R&D-marketing integration is an important factor of technological innovation success. This study explores the relationships among R&D-marketing integration, business performance, and social performance in the context of Chinese agricultural science and technology enterprises. The findings suggest that the integration of R&D-marketing has a positive effect both on business performance and social performance, and that business performance serves as a mediator in the relationship between the integration of R&D-marketing and social performance. This study provides empirical evidence for the research in the relationships between the integration of R&D and enterprise performance and contributes to the policy-making on the technological innovation.
Enterprises are facing increasingly severe challenges in this world because the global market competition is gradually intensifying; product life cycle continues to shorten, and consumer demand is increasingly personalized. Technological innovation, as an important source of the competitiveness of enterprises, is crucial to survive and develop. Many enterprises have noted the importance of the development of new products, and increase investment in R&D, production and marketing departments. However, because of the complexity of the technological innovation activities, a department alone is difficult to separately complete new product development, and improve the performance. Even if every department possesses adequate resources, it does not guarantee their optimal use. Thus, technological innovation involves not only the R&D department to develop new products and marketing department to sale products, but also R&D-marketing integration to establish an effective communication and cooperation [1,2].
The literature has demonstrated that R&D-marketing integration is an important factor contributing to technological innovation success [
Numerous scholars and practical managers focus on R&D-marketing integration and enterprise performance. The managers believe that R&D-marketing integration could result in sharing resources, improving the ability to integrate resources, sharing innovation risk, accessing to new technologies, entering new markets, and improving enterprise performance [
In addition, scholars tend to care about business performance when studying the relationship between the R&D-marketing integration and performance. With the changes in the conditions of production, the relationships between enterprises and stakeholders, such as government, customers, the environment and other external factors, are getting closer and closer. The traditional evaluation of performance is increasingly unable to meet the practical needs. Then scholars study non-financial performance [
The main objectives of this study are to examine the detailed effects of the integration of R&D and marketing on the business performance and social performance. The rest of the article is organized as follows: the next section is the research hypotheses. Next, the research method is presented, followed by the analysis and discussion of the findings. The final section offers the main conclusions and implications.
After the 1990s, many scholars and enterprises focused on the integration of the organizational structure [17-20]. Specialized departments should be integrated to complete overall target because specialization alone is not sufficient for high performance [
Scholars investigated R&D-marketing integration from different perspectives. Some scholars concerned “quantity” aspects of R&D-marketing integration, such as interaction frequency [8,22]. Appropriate interaction frequency is necessary for integration, but it does not mean that their communication is effective. Then, in order to better measure the constructive cooperation and the degree of inherent team cooperation, some scholars selected the “quality” aspects of R&D-marketing integration. Song et al. [
R&D-marketing integration as a complex concept should be multidimensional in empirical research. Leenders and Wierenga [
Performance is the generalization of efficient achievement and effectiveness that managers operate the enterprise [
The measurement of business performance is complex and diverse, including two types: one is based on objective measurement of financial indicators, such as turnover, profits and other financial indicators; another is subjective evaluation. The latter asks senior management to subjectively evaluate sales, market share growth, and profitability indicators, compared with the expected subjective evaluation [26-28], or compared with industry competitors [29,30]. Objective data is more objective and accurate, but it is not easy to obtain [
With the development of performance evaluation, scholars have noted that the enterprises are getting closer and closer to government, consumers, environment and other external stakeholders. The enterprises are concerned about the improvement of business performance, as well as external interests, namely the impact of enterprises on the environment and other aspects. The measurement of corporate social performance does not reach a consensus, but mostly have chosen subjective indicators. For example, He and Wang [
In an increasingly competitive environment, individual departments can no longer independently accomplish the task of new product development and increase business performance. Integration of departments, especially the R&D-marketing integration plays an increasingly important role in the success of new product development. Internal R&D-marketing integration includes sharing market and technical information, as well as involving the R&D process and the marketing process. The success of new products requires technical support and products for market need. Marketing department provides customer and market information [
R&D-marketing integration included communication, collaboration, and cooperative relationships [
Many literatures have confirmed that effective R&D-marketing integration is the main factors of new product success [11,19,38]. Many companies cash flow will increases in the future because of new product success. R&D-marketing integration will result in more competitive advantages and increase the success rate of innovation [
H1: R&D-marketing integration has a positive influence on business performance.
In the study of R&D-marketing integration and firm performance, little literature has discussed the social performance. Wind [
H2: R&D-marketing integration has a positive influence on social performance.
Literature has widely discussed the relationship between business performance and social performance. There are a variety of different views. Some literatures believe that they are negatively correlated [
Enterprises with better business performance will have sufficient resources to undertake social responsibility more actively [
H3: Business performance has a positive influence on social performance.
