207
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Ma ke ing and T ade
DOI: 10.15240/ ul/001/2017-3-014
In oduc ion
The no ion o en ep eneu ship is no new, bu
en ep eneu ship is con inuously sea ching o
new ideas while inc easing hei applica ions
(Mo is & T o e , 1990; Mo is, Lewis, &
Sex on, 1994). Ma ke ing and en ep eneu ship
a e b oadening hei i eld o syne gic ac i i y,
bu some gaps in his in e ac ion s ill emain
(Bhuian, Menguc, & Bell, 2005). Nume ous
s udies ha e indica ed he link be ween
ma ke ing and en ep eneu ship (Mu ay,
1981; Mo is & Paul, 1987; He on, Sapienza,
& Smi h-Cook, 1992; Hills & LaFo ge, 1992;
Beche e & Mau e , 1998; Mo is, Schindehu e
& LaFo ge, 2002; K aus, Ha ms, & Fink, 2010;
Gilmo e, 2011, Hills & Hul man, 2011; Hul man
& Hills 2011; Ku gun, Bagi an, Oze en, &
Ma al, 2011; Mo ish, 2011; Buseni z, Plumme ,
Klo z, Shahzad, & Rhoads, 2014), bu
a numbe o esea ch ques ion ha e emained
unde explo ed.
This pape add esses he ela i e sca ci y
o schola ly wo k ha di ec ly es s he
causali y in he equency domain be ween
he en ep eneu ial ac i i ies and ma ke ing
in he unc ion o gaining and main aining
dis inc i e ma ke ad an age o a company.
Hence, he ocus o his esea ch is on
a company’s p o i abili y wi h special a en ion
on o ganiza ional changes and he measu e o
accep able isk in ma ke ing.
Nowadays business en i onmen is abundan
in unce ain y, ola ili y and comp omises, and
o such a eason isk eme ges as a majo
ac o in managemen (Al a ez & Ba ney, 2005;
C ame , Ha og, Jonke , & Van P aag, 2002),
whe eas en ep eneu ship e o s become basic
p e equisi es o success (Mo is, Schindehu e,
& LaFo ge, 2002). This implies ha in o de o
accep he changes and g ow en ep eneu ship
mus no only ha e dynamic abili ies (Menguc,
& Bell, 2005), bu also an inno a i e cha ac e
(S okes, 2000). Essen ially, en ep eneu ship
always includes isk ha may ange om
low o high le els (Mo is, Schindehu e, &
LaFo ge, 2002). This pape con ibu es o he
s udy o Da is, Mo is, and Allen (1991) on
he managemen capaci y o exposu e o isk
by aking in o accoun ha en ep eneu ial
ac i i ies en ail a h ea o e y expensi e ailu e.
Speci i cally, he con ibu ion o his pape lies
in combining ma ke ing wi h en ep eneu ial
ac i i ies in o de o manage o ganiza ional
changes aimed a assessing he measu e o
accep able isk and p o i abili y in he long un.
Schola ly con ibu ions o many au ho s (Mo is
& T o e , 1990; Mille , 1983; Mo is, Da is, &
Ewing, 1988; Knigh , 2000; Bhuian, Menguc,
& Bell, 2005; Naldi, No dq is , Sjöbe g, &
Wiklund, 2007) de i ne en ep eneu ship as
a p ocess whose main cha ac e is ics a e
inno a i eness, p oac i i y and abili y o ake
business isk, he eby making he link be ween
en ep eneu ship and ma ke ing e en s onge .
Ou esea ch mo i a ion is concen a ed on
examining he in eg al in e play be ween
hese wo disciplines. Ce ain pa icula i ies o
his phenomenon can be obse ed om he
company size, bu he analysis p esen ed in
his pape di e s om o he s udies because
i cla i i es he complemen a i y o he mu ual
in l uence o en ep eneu ial and ma ke ing
ac i i ies. Ou i ndings complemen and expand
he li e a u e on he ela ionship be ween
en ep eneu ship and ma ke ing by depic ing
ha syne gy h ough he mul i-scale (i.e.,
equency-dependen ) cycle o he so-called
“spi al o success”.
The main goal o his pape is o es and
analyze he causali y-d i en ela ionship be ween
en ep eneu ship and ma ke ing, i.e., he
ma ke ing-en ep eneu ship pa adox, wi h he
pa icula a en ion on he company’s ma ke ing
decisions in ega ds o p o i abili y. We ad oca e
THE MARKETING-ENTREPRENEURSHIP
PARADOX: A FREQUENCY-DOMAIN
ANALYSIS
Sla ka T. Nikolić, Nikola G adoje ić, Vladimi Đako ić,
Valen ina Mladeno ić, Jelena S anko ić
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208 2017, XX, 3
Ma ke ing a obchod
he iew ha ma ke ing and en ep eneu ship
