FIRM PERFORMANCE: HOW HAS IT BEEN MEASURED IN MARKETING AND FINANCE RESEARCH?
Keywords:
firm performance, metrics, Marketing and Finance interface, review, subjective metric, objective metric
Abstract
We conducted a survey on how firm performance has been measured by analyzing 119 articles published from 2006 to 2017 in some of the most cited journals of Marketing and Finance. Results show the existence of 77 different metrics of firm performance. This list of metrics evidences how the assessment of this construct is not a consensus. Marketing researchers have frequently used both subjective and objective metrics. Finance researchers do not use any subjective metric. Additionally, there is a lack of research exploring the theoretical aspect of firm performance and discussing how this multidimensional construct should be measured. It is also noteworthy how Marketing can improve its work on firm performance through an interface with Finance.
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References
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DAY, George; FAHEY, Liam. Valuing market strategies. Journal of Marketing, v. 52, n. 3, p. 45-57, 1988.
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DOYLE, Peter. Valuing marketing's contribution. European Management Journal, v. 18, n. 3, p. 233-245, 2000.
FAMA, Eugene F.; FRENCH, Kenneth R. Industry costs of equity. Journal of Financial Economics, v. 43, n. 2, p. 153-193, 1997.
GIANNETTI, Mariassunta; LIAO, Guanmin; YU, Xiaoyun. The brain gain of corporate boards: Evidence from China. The Journal of Finance, v. 70, n. 4, p. 1629-1682, 2015.
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GLICK, William H.; WASHBURN, Nathan T.; MILLER, C. Chet. The myth of firm performance. In: Annual Meeting of the Academy of Management. 2005.
GONG, Guojin; LOUIS, Henock; SUN, Amy X. Earnings management and firm performance following open‐market repurchases. The Journal of Finance, v. 63, n. 2, p. 947-986, 2008.
GRUCA, Thomas S.; REGO, Lopo L. Customer satisfaction, cash flow, and shareholder value. Journal of Marketing, v. 69, n. 3, p. 115-130, 2005.
HAMANN, P. Maik et al. Exploring the dimensions of organizational performance: A construct validity study. Organizational Research Methods, v. 16, n. 1, p. 67-87, 2013.
HOMBURG, Christian et al. The loss of the marketing department’s influence: is it really happening? And why worry?. Journal of the Academy of Marketing Science, v. 43, n. 1, p. 1-13, 2015.
HYMAN, Michael R.; MATHUR, Ike. Retrospective and prospective views on the marketing/finance interface. Journal of the Academy of Marketing Science, v. 33, n. 4, p. 390-400, 2005.
JEONG, Jaeseok. Exploring the impact of advertising on brand equity and shareholder value. 2004. Doctoral dissertation.
KABADAYI, Sertan; EYUBOGLU, Nermin; THOMAS, Gloria P. The performance implications of designing multiple channels to fit with strategy and environment. Journal of Marketing, v. 71, n. 4, p. 195-211, 2007.
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LEHMANN, Donald R. Metrics for making marketing matter. Journal of Marketing, v. 68, n. 4, p. 73-75, 2004.
MADANOGLU, Melih; LEE, Kyuho; CASTROGIOVANNI, Gary J. Franchising and firm financial performance among US restaurants. Journal of Retailing, v. 87, n. 3, p. 406-417, 2011.
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Marketing Science Institute (MSI). Research Priorities 2010 -2012. Retrieved January 15, 2011, from http://www.msi.org/pdf/MSI_RP10-12.pdf.
Marketing Science Institute (MSI). Research Priorities 2012 -2014. Retrieved August 19, 2012, from http://www.msi.org/research/index.cfm?id=338.
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MICHELI, Pietro; MANZONI, Jean-Francois. Strategic performance measurement: Benefits, limitations and paradoxes. Long Range Planning, v. 43, n. 4, p. 465-476, 2010.
MIZIK, Natalie; JACOBSON, Robert. The financial value impact of perceptual brand attributes. Journal of Marketing Research, v. 45, n. 1, p. 15-32, 2008.
MOORMAN, Christine; DAY, George S. Organizing for marketing excellence. Journal of Marketing, v. 80, n. 6, p. 6-35, 2016.
MORGAN, Neil A. Marketing and business performance. Journal of the Academy of Marketing Science, v. 40, n. 1, p. 102-119, 2012.
MORGAN, Neil A.; CLARK, Bruce H.; GOONER, Rich. Marketing productivity, marketing audits, and systems for marketing performance assessment: integrating multiple perspectives. Journal of Business Research, v. 55, n. 5, p. 363-375, 2002.
