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A Model to Examine the Barriers and Problems of Implementing Strategic Marketing Plans in the Saman Bank of Iran Hossein Dakhili Management Department, University of Tehran, Tehran, Iran Key words: Strategic marketing plans, strategy implement, marketing management knowledge, structural barriers, communication barriers Corresponding Author: Hossein Dakhili Management Department, University of Tehran, Tehran, Iran Page No.: 187-202 Volume: 15, Issue 05, 2021 ISSN: 1993-5250 International Business Management Copy Right: Medwell Publications Abstract: Nowadays, marketing management knowledge in all aspects of the business has attracted considerable attention from researchers. The high failure rate in achieving marketing prospects and goals is one of the main challenges faced by managers in various industries. Research in the field of implementation of strategic marketing plans has not progressed along with the development of research in the field of strategy development and despite the design of quantitative and qualitative tools and inclusive models in order to formulate strategies, few research activities focus on implementing marketing strategy issues and outline the framework for reviewing the implementation of marketing strategies. The present research addresses the issue of implementing marketing strategy and obstacles encountered during the implementation process. Also, the research intended to answer the research question “What are the effects of obstacles identified in implementing marketing strategies on the implementation of marketing strategies in the Saman Bank of Iran?” The research samples consisted of 394 directors and senior experts at the Saman Bank. After classifying the barriers by exploratory factor analysis in six groups of organizational resources, structural, human resource, communication, strategic and content, structural (communication) barriers of the research model were tested using structural equation modeling technique and Friedman test and the most important barriers in each of the six of these structures were identified. The results show that the research model is at an acceptable level of fitness and among the six components identified for the model, communication barriers have the most impact and structural barriers have the lowest impact on the implementation of strategic marketing plans at the Saman Bank of Iran. At the end of the research, suggestions have been made to improve each of the identified barriers. 187

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Page 1: A Model to Examine the Barriers and Problems of

A Model to Examine the Barriers and Problems of Implementing Strategic Marketing Plansin the Saman Bank of Iran

Hossein Dakhili Management Department, University of Tehran, Tehran, Iran

Key words: Strategic marketing plans, strategyimplement, marketing management knowledge, structuralbarriers, communication barriers

Corresponding Author:Hossein Dakhili Management Department, University of Tehran, Tehran,Iran

Page No.: 187-202Volume: 15, Issue 05, 2021ISSN: 1993-5250International Business ManagementCopy Right: Medwell Publications

Abstract: Nowadays, marketing management knowledgein all aspects of the business has attracted considerableattention from researchers. The high failure rate inachieving marketing prospects and goals is one of themain challenges faced by managers in various industries.Research in the field of implementation of strategicmarketing plans has not progressed along with thedevelopment of research in the field of strategydevelopment and despite the design of quantitative andqualitative tools and inclusive models in order toformulate strategies, few research activities focus onimplementing marketing strategy issues and outline theframework for reviewing the implementation of marketingstrategies. The present research addresses the issue ofimplementing marketing strategy and obstaclesencountered during the implementation process. Also, theresearch intended to answer the research question “Whatare the effects of obstacles identified in implementingmarketing strategies on the implementation of marketingstrategies in the Saman Bank of Iran?” The researchsamples consisted of 394 directors and senior experts atthe Saman Bank. After classifying the barriers byexploratory factor analysis in six groups of organizationalresources, structural, human resource, communication,strategic and content, structural (communication) barriersof the research model were tested using structuralequation modeling technique and Friedman test and themost important barriers in each of the six of thesestructures were identified. The results show that theresearch model is at an acceptable level of fitness andamong the six components identified for the model,communication barriers have the most impact andstructural barriers have the lowest impact on theimplementation of strategic marketing plans at the SamanBank of Iran. At the end of the research, suggestions havebeen made to improve each of the identified barriers.

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INTRODUCTION

Marketing strategic planning not only is the backboneof the success of market management models seen but theoptimal allocation of resources in organizations and at thenational level and also increases organization capabilitiesas well in further utility. Simply, the new conditions in thecontext of cross-border market goods and services,imbalances and market management and marketedtraditional volatility planning and marketing strategicplanning created.

However, implementation of marketing strategiesdespite manybenefits faced the obstacles. According toresearchers, there are several factors can affect theimplementation of these strategies. Given the competitiveenvironment among banks and the role of marketing andstrategy formulated in attracting more customers, banksmust carefully identify possible barriers to marketingstrategies and try to fix it.

Marketing effectiveness explains how a company canenter the market with the goal of improving its marketingpower and obtain better results for its short and long termgoals[1, 2].

Marketing strategy is defined as the integrated patternof decisions that specify the crucial choices concerningmarketing activities which enable the organization toachieve specific objectives[3]. Technology developmentand the growth of today world trade mean that thebusiness environment is rapidly changing[4]. One of themost prominent features of this age is the increasingchanges in human knowledge and in various social,economic, political and technological fields[5].