ope a ions a e insepa able ac i i ies, om
which a wo d “ma ke p eneu ship” can be
de i ed. Based on he heo e ical concep s
and me hodology o causali y in he equency
domain (G adoje ic & Len o, 2015; G adoje ic
& Doba dzic, 2013) suppo ed by he case s udy,
we design ou p oposed esea ch amewo k
and d aw ou conclusions om he da a, as well
as om he g aphical ep esen a ion o he “spi al
o success”. Ou esul s show ha changes in
ma ke ing expense a e able o p edic changes
in ne income a bo h medium and long ho izons
(a business cycle equencies o 3-7 yea s).
In he con ex o ou “spi al o success”, we show
ha he companies may no only be success ul in
acing high isk when he o ganiza ional changes
we e in ense (in he sho o medium un), bu
also when he o ganiza ional changes we e no
in ense (in he long un).
We also poin o he pa adox in isky ma ke
condi ions, whe e he measu e o adequacy
o o ganiza ional esponse will de e mine he
measu e o business success. Mo e speci i cally,
we emphasize he exis ence o he ma ke ing-
en ep eneu ship pa adox caused by isk,
o ganiza ional changes and he le el o p oduc
di e si i ca ion. This esea ch is signi i can bo h
o he academic and p o essional communi ies
wi h pa icula impo ance o he op imal
business decision-making p ocesses, while
con ibu ing and expanding he cu en li e a u e
in he i eld o ma ke ing-en ep eneu ship.
To he au ho s’ bes knowledge, his pape is
he i s o pe o m he causali y es s in he
equency domain o he bi a ia e sys em ha
con ains changes in ne income and ma ke ing
expense.
In he nex sec ion, we p esen he
heo e ical concep s and in Sec ion 2 we speci y
ou p oposed esea ch amewo k. Sec ion
3 desc ibes ou esea ch me hodology o
wo king in he equency domain, while Sec ion
4 p esen s he da a cha ac e is ics. In Sec ion
5, we p esen he esul s and discuss hem in
he con ex o ou heo e ical conjec u es. The
i nal sec ion concludes he pape .
1. Theo e ical Backg ound
Conside ing he p oximi y o en ep eneu ship
and ma ke ing as scien i i c disciplines, i is
su p ising ha ela i ely li le “c oss- e iliza ion”
has occu ed (He on, Sapienza, & Smi h-
Cook, 1992, p. 6). Du ing he 1980’s, i was
sugges ed ha managemen explo e s should
be encou aged o make an e o o iden i y
whe he en ep eneu ship and ma ke ing
in e depend and in which way (Mo is & Paul,
1987). Almos a decade and a hal la e , a e
nume ous esea ches o many au ho s, some o
hem who we e op imis ic (e.g., Hul man & Hills,
2011) claimed ha he ela ionship be ween
en ep eneu ship and ma ke ing should s ill be
examined, while o he s (e.g., Miles, C ispin,
& Kasou , 2011) poin ed ou ha i is di i cul
o de i ne he en ep eneu ship-ma ke ing
link. The e exis signi i can a eas o o e lap
be ween he ma ke ing discipline and he s udy
o en ep eneu ship, and manage s should be
p epa ed o “bo ow boldly” om ma ke ing in
o de o ad ance he heo y o en ep eneu ship
(Hills & LaFo ge, 1992).
I is wo hwhile o no e ha he syne gy
be ween en ep eneu ship and ma ke ing is
so s ong ha many au ho s in eg a e hese
e ms in di e en ways, among which he one
used mos o en is en ep eneu ial ma ke ing
(K aus, Ha ms, & Fink, 2010; Lag osen &
S ensson, 2006; Hills & Hul man, 2011; Mo is,
Schindehu e, & LaFo ge, 2002; Ku gun,
Bagi an, Oze en, & Ma al, 2011; Mo ish,
2011; Gilmo e, 2011). This app oach, howe e ,
has a po en ial d awback in he ac ha he
majo i y o hese esea che s ha e conside ed
ha en ep eneu ship is ela ed o small o
middle-sized en e p ises (Knigh , 2000; Jones
& Rowley, 2011; Ku gun, Bagi an, Oze en,
& Ma al, 2011; Fai lie & Holle an, 2012;
An ónio & Mendes, 2013), while iden i ying he
en ep eneu ship wi h he en ep eneu , i.e.,
he owne o such an en e p ise. Ne e heless,
many pape s ha e in oduced he a gumen ha
en ep eneu ial o ien a ion can be embedded in
la ge companies as well as in small and middle-
