_Research Hypotheses and Framework and sample size

Accepted: 28 September 2020/ Published online: 4 October 2020 EThe Author(s) 2020 Abstract Scholars and practitioners both acknowledge that agility is crucial in leading a digital transformation effort. However, empirical and theoretical research on agile capabilities in an international digital marketing setting is severely lacking. Drawing on qualitative research design methods, this exploratory single-case study involving the international digital firm Spotahome provides an empirical and theoretical investigation of a new marketing capability we define as an Agile Marketing Capability. We identify its key theoretical dimensions and provide empirical guidelines to facilitate its implementation. This study has important implications for international marketing managers, suggesting what strategic actions are needed to deploy agile practices in their marketing strategies and processes from a practical perspective, in the context of an Agile Marketing Capability. Keywords Agile Marketing Capability â‹… Marketing capabilities · International marketing â‹… Digital business â‹… Single-case study 1 Introduction In today’s business environment, firms are being pushed to rethink their business models, offerings, and processes in light of the challenges and opportunities posed by what is generally known as digital transformation (Daspit 2017; Killian and McManus 2015; Onetti et al. 2012; Rogers 2016). The term encompasses the myriad changes that digital technologies elicit in a company’s business model, such as changed products and organizational structures, streamlined processes, and enhanced customer experiences (Fïtzgerald et al. 2014; Hess et al. 2016). This 1146 L. wioi, F. Cabiddu has produced more “aggressive” marketplaces, where highly competitive, innovative and agile start-ups that leverage their abilities to quickly identify and respond to new business opportunities, are jeopardizing the stability of long-standing firms (D’Aveni et al. 2010; Roberts and Grover 2012a, b). Scholars and practitioners alike deem marketing capabilities as a crucial source of a company’s competitive advantage, especially in today’s volatile markets and in international contexts. Marketing capabilities represent the means by which firms gather and exploit market knowledge to swiftly modify their businesses according to market-driven changes (Barrales-Molina et al. 2014; Bruni and Verona 2009 ; Orlandi 2016; Xu et al. 2018). The constant state of flux that characterizes the current business environment has led marketers to apply agile methods and practices to shorten cycle time, increase flexibility, and sharpen competitiveness (Barkema et al. 2002; Goldman 1995; Grewal and Tansuhaj 2001; Sebastian et al. 2017), and to swiftly adapt to market globalization (Chaffey 2010; Day 2011; Overby et al. 2006; Panda and Rath 2017). The extension of agile practices, i.e., faster production cycles, continuous improvement processes, transparency, coordination, customer engagement (Conboy 2009; Recker et al. 2017) from the software development arena to the marketing field has determined the emergence of Agile Marke ing. This new marketing approach aims to reduce the gap between the “need identified” and “learning deployed” (Miles 2013; p. 22), to design more strategic and effective responses to dynamic environments (Accardi-Petersen 2011; Gera et al. 2019; Poolton et al. 2006; van den Driest and Weed 2014). Agile Marketing is rooted in a string of practices designed to quickly adjust marketing strategies in response to evolving customer needs, emphasizing speed in addressing those changes, coordination between roles and departments, transparency, and greater customer engagement (Ewel 2013). The literature on marketing and strategy is increasingly focused on using agility to address the challenges posed by digital transformation. Studies emphasize the need to “embrace change” (O’Keeffe et al. 2016; p. 432), predict market needs and innovate (Rigby et al. 2016), and cater to customers’ needs (Bock et al. 2012; Jain 1989; Theodosiou and Leonidou 2003; Vendrell-Herrero et al. 2017), especially in highly competitive, international markets (Asseraf et al. 2019; Hagen et al. 2019). Being agile means moving quickly and flexibly (Gren et al. 2015) to respond to needs and opportunities in international markets (Hagen et al. 2019). From this perspective, agility is a dynamic capability (Felipe et al. 2016; Sambamurthy et al. 2003; Teece et al. 2016), and specifically a firm’s ability to stay up-to-date with market dynamics and adapt its strategies, tactics, and operations accordingly (Dubey et al. 2018 ; Ravichandran 2018 ; Zhou et al. 2018). Despite international marketing scholars’ interest in agility (Gomes et al. 2020), no studies have yet investigated agility in the context of marketing capabilities research stream. Whereas scholars have extensively discussed the positive linkage between agility and marketing performance (Alford and Page 2015; Golgeci and Gligor 2017; Zhou