There are several reasons for taking agricultural science and technology enterprises as the object of this study. Firstly, agricultural science and technology enterprises have important roles in improving the agricultural productivity, promoting the rural development and increasing the farmers’ incomes. Agriculture in China has an important role that is the basis of the development of national economy. The issues concerning agriculture, countryside and farmers are always the hot topics. Due to the particularity and the important roles of China’s agricultural science and technology enterprises, the process of technological innovation is different from other high-tech enterprises. Some scholars have explored the problem of technological innovation of agricultural science and technology enterprises [48,49].
Secondly, compared to other agricultural enterprises, agricultural science and technology enterprises have stronger capability of technological innovation, and the degree of integration of R&D-marketing may be higher and different [
Finally, social performance is an important factor in the performance evaluation of the agricultural science and technology enterprises. Agricultural science and technology enterprises not only pay attention to the output growth and the increased market share, but also attach more importance to the stakeholders, the government, farmers and the environment [
We used existing scales as much as possible, adapted some existing scales from the literature, and modified scales according to the characteristics of agricultural science and technology enterprises.
The scales of R&D-marketing integration adapted the scale of Leenders and Wierenga [
The performance is divided into two dimensions: business performance and social performance. The business performance is reflected by items, such as growth in sales revenue, market share growth, and gross profit margin. Social performance items include the improvement of farmers’ income, the improvement of agricultural productivity and agricultural technology. In this study, the respondents need to make the subjective evaluation according to the average level of the industry. It can not only avoid the drawbacks that the data is hard to get, but also ensure the accuracy of data. We used 3 and 3 items to measure the business and social performance respectively.
The measures used are the 7-point Likert-type scales with the anchors 1 = strongly disagree to 7 = strongly agree. The questionnaire is divided into two parts. The first part is the scale of R&D-marketing integration, business performance and social performance. The second part is the basic information of enterprises, including the name of the firm, the types of innovation, firm age and size. The types of innovation include the independent innovation, cooperative innovation and imitative innovation. The firm size is measured by the number of employees. Based on the previous literature and the characteristics of agricultural science and technology enterprises, the initial scales were formed. According to suggestions of marketing experts and the managers of agricultural science and technology enterprises, the initial scales were appropriate modified and the final scales were formed.
It took us four months to gather data. These samples are mainly distributed in Guangdong, Guangxi, Zhejiang, Jiangsu, Fujian, et al. We mainly selected the face-toface interviews and e-mail methods. The respondents mainly are medium and senior managements in R&D department or marketing department that are familiar with the contents of the investigation.
In this study, we collected 317 valid questionnaires. In the 317 samples, 60% of all the enterprises are small and medium-sized enterprises that have less than 200 employees. 77.6% of the samples are private enterprises. Nearly 60% of enterprises choose independent innovation and 33.4% of the enterprises select the mode of cooperative innovation. The remaining enterprises choose the imitative innovation. 34.1% of enterprises invest the relatively more R&D expenses that are more than 3% of the total sales revenue.
The SPSS17.0 statistical software was used to measure the reliability of scales. To establish the internal consistency of the measures, we computed Cronbach’s alpha coefficients.
This study used two ways to ensure content validity of scale. Firstly, the scales of R&D-marketing integration and enterprise performance came from the published literature that many scholars have used. Secondly, all the
scales have been reviewed by marketing experts and the senior management of agricultural science and technology enterprises.
This study used the structural equation modeling (SEM) and AMOS 7.0 software to carry out the confirmatory factor analysis that can further verify the validity of scales. The measurement model provides a reasonable fit to the data (χ2 = 273.250, df = 113, GFI = 0.909, CFI = 0.967, TLI = 0.960, RMSEA = 0.067). GFI, CFI and TLI all exceed the recommended threshold level of 0.90. The RMSEA is below 0.08 which is acceptable levels. The fit indexes are within the acceptable range.
The study uses structural equation modeling (SEM) to test the hypotheses.
Estimated parameter ß1 = 0.541, p < 0.01 supports hypothesis H1, which proves the positive effect of R&Dmarketing integration on business performance. It indicates that the higher the degree of R&D-marketing integration, the better business performance, which is consistent with the generally accepted view [18,38]. R&Dmarketing integration is a key factor in the improvement of business performance. On one hand, market information can be transferred to the R&D department through R&D-marketing integration, which makes enterprises to quickly produce and supply products or services to meet consumer demand, thereby enhancing business performance. On the other hand, technical information can be conveyed to the marketing department through R&Dmarketing integration, which makes enterprises to highlight the core technology in marketing programs to distinguish with the existed market products, and increase revenue. In addition, the marketing department can help R&D department look for new application method of technology, so as to shorten the development cycle, save development costs, and increase business performance relatively.
