Rahman et al BJM Advertising Productivity - Accepted.pdf (468.99 kB)
Does advertising productivity affect organizational performance? Impact of market conditions
journal contribution
posted on 2020-08-14, 12:25 authored by Mahabub Rahman, Maria Ángeles Rodriguez Serrano, Mathew HughesAdvertising is crucial in influencing customers’ perceptions and purchase intentions, and numerous studies have investigated whether advertising expenditure has any significant impact on financial performance. A thorough understanding remains elusive: while several studies document a positive impact, others report that advertising has either a negative or a statistically insignificant effect. Three flaws among existing studies are responsible for this problem: bundling advertising with other forms of marketing, the inadequacy of expenditure as a measure, and a failure to consider contingencies. Deviating from earlier studies, we examine the effect of advertising productivity on firm performance rather than the impact of the absolute amount of advertising expenditure. Moreover, adopting a contingency approach, we evaluate how market conditions of market dynamism, market complexity and market munificence moderate the relationship between advertising productivity and organizational performance. Drawing a multi-industry sample from the USA, this study demonstrates that advertising productivity has a positive impact on capital market-based performance measures, conditional on market conditions. We reveal new insights into when, why and to what extent advertising contributes (or not) to organizations’ financial performance.
History
School
- Business and Economics
Department
- Business
Published in
British Journal of ManagementVolume
32Issue
4Pages
1359-1383Citation
Rahman, M., Rodriguez Serrano, M.A. and Hughes, M., (2021). Does advertising productivity affect organizational performance? Impact of market conditions. British Journal of Management, 32 (4), pp.1359-1383.Publisher
WileyVersion
- AM (Accepted Manuscript)
Rights holder
© 2020 British Academy of Management and Wiley Periodicals LLCPublisher statement
This is the peer reviewed version of the following article: Rahman, M., Rodriguez Serrano, M.A. and Hughes, M., (2021). Does advertising productivity affect organizational performance? Impact of market conditions. British Journal of Management, 32 (4), pp.1359-1383, which has been published in final form at https://doi.org/10.1111/1467-8551.12432. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.Acceptance date
2020-08-11Publication date
2020-09-06Copyright date
2020ISSN
1045-3172eISSN
1467-8551Publisher version
Language
- en
Depositor
Prof Mat Hughes Deposit date: 11 August 2020Usage metrics
Categories
No categories selectedKeywords
Licence
Exports
RefWorks
BibTeX
Ref. manager
Endnote
DataCite
NLM
DC