MORGAN, Neil A.; FENG, Hui; WHITLER, Kimberly A. Marketing capabilities in international marketing. Journal of International Marketing, v. 26, n. 1, p. 61-95, 2018.
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REIBSTEIN, David J.; DAY, George; WIND, Jerry. Guest editorial: is marketing academia losing its way?. Journal of Marketing, v. 73, n. 4, p. 1-3, 2009.
RICHARD, Pierre J. et al. Measuring organizational performance: Towards methodological best practice. Journal of Management, v. 35, n. 3, p. 718-804, 2009.
ROSS, S. A.; WESTERFIELD, R. W.; JAFFE, J. F. Corporate Finance, Homewood, IL. McGraw-Hill/Irwin. Previous editions, v. 1993, n. 1996, p. 1999, 1998.
RUST, Roland T. et al. Measuring marketing productivity: Current knowledge and future directions. Journal of Marketing, v. 68, n. 4, p. 76-89, 2004.
RUYTER, Ko; WETZELS, Martin. The marketing–finance interface: A relational exchange perspective. Journal of Business Research, v. 50, n. 2, p. 209-215, 2000.
SAINAGHI, Ruggero; PHILLIPS, Paul; ZAVARRONE, Emma. Performance measurement in tourism firms: A content analytical meta-approach. Tourism Management, v. 59, p. 36-56, 2017.
SHARMA, Amalesh; SABOO, Alok R.; KUMAR, V. Investigating the Influence of Characteristics of the New Product Introduction Process on Firm Value: The Case of the Pharmaceutical Industry. Journal of Marketing, v. 82, n. 5, p. 66-85, 2018.
SHETH, Jagdish N.; SISODIA, Rajendra S. Feeling the heat-part 1. Marketing Management, v. 4, n. 2, p. 8, 1995.
SHETH, Jagdish N.; SISODIA, Rajendra S. Marketing productivity: issues and analysis. Journal of Business Research, v. 55, n. 5, p. 349-362, 2002.
SMART, Scott B.; MEGGINSON, William L.; GITMAN, Lawrence J. Corporate finance. Thomson/South-Western, 2004.
SRIVASTAVA, Rajendra K.; SHERVANI, Tasadduq A.; FAHEY, Liam. Market-based assets and shareholder value: A framework for analysis. Journal of Marketing, v. 62, n. 1, p. 2-18, 1998.
VENKATRAMAN, Natarjan; RAMANUJAM, Vasudevan. Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, v. 11, n. 4, p. 801-814, 1986.
WALL, Toby D. et al. On the validity of subjective measures of company performance. Personnel psychology, v. 57, n. 1, p. 95-118, 2004.
Web of Science. Journal Citation Reports. Retrieved May 15, 2009, from http://webofknowledge.com.
Web of Science. Journal Citation Reports. Retrieved Jan 18, 2018, from http://webofknowledge.com.
WIESEL, Thorsten; SKIERA, Bernd; VILLANUEVA, Julian. Customer equity: an integral part of financial reporting. Journal of Marketing, v. 72, n. 2, p. 1-14, 2008.
ZINKHAN, George M.; VERBRUGGE, James A. The marketing/finance interface: two divergent and complementary views of the firm. Journal of Business Research, v. 50, n. 2, p. 143-148, 2000.
ASSAF, A. George et al. Internationalization and performance of retail firms: a Bayesian dynamic model. Journal of Retailing, v. 88, n. 2, p. 191-205, 2012.
BRITO, Eliane Pereira Zamith; BRITO, Luiz Artur Ledur; MORGANTI, Fábio. Innovation and corporate performance: profit or growth?. RAE eletrônica, v. 8, n. 1, p. 0-0, 2009.
CHAKRAVARTY, Anindita; KUMAR, Alok; GREWAL, Rajdeep. Customer orientation structure for internet-based business-to-business platform firms. Journal of Marketing, v. 78, n. 5, p. 1-23, 2014.
COMBS, James G.; RUSSELL CROOK, T.; SHOOK, Christopher L. The dimensionality of organizational performance and its implications for strategic management research. In: Research methodology in strategy and management. Emerald Group Publishing Limited, 2005. p. 259-286.
DAY, George; FAHEY, Liam. Valuing market strategies. Journal of Marketing, v. 52, n. 3, p. 45-57, 1988.
DESS, Gregory G.; ROBINSON JR, Richard B. Measuring organizational performance in the absence of objective measures: the case of the privately‐held firm and conglomerate business unit. Strategic Management Journal, v. 5, n. 3, p. 265-273, 1984.
