Dynamic Marketing through Engagement: Answering the role of marketing functions.

Sumitro Sarkum, Bambang Agus Pramuka, Agus Suroso


The offline to online marketing system (O2O) in this article provides a new perspective on marketing strategies to address the role of marketing functions in Dynamic Marketing Capabilities (DMC's) through Engagement. The originality of this research lies in the development of new concepts through the synthesis of theories that support the findings of the new concept of Dynamic Marketing through Engagement (DME). This concept is expected to be contributed to strengthening the theoretical basis of Dynamic Marketing Capabilities (DMC's) and Actor Engagement as a sustainable competitive advantage. The purpose of this study is to examine and analyze the role nature of the Dynamic Marketing Engagement (DME) concept in marketing perspective as a management strategy to achieve and maintain a sustainable competitive advantage in improving business performance. Data was collected from owners, managers, or business owners and SME managers who do two marketing systems from offline to online; the distribution of questionnaires was done via email and social media (facebook) to 300 SMEs all over Indonesia and interviewed 30 SMEs in Banyumas Regency, Central Java-Indonesia. The findings justify the previous research gap that dynamic capabilities, actors' engagement and performance are still a contradiction among the results of the study. In addition, there is still a gap phenomenon on improving business performance in SMEs on both offline marketing systems to online. Nevertheless, the concept of Dynamic Marketing Engagement positively improves the business performance of SMEs.


Actor Engagement; Competitive Advantage; Dynamic Marketing Capabilities

Full Text:



Adams, J. S. (1965). Inequity in Social Exchange. Advances in Experimental Social Psychology, 2, 267–299. http://doi.org/10.1016/S0065-2601(08)60108-2

Anabel Fernández-Mesa, Alegre-Vidal, J., Chiva-Gómez, R., & Gutiérrez-Gracia, A. (2013). Design management capability and product innovation in SMEs. Management Decision, 51(3), 547–565. http://doi.org/10.1108/00251741311309652

Arend, R. J. (2013). Ethics-focused dynamic capabilities: A small business perspective. Small Business Economics, 41(1), 1–24. http://doi.org/10.1007/s11187-012-9415-2

Arend, R. J. (2014). Entrepreneurship and dynamic capabilities : how firm age and size affect the capability enhancement – SME performance ’ relationship. Small Business Economics, 42, 33–57. http://doi.org/10.1007/s11187-012-9461-9

Askool, S., & Nakata, K. (2011). A conceptual model for acceptance of social CRM systems based on a scoping study. AI and Society, 26(3), 205–220. http://doi.org/10.1007/s00146-010-0311-5

Barrales-Molina, V., Martínez-López, F. J., & Gázquez-Abad, J. C. (2014). Dynamic marketing capabilities: Toward an integrative framework. International Journal of Management Reviews, 16(4), 397–416. http://doi.org/10.1111/ijmr.12026

Beske, P. (2012). Dynamic capabilities and sustainable supply chain management. International Journal of Physical Distribution & Logistics Management, 42(4), 372–387. http://doi.org/10.1108/09600031211231344

Bowden, J. L.-H. (2009). The process of customer engagement: A conceptual framework. Journal of Marketing Theory and Practice, 17(1), 63–74. http://doi.org/10.2753/MTP1069-6679170105

Brodie, R. J., Ilic, A., Juric, B., & Hollebeek, L. (2013). Consumer engagement in a virtual brand community: An exploratory analysis. Journal of Business Research, 66(1), 105–114. http://doi.org/10.1016/j.jbusres.2011.07.029

Bruni, D. S., & Verona, G. (2009). Dynamic marketing capabilities in science-based firms: An exploratory investigation of the pharmaceutical industry. British Journal of Management, 20(SUPP. 1). http://doi.org/10.1111/j.1467-8551.2008.00615.x

Chandler, J. D., & Lusch, R. F. (2015). Service Systems : A Broadened Framework and Research Agenda on Value Propositions , Engagement , and Service Experience. Journal of Service Research 2015, 18(1), 6–22. http://doi.org/10.1177/1094670514537709

Chen, Y., Ho, T.-H., & Kim, Y.-M. (2010). Knowledge Market Design: A Field Experiment At Google Answers. Journal of Public Economic Theory, 12(4), 641–664.

