The purpose of the research is to analyze the organizational antecedents of marketing capabilities and their impact on business performance using a sample of small and medium enterprises (SMEs). More specifically, the research analyzes the effect of the organizations' internal marketing (IM) practices on the employees' implementation of a coordinated set of commercial abilities crucial to firms' competitiveness. Results of the research indicate that IM, or the management of human resources as internal organizational clients, is a key determinant in motivating employees effectively to develop both strategic and operational marketing capabilities. Marketing capabilities exert a significant and positive effect on clients' satisfaction and loyalty, which ultimately lead to better organizational performance in terms of sales, profit, and market share. The research also contributes to the scarce amount of empirical evidence on the positive and direct effect of IM strategies on business performance.
During the last decade, social innovation has emerged as an outstanding topic for scholars, businesses, and public institutions. This growing interest is due to its potential positive effects on well-being and sustainable development. This study analyzes social innovation under the umbrella of the transformative service research framework. Adopting a resource-based perspective, the research attempts to determine whether the deployment in service organizations of two types of factors that support dynamic capabilities, i.e. internal market orientation, and information and communication technology competence, impacts the extent to which these organizations develop different kinds of product, process, marketing, and organizational social innovations. The study also assesses the impact of these innovation activities on the organization's transformational performance in terms of increased access to new targets. Empirical research is based on a two-step survey to a sample of Spanish nonprofits (particularly, a representative sample of foundations), since the nonprofit sector provides services that possess inherent transformational characteristics. Results confirm the expected positive effects of these two factors on social innovation and performance, and provide several guidelines for implementing social innovations in service industries.
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