The influence of the board of directors on outside-in strategy

• Published in: Industrial marketing management Vol. 90; pp. 143 - 154
• Main Authors: Whitler, Kimberly A., Puto, Christopher P.
• Format: Journal Article
• Language: English
• Published: Elsevier Inc 01-10-2020
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2020.07.007

Evidence suggests that focusing on the needs of the marketplace to create customer value and firm advantage, an outside-in (OI) approach to strategy, yields superior firm performance. However, despite the acknowledged advantage of an OI approach to strategy, it has not yet achieved widespread adoption by industry practitioners. Absent formal insight regarding how a firm-wide OI approach to strategy emerges, we introduce the premise that a firm-wide practice requires influence from those at the top of firm hierarchy, i.e., its Board of Directors. We posit that if the OI construct is both: (1) strategic rather than tactical in nature, and (2) enterprise-wide rather than function specific (e.g., marketing), then firm-wide adoption requires BOD acceptance, if not advocacy and leadership. We present 10 research propositions that describe how the board influences a firm-wide OI approach to strategy and provide specific implications for scholars from marketing and corporate governance as well as boards and chief marketing officers.
•Despite the acknowledged advantages of an OI approach to strategy, it has not yet achieved widespread adoption by industry practitioners.•We suggest that an enterprise-wide, OI approach to strategy requires influence from those at the top of firm hierarchy, i.e., its Board of Directors.•We create a conceptual model that includes 10 research propositions describing how the board influences a firm-wide OI approach to strategy and provide implications for scholars as well as boards and chief marketing officers.