et al. 2018), and have recognized agility as a critical success factor in tackling international market opportunities (Vaillant and Lafuente 2019), there is a lack of research that analyses and conceptualizes the concept of agility as a specific marketing capability that enhances a company’s ability to adapt to a changing international environment Springer (Gomes et al. 2020; Khan 2020). We found that existing studies have neglected to understand specifically how agile capabilities might take place in international digital marketing settings, and what components may be needed to develop an appropriate Agile Marketing Capability. This is particularly important for international marketing scholars and practitioners since important tensions remain in understanding how to develop key capabilities in increasingly competitive, international marketplaces (Guo et al. 2018; Vaillant and Lafuente 2019). The present study attempts to close this gap and provides an empirical foundation for designing a new marketing capability referred to as Agrie Marketing Capability. Specifically, this study aims to: 1) investigate the concept of agility in an international digital marketing setting; 2) identify and explore the theoretical and empirical dimensions of the Agile Marketing Capability, suggesting an initial framework and key propositions; 3) provide the first definition of an Agile Marketing Capability. This study adopts a theory-building approach based on an exploratory single-case study (Eisenhardt 1989; Miles and Huberman 1984; Yin 1994), focusing the attention on the case of Spotahone, a leading company in online bookings of non-vacation home rentals. This study contributes to extend both academic research and practice. From a theoretical perspective, we extend the literature on agility and marketing capabilities by advancing the concept of an Agile Marketing Capability. Our findings provide the empirical and theoretical dimensions that characterize such a capability organized in a framework, thereby specifying the actions necessary to enable the development of an Agile Marketing Capability. We also put forth four propositions that summarize our results, as the starting point for future theoretical and empirical research in this nascent line of inquiry. From a managerial perspective, the study offers useful guidance for managers and practitioners, particularly those who operate in digital and international business contexts, on how best to leverage digital technologies to satisfy customers in rapidly changing international contexts. In addlition, the framework and propositions of this study could help marketing managers and practitioners to understand ways to develop and implement agility in marketing to improve speed, flexibility, and customer responsiveness in their international marketing strategies, operations, and tactics. The remainder of this paper is structured as follows: Sect. 2 presents the theoretical background on agility and marketing capabilities; Sect. 3 describes the details of the single-case study methodology adopted here (i,e., case selection, data collection, data analysis process and rigor); Sect. 4 presents the research findings, identifying key dimensions of the Agile Marketing Capability organized into a theoretical framework; 1astly, Sect. 5 concludes with a discussion of four propositions that summarize the study’s outcomes, theoretical contributions and managerial implications, and describes certain limitations of this work as well as avenues for future research. 2 Theoretical background Early research on marketing capabilities focused on the Resource-Based View, according to which firms assume an internally-driven approach to understanding and serving customers, using their internal resources and capabilities as the main 1148 L. Wioi, F.Cabiddu source of a competitive advantage (Barney 1991). Over time, this early definition of a firm’s marketing capabilities has been challenged by the Dynamic Capability (DC) theory (Day 2011; Teece et al. 1997), which embraced a more dynamic and open perspective, and focused on developing marketing capabilities able to respond to fast-changing environments (Bruni and Verona 2009). Drawing on DC theory, marketing capabilities are “an organization’s fundamental belief for value creation in an increasingly open market environment” (Mu 2015; p. 152); hence, internal marketing resources are aligned with the dynamics of complex external environments (Day 2011; Jaakkola et al. 2010; Mu 2015; Saeed et al. 2015). Based on this perspective, scholars conceptualized “dynamic marketing capabilities” which “reflect human capital, social capital, and the cognition of managers involved in the creation, use, and integration of market knowledge and marketing resources to match and create market and technological change” (Bruni and Verona 2009 ; p. 7). Dynamic marketing capabilities are crucial for firms in highly competitive scenarios; they capture the responsiveness and efficiency of cross-functional business processes in reconfiguring