DOYLE, Peter. Valuing marketing's contribution. European Management Journal, v. 18, n. 3, p. 233-245, 2000.
FAMA, Eugene F.; FRENCH, Kenneth R. Industry costs of equity. Journal of Financial Economics, v. 43, n. 2, p. 153-193, 1997.
GIANNETTI, Mariassunta; LIAO, Guanmin; YU, Xiaoyun. The brain gain of corporate boards: Evidence from China. The Journal of Finance, v. 70, n. 4, p. 1629-1682, 2015.
GITMAN, Lawrence J.; JUCHAU, Roger; FLANAGAN, Jack. Principles of managerial finance. Pearson Higher Education AU, 2015.
GLICK, William H.; WASHBURN, Nathan T.; MILLER, C. Chet. The myth of firm performance. In: Annual Meeting of the Academy of Management. 2005.
GONG, Guojin; LOUIS, Henock; SUN, Amy X. Earnings management and firm performance following open‐market repurchases. The Journal of Finance, v. 63, n. 2, p. 947-986, 2008.
GRUCA, Thomas S.; REGO, Lopo L. Customer satisfaction, cash flow, and shareholder value. Journal of Marketing, v. 69, n. 3, p. 115-130, 2005.
HAMANN, P. Maik et al. Exploring the dimensions of organizational performance: A construct validity study. Organizational Research Methods, v. 16, n. 1, p. 67-87, 2013.
HOMBURG, Christian et al. The loss of the marketing department’s influence: is it really happening? And why worry?. Journal of the Academy of Marketing Science, v. 43, n. 1, p. 1-13, 2015.
HYMAN, Michael R.; MATHUR, Ike. Retrospective and prospective views on the marketing/finance interface. Journal of the Academy of Marketing Science, v. 33, n. 4, p. 390-400, 2005.
JEONG, Jaeseok. Exploring the impact of advertising on brand equity and shareholder value. 2004. Doctoral dissertation.
KABADAYI, Sertan; EYUBOGLU, Nermin; THOMAS, Gloria P. The performance implications of designing multiple channels to fit with strategy and environment. Journal of Marketing, v. 71, n. 4, p. 195-211, 2007.
KATSIKEAS, Constantine S. et al. Assessing performance outcomes in marketing. Journal of Marketing, v. 80, n. 2, p. 1-20, 2016.
KNOWLES, Jonathan; AMBLER, Tim. Orientation and marketing metrics. Maclaran, P. et alli. Ed.: The Sage Handbook of Marketing Theory. Los Angeles, Sage, p. 379-396, 2009.
LEHMANN, Donald R. Metrics for making marketing matter. Journal of Marketing, v. 68, n. 4, p. 73-75, 2004.
MADANOGLU, Melih; LEE, Kyuho; CASTROGIOVANNI, Gary J. Franchising and firm financial performance among US restaurants. Journal of Retailing, v. 87, n. 3, p. 406-417, 2011.
MADDEN, Thomas J.; FEHLE, Frank; FOURNIER, Susan. Brands matter: An empirical demonstration of the creation of shareholder value through branding. Journal of the Academy of Marketing Science, v. 34, n. 2, p. 224-235, 2006.
Marketing Science Institute (MSI). Research Priorities 2006-2008: a guide to MSI Research Programs and Procedures. Retrieved April 7, 2008, from http://www.msi.org.
Marketing Science Institute (MSI). Research Priorities 2008 -2010. Retrieved January 15, 2011, from http://www.msi.org/pdf/MSI_RP08-10.pdf.
Marketing Science Institute (MSI). Research Priorities 2010 -2012. Retrieved January 15, 2011, from http://www.msi.org/pdf/MSI_RP10-12.pdf.
Marketing Science Institute (MSI). Research Priorities 2012 -2014. Retrieved August 19, 2012, from http://www.msi.org/research/index.cfm?id=338.
Marketing Science Institute (MSI). Research Priorities 2014 -2016. Retrieved February 06, 2017, from http://www.msi.org/uploads/files/MSI_RP14-16.pdf.
MICHELI, Pietro; MANZONI, Jean-Francois. Strategic performance measurement: Benefits, limitations and paradoxes. Long Range Planning, v. 43, n. 4, p. 465-476, 2010.
MIZIK, Natalie; JACOBSON, Robert. The financial value impact of perceptual brand attributes. Journal of Marketing Research, v. 45, n. 1, p. 15-32, 2008.