Choudhury, M. M., & Harrigan, P. (2014). CRM to social CRM: the integration of new technologies into customer relationship management. Journal of Strategic Marketing, 22(2), 149–176. http://doi.org/10.1080/0965254X.2013.876069

Christopher, M., & Towill, D. R. (2002). "Developing Market Specific Supply Chain Strategies. The International Journal of Logistics Management, 13(1), 1–14. http://doi.org/10.1108/09574090210806324

Chu, S. (2011). Viral Advertising in Social Media : Participation in Facebook Groups and Responses Among College-Aged Users. Journal of Interactive Advertising, 12(1), 30–43. http://doi.org/10.1080/15252019.2011.10722189

Constantinides, E. (2014). Foundations of Social Media Marketing. Procedia - Social and Behavioral Sciences, 148, 40–57. http://doi.org/10.1016/j.sbspro.2014.07.016

Crager, J., Ayres, S., Nelson, M., Herndon, D., & Stay, and J. (2014). Facebook: All-in-One For Dummies (2nd ed.). John Wiley & Sons, Inc.

Data Usaha Mikro, Kecil, Menengah (UMKM) dan Usaha Besar (UB) Tahun 2012 - 2013. (2013). Retrieved from http://www.depkop.go.id/berita-informasi/data-informasi/data-umkm/

Deloitte. (2015). Meningkatnya keterlibatan UKM secara digital dapat mengangkat pertumbuhan ekonomi Indonesia sebesar 2%. Retrieved from www2.deloitte.com/

El-Gohary, H. (2010). E-Marketing-A literature Review from a Small Businesses perspective. International Journal of Business and Social Science, 1(1), 214–244. Retrieved from http://www.ijbssnet.com/journals/20.pdf

Ellison, N. B., Steinfield, C., & Lampe, C. (2007). The benefits of facebook “friends:” Social capital and college students’ use of online social network sites. Journal of Computer-Mediated Communication, 12(4), 1143–1168. http://doi.org/10.1111/j.1083-6101.2007.00367.x

Faisal, M. N., Banwet, D. K., & Shankar, R. (2007). An approach to measure supply chain agility. Int. J. Industrial and Systems Engineering, 2(1), 79–98.

Fang, E. (Er), & Zou, S. (2009). Antecedents and consequences of marketing dynamic capabilities in international joint ventures. Journal of International Business Studies, 40(5), 742–761. http://doi.org/10.1057/jibs.2008.96

Finsterwalder, J. (2016). A 360-degree view of actor engagement in service co-creation. Journal of Retailing and Consumer Services, (January), 0–1. http://doi.org/10.1016/j.jretconser.2016.08.005

Frow, P., Nenonen, S., Payne, A., & Storbacka, K. (2015). Managing Co-creation Design : A Strategic Approach to Innovation. British Journal of Management. http://doi.org/10.1111/1467-8551.12087

Greenberg, P. (2010). The impact of CRM 2.0 on customer insight. Journal of Business & Industrial Marketing, 25(6), 410–419. http://doi.org/10.1108/08858621011066008

Grönroos, C., & Helle, P. (2012). Return on relationships : conceptual understanding and measurement of mutual gains from relational business engagements. Journal of Business & Industrial Marketing, 27(5), 344–359. http://doi.org/10.1108/08858621211236025

Harrigan, P., & Miles, M. (2014). From e-CRM to s-CRM. Critical factors underpinning the social CRM activities of SMEs. Small Enterprise Research, 21(1), 99–116. http://doi.org/10.1080/13215906.2014.11082079

Hatch, M. J., & Schultz, M. (2010). Toward a theory of brand co-creation with implications for brand governance. Journal of Brand Management, 17, 590–604. http://doi.org/10.1057/bm.2010.14

Heidemann, J., Klier, M., & Probst, F. (2012). Online social networks: A survey of a global phenomenon. Computer Networks, 56(18), 3866–3878. http://doi.org/10.1016/j.comnet.2012.08.009

Hou, J.-J., & Chien, Y.-T. (2010). The effect of market knowledge management competence on business performance: A dynamic capabilities perspective. International Journal of Electronic Business Management, 8(2), 96–109.

