ifkad articles

Digital Marketing, Customer Relational Capital, and Marketing Innovation as Driving Forces of Product Innovation Performance in Organic Farming

Aritz Arano-Irizar, Josune Sáenz, Carmela Peñalba-Aguirrezabalaga, Ana Ortiz-de-Guinea

This paper delves into the significance of digital marketing as a new form of structural capital that substantially enhances market knowledge and plays a pivotal role in the dissemination of new or improved products and services. It juxtaposes the use of digital marketing tools with the enduring value of personal customer interactions in acquiring market insights and underscores the critical role of marketing innovation in elevating product/service innovation performance within the organic farming sector. Employing survey methodology, the research analysed responses from 177 family-owned organic farms across Spain using structural equation modelling based on partial least squares. The findings reveal a strong, positive relationship between both digital marketing and market knowledge, and between customer relational capital and market knowledge. Furthermore, marketing innovativeness fully mediates the relationship between market knowledge and product/service innovation performance, and digital marketing is also directly and strongly related to product/service innovation performance. In essence, the paper contributes to the intellectual capital, marketing, and innovation literature by underscoring the emerging role of digital marketing as structural capital. It delineates marketing’s dual role as a provider of crucial market insights and a direct contributor to value creation. Furthermore, by highlighting the synergy between marketing innovation and product innovation, this study enriches the discourse on the impact of non-technological innovation on technological innovation outcomes. This multifaceted exploration offers new perspectives on leveraging digital marketing, intellectual capital, and innovation strategies to overcome the market challenges faced by organic farming in Spain.

IN: Proceedings IFKAD 2024 – Translating Knowledge into Innovation Dynamics
PP: 1924-1938