resources to respond to market-related changes and deliver greater customer value (Falasca et al. 2017; Fang and Zou 2009; Xu et al. 2018 ). Despite the considerable body of literature that recognizes the relevance of dynamic marketing capabilities, scholars acknowledge that it is a constantly evolying topic. Firms are always looking for new ways to increase their capacity to anticipate, respond, and adapt to market changes, particularly in the face of highly competitive rivalries (Day 2011; Merrilees et al. 2011). For these reasons, recent studies have shifted attention toward “gdaptive marketing capabilities,” given the increasing complexity of market demands and the velocity of technological progress (Day 2011; Moorman and Day 2016). Adaptive marketing capabilities are defined as “the extensible ability to proactively sense and act on market signals, contimously learn from market experiments, and integrate and coordinate social network resources to adapt to market changes and predict industry trends” (Guo et al. 2018;p. 81). Thus, they require a firm’s vigilant market learning, adaptive market experimentation, and open marketing (Day 2014). Briefly, dynamic and turbulent business environments require firms to gather higher capacities to answer to fast-changing environments (Day 2011; Merrilees et al. 2011). In other words, firms are increasingly forced to learn how to be more agile in adapting to changing business scenarios (Chakravarty et al. 2013). Agility is defined as the dynamic capability of an organization ‘to manage uncertainty […] to efficiently and effectively redeploy/redirect its resources to value-creating and value protecting (and capturing) higher-yield activities as internal and external circumstances warrant” (Teece et al. 2016; p. 8). Research in the marketing field clearly recognizes the positive linkage between agility and marketing performance (e.g., Alford and Page 2015; Golgeci and Gligor 2017; Nemkova 2017; O’Keeffe el al. 2016). Agility fosters a firm’s ability to create customer value, increase ils competitive advantage (Matthyssens et al. 2005), and handle market-driven changes (Tahmasebifard et al. 2017) due to the marketing teams’ increased speed, coordination, customer engagement, and flexibility (Accardi-Petersen 2011; liwel 2013; Smart 2016). In the international marketing literature agility “allows firms to better Springer formulate domestic market approaches (i.e., standardization) while customizing their existing strategies to approach international markets (i.e., adaptation),” thus, it “can be defined as the ability of organization in swiftly applying marketing practices contingent upon domestic and international market situations” (Li et al. 2019; p. 2). Features of agility are summarized in Table 1. 3 Methodology To explore the dynamics of this phenomenon, we selected an in-depth, inductive case study research design (Eisenhardt 1989; Miles and Huberman 1984; Yin 1994). Limited theoretical and empirical studies on agility in digital and international marketing indicate the exploratory nature of the present study. We chose the single-case study methodology as it is recommended as a useful approach in the theory-building process (Miles and Huberman 1984; Yin 1994). Since the case study methodology is crucial for “confronting theory with the empirical world” (Piekkari et al. 2009; p. 569), it allows us to explore how agile competencies in a digital and international marketing field might take place from a practical perspective. Ilence, this research design is a logical choice for gathering empirical data to broaden the understanding of the concept of interest (Dyer and Wilkins 1991; Edmondson and McManus 2007; Stake 1995; Yin 1994). 3.1 Case selection To conduct the study we followed a purposeful sampling approach (Patton 2014). We selected a case study that is highly representative of, and informative about the phenomenon of interest; in other words, an “archetypical” case that is highly suitable for accomplishing our theoretical purposes and addressing our research question (Silverman 2013; Stake 1995; Yin 1994). We focus on a company that employs digital marketing techniques in an international setling, as Agile Marketing skills are particularly important in this context and are therefore expected to be clearly observable. With these goals, we identified Spotahome as a noteworthy case for our study that would allow us to perform empirical qualitative research on agile capabilities in a digital and international marketing setting. Several factors supported our case selection (Yin 2009), as described here. Spotahome is a digital start-up with an international market, founded in 2014. It is a leader in the business of online bookings for non-vacation home rentals. First, we note that start-ups or recently launched firms are likely to embrace “agile” concepts, as innovation, internationalization, and technological advances require such firms to perform under conditions of high uncertainty (Ries 2011) and, in turn, to be extremely flexible (Almor 