Jayachandran, S., Sharma, S., Kaufman, P., & Raman, P. (2005). The role of relation information processes and technology use in customer relationship management. Journal of Marketing, 69(4), 177–192. http://doi.org/10.1509/jmkg.2005.69.4.177

Jooryang, L., Jai-Yeol, S., & Kil-Soo, S. (2010). Can Market Knowledge from Intermediaries Increase Sellers’ Performance in On-Line Marketplaces? International Journal of Electronic Commerce, 14(4), 69–102. http://doi.org/10.2753/JEC1086-4415140403

Jüttner, U., Christopher, M., & Godsell, J. (2010). A strategic framework for integrating marketing and supply chain strategies. The International Journal of Logistics Management, 21(1), 104–126. http://doi.org/10.1108/09574091011042205

Kahn, W. a. (1990). Psychological Conditions of Personal Engagement and Disengagement At Work. The Academy of Management Journal, 33(4), 692–724. http://doi.org/10.2307/256287

Karagouni, G., & Protogerou, A. (2016). Dynamic Capabilities and Value Co-Creation in Low-Tech Knowledge-Intensive Entrepreneurial Ventures. In H. R. Kaufmann & S. M. R. Shams (Eds.), Entrepreneurial Challenges in the 21st Century: Creating Stakeholder Value Co-Creation (1st ed., pp. 1–265). Palgrave Macmillan. http://doi.org/10.1007/978-1-137-47976-1

Keramati, A., Mehrabi, H., & Mojir, N. (2010). A process-oriented perspective on customer relationship management and organizational performance: An empirical investigation. Industrial Marketing Management, 39(7), 1170–1185. http://doi.org/10.1016/j.indmarman.2010.02.001

Kumar, V., & Pansari, A. (2014). The Construct, Measurement, and Impact of Employee Engagement: a Marketing Perspective. Customer Needs and Solutions, 1(1), 52–67. http://doi.org/http://dx.doi.org/10.1007/s40547-013-0006-4

Kumar, V., & Pansari, A. (2015). Competitive Advantage through Engagement. Journal of Marketing Research, 1–51. http://doi.org/10.1017/CBO9781107415324.004

Lehmkuhl, T., & Jung, R. (2013). Towards Social CRM - Scoping the concept and guiding research. In BLED 2013 Proceedings (pp. 190–205). Retrieved from http://aisel.aisnet.org/bled2013/14/

Leonidou, L. C., Christodoulides, P., Kyrgidou, L. P., & Palihawadana, D. (2015). Internal Drivers and Performance Consequences of Small Firm Green Business Strategy : The Moderating Role of External Forces. Journal of Business Ethics, 1–22. http://doi.org/10.1007/s10551-015-2670-9

Makkonen, H., Pohjola, M., Olkkonen, R., & Koponen, A. (2014). Dynamic capabilities and firm performance in a financial crisis. Journal of Business Research, 67(1), 2707–2719. http://doi.org/10.1016/j.jbusres.2013.03.020

Maklan, S., & Knox, S. (2009). Dynamic capabilities: the missing link in CRM investments. European Journal of Marketing, 43(11/12), 1392–1410. http://doi.org/10.1108/03090560910989957

Marcos-cuevas, J., Nätti, S., Palo, T., & Baumann, J. (2016). Value co-creation practices and capabilities : Sustained purposeful engagement across B2B systems. Industrial Marketing Management. http://doi.org/10.1016/j.indmarman.2016.03.012

Monferrer, D., Blesa, A., & Ripollés, M. (2015). Born globals trough knowledge-based dynamic capabilities and network market orientation. BRQ Business Research Quarterly, 18(1), 18–36. http://doi.org/10.1016/j.brq.2014.04.001

Naldi, L., Wikström, P., & Von Rimscha, M. B. (2014). Dynamic Capabilities and performance. International Studies of Management & Organization, 44(4), 63–82. http://doi.org/10.2753/IMO0020-8825440404

Nedzinskas, Š., Pundziene, a, Buožiute-Rafanavičiene, S., & Pilkiene, M. (2013). The impact of dynamic capabilities on SME performance in a volatile environment as moderated by organizational inertia. Baltic Journal of Management, 8(4), 376–396. http://doi.org/http://dx.doi.org/10.1108/BJM-01-2013-0003

Nysveen, H., Pedersen, P. E., & Skard, S. (2012). Brand experiences in service organizations: Exploring the individual effects of brand experience dimensions. Journal of Brand Management, 20, 404–423. http://doi.org/10.1057/bm.2012.31

O’Cass, A., & Ngo, L. V. (2011). Examining the Firm’s Value Creation Process : A Managerial Perspective of the Firm’s Value Offering Strategy and Performance. British Journal of Management, 22, 646–671. http://doi.org/10.1111/j.1467-8551.2010.00694.x

Pagell, M., & Wu, Z. (2009). Building A More Complete Theory Of Sustainable Supply Chain Management Using Case Studies Of 10 Exemplars. Journal of Supply Chain Management, 45(2), 37–56.

