Getting Marketers to Invest in Firm-Specific Capital

Firms gain competitive advantage by employing marketing professionals that have developed firm-specific capital. This study argues that marketers’ perceptions of the governance structure employed by the firm to protect marketer capital influence marketers’ job outcomes of organizational commitment, organizational trust, job satisfaction, and intention to turnover, which in turn influence the accumulation of capital more specific to the firm. The results demonstrate (1) that a protective governance structure in which marketers are able to obtain greater rewards internally than externally on more specific or less easily transferable capital does not enhance positive job outcomes and (2) that it is through the governance structures’ influence on job outcomes, not through the governance structure itself, that marketing professionals are motivated to invest in the accumulation of capital specific to the firm. These results provide insights for senior marketing managers charged with developing a governance mechanism to both retain current marketing talent and develop a more effective marketing group.