortega, M. J. R., & Villaverde, P.M. G. 2008. “Capabilities and competitive tactics influences on performance: Implications of the moment of entry”, Journal of Business Research, vol. 61, no. 4, pp. 332–345
  • O'Sullivan, D., & Abela, A. V. 2007. “Marketing Performance Measurement Ability and Firm Performance”, Journal of Marketing, vol. 71, no. 2, pp. 79-93.
  • Pesaran, M. H. 2003. “A Simple Panel Unit Root Test in The Presence of Cross‐Section Dependence”, Cambridge Working Papers in Economics, 0346, pp. 1-24.
  • Pesaran, M. H. (2004). “General Diagnostic Tests for Cross Section Dependence in Panels”, University of Cambridge, Faculty of Economics, Cambridge Working Papers in Economics No. 0435.
  • Peterson, R. A., & Jeong, J. 2010. “Exploring the Impact of Advertising and R&D Expenditures on Corporate Brand Value and Firm-Level Financial Performance”, Journal of the Academy of Marketing Science, vol. 38, no. 6, pp. 677-690.
  • Ramaswami, S., Srivastava, R., & Bhargava, M. 2009. “Market-based capabilities and financial capabilities of firms: insights into marketing’s contribution to firm value”, Journal of the Academy of Marketing Science, vol. 37, no. 2, pp. 97–116.
  • Ruiqi, W., Wang, F., Xu, L., & Yuan, C. 2017. “R&D expenditures, ultimate ownership and future performance: Evidence from China”, Journal of Business Research, vol. 71, pp. 47-54.
  • Sharp, B. 1996. “Brand equity and market-based assets of professional service firms”, Journal of Professional Services Marketing, vol. 13, no. 1, pp. 3-13.
  • Slotegraaf, R. J., & Pauwels, K. 2008. “The impact of brand equity and innovation on the long-term effectiveness of promotions”, Journal of Marketing Research, vol. 45, no. 3, pp. 293–306.
  • Song, M., Benedetto, A.D., & Nason, R. W. 2007. “Capabilities and financial performance: The moderating effect of strategic type”, Journal of the Academy of Marketing Science, vol. 35, no. 1, pp. 18-34.
  • Song, M., Droge, C., Hanvanich, S., & Calantone, R. 2005. “Marketing and technology resource complementarity: An analysis of their interaction effect in two environmental contexts”, Strategic Management Journal, vol. 26, no. 3, pp. 259–276
  • Srinivasan, S., & Hanssens, D. M. 2009. “Marketing and Firm Value: Metrics, Methods, Findings, and Future Directions”, Journal of Marketing Research, vol. 46, no. 3, pp. 293-312.
  • Srivastava, R. K., Shervani, T. A., & Fahey, L. 1998. “Market-based assets and shareholder value: A framework for analysis”, The Journal of Marketing, vol. 62, no. 1, pp. 2-18.
  • Treacy, M., & Wiersema, F. 1993. “Customer Intimacy and Other Value Disciplines”, Harvard Business Review, vol. 71, no.1, pp. 84-93.
  • Vorhies, D. W., & Morgan, N. A. 2003. “A configuration theory assessment of marketing organization fit with business strategy and its relationship with marketing performance”, Journal of Marketing, vol. 67, no. 1, pp. 100–115.
  • Vorhies, D. W., & Morgan, N. A. 2005. “Benchmarking marketing capabilities for sustained competitive advantage”, Journal of Marketing, vol. 69, no. 1, pp. 80–94
  • Voss, C. A. 1994. “Significant issues for the future of product innovation” Journal of Product Innovation Management, vol. 11, no. 5, pp. 460-463.
  • White, H. (1980), ‘‘A Heteroscedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroscedasticity,’’ Econometrica 48, 817–838.
  • YU, W., RAMANATHAN, R., & NATH, P. 2014. “THE IMPACTS OF MARKETING AND OPERATIONS CAPABILITIES ON FINANCIAL PERFORMANCE IN THE UK RETAIL SECTOR: A RESOURCE-BASED PERSPECTIVE”, INDUSTRIAL MARKETING MANAGEMENT, VOL. 43, NO. 1, PP. 2
Konular Sosyal
Bölüm Articles
Yazarlar

Yazar: Mehmet Caglar

Yazar: Rauf Nurettin Nisel

Tarihler

Yayımlanma Tarihi : 30 Eylül 2017

Bibtex @araştırma makalesi { rjbm360068, journal = {Research Journal of Business and Management}, issn = {}, eissn = {2148-6689}, address = {}, publisher = {PressAcademia}, year = {2017}, volume = {4}, pages = {359 - 371}, doi = {10.17261/Pressacademia.2017.713}, title = {IMPACT OF MARKETING AND R\&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY}, key = {cite}, author = {Caglar, Mehmet and Nisel, Rauf Nurettin} }
APA Caglar, M , Nisel, R . (2017). IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY. Research Journal of Business and Management , 4 (3) , 359-371 . DOI: 10.17261/Pressacademia.2017.713
MLA Caglar, M , Nisel, R . "IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY". Research Journal of Business and Management 4 (2017 ): 359-371 <https://dergipark.org.tr/tr/pub/rjbm/issue/32378/360068>
Chicago Caglar, M , Nisel, R . "IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY". Research Journal of Business and Management 4 (2017 ): 359-371
RIS TY - JOUR T1 - IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY AU - Mehmet Caglar , Rauf Nurettin Nisel Y1 - 2017 PY - 2017 N1 - doi: 10.17261/Pressacademia.2017.713 DO - 10.17261/Pressacademia.2017.713 T2 - Research Journal of Business and Management JF - Journal JO - JOR SP - 359 EP - 371 VL - 4 IS - 3 SN - -2148-6689 M3 - doi: 10.17261/Pressacademia.2017.713 UR - https://doi.org/10.17261/Pressacademia.2017.713 Y2 - 2019 ER -
EndNote %0 Research Journal of Business and Management IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY %A Mehmet Caglar , Rauf Nurettin Nisel %T IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY %D 2017 %J Research Journal of Business and Management %P -2148-6689 %V 4 %N 3 %R doi: 10.17261/Pressacademia.2017.713 %U 10.17261/Pressacademia.2017.713
ISNAD Caglar, Mehmet , Nisel, Rauf Nurettin . "IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY". Research Journal of Business and Management 4 / 3 (Eylül 2017): 359-371 . https://doi.org/10.17261/Pressacademia.2017.713
AMA Caglar M , Nisel R . IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY. RJBM. 2017; 4(3): 359-371.
Vancouver Caglar M , Nisel R . IMPACT OF MARKETING AND R&D EXPENDITURES ON FINANCIAL PERFORMANCE: A RESEARCH IN MANUFACTURING INDUSTRY. Research Journal of Business and Management. 2017; 4(3): 371-359.