Turning adversity into advantage: Does proactive marketing during a recession pay off?

Srinivasan, Raji; Rangaswamy, Arvind; Lilien, Gary L.

doi:10.1016/j.ijresmar.2004.05.002

Cited by 187 publications

(263 citation statements)

References 70 publications

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“…Firms can take advantage of undervalued assets in the market (Mascarenhas & Aaker, 1989) to develop new business opportunities, differentiate themselves, and overtake competitors (Nunes, Drèze, & Han, 2010). They are able to both achieve immediate returns (Srinivasan et al, 2005) and prepare for long-term success (Franke & John, 2011).…”

Section: Theory Development and Hypothesesmentioning

confidence: 99%

“…These different views depend mostly on how employees fit information received into their cognitive structures to interpret the environment (Plambeck & Weber, 2010). Similar to Srinivasan et al (2005), we define opportunity recognition in recessions as a firm's propensity to create or recognize opportunities arising from the recession.…”

Section: The Effect Of Opportunity Recognitionmentioning

confidence: 99%

“…Entrepreneurial concepts fit the recessionary environment, as they are usually associated with disruptions in the economy (Hill & Mudambi, 2010), such as those created by recessions. Srinivasan et al (2005) suggest that firms vary not only in the extent to which they see opportunities within these disruptions, but also in their ability to capitalize on a perceived opportunity. We argue that this ability depends on a willingness to act, part of a firm's EO in its three dimensions.…”

Section: The Effect Of Entrepreneurial Orientationmentioning

confidence: 99%

“…Economists have thoroughly studied recessions (Zarnowitz, 1985), mostly from a macroeconomic perspective to understand their causes and consequences for countries. Beyond countries, however, recessions can transform industries (Latham & Braun, 2011) and severely affect the performance or even survival of firms (Srinivasan, Rangaswamy, & Lilien, 2005).…”

Section: Introductionmentioning

confidence: 99%

“…Nevertheless, several scholars contend that firms can take advantage of lower prices to counter-cyclically invest during recessions (Navarro, Bromiley, & Sottile, 2010). For instance, Procter and Gamble, Chevrolet, and Camel flourished during the Great Depression because they advertised heavily (Srinivasan et al, 2005).…”

Section: Introductionmentioning

confidence: 99%

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Strategies for Superior Performance in Recessions: Pro or Counter-Cyclical?

Conti¹,

Goldszmidt

Vasconcelos

2015

Rev. adm. empres.

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Estratégias para desempenho superior em recessões: pro ou contra-cíclicas? Estrategias para el desempeño superior en las recesiones: ¿pro o contra cíclicas?ABSTRACT Recessions are recurring events in which most firms suffer severe impacts while others are less affected or may even prosper. Strategic management has made little progress in understanding such performance differences. In a scenario of decreased demand, intensified competition, and higher uncertainty, most firms try to survive by pro-cyclically cutting costs and investments. But firms could take advantage of undervalued resources in the market to counter-cyclically invest in new business opportunities to overtake competitors. We survey Brazilian firms in various industries about the [2008][2009] recession and analyze data using PLS-SEM. We find that while most firms pro-cyclically reduce costs and investments in recessions, a counter-cyclical strategy of investing in opportunities created by changes in the market enables superior performance. Most successful are firms with a propensity to recognize opportunities, an entrepreneurial orientation to invest, and the flexibility to efficiently implement investments.KEYWORDS | Recession, cycle, opportunity, entrepreneurship, flexibility. RESUMO Recessões são eventos recorrentes nos quais a maioria das empresas sofre impactos severos enquanto outras são menos afetadas ou até prosperam. A gestão estratégica tem feito pouco progresso para entender tais diferenças de desempenho. Em um cenário de demanda reduzida, competição aumentada e muitas incertezas, a maioria das empresas tenta sobreviver cortando custos e investimentos, de maneira pró-cíclica. Mas as empresas poderiam aproveitar os recursos subestimados no mercado para investir, contra-ciclicamente, em novas oportunidades de negócios para superar a concorrência. Pesquisamos empresas brasileiras em várias indústrias sobre a recessão de 2008-2009 e analisamos dados usando PLS-SEM. Descobrimos que enquanto a maioria das empresas reduzem custos e investimento pró-ciclicamente durante as recessões, uma estratégia contra-cíclica de investir em oportunidades criadas pelas mudanças no mercado possibilitam desempenho superior. Firmas com propensão a reconhecer oportunidades, com orientação empresarial para investir e com flexibilidade para implementar os investimentos de modo eficiente são as mais bem sucedidas. PALAVRAS-CHAVE | Recessão, ciclo, oportunidade, empreendedorismo, flexibilidade. RESUMEN Las recesiones son eventos recurrentes en los cuales la mayoría de las empresas sufre impactos severos mientras que otras son menos afectadas o incluso RAE-Revista de Administração de Empresas | FGV-EAESP

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Section: Theory Development and Hypothesesmentioning

confidence: 99%

Section: The Effect Of Opportunity Recognitionmentioning

confidence: 99%

Section: The Effect Of Entrepreneurial Orientationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Strategies for Superior Performance in Recessions: Pro or Counter-Cyclical?

Conti¹,

Goldszmidt

Vasconcelos

2015

Rev. adm. empres.

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Crisis Marketing

Ang

2015

Wiley Encyclopedia of Management

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Competitive sustainability and stakeholder engagement: Exploring awareness, motivation, and capability

Schniederjans

Khalajhedayati

2020

Bus Strat Env

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In adding to competitive dynamics and sustainability literature, this study examines the role of a supplier and consumer on a focal firm's sustainability competitiveness through the awareness, motivation, and capability (AMC) perspective and stakeholder engagement research. Regression analyses are performed utilizing secondary sustainability and financial data to test proposed environmental and social competitiveness hypotheses. A constraint factor model is also tested. This study finds that a focal firm's motivation is positively associated with its own sustainability competitiveness. The study also finds that awareness and capability are negatively associated with environmental and social competitiveness. Finally, whereas suppliers' AMC have no significant impact, customer awareness and capability do. The findings reflect both conformity and divergence from the AMC model when applying it to a supply chain context as well as enhance the managerial understanding of how a supply and customer base can impact their own sustainability competitiveness.

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Turning adversity into advantage: Does proactive marketing during a recession pay off?

Cited by 187 publications

References 70 publications

Strategies for Superior Performance in Recessions: Pro or Counter-Cyclical?

Strategies for Superior Performance in Recessions: Pro or Counter-Cyclical?

Crisis Marketing

Competitive sustainability and stakeholder engagement: Exploring awareness, motivation, and capability

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