sized companies (Mo is & Paul, 1987; Da is,
Mo is, & Allen, 1991; Miles & Da och, 2006;
Lag osen & S ensson, 2006; K aus, Ha ms,
& Fink, 2010). Some au ho s such as Mo is
& T o e (1990) and Sebo a & Thee apa ong
(2010) go e en u he by using he ph ase
co po a i e en ep eneu ship in he con ex o
he abili y o s imula e he a ibu es o small
en ep eneu ial companies in la ge and mo e
de eloped companies (Ku a ko, Ho nsby,
Na zige , & Mon agno, 1993), and, mo e
gene ally, unde s anding i as a comp ehensi e
e o o an o ganiza ion o sp ead in e nally
(Mo is, Lewis, & Sex on, 1994).
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209
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Ma ke ing and T ade
The p esen wo ld o consump ion is
cha ac e ized by he synd ome o ins an ism
and his phenomenon is go e ned by speed,
anxie y and ola ili y. This in u n ein o ces
he no ion o inno a i eness ha is necessa y
o ma ke en y (Nikolic, Tumbas, Kos es,
& S anko ic, 2013). We iew inno a i eness
om he company pe spec i e (Danneels &
Kleinschmid , 2001) as a c ea i e p ocess
o making new p oduc s, echniques o
echnologies (Knigh , 2000) and as a s a ing
poin o he o ganiza ional inno a i eness
(Amabile, Con i, Coon, Lazenby, & He on,
1996). Consequen ly, inno a i eness is he
key mechanism o he o ganiza ional g ow h
and i has a cen al signi i cance in he e o s o
achie ing compe i i eness (Lawson & Samson,
2001). Mo eo e , new ma ke ing ends o e an
oppo uni y o inc easing ma ke ing in l uence
on en e p ise compe i i eness (Pilik, 2008).
I is impo an o no e ha inno a ion
gene a es changes and g ow h; ha is why
en ep eneu ship in ol es a o m o “con inuous
c isis”. Ko le , Wong, Saunde s and A ms ong
(2004) a gued ha day- o-day ac i i ies o
economic agen s a e ma ked by unce ain y,
discon inui y, dis u bance and h ea . Th ough
o ganiza ional inno a i eness, en ep eneu ship
acks he equency o changes, i inc eases he
business isk, bu i also po en ially imp o es
he p o i abili y o an o ganiza ion (Mo is,
Schindehu e, & LaFo ge, 2002). Ma ke ing, on
he o he hand, by he means o communica ion
bo h in e nally and ex e nally in an o ganiza ion,
ep esen s he p ocess o wo king on di e ences
ha s eng hens he ma ke posi ion and
ep esen s a con ol mechanism o i nding he
ue measu e o inno a i eness. Hence, he
con empo aneous o ien a ion o a company
owa ds en ep eneu ship and ma ke ing
ep esen s a no el pa adigm ha guides
a company o i s op imal business pe o mance
(A uahene-Gima & Ko, 2001). The combina ion
o hese wo o ien a ions also ep esen s
a s a egic esponse o he u bulen en i onmen
ha companies equen ly ace (Mo is & Paul,
1987; Bhuian, Menguc, & Bell, 2005; A uahene-
Gima & Ko, 2001). The key ing edien o he
symbiosis be ween en ep eneu ship and
ma ke ing is inno a ion (Da is, Mo is, & Allen,
1991; Lag osen & S ensson, 2006).
I can be a gued ha ma ke ing is uniquely
capable o analyze he ( )e olu ion in he business
en i onmen and an icipa e new possibili ies
o en ep eneu ial ac i i ies (e.g., Pilik,
2008; Buseni z, Plumme , Klo z, Shahzad, &
Rhoads, 2014). Mo eo e , ma ke ing shel e s
he en ep eneu ial p ocess and p o ides i
wi h di ec ions o u u e business expansion
(Mu ay, 1981). Also, ma ke ing is in cha ge
o in e ac ion wi h he business en i onmen
(Da is, Mo is, & Allen, 1991). None heless,
one should no only ocus on he global iew o
ma ke ing, bu also on i s empo al dynamics,
by which ma ke ing pushes an o ganiza ion
along he “spi al o success”. Essen ially, i is
necessa y o unde s and he business cycle
pa e ns o he ac i i ies ha lead o business
success o ailu e (Newman, 2007). “The apid
pace o change means ha he i m’s abili y o
change will become a compe i i e ad an age”
(Ko le , Wong, Saunde s & A ms ong, 2004).
This means ha a company mus y o
ha monize i s en ep eneu ial o ien a ion wi h
he ma ke esponse (A uahene-Gima & Ko,
