The Interplay of Marketing and Creativity Capabilities in International Marketing: Effectuation-Prediction Perspective: An Abstract

The purpose of this study is to advance our understanding of the effectuation (EF) and predictive (PR) logics interplay and its consequences on international performance. EF’s proponents emphasize unplanned creative entrepreneurial thinking and embrace creativity capabilities. In contrast, PR’s proponents highlight the need for analytical, planned managerial thinking and build on marketing capabilities. Specifically, this study examines the role of tolerance for failure as an antecedent of EF-PR logics and investigate their interplay on international performance through the lens of their reflected capabilities: organizational creativity and marketing capabilities. A survey-based quantitative study was used. The findings reveal that tolerance for failure impacts international performance only indirectly through creativity and marketing capabilities. The findings of our model provide support to the view that tolerance for failure does indeed have a positive impact on organizations, as it had a positive influence on organizational creativity and marketing capabilities. The strong impact of tolerance for failure on organizational creativity was expected and is in line with the recent notion of Pisano (2019) that tolerance for failure is an important characteristic of innovative thinking. In contrast to previous EF-PR studies, PR logic in the form of marketing capabilities was found to be more beneficial to international performance then EF logic in the form of organizational creativity. However, while under international circumstances, the trophy is awarded to PR logic, the interaction effect of both capabilities on international performance was found negative. To enhance international performance, managers would do well (a) to encourage a tolerance-for-failure culture in their organizations, as it will facilitate promoting creativity and marketing capabilities, (b) to slough off the entrepreneur’s skeptical approach of market research, and (c) to embrace a combined ‘predictable effectuation’ logic but to exercise caution in placing excessive reliance on creativity. The research on the EF-PR tension in the field of international marketing is still in its infancy, comprising mostly qualitative studies focusing solely on the benefits of EF logic. This quantitative study deepens our understanding of the joint roles of EF and PR logics on international performance.