There are many barriers to technology transfer anddevelopment and one of the most important barriers islegal barriers[6].In today’s competitive world, due to thecharacteristics of the new production environment and thenature of customers due to increased competitiveness, theglobal business environment and advances inmanufacturing technologies, past production managementpractices that pursued less integration in their processes,they have lost their effectiveness and needs to create aconsistent integration in all processes from raw materialto final consumer. On the other hand, organizationsalways use methods and techniques to improve the statusand proper management of business in order to achievetheir success and seek to develop and find newsolutions.

There is also an increasing enhance in competitionbetween factories and companies to produce qualityproducts and according to the customer’s desire, itrequires a new perspective among all manufacturers. Inthe past, each production center, paying attention to thenumber of products produced, trying to increase itsmarket share. After decades of manufacturing centers,they began to offer quality products to attract customers.

In recent decades, pioneers of the industry have becomethe main preconditions for more market share; theyunderstand the needs of customers[7].

Considering the changes and development that havetaken place in the international business environment andits impact on the national economy, strategic marketingplanning can be used and the use of marketing strategiesachieve a sustainable competitive advantage. Marketingstrategies appear to be useful strategies for creatingcompetitive advantage[8].

Today, the complexity of organizational decisionsbecomes tangible the need for a comprehensive programto address such issues more than ever before. This app isnothing but a strategic plan. Strategic management witha dynamic, forward thinking, cohesive, and contingentmentality is the solution to many of the issues of today'sorganizations. The basics of strategic plans are based onthe perception that managers from competing companies,markets, prices, suppliers of raw materials, distributors,governments, creditors, shareholders and customersaround the world and these factors determine the successof business in today’s world. So, one of the mostimportant tools that organizations can use to achievesuccess in the future are ”strategic plans.

According to the above mentioned, it is clear that theconcept of relational marketing has become a vitalphenomenon based on the needs of different customers,their preferences, buying behavior and price sensitivity inthe business world. In addition, due to exposure to thehighly competitive environment of the banking industry,applying relational marketing concepts through customerretention and creating loyalty in them can lead toincreased market share, profitability and costreductions[9].

Therefore, banks can use the relational marketing,that is the full recognition of the wishes and requirementsof customers and establishing long-term relationships withthem to build loyalty in their customers and takeadvantage of loyal customers[10].

The significance of this is when it comes to knowingthat, in the current situation, the number of private banksand financial and credit institutions along with state-owned banks is increasing and the intensity ofcompetition is increased, more loyal customers can makeprofits more than ever.

However, implementation of marketing strategiesdespite many benefits faced the obstacles. According toresearchers, there are several factors can affect theimplementation of these strategies. Given thecompetitive environment among banks and the role of marketing and strategy formulated in attracting morecustomers, banks must carefully identify possible barriersto marketing strategies and try to fix it. Given thestated above main question for this study will be presented “the obstacles identified in the implementation

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of marketing strategies affect the implementation of marketing strategies in the Saman Bank of Iran?

Theoretical fundamentals and research backgroundImplementation of the strategy: According to thedefinition, the implementation of the strategy includes; aset of activities and choices that are necessary toimplement a strategic plan. Implementation of the strategyis the process by which strategies while using structural,cultural, leadership considerations institutionalized in theorganization, taking advantage of the programs, budgets,and procedures come into force. Thus, in the strategicmanagement process, between the three steps “strategicplanning”, “strategy implementation” and “strategiccontrol”, the second stage has particular importance[11].Most often, the implementation of the strategy called thepractical step of strategic management. The purpose of theimplementation of the strategy is to mobilize staff andmanagement and strategies developed brought intopractice. Often strategic management in theimplementation stage is most difficult step and requirespersons committed to their organization and has self-sacrifice and self-control. Strategies implementation stepwould depend on managers can motivate employees andthis is a kind of art (and not a science). Strategiesformulated that come never implementation step, practicalmeasures would be in vain[12].

Planning and strategic planning: From the firstcenturies of mankind appearance, human history show theuse of humans from simple programming forms on Earth. It can be argued that the process of planning began aswell since human beings could consider goals for theirfuture (though short-term). The first foundation ofscientific forms of planning in the economy and industrycame after the industrial revolution. Following theadvancement of technology, industrial organizationssought to optimize the use of facilities to further increaseproduction.

The first steps took place in late seventeenth andearly eighteenth centuries by Adam Smith, an Englisheconomist. With the principle of assigning and dividingthe work into small pieces for the first time in a factory,it laid the foundation for the planning of operations. Afterhim, Charles Baeich with the development of the divisionof tasks, developed the model for planning.

Frederick Taylor and Henry Fayol introducedscientific management issues in the late nineteenth andearly twentieth century. In the early twentieth century andafter the above step focused more on increasing theefficiency of operations using planning. The period ofattention to planning began in large organizations for alonger period[13].

Marketing strategy: Developing a successful marketingstrategy would require an understanding of the way

consumer trust is developed and how trust affectsconsumer behaviour[14]. The emphasis on identity andstrategy enables the marketing managers to preciselyand consistently communicate, develop andimplement the integrated marketing communicationstrategy[15].