2011; Coleman and O’Connor 2008; Hoftman et al. 2013). Hence, start-ups are increasingly adopting agile practices to improve teamwork, coordination, communication, and speed in entering a marketplace (Coleman and O’Connor 2008; Hoegl and Gemuenden 2001; Pantiuchina et al. 2017; Pikkarainen et al. 2008). Furthermore, online firms like Spotahome depend strongly on digital tools to reveal and monitor changes in international customer needs, and to pursue customercentric marketing initiatives, both of which represent critical traits of agile capabilities (DeGroote and Marx 2013; Gligor et al. 2013; Kitchens et al. 2018; Matthyssens et al. 2005). Such firms must be highly flexible, internally and externally, to adapt their marketing strategies and operations to different country and regioni-specific preferences. These are key features embedded in agility (Lu et al. 2011; Swafford et al. 2006). Also, by selecting this company, we differentiate our analysis from previous works that investigated better known digital platforms such as Airbnb, Amazon and Uber (e.g., Stone 2013, 2017). Preliminary research also revealed that the company has unique features that made it an excellent candidate for the study (Eisenhardt 1989; Yin 1994). Spotahome is a digital start-up committed to providing easier home rental services, as easy as “getting a coffee,” while avoiding traditional real estate agencies and preserving what customers appreciate about vacation home rental platforms. As clearly stated on its official website (http://www.spotahome.com), the company’s mission is “fo reinvent real estate. Make it transparent, instant, and exciting. Loved at iast. Unreal estate […] We work to teleport people into homes arywhere, so they can Leading digital transformation through an Agile warketing… 1151 live the experience without being there. We connect with them. We bring reality to them.” Spotahome seeks to arrange mid- to long-term home rentals for their customers, focusing on ease of use, communication and transparency; “The Spotahome experience removes the need for in-person viewings, saving both tenants and landlords the time and expense. We take professional photos, design foor plans, and record high-definition videos of the property and neighborhood. We also writc delailed descriptions of the home and local area”. Based on these characteristics, we concluded that Spotahome’s values are strongly aligned with Agile Marketing principles (agilemarketingmanifesto.org). For example, one of Agile Marketing’s highest priorities is to continuously satisfy and create value for customers and Spotahome is clearly dedicated to meeting its customers’ needs. Another key aspect of Agile Marketing is viewing simplicity as essential, and Spotahome does so by declaring “embrace simplicity” as one of its priorities. Finally, Agile Marketing emphasizes collaboration and a motivating working environment, both of which play a pivotal role in Spotahome’s success. We also chose Spotahome for our case study based on having access to key informants of the firm. Indeed, we interviewed key members of the marketing department in different roles who provided extensive, detailed, and useful information concerning the company’s marketing activities and performance. These observations reinforce our view that using Spotahome for this case study would allow us to carry out our research according to our identified objectives. 3.2 Data collection We collected data from various sources, namely semi-structured interviews, Spotahome’s social networking sites and ofticial website, and archival documents (e.g., reports, press reviews) to ensure data triangulation and robustness of our research findings (Benbasat et al. 1987; Dubé and Paré 2003; Eisenhardt 1989; Miles and Huberman 1984; Yin 1994). We followed a homogeneous line of inquiry (Yin 2009) to reduce the potential for misinterpretation, and to enhance the in-depth understanding of the phenomenon investigated (Hagen et al. 2019). Primary data were collected through semi-structured interviews with key respondents who are highly knowledgeable in the marketing field (Eisenhardt and Graebner 2007). We followed a semi-structured interview protocol, which consisted of eight questions (Fontana and Frey 2000; Robson 1993) (see Appendix A). The interview protocol was developed based on the literature on agility and the Agile Marketing Manifesto (agilemarketingmanifesto.org). To ensure clarity, we pilottested the questionnaire with an Italian firm that operates in the online booking (Yin 1994), and refined the interview protocol based on feedback received about the questions’ ambiguity or complexity (Van Teijlingen et al. 2001). While conducting the interviews, we asked addilional exploratory questions to enrich the information gathered (Myers 2013; Taylor et al. 2015). The interviews were performed during November 2018. Each interview was recorded and transcribed (Bryman and Bell 2015, Seidman 2013), and lasted an average of 30 min. The interviewees had different roles within the firm and