2001). I becomes an impe a i e o manage
a business sys em h ough he cycles o new
de elopmen al unde akings, by mo ing along
he “spi al o success” and a oiding he pa h o
o ganiza ional ailu e.
2. The Pa adox o Ma ke ing-
En ep eneu ship: “Spi al
o Success”
Ou model is based on he p emise ha being
awa e o he change is necessa y o business
de elopmen , whe e en ep eneu ship manages
he de elopmen , while ma ke ing manages
isk. In o he wo ds, ma ke ing de e mines he
le el o accep able isk which acili a es climbing
he spi al o o ganiza ional success. Ma ke ing
as an o ganiza ional unc ion is signi i can ly
a ec ed by he deg ee o en ep eneu ial
o ien a ion o a company (K aus, Ha ms, &
Fink, 2010). Howe e , he long- e m ou look o
he en ep eneu ial o ien a ion is de e mined
by he quali y o ma ke ing ac i i ies (Ko le ,
Wong, Saunde s, & A ms ong, 2004). Mo e
impo an ly, i should be s essed ha ma ke s
ha a e cons an ly changing a e no a h ea ,
bu ini ia o s o ma ke ing (Buseni z, Plumme ,
Klo z, Shahzad, & Rhoads, 2014). Such ma ke s
c ea e oppo uni ies ha a e no common o he
pe iods o ma ke s abili y.
The “spi al o success” o an o ganiza ion ha
shows a dynamic link be ween en ep eneu ship
and ma ke ing in ol es wo pa ame e s ha
de i ne i s empo al cha ac e is ics (Fig. 1).
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210 2017, XX, 3
Ma ke ing a obchod
The diame e o he spi al de i nes a measu e
o di e si i ca ion, while he s ep o he spi al
ep esen s a measu e o equency o ins ances
when an o ganiza ion en e s new de elopmen al
cycles. The “spi al o success” o a well-
de eloped o ganiza ion is cha ac e ized by
sho e s ep sizes and a wide diame e , which
can be in e p e ed as equen de elopmen al
cycles wi h highe le el o di e si i ca ion (i.e.,
new i elds o business ope a ions). To su i e in
a compe i i e en i onmen , high equency and
di e si y a e a necessi y.
In pa icula , an inc ease in changes, as he
basis o en ep eneu ial ac i i ies (En↗) leads o
an inc ease in isk (R↗) ha a business aces.
The inc ease in isk demands s ong ma ke ing
ac i i ies ha should esol e he p oblem
by wo king on di e ences (WoD), i.e., by
c ea ing a compe i i e ad an age ha causes
a dec ease in he isk (R↓) and inc ease in he
dynamic s abili y o he sys em. Bu , in he long-
un, he lack o o ganiza ional changes (Ch0)
may lead o an inc ease in isk (R↗) because i
may dec ease he compe i i e ad an age o he
o ganiza ion and he eby s eng hen i s ma ke
compe i ion. We emphasize he pa adox: when
he o ganiza ional changes a e in ense, bu also
when hey a e no , he o ganiza ion aces high
isk (Mo is, Schindehu e, & LaFo ge, 2002).
Such ad e se de elopmen s equi e en y in
a new cycle o en ep eneu ial ac i i ies by he
way o inno a ion ha no only inc eases isk
(R↗), bu also c ea es a ma ke ad an age om
ano he WoD cycle.
In gene al, ma ke ing and en ep eneu ship
a e di ec ly ela ed o he i m’s p o i abili y
(Beche e & Mau e , 1998). A success ul
de elopmen o new p oduc s and se ices is
able o sus ain g ow h and main ain p o i abili y
o heal hy companies in he long un (Ko le ,
Wong, Saunde s, & A ms ong, 2004). This
means ha ma ke ing pe o ms he ole o
a condui ha p o ides an en ep eneu ial
momen um (Mo is & Paul, 1987). Taken
join ly, en ep eneu ship and ma ke ing o e
a possibili y o de elop unique solu ions ailo ed
o mee he equi emen s o buye s in he so-
called ma ke p eneu ship-o ien ed businesses
(McAuley, 2011).
3. Me hodology: Causali y in he
F equency Domain
The es o causali y in he equency domain
by B ei ung and Candelon (2006) o igina es
Fig. 1: The “Spi al o Success”
Sou ce: own
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211
3, XX, 2017
Ma ke ing and T ade
om Geweke (1982) and Hosoya (1991). Le
z = [x , y ]′ be a wo-dimensional ime se ies
ec o wi h = 1,...,T. I is assumed ha z has
a i ni e-o de VAR ep esen a ion
() ,
Lz


