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Chief marketing officers’ discretion and firms’ internationalization: An empirical investigation

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Abstract

The role of key individuals, such as the chief marketing officer (CMO), in the internationalization process has largely been ignored in the international business literature. Given the importance of the CMO in internationalization and to address this gap in the literature, this study focuses on the role of the CMO – a key individual in organizations who, with adequate levels of discretion, can act as a conduit of knowledge in international markets, facilitating the internationalization of the firm. Drawing on the literature on managerial discretion, internalization theory, and its microfoundations, we argue that the CMO's strategic, operational, and financial discretion, respectively, have positive yet diminishing effects on internationalization. Further, the international experience of the top management team (TMT) and the CMO’s equity compensation moderate these relationships. We contribute to internalization theory and the growing body of literature on the role of the TMT and CMO.

Résumé

Le rôle des personnes clés, comme le directeur du marketing (DM), dans le processus d’internationalisation a été largement ignoré dans la littérature en international business. Compte tenu de l’importance du DM dans l’internationalisation et pour combler cette lacune dans la littérature, cette étude se concentre sur le rôle du DM - une personne clé dans les organisations qui, avec des niveaux de pouvoir adéquats, peut agir comme un vecteur de connaissances sur les marchés internationaux, facilitant l’internationalisation de l’entreprise. En nous inspirant de la littérature sur le pouvoir managérial, la théorie de l’internalisation et ses micro-fondations, nous soutenons que le pouvoir stratégique, opérationnel et financier du DM a respectivement des effets positifs mais décroissants sur l’internationalisation. De plus, l’expérience internationale de l’équipe de direction (ED) et la rémunération en actions du DM modèrent ces relations. Nous contribuons à la théorie de l’internalisation et au corpus croissant de la littérature sur le rôle de l’ED et du DM.

Resumen

El papel de los individuos clave, como el Director de Marketing (CMO por sus iniciales en inglés), en el proceso de internacionalización ha sido ignorado en gran parte en la literatura de negocios internacionales. Dada la importancia del Director de Marketing en la internacionalización y para abordar esta brecha en la literatura, este estudio se enfoca en el papel del Director de Marketing – un individuo clave en las organizaciones quien, con suficientes niveles de discreción, puede actuar como un conducto de conocimiento en mercados internacionales, facilitando la internacionalización de la empresa. Basándose en la literatura sobre la discreción gerencial, la teoría de internalización, y sus microfundaciones, argumentamos que la discreción estratégica, operacional y financiera del Director de Marketing respectivamente tiene efectos positivos, pero decrecientes en la internacionalización. Además, la experiencia internacional del equipo de alta dirección (TMT por sus iniciales en inglés) y la compensación en acciones del Director de Marketing modera estas relaciones. Contribuimos a la teoría de internalización y el creciente cuerpo de literatura sobre el papel del equipo de alta dirección y el Director de Marketing.

Resumo

O papel de indivíduos chave, como o Chief Marketing Officer (CMO), no processo de internacionalização tem sido amplamente ignorado na literatura de negócios internacionais. Dada a importância do CMO na internacionalização e para suprir essa lacuna na literatura, este estudo foca no papel do CMO - um indivíduo-chave nas organizações que, com níveis adequados de discricionariedade, pode atuar como um condutor de conhecimento nos mercados internacionais, facilitando a internacionalização da empresa. Com base na literatura sobre discrição gerencial, teoria de internalização e suas microfundações, argumentamos que a discrição estratégica, operacional e financeira do CMO, respectivamente, tem efeitos positivos, porém decrescentes sobre a internacionalização. Além disso, a experiência internacional da equipe de alta administração (TMT) e a remuneração de capital do CMO moderam esses relacionamentos. Contribuímos para a teoria de internalização e o crescente corpo de literatura sobre o papel do TMT e do CMO.

摘要

在国际商务文献中, 像首席市场营销官(CMO)这样的关键人物在国际化过程中的作用在很大程度上被忽略。鉴于CMO在国际化中的重要性并为解决文献中的这一空白, 本研究关注CMO作为组织中一个关键人物的作用 , 他们具有足够的酌处权, 能充当国际市场知识的管道, 促进公司国际化。借鉴有关管理酌处权、内化理论及其微观基础的文献, 我们认为CMO的战略、运营和财务酌处权分别对国际化产生了积极但逐渐减少的影响。此外, 高管团队(TMT)的国际经验和CMO的股权补偿缓和了这些关系。我们对内化理论和不断增长的有关TMT和CMO作用的文献做出了贡献。

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ACKNOWLEDGEMENTS

We thank the EIC, the Department editor, and the anonymous reviewers for providing valuable guidance during the revision process. We thank Renu for assistance with copy editing.

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Accepted by Constantine Katsikeas, Area Editor, 17 September 2020. This article has been with the authors for three revisions.

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Kumar, V., Borah, S.B., Sharma, A. et al. Chief marketing officers’ discretion and firms’ internationalization: An empirical investigation. J Int Bus Stud 52, 363–387 (2021). https://doi.org/10.1057/s41267-020-00378-y

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