Chief marketing officer presence and firm performance: assessing conditions under which the presence of other C-level functional executives matters

Abstract

This research extends understanding of the relationship between chief marketing officer (CMO) presence and firm performance by investigating how it is affected by the presence of three other functional heads (or CXOs) under various environmental and strategic contingencies. Results based on a panel of 401 U.S. manufacturers reaffirm the positive CMO presence-firm performance relationship and establish that the linkage is (a) strengthened by chief sales officer presence when industry sales volatility is high, (b) strengthened (weakened) by chief technology officer presence when industry innovation and firm differentiation (cost leadership) are high, and (c) strengthened (weakened) by chief supply chain officer presence when firm diversification (differentiation) is high. The study: expands top management team research by investigating executive dyads formed by the pairing of heads of functions advocated in the organizationally embedded view of marketing; delineates CXOs' roles and orientations to clarify mechanisms that aid or hamper the CMO; and, identifies industry and firm-level contexts that affect the CMO-CXO interfaces. Additionally, the findings underscore the importance of appointing CMOs and, of CMOs spanning organizational silos.Keywords Chief marketing officer . Executive dyad . Inter-functional interfaces . Organizationally embedded view of marketing . TMT functional dyads . Financial performance . Contingency V. Kumar served as Area Editor for this article.

Customer Satisfaction and Implied Cost of Equity: Moderating Effects of Product Market Conditions and Chief Marketing Officer

“…This study finding informs managers that both product market competition and demand uncertainty should be taken into consideration when formulating their marketing strategies in respect of CS. In addition to prior studies (Boyd et al, 2010;Germann et al, 2015;Nath & Bhardwaj, 2020;Nath & Mahajan, 2008), our results further highlight the importance of CMOs as valuecreators in firms (significant contributors to the COE reduction).…”

Salesperson communication effectiveness in a digital sales interaction

“…In this regard, a key challenge that chief marketing officers (CMO) face is how to develop “the necessary capabilities…to design, deliver, and monitor the customer experience” ( Moorman & Lemon, 2020 ). Stemming from this is: how can CMOs work with those leading other functional capabilities to develop an integrated value proposition and thereby drive favorable firm performance (see, e.g., Nath & Bharadwaj, 2020 )? Relatedly, a firm's technological platform may be built to support a traditional salesforce calling on customers in person, and set up to suit the needs of separate functional areas.…”

Upper echelons research in marketing

“…Within the major journals in the marketing discipline, there has been growing interest in marketing at the UE levels, which consist of the board of directors (BOD) (e.g., Whitler et al 2018), the CEO (e.g., O'Connell and O'Sullivan 2011), and the top management team (TMT) (e.g., Germann et al 2015). In particular, research on the chief marketing officer (CMO), typically considered a TMT-level position, has proliferated over the past decade (e.g., Boyd et al 2010;Germann et al 2015;Nath and Mahajan 2008). Spread across two disciplines, UE marketing strategy research 1 has progressed in a somewhat haphazard and opportunistic fashion, with management scholars drawing on marketing strategy concepts (e.g., new product introduction) to inform UE theory, and marketing scholars drawing on UE concepts (e.g., CMO presence in TMT) to expand the marketing strategy domain.…”