Marketing Performance Measurement and Firm Performance: Evidence from the European High-Technology Sector

Don O'Sullivan
Andrew V. Abela
Mark C. Hutchinson

Abstract

The research aims to test whether the ability to measure marketing performance affects the actual performance of firms, in the context of the European high-tech sector. We also test whether performance reporting frequency and size of marketing budget mediate the relationship between measurement ability and performance. Survey responses collected from 157 marketers were supplemented with firm performance data. Results show marketing performance measurement ability positively impacts firm performance and that reporting frequency mediates this relationship. Research limitations/implications - More attention should be given to the activities that are measured rather than the metrics in use - which receives much attention in the literature. Current interest in marketing dashboards may be overstated. Practical implications – Enhanced ability to account for marketing leads not only to improved firm performance, but also to greater regard for marketing at the senior management level. Originality / value of paper - This is the first study to demonstrate a link between marketing performance measurement ability or frequency and firm performance in the European market. It also provides an insight into the chain of effects linking marketing performance measurement ability to firm performance.