What Motivates Marketing Innovation and Whether Marketing Innovation Varies across Industry Sectors

Abstract

Innovativeness is one of the fundamental instruments of growth strategies that provide companies with a competitive edge. Only a few recent studies have examined marketing innovation and the factors that might encourage its adoption. This study investigates the factors that motivate marketing innovation and examines whether the occurrence of marketing innovation varies across industry sectors. This study uses data from surveys and a nationwide census conducted by Statistics Canada. They include: the Survey of Innovation and Business Strategies (SIBS) 2009, the Survey of Innovation and Business Strategies (SIBS) 2012, the Business Registry (BR) and the General Index of Financial Information (GIFI). Multilevel (random-intercept) logistic regression modelling is employed. The results show that if a firm has a strategic focus on new marketing practices, maintains marketing within its enterprise, acquires or expands marketing capacity, has competitor and customer orientations, and adopts advanced technology then it is more likely to carry out marketing innovation. However, breadth of long-term strategic objectives and competitive intensity do not have significant impacts on marketing innovation. In addition, product innovation and organizational innovation occur simultaneously with marketing innovation, but process innovation may not. Lastly, the occurrence of marketing innovation is found to vary across industry sectors. The theoretical and empirical implications of the results are discussed within this study.