MOORMAN, Christine; DAY, George S. Organizing for marketing excellence. Journal of Marketing, v. 80, n. 6, p. 6-35, 2016.
MORGAN, Neil A. Marketing and business performance. Journal of the Academy of Marketing Science, v. 40, n. 1, p. 102-119, 2012.
MORGAN, Neil A.; CLARK, Bruce H.; GOONER, Rich. Marketing productivity, marketing audits, and systems for marketing performance assessment: integrating multiple perspectives. Journal of Business Research, v. 55, n. 5, p. 363-375, 2002.
MORGAN, Neil A.; FENG, Hui; WHITLER, Kimberly A. Marketing capabilities in international marketing. Journal of International Marketing, v. 26, n. 1, p. 61-95, 2018.
PACE, Eduardo Sérgio Ulrich; BASSO, Leonardo Fernando Cruz; SILVA, Marcos Alessandro da. Indicadores de desempenho como direcionadores de valor. Revista de Administração Contemporânea, v. 7, n. 1, p. 37-65, 2003.
REIBSTEIN, David J.; DAY, George; WIND, Jerry. Guest editorial: is marketing academia losing its way?. Journal of Marketing, v. 73, n. 4, p. 1-3, 2009.
RICHARD, Pierre J. et al. Measuring organizational performance: Towards methodological best practice. Journal of Management, v. 35, n. 3, p. 718-804, 2009.
ROSS, S. A.; WESTERFIELD, R. W.; JAFFE, J. F. Corporate Finance, Homewood, IL. McGraw-Hill/Irwin. Previous editions, v. 1993, n. 1996, p. 1999, 1998.
RUST, Roland T. et al. Measuring marketing productivity: Current knowledge and future directions. Journal of Marketing, v. 68, n. 4, p. 76-89, 2004.
RUYTER, Ko; WETZELS, Martin. The marketing–finance interface: A relational exchange perspective. Journal of Business Research, v. 50, n. 2, p. 209-215, 2000.
SAINAGHI, Ruggero; PHILLIPS, Paul; ZAVARRONE, Emma. Performance measurement in tourism firms: A content analytical meta-approach. Tourism Management, v. 59, p. 36-56, 2017.
SHARMA, Amalesh; SABOO, Alok R.; KUMAR, V. Investigating the Influence of Characteristics of the New Product Introduction Process on Firm Value: The Case of the Pharmaceutical Industry. Journal of Marketing, v. 82, n. 5, p. 66-85, 2018.
SHETH, Jagdish N.; SISODIA, Rajendra S. Feeling the heat-part 1. Marketing Management, v. 4, n. 2, p. 8, 1995.
SHETH, Jagdish N.; SISODIA, Rajendra S. Marketing productivity: issues and analysis. Journal of Business Research, v. 55, n. 5, p. 349-362, 2002.
SMART, Scott B.; MEGGINSON, William L.; GITMAN, Lawrence J. Corporate finance. Thomson/South-Western, 2004.
SRIVASTAVA, Rajendra K.; SHERVANI, Tasadduq A.; FAHEY, Liam. Market-based assets and shareholder value: A framework for analysis. Journal of Marketing, v. 62, n. 1, p. 2-18, 1998.
VENKATRAMAN, Natarjan; RAMANUJAM, Vasudevan. Measurement of business performance in strategy research: A comparison of approaches. Academy of management review, v. 11, n. 4, p. 801-814, 1986.
WALL, Toby D. et al. On the validity of subjective measures of company performance. Personnel psychology, v. 57, n. 1, p. 95-118, 2004.
Web of Science. Journal Citation Reports. Retrieved May 15, 2009, from http://webofknowledge.com.
Web of Science. Journal Citation Reports. Retrieved Jan 18, 2018, from http://webofknowledge.com.
WIESEL, Thorsten; SKIERA, Bernd; VILLANUEVA, Julian. Customer equity: an integral part of financial reporting. Journal of Marketing, v. 72, n. 2, p. 1-14, 2008.
ZINKHAN, George M.; VERBRUGGE, James A. The marketing/finance interface: two divergent and complementary views of the firm. Journal of Business Research, v. 50, n. 2, p. 143-148, 2000.
Published
2020-09-01
How to Cite
Silveira, R. H., Oliveira, M. O. R. de, Frio, R. S., Trombetta, M. S., & Luce, F. B. (2020). FIRM PERFORMANCE: HOW HAS IT BEEN MEASURED IN MARKETING AND FINANCE RESEARCH?. Caderno De Administração, 28(1), 16-45. https://doi.org/10.4025/cadadm.v28i1.51061
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