Marketing is about satisfying and building profitablerelationships with customers. A marketing strategy,however should reflect its corporate strategy andobjectives (i.e., vision, mission and values)[3]. The marketin which a company operates influences their marketingstrategy but a company also depends on the relationshipsthat exist with their customers[16]. According to Slater andOlso[17], marketing strategy is aimed at segmenting,targeting and positioning depends on markets andcustomers to develop an appropriate marketing mix,which allows companies to reach their goals. The scopeof marketing strategy research is divided into domesticand international sections. Domestic research has featuredcorporate environmental strategies[18], corporate socialresponsibility strategies[19], environmental culture andorientation[20] and green marketing strategies[21]. Domesticsustainability research has established valuable newconcepts such as “enviropreneurial” marketing[22] andmarket-oriented sustainability[23].

Summarizing the discussion thus far, the marketingliterature depicts data that support the proposition thatfirms with a well designed and executed marketingstrategy (transactional or relational) will outperform theircompetitors[24].

Implementing a marketing strategy: Relationalmarketing strategies are methods for implementingrelational marketing in practice[25] and through thesestrategies, marketers are seeking to establish an effectivecustomer-oriented communication, so that, the companycan capture, maintain customers loyal. Also, over the pastfew decades, there has been a significant relationalmarketing in both the scientific community and the fieldof practice[26].

Tseng[25] suggested different types of relationalmarketing strategies to improve the quality of therelationship between the specific industry and itscustomers. He has four types of relational marketingstrategies including direct email to the customer, tangiblerewards, interpersonal communication and individualattention to individual needs with the aim of taking intoaccount the customer’s mental advices.

Bansal et al.[27] also referred to another group ofmarketing strategies that included quality, satisfaction,value, trust, competence, communication, conflictmanagement, price perception, commitment, charm of

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alternative options, the attitude towards switching,subjective norms, switching costs, previous switchingexperiences and a variety of search methods for customerretention.

Barriers to implementing a marketing strategy:Research has begun in the field of marketing strategyimplementation and identification of existing barriers andobstacles during the implementation process from theeighties by the researchers. The efforts have been madefrom the beginning to explain the implementation issuesof the marketing strategy. The common ground oftenrefers to the lack of efficient and varied models forguiding managers and organizing strategic decisionmakers during the implementation of strategic plans,which has become a major dilemma in implementingorganizational strategies[28].To identify the obstacles toimplementing a marketing strategy that is considered asthe main goal of this research, it might be best to reviewthe previous research in this regard. In the following, theinternal and external investigations carried out on thissubject are discussed:

Mamdouhi and Syed-Hashemi et al.[29] categorizedbarriers to marketing strategy implementation into eight:

C Administrative barriers C Human resource barriersC Cultural barriersC Perceptual barriersC Communication (structural) barriers C Strategic barriersC Organizational resources barriersC Operations refer to these categories, each of which

has subcategories that are

Administrative barriers:C Weak leadership (generally)C Absence/lack of top management supportC Lack of management skills of senior managersC Poor attitude of senior management in the conduct of

collectionC Individual ambitions of managers (not accepting the

opinions of others)C Internal disputes among managersC Hostility of operational manager

Human resource:C Lack/loss of human resources (such as entry and exit

disproportionate human resources)C Lack of staff knowledge and skills to implement

marketing strategiesC The lack of experienced staff to implement marketing

strategies

C Personal interactions/conflicts of interests ofemployees (due to the implementation of marketingstrategies)

C The impact of events, external and organizationalprocesses on staff

C Lack of knowledge of employees of marketingstrategies (generally)

Cultural:C Poor participation functional units to implement

marketing strategiesC Resistance to change among managers and

employees (in general)C Lack of confidence (in general)C The lack of consistency and lack of support

organizational culture of marketing strategiesC EthicsC Openness and candorC Level of risk taking among managers

Perceptual:C Poor perception/lack of familiarity with marketing

concepts among managersC Poor perception/lack of familiarity with marketing

concepts among employeesC Lack of understanding of customers among managers

and employees (in general)C The ambiguity of the concept of marketing and

marketing task among managers C The ambiguity of the concept of marketing and

marketing task among employeesC Lack of understanding/confusion in the marketing

planning process and its results among managersC Lack of understanding/confusion in the marketing

planning process and its results among employeesC Lack of knowledge of marketing unit of the

company’s operating processes

Structural (communication):C Inadequate communication between different layers

of managementC Insufficient communication between employeesC Lack of vertical relationship (absence or lack of

adequate communication between managers andemployees)

C Poor internal communication between functionalunits related to marketing

C Lack of sufficient authority in the field ofdevelopment of marketing strategies

C Lack of sufficient authority on the implementation ofmarketing strategies

C Problems of coordination between different sectorsC Failure to comply structure with the company's

marketing strategies

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Strategic:C Use sales figures instead of written goals and

marketing strategiesC Lack of or failure to perform marketing analysisC Lack of having a global view of the external

environmentC Weakness and lack of adequate management

information systemC Few opportunities for innovative thinkingC Inadequate interaction between functional

departments and company marketing informationsystem

C Lack of access to information on marketing strategiesC Lack of access to information