were deemed as key sources of information on the Table 3 Summary of secondary data soures firm’s marketing processes and strategies given their responsibilities in Spotahome’s marketing department (Kumar et al. 1993) (see Table 2). To ensure accuracy, interviewees were invited to review/modify the interview transcripts. We collected secondary data from Spotahome’s social networks and the official website (see Table 3). Multimedia contents shared on social networks and official website (i.e., posts, photos, and videos) were captured using NCaptare, the browser application of NVivo (Moi et al. 2018). To supplement our findings, we also analyzed archival documents (e.g., reports, press reviews). This secondary data enabled us to enrich the information needed to investigate the firm’s marketing strategies (Miles and Huberman 1984). 3.3 Data analysis For this study, we performed a within-case analysis (Eisenhardt 1989; Eisenhardt and Graebner 2007 ). Using NVivo 10 software, we took a theory-building approach to look for theoretical categories or concepts in the coding process (Gibbs 2007). We conducted our data coding and analysis as follows: (1) we analyzed the data and coded key words and units of text (e.g., “adapt” and “collaboration”), extending their meaning using a list of codes (Miles and Huberman 1984); (2) we re-analyzed the data, identifying new categories and codes and comparing them with the data already coded, and triangulated the interview data with secondary data sources until we reached a saturation point (Strauss and Corbin 1998); (3) we developed a thematic analysis to identify patterns, common meanings or emerging themes (e.g., “bring improvements and innovation” and “customer-centric marketing efforts”) as the investigation progressed (Aronson 1995; Boyatzis 1998); (4) we advanced the interpretation of our analysis by reflecting on its connections with the original data. leading digital transformation through an Agile Warketing… 1153 We conducted our analysis by applying the following criteria, which are extensively used in qualitative research: credibility, transferability, dependability, and confirmability (Lincoln and Guba 2013; Shah and Corley 2006). Notably, for the credibility criteria (i.e., interviewees’ trust in the researchers’ understanding and interpretation of their responses), we clearly informed respondents about our research purposes and discussed our interpretations during the conversations. Regarding the transferability criteria (i.e., in-depth contextualization of information collected), we interviewed key personnel at Spotahome with different roles, to gather detailed data from different perspectives. With respect to dependability (i.e.. use of various approaches and sources), we triangulated various data sources to enrich and support our understanding and interpretation. Finally, for confirmability (i.e., interpretation grounded on data collected), in explaining our research findings we incorporated direct quotes from our interviews, and supported our explanations with examples using the original data. At the end of the data analysis process, we identified a key set of relevant concepts to further our theoretical framework (see examples of this process in Table 4 ). The two co-authors of this study performed the entire coding process independently and simultaneously. At each step, we ran a Coding Comparison Query and. discussed any inconsistencies until achieving a Kappa coefficient greater than 0.75 (Bazeley and Jackson 2013). The following key dimensions of the Agile Marketing Capability were identified: “adaptability to changing conditions,” “collaborative and integrated working environment,” “continual and fast pace of innovation,” and “forecasting and monitoring of market needs.” The study’s major outcomes are discussed in the following sections. 4 Findings We studied agility in an international digital marketing context by analyzing semistructured interviews, triangulated with Spotahome’s social networking sites and official website, as well as additional archival documents (Table 5). Spotahome is a digital start-up running a global marketplace, helping to drive the digitalization of the real estate rental industry. We observed how the firm works to educate customers in various countries about a different, more customized home rental experience. Our analysis reveals interesting and practical insights about how firms involved in an international marketing effort that is driven by digitalization should develop and implement an Agile Marketing Capability. Study findings are organized in a theoretical framework in which the key dimensions of the Agile Marketing Capability are represented (see Fig. 1). 1 The coeficient. meserures the degree af agreerment. belween coder. A value af K-coefficient close in 1 indicates “creelent agreement”, whereas a value of 0 (or leEs) indicates disagreement between coders. Leading digital transformation through an Agile Marketing… 1156 1. vioi, F.Cabiddu

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