(1)
whe e (L) = I – 1L – … – pLp is a 2×2 lag
polynomial wi h Lk z = z -k. I is assumed ha
he ec o  is whi e noise wi h E( ) = 0 and
E(  ′) = , whe e  is a posi i e de i ni e ma ix.
Nex , le G be he lowe iangula ma ix o he
Cholesky decomposi ion G′G = Σ-1, such ha
E(  ′) = I and  = G . The sys em is assumed
o be s a iona y, implying he ollowing MA
ep esen a ion:
(2)
whe e 1
() ()LL


 and 11
() ()
LLG

 .
Using his ep esen a ion, he spec al densi y
o x can be exp essed as

22
11 12
1
() () ()
2
ii
x
ee



 
(3)
The measu e o causali y sugges ed by
Geweke (1982) and Hosoya (1991) is de i ned
as
2
11
2()
() log
()
x
yx i
M
e





(4)
2
12
2
11
()
log 1
()
i
i
e
e











(5)
This measu e is ze o i in
which case i is said ha y does no cause x a
equency . To es he hypo hesis ha y does
no cause x a equency  he ollowing null
hypo hesis is used:
0)( 


xy
M (6)
Yao and Hosoya (2000) es ima e
0)( 


xy
M by eplacing and
om Equa ion (5) wi h es ima es
ob ained om he i ed VAR. Howe e , his
app oach is no app op ia e since
is a complica ed nonlinea unc ion o he VAR
pa ame e s. Yao and Hosoya (2000) p opose
a nume ical es ima ion p ocedu e ins ead
o an exac analy ical exp ession. B ei ung
and Candelon (2006) esol e his p oblem by
showing ha he null hypo hesis 0)( 


xy
M
is equi alen o a linea es ic ion on he VAR
coe i cien s. Fi s , hey use 11
() ()LLG


and
22
12
12
()
() ()
gL
LL


 (whe e 22
g is he
lowe diagonal elemen o 1
G and ()L is
he de e minan o ()L) o exp ess he null
hypo hesis as
(7)
whe e 12,k

is he (1,2)-elemen o k. Thus,
a necessa y and su i cien se o condi ions o
12 ()0
i
e



is
(8)
(9)
The no a ion can be simpli i ed by le ing
aj = θ11,j and βj = θ12,j. Then, he VAR equa ion
o x can be w i en as
...
11 p p xaxax

 
.... 111 p p yy

 
(10)
The hypo hesis 0)( 


xy
M is equi alen
o he linea es ic ion
,0)(:
0

RH (11)
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212 2017, XX, 3
Ma ke ing a obchod
whe e 1,..., p
 



and






)sin(...)2sin()sin(
)cos(...)2cos()cos(
)(



p
p
R
The o dina y F s a is ic o (11) is
app oxima ely dis ibu ed as F(2,T – 2p) o
ω

(0,π). As in B ei ung and Candelon (2006),
o assess he s a is ical signi i cance o he
causal ela ionship be ween exchange a e
e u ns and o de l ows, he causali y measu e
o ω