Park, K. . B., & Kim, B.-K. . (2013). Dynamic capabilities and new product development performance: Korean SMEs. Asian Journal of Technology Innovation, 21(2), 202–219. http://doi.org/10.1080/19761597.2013.866308

Payne, A. F., Storbacka, K., & Frow, P. (2008). Managing the co-creation of value. Journal of the Academy of Marketing Science, 36, 83–96. http://doi.org/10.1007/s11747-007-0070-0

Payne, A., & Holt, S. (2001). Diagnosing customer value: integrating the value process and relationship marketing. British Journal of Management, 12, 159–182. http://doi.org/10.1111/1467-8551.00192

Pérez-Cabañero, C., Cruz-Ros, S., & González-Cruz, T. (2015). The contribution of dynamic marketing capabilities to service innovation and performance. International Journal of Business Environment, 7(1), 61–77. http://doi.org/10.1504/ijbe.2015.065996

Ranjan, K. R., & Read, S. (2016). Value co-creation : concept and measurement. Journal of the Academy of Marketing Science, 44(3), 290–315. http://doi.org/10.1007/s11747-014-0397-2

Rapp, A., Trainor, K. J., & Agnihotri, R. (2010). Performance implications of customer-linking capabilities: Examining the complementary role of customer orientation and CRM technology. Journal of Business Research, 63(11), 1229–1236. http://doi.org/10.1016/j.jbusres.2009.11.002

Shafei, R., & Zohdi, M. (2014). Relational capabilities in market orientation to improvement of performance outcomes in SMEs. International Journal of Business Performance Management, 15(4), 295–315.

Stelzner, M. . (2015). How Marketers Are Using Social Media to Grow Their Businesses. Social Media Examiner.

Storbacka, K., Brodie, R. J., Böhmann, T., Maglio, P. P., & Nenonen, S. (2016). Actor engagement as a microfoundation for value co-creation. Journal of Business Research, 69(8), 3008–3017. http://doi.org/10.1016/j.jbusres.2016.02.034

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic Capabilities and Strategic Management. Strategic Management Journal, 18(7), 509–533.

Thomas, C. H. (2007). A New Measurement Scale For Employee Engagement: Scale Development, Pilot Test, And Replication. In Academy of Management Proceedings (pp. 1–6). http://doi.org/10.5465/AMBPP.2007.26501848

Trainor, K. J. (2012). Relating Social Media Technologies to Performance: A Capabilities-Based Perspective. Journal of Personal Selling and Sales Management, 32(3), 317–331. http://doi.org/10.2753/PSS0885-3134320303

Trainor, K. J., Andzulis, J., Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), 1201–1208. http://doi.org/10.1016/j.jbusres.2013.05.002

Vivek, S. D., Beatty, S. E., & Morgan, R. M. (2012). Customer Engagement : Exploring Customer Relationships Beyond Purchase. Journal of Marketing Theory and Practice, 20(2), 127–145. http://doi.org/10.2307/23243811

Wardhana, W. (2016). Google : UKM Berbasis Digital Tulang Punggung Ekonomi Indonesia. Suara UMKM MII Network, pp. 4–6. Retrieved from http://suaraumkm.com/2016/02/03/google-ukm-berbasis-digital-tulang-punggung-ekonomi-indonesia/

Wernerfelt, B. (1984). A Resource based view of the firm. Strategic Management Journal, 5(2), 171–180. http://doi.org/10.1002/smj.4250050207

Wilhelm, H., Schlömer, M., & Maurer, I. (2015). How dynamic capabilities affect the effectiveness and efficiency of operating routines under high and low levels of environmental dynamism. British Journal of Management, 26(2), 327–345. http://doi.org/10.1111/1467-8551.12085

Zacca, R., Dayan, M., & Ahrens, T. (2015). Impact of network capability on small business performance Introduction. Management Decision, 53(1), 2–23. http://doi.org/10.1108/MD-11-2013-0587

Zhang, Z. P., & Sundaresan, S. (2010). Knowledge markets in firms: knowledge sharing with trust and signalling. Knowledge Management Research & Practice, 8(4), 322–339. http://doi.org/10.1057/kmrp.2010.22


  • There are currently no refbacks.

International Journal of Marketing, Communication and New Media

ISSN: 2182-9306


International Networks of Indexing: GOOGLE SCHOLAR - LATINDEX - REDIB - RCAAP - OAJI - DRJI.