The mediating role of alliance marketing program creativity on the relationship between alliance orientation and market performance in the services industry

Abstract

Purpose

The purpose of this paper is to examine the validity of the already suggested positive relationship between marketing alliance orientation and market performance in a service context, and to investigate the mediating role of alliance marketing program creativity (AMPC) in the relationship in detail.

Design/methodology/approach

To empirically test the hypotheses, a mail survey was conducted among firms with experience of service alliances in South Korea. A 725 research sample was selected (128 responded) from a database compiled by the Korea Investors Service-Financial Analysis System which provides comprehensive corporate and financial information on firms listed on the Korea Stock Exchange. partial least squares analysis was performed to test the hypotheses.

Findings

Alliance orientation positively associated with market performance (H1), alliance orientation had a significantly positive effect on alliance marketing program meaningfulness and novelty (H2), and in turn, alliance marketing program meaningfulness and novelty had a significantly positive effect on market performance (H3). In terms of the determination of mediation type, full, or partial, the authors confirmed that the relationship between alliance orientation and market performance was fully mediated by AMPC (novelty and meaningfulness), by finding that the significantly reduced direct effect from alliance orientation to market performance in the mediation model.

Research limitations/implications

Alliance marketing program meaningfulness and novelty perform the role of full mediators, implying that the meaningfulness, and novelty of AMPC are absolutely indispensable conditions in order for alliance orientation to lead market performance. Moreover, different from the previous studies, the research suggests that alliance marketing program meaningfulness and novelty are equally important antecedents of market performance.

Originality/value

The positive relationship between alliance orientation and market performance in the service context was empirically tested, and the full mediating role of AMPC was confirmed. The importance of AMPC in the service context is highlighted.

Citation

Kang, S., Hur, W.-M. and Kim, M. (2014), "The mediating role of alliance marketing program creativity on the relationship between alliance orientation and market performance in the services industry", Managing Service Quality: An International Journal, Vol. 24 No. 5, pp. 522-540. https://doi.org/10.1108/MSQ-10-2013-0233