(0,π) is compa ed o he 5% c i ical
alue o a X2-dis ibu ion wi h 2 deg ees o
eedom (5.99). B ei ung and Candelon (2006)
s udy he local powe o he es when he
equency being es ed con e ges o he ue
equency and show ha he Wald s a is ic is
asymp o ically dis ibu ed as non-cen al X2.
4. Da a Desc ip ion
The da a se is o Amazon.com (AMZN),
sampled a a qua e ly equency and was
ob ained om Bloombe g. The da e o he
IPO o AMZN was May 14, 1997. Thus,
he da a o ne income (NI) and ma ke ing
expense (MKT) span he pe iod be ween
June 30, 1997 and No embe 30, 2014, o
he o al o 70 obse a ions. The uni s o bo h
a iables a e millions o U.S. dolla s (USD). As
Fig. 2 indica es, he MKT a iable is po en ially
non-s a iona y and ending, while such da a
ea u es a e no ob ious o ne income ha
exhibi s occasional ola ili y ou bu s s.
Tab. 1 p esen s he summa y s a is ics
o MKT and NI. On a e age, NI is lowe han
MKT and his con i ms AMZN’s commi men o
la ge ma ke ing budge . S anda d de ia ions o
bo h a iables a e la ge han he means, hus,
indica ing highly ola ile and o e dispe sed
a iables. Wi h espec o skewness, NI is
oughly no mally dis ibu ed and MKT is
posi i ely skewed. This is in line wi h he
obse ed da a ea u es in Fig. 2. Finally,
bo h se ies display excess ku osis which
emphasizes la ge ail isk.
NI and MKT a e conside ed in i s -di e ence
e ms in o de o a oid heo e ical p oblems
o in e ence wi h non-s a iona y a iables. To
suppo his claim, s anda d Dickey-Fulle and
Phillips-Pe on uni oo s es s a e pe o med
on bo h a iables (Tab. 2). MKT is ound o be
in eg a ed o o de one and NI is bo de line
s a iona y a he 5% signi i cance le el. When
Fig. 2: Ne income and ma ke ing cos o Amazon.com [AMZN]
Sou ce: own
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213
3, XX, 2017
Ma ke ing and T ade
Va iable Obs Mean S d. De . Min Max Median Skewness Ku osis
NI 70 25.13 181.94 -545.14 416 40.50 -0.64 3.84
MKT 70 209.32 272.63 7.77 1,133 79.97 1.78 5.25
Sou ce: own
Va iable PP p- alue ADF p- alue Lags
NI 0.035 0.051 13
MKT 0.997 0.998 5
Change in NI 0.000 0.000 1
Change in MKT 0.000 0.006 9
Sou ce: own
Tab. 1: Summa y s a is ics
Tab. 2: Non-s a iona i y es s
Fig. 3: Causali y es s o ΔMKT and ΔNI o Amazon.com
Sou ce: own
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214 2017, XX, 3
Ma ke ing a obchod
he a iables we e ans o med o hei qua e ly
changes, he null hypo hesis o non-s a iona i y
is ejec ed a he 99% signi i cance le el.
5. Resul s
This sec ion epo s he esul s o causali y
es s in he equency domain o he bi a ia e
sys em ha con ains change in MKT (MKT)
and change in NI (NI). Bo h Dickey Fulle and
Phillips-Pe on es s ejec he null hypo hesis
o a uni oo in he MKT and NI ime se ies
a he 1% signi i cance le el. Acco ding o he
AIC c i e ion, a VAR(8) model was selec ed o
bo h sys ems.
Fig. 3 p esen s he causali y measu e
be ween MKT and NI o all equencies
(ω

(0,π)) along wi h he 5% c i ical alue
(5.99) ha is ep esen ed wi h a ho izon al
dashed line. The op panel indica es ha he null
hypo hesis o no causali y om NI o MKT
is ejec ed when <0.20 which co esponds
o e y low equencies wi h a wa eleng h o
oughly 7-8 yea s (31 qua e s = 2/ω). Hence,
i akes a long pe iod o ime be o e any changes
in NI impac changes in MKT. These i ndings
show o a ce ain ex en an independence o
ma ke ing decisions ela i e o he p o i abili y
o he company.
The bo om panel o Fig. 3 e eals e idence
o causali y om MKT o NI in he medium
un o ω

[1,1.7] (be ween 3.69 and 6.28
qua e s, i.e., he lag leng h is be ween one
and one and a hal yea s) and long un
ω

[0.2,0.5] (i.e., 3-7 yea s). These i ndings
demons a e ha changes in MKT a e able o
p edic changes in NI a bo h medium and long
ho izons. In o he wo ds, ma ke ing expense
is an impo an de e minan o p o i abili y wi h
a dual impac , one ha esul s in he sho o
medium un esponse o NI (1-1.5 yea -lag)
and he o he ha d i es p o i abili y a business
cycle equencies (3-7 yea s).
In he con ex o ou “spi al o success”
depic ed in Fig. 1, we show ha AMZN has no
only been success ul in acing high isk when
he o ganiza ional changes we e in ense (in
he sho o medium un), bu also when he
o ganiza ional changes we e no in ense (in
he long un). Speci i cally, AMZN was able o
en e new cycles o en ep eneu ial ac i i ies
and ma ke ing, and c ea e a dis inc i e ma ke
ad an age ha esul ed in hei p o i abili y.
Mo e b oadly, as he company has been
cons an ly inno a ing and di e si ying o e he
sample yea s, AMZN has alida ed ou p emise
ha a success ul company needs o en e mo e
equen de elopmen al cycles wi h a g ea e
le el o di e si i ca ion.
Conclusions
A la ge body o esea ch sugges s ha
en ep eneu ially-o ien ed businesses need
ma ke ing and ha en ep eneu ial ac i i ies
a e necessa y o ma ke ing-o ien ed
businesses. The in e ac ion be ween he wo
disciplines is hus a po en ially ich esea ch
a ea. The goal o his pape is o lay ou
mul idisciplina y ounda ions o he o mal
heo e ical and p ac ical ea men o his
impo an esea ch ques ion. On he heo e ical
side, we s ess ha he in e ac ion be ween
ma ke ing and en ep eneu ship leads o
a pa adoxical si ua ion: when o ganiza ional
changes a e in ense and also when hey a e
no , an o ganiza ion aces high isk. Such
de elopmen s necessi a e a new cycle o
en ep eneu ial (i.e., inno a ion) ac i i ies ha
will esul in e en mo e isk, bu hey will cause
a swi ch o a new de elopmen al cycle, un il he
inno a i eness o en ep eneu ial o ganiza ion
and/o i s ma ke ing c ea e a cycle o dis inc i e
ma ke ad an age. Wi h his a icle, we
emphasize he complex ela ionship be ween
ma ke ing, en ep eneu ship and i nance ha
is equency-dependen and ollows ce ain
pe iodici y. We de elop a heo e ical model and
es i s alidi y on ma ke da a.
On he empi ical side, we s udy he
in e ac ion o ma ke ing, p o i abili y and
en ep eneu ial ac i i ies in he equency
domain o he in o ma ion ob ained om he
i nancial s a emen s o Amazon.com, Inc. We
documen ha ma ke ing e o s a e able o
p edic changes in ne income a bo h medium
and long ho izons. In pa icula , Amazon.
com, Inc. was able o en e new cycles o
en ep eneu ial ac i i ies and ma ke ing c ea e
a dis inc i e ma ke ad an age ha esul ed in
hei p o i abili y.
Ne e heless, in he mos ecen yea s
(2014 and 2015), he p o i abili y o Amazon
has become mo e a iable. The unp eceden ed
nega i e ne income was eco ded in
2014 (-241 USD$mil), bu he company’s
inno a i e business model p e ailed in 2015
and gene a ed a s ong posi i e ne income
o 328 USD$mil. Meanwhile, he ma ke
showed a s ong suppo o he company
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215
3, XX, 2017
Ma ke ing and T ade
and, consequen ly, he s ock p ice ollowed an
upwa d end o e he yea s, un il he end o
2015. Ou model sugges s ha he obse ed
success o igina ed in he equency o new
de elopmen al cycles. Indeed, a a ie y o
Amazon’s inno a ions and new se ices such
as Fi e TV, Dash, T a el, Echo, Alexa and
P imeAi (d one deli e y) eme ged in 2014 and
2015. This ecen e idence and ou empi ical
i ndings suppo ou heo e ical conjec u e ha
a success ul company needs o en e mo e
equen de elopmen al cycles wi h a g ea e
le el o di e si i ca ion. Ou u u e esea ch
e o s will ocus on concep ualizing a dynamic
model o a panel o companies ha ha e been
success ully di e si ying hei business model.
The au ho s would like o hank he Edi o
and he wo anonymous e e ees o hei
help ul commen s and sugges ions.
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