The results also provide evidence to support hypothesis H2. The estimated parameter ß2 = 0.223, p <0.01 shows that R&D-marketing integration has a positive influence on social performance. It shows that the higher degree of R&D-marketing integration, the better social performance. The marketing department transfers not only the market demand to the R&D department, but also enterprise’s social responsibility requirements of outside. R&D and marketing department supervise each other,
***Correlation is significant at the 0.001 level. aFixed parameter.
Note: ***the level of significance is less than 0.001 (P < 0.001).
and work together to produce products which meet the market demand.
Estimated parameter ß3 = 0.608, p <0.01 supports hypothesis H3, which shows that business performance has a positive impact on social performance. The business performance can be seen as a mediating variable between integration and social performance. This argument is consistent with most scholars that business performance and social performance has a positive correlation [43-46,52]. This study also verifies a mediating role of business performance between R&D-marketing integration and social performance. And R&D-marketing integration affects social performance through business performance. Moreover, the indirect effect of R&D-marketing integration on social performance is greater than the direct effect, which indicates that R&D-marketing integration improve social performance mainly by improving business performance.
Results show that R&D-marketing integration has a positive impact on business performance. We analyze the reasons for that from three aspects: communication, cooperative relationships and collaboration [
In communication aspect, R&D-marketing integration is more conducive to the use of the information [
In general, for agricultural science and technology enterprises, R&D-marketing integration helps a lot informing competitive capability and improving business performance.
Our results show that R&D-marketing integration has a significant effect on social performance. The new products can bring about notable results in expanding the range of products and increasing the technical level of the industry. Therefore the marketing competition pattern will be changed. And enterprises can get new chances to develop well [
The results also show that business performance has important influences on social performance. High business performance is the foundation of enhancing social performance. The agricultural science and technology enterprises, which play an important role in agricultural development, take on the great social responsibility. The development of agricultural science and technology enterprises helps solve the employment problem of China’s rural areas, increase the income of farmers, improve agricultural productivity. Enterprises with superior economic strength are more likely to buy equipments for sewage treatment, pay more attention to environment protection and devote to the development of the surrounding rural areas. They may successfully handle the relationship with external stakeholders, relatively increase the income of employees, and enhance the consumers’ living standards. So the premise of the development of social performance is the business performance. This study also verifies a mediating role of business performance between R&D-marketing integration and social performance. The effect of R&D-marketing integration on social performance was partially mediated by business performance.
This study explores the relationship of R&D-marketing integration, business performance and social performance. And it collected data of 317 agricultural science and technology enterprises to test the hypothesis. The empirical results show that: 1) R&D-marketing integration has the positive effects on business performance and social performance. 2) The business performance positively impacts the social performance.
Our results have several implications for managers in marketing strategy and development, and for the government who makes the policy for enterprise technological innovation. Suggestions are as following.
Firstly, the R&D-marketing integration should be further improved. This study finds that, most enterprises realize the importance of R&D-marketing integration, but they don’t do it well. Enterprises should further encourage information sharing among departments, a harmonious and friendly relationship and collaboration to complete a common goal. For example, enterprises can build a good communication platform, asking the two departments to share their own information with each other at times, and informing each other for the work progress and difficulties encountered in order to solve the problem faster and better.
Secondly, the government must exert the function to ensure social performance of agricultural science and technology enterprises by taking the social performance into evaluation system. Social performance should be considered when estimating the outcome of agricultural science and technology enterprises. At the same time, governments at all levels should enhance the propaganda to make the enterprise managers understand the importance of social performance, so that they can take the maximum overall profit as a target, but not their own maximum interest.
Thirdly, higher business performance is the important precondition for enterprises to undertake social responsibilities. Through this study, we proved that agricultural science and technology enterprises with good business performance will boost social performance. Government should also help enterprises to achieve higher business performance. If enterprises pay more attention to social performance, it is bound to generate more revenue in the long term, but in the short term it will lose some economic benefit. It is difficult to encourage majority of agricultural science and technology enterprises to give up some economic benefit to obtain social performance at present. Therefore, government may establish special fund to inspire them.
In the end, defects and shortcomings of this study are summarized on the basis of study conclusion, and moreover, we present a prospect on the study of this field for the future. The samples used were derived from an industry, so there are some limitations. The relationship between R&Dmarketing integration and enterprise performance can be studied in different industries and with more samples.
At present, few academic researches on the effect of the R&D-marketing integration on social performance were made. The study preliminarily analyzes this issue. Further research is needed to investigate it deeply. Furthermore, researchers can explore whether there are some moderating variables, e.g. technological innovation mode, and study the relationship between R&D-marketing integration with performance under different levels of moderating variables.
This study was carried out with financial support from the National Natural Science Foundation of China (71003043), The Soft Science Research Program of Guangdong Province (2012B070300036) and Leading Academic Discipline Project of Management School, Jinan University.