Transforming Regiocultural Branding into Sustainable Marketing Performance: A Dynamic Capability Perspective
DOI:
https://doi.org/10.25134/7phhb926Keywords:
regiocultural branding; dynamic marketing capabilities; sustainable marketing performance; dynamic capability perspective; SMEsAbstract
In dynamic market environments, culture-based small and medium enterprises (SMEs) face the challenge of transforming local cultural identity into sustainable marketing performance. Although regiocultural branding enhances brand differentiation and authenticity, prior marketing studies often treat it as a static symbolic asset, offering limited explanation of how cultural values remain relevant under market change. Drawing on the dynamic capability perspective, this study develops and tests a process-based model explaining how regiocultural branding is transformed into sustainable marketing performance through dynamic marketing capabilities. Survey data from 200 owners or managers of culture-based SMEs were analysed using Structural Equation Modelling (SEM-AMOS). The results show that regiocultural branding positively affects dynamic marketing capabilities, which in turn significantly enhance sustainable marketing performance. Dynamic marketing capabilities partially mediate the relationship between regiocultural branding and sustainable marketing performance. This study reconceptualises regiocultural branding as a trigger for dynamic capability development rather than a static identity asset and extends the dynamic capability perspective to culture-based SME marketing in developing countries.
References
Ababneh, O. M. A. (2021). The impact of organizational culture archetypes on quality performance and total quality management: the role of employee engagement and individual values. International Journal of Quality & Reliability Management, 38(6), 1387–1408. https://doi.org/10.1108/IJQRM-05-2020-0178
Akpa, V. O., Asikhia, O. U., & Nneji, N. E. (2021). Organizational culture and organizational performance: A review of literature. International Journal of Advances in Engineering and Management, 3(1), 361–372. https://doi.org/10.35629/5252-0301361372
Anning-Dorson, T. (2021). Organizational culture and leadership as antecedents to organizational flexibility: implications for SME competitiveness. Journal of Entrepreneurship in Emerging Economies, 13(5), 1309–1325. https://doi.org/10.1108/JEEE-08-2020-0288
Asmai, S. A., Almansoori, B. S. A., & Kamalrudin, M. (2022). Mediation model of strategic foresight influencing dynamic capability. International Journal of Sustainable Construction Engineering and Technology, 13(2), 120–133. https://doi.org/10.30880/ijscet.2022.13.02.011
Barney, Jay B, KetchenJr., David J, & Wright, Mike. (2021). Resource-Based Theory and the Value Creation Framework. Journal of Management, 47(7), 1936–1955. https://doi.org/10.1177/01492063211021655
Basyir, M., Ibrahim, M., & Tabrani, M. (2025). The influence of ethnic culture orientation on SME performance in Indonesia: The mediating role of resource orchestration capability as a strategic tool. Problems and Perspectives in Management, 23(2), 826. https://doi.org/10.21511/ppm.23(2).2025.60
Cataltepe, V., Kamasak, R., Bulutlar, F., & Palalar Alkan, D. (2023). Dynamic and marketing capabilities as determinants of firm performance: evidence from automotive industry. Journal of Asia Business Studies, 17(3), 617–638. https://doi.org/10.1108/JABS-11-2021-0475
Collien, I. (2021). Concepts of power in boundary spanning research: A review and research agenda. International Journal of Management Reviews, 23(4), 443–465. https://doi.org/10.1111/ijmr.12251
Gao, J., Siddik, A. B., Khawar Abbas, S., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of E-Commerce and Digital Marketing Adoption on the Financial and Sustainability Performance of MSMEs during the COVID-19 Pandemic: An Empirical Study. In Sustainability (Vol. 15, Issue 2, p. 1594). https://doi.org/10.3390/su15021594
Giraldi, L., Coacci, S., & Cedrola, E. (2023). How relational capability can influence the success of business partnerships. International Journal of Productivity and Performance Management, 73(2), 601–628. https://doi.org/10.1108/IJPPM-01-2022-0012
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling ( PLS-SEM ) Using R. Springer Nature.
Heyes, C. (2023). Imitation and culture: What gives? Mind & Language, 38(1), 42–63. https://doi.org/10.1111/mila.12388
Hoque, M. T., Ahammad, M. F., Tzokas, N., & Gabay, G. (2020). Dimensions of dynamic marketing capability and export performance. Journal of Knowledge Management, 25(5), 1219–1240. https://doi.org/10.1108/JKM-09-2019-0482
Hung, Y.-C., Su, T.-C., & Lou, K.-R. (2022). Impact of organizational culture on individual work performance with national culture of cross-strait enterprises as a moderator. Sustainability, 14(11), 6897. https://doi.org/10.3390/su14116897
Khan, K. U., Atlas, F., Ghani, U., Akhtar, S., & Khan, F. (2020). Impact of intangible resources (dominant logic) on SMEs innovation performance, the mediating role of dynamic managerial capabilities: evidence from China. European Journal of Innovation Management. https://doi.org/10.1108/EJIM-07-2020-0276
Manzoor, F., Wei, L., & Sahito, N. (2021). The role of SMEs in rural development: Access of SMEs to finance as a mediator. Plos One, 16(3), e0247598. https://doi.org/10.1371/journal.pone.0247598
Mohyeddin, Z. (2024). Cultural identity in a globalized world: Navigating tradition and modernity. Frontiers in Humanities and Social Research, 1(3), 106–115. https://doi.org/10.71465/fhsr202
Permatasari, A., Dhewanto, W., & Dellyana, D. (2022). The role of traditional knowledge-based dynamic capabilities to improve the sustainable performance of weaving craft in Indonesia. Journal of Enterprising Communities: People and Places in the Global Economy, 17(3), 664–683. https://doi.org/10.1108/JEC-11-2021-0156
Pfajfar, G., Mitręga, M., & Shoham, A. (2024). Systematic review of international marketing capabilities in dynamic capabilities view–calibrating research on international dynamic marketing capabilities. International Marketing Review, 41(1), 237–272. https://doi.org/10.1108/IMR-12-2022-0276
Quansah, E., Hartz, D. E., & Salipante, P. (2022). Adaptive practices in SMEs: leveraging dynamic capabilities for strategic adaptation. Journal of Small Business and Enterprise Development, 29(7), 1130–1148. https://doi.org/10.1108/JSBED-07-2021-0269
Rachwal-Mueller, A., & Fedotova, I. (2024). The impact of cultural factors on consumer behavior: a holistic model for adaptive marketing approaches. Економіка Транспортного Комплексу, 44, 165–184.
Reimann, C., Carvalho, F., & Duarte, M. (2021). The Influence of Dynamic and Adaptive Marketing Capabilities on the Performance of Portuguese SMEs in the B2B International Market. In Sustainability (Vol. 13, Issue 2, p. 579). https://doi.org/10.3390/su13020579
Sasaki, I., Nummela, N., & Ravasi, D. (2021). Managing cultural specificity and cultural embeddedness when internationalizing: Cultural strategies of Japanese craft firms. Journal of International Business Studies, 52(2), 245–281. https://doi.org/10.1057/s41267-020-00330-0
Sheth, Jagdish N, & Parvatiyar, Atul. (2020). Sustainable Marketing: Market-Driving, Not Market-Driven. Journal of Macromarketing, 41(1), 150–165. https://doi.org/10.1177/0276146720961836
Shuaib, K. M., He, Z., & Song, L. (2021). Effect of organizational culture and quality management on innovation among Nigerian manufacturing companies: The mediating role of dynamic capabilities. Quality Management Journal, 28(4), 223–247. https://doi.org/10.1080/10686967.2021.1962773
Teece, D. J. (2018). Dynamic capabilities as (workable) management systems theory. Journal of Management & Organization, 24(3), 359–368. https://doi.org/DOI: 10.1017/jmo.2017.75
Tubadji, A. (2023). Culture Based Development in the Regions of China. Journal of Economic Issues, 57(1), 8–35. https://doi.org/10.1080/00213624.2023.2154531
Ustazah, E. N., Setijanti, P., & Hayati, A. (2025). Experiential retailing in cultural spaces: A case study of multisensory design in batik boutiques. F1000Research, 14, 506. https://doi.org/10.12688/f1000research.163519.2
Wajdi, F., Mus, A. R., & Suriyanti, S. H. (2025). The Effect of Marketing Ambidexterity, Dynamic Marketing Ability, and Managerial Agility on Business Resilience and Sustainability of Small and Medium Enterprises in West Sulawesi. Pakistan Journal of Life & Social Sciences, 23(1). https://doi.org/10.57239/PJLSS-2025-23.1.00454
Wang, S., & Huang, L. (2022). A Study of the Relationship between Corporate Culture and Corporate Sustainable Performance: Evidence from Chinese SMEs. In Sustainability (Vol. 14, Issue 13, p. 7527). https://doi.org/10.3390/su14137527
Yan, B., Yao, B., Li, Q., & Dong, Q. (2022). Study on the Impact of Supply Chain Dynamic Capabilities on Long-Term Performance of Enterprises. In Sustainability (Vol. 14, Issue 19, p. 12441). https://doi.org/10.3390/su141912441
Yeboah-Banin, A. A., & Quaye, E. S. (2021). Pathways to Global versus Local Brand Preferences: The Roles of Cultural Identity and Brand Perceptions in Emerging African Markets. Journal of Global Marketing, 34(5), 372–391. https://doi.org/10.1080/08911762.2021.1886385
Yulianto, H. (2025). How Does Adaptive Socio-Cultural Digital Innovation Model Influence Cultural Sustainability of Traditional Craft Smes in Makassar? International Seminar Universitas Tulungagung, 7, 524–542. https://doi.org/10.36563/gqhspx75
Zahara, Z., Ikhsan, Santi, I. N., & Farid. (2023). Entrepreneurial marketing and marketing performance through digital marketing capabilities of SMEs in post-pandemic recovery. Cogent Business & Management, 10(2), 2204592. https://doi.org/10.1080/23311975.2023.2204592
Zahra, S. A., Petricevic, O., & Luo, Y. (2022). Toward an action-based view of dynamic capabilities for international business. Journal of International Business Studies, 53(4), 583–600. https://doi.org/10.1057/s41267-021-00487-2
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Tatang Rois, Agapito Barros, Wachjuni (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
