Marketing performance measurement systems and firm performance

Purpose: Driven by the growing pressure to justify the contributions of marketing activities, marketers have shown considerable interest in improving their marketing performance measurement systems (MPMSs). The purpose of this study is to examine the neglected mediating effect of marketing capabilities on the MPMS–firm performance relationship and to focus on specific aspects of MPMSs that have been largely omitted in the prior research, namely, the comprehensiveness and uses of MPMSs. Design/methodology/approach: A survey was conducted with marketing and senior managers from 210 Irish-based companies. The proposed research model was tested by using the SPSS Process macro and structural equation modeling in AMOS 24. Findings: The three characteristics of MPMSs influence firm performance in different manners: while the diagnostic use of MPMSs hinders the development of market-linking capability and thus negatively influences firm performance; the comprehensiveness of MPMSs positively influences firm performance through its impact on architectural marketing capability; and the interactive use of MPMSs via externally focused learning and market-linking capabilities. Research limitations/implications: Although this study used objective firm performance data to validate subjective data, the use of single-informant and self-reported measures may still be a concern, as the strong relationships between variables may be because of single-informant bias. Practical implications: This study provides insights into how companies can use a comprehensive MPMS to cultivate specific crucial marketing capabilities and thereby enhance firm performance. Originality/value: This study contributes to the marketing performance measurement literature by proposing and empirically validating the mediating effect of marketing capabilities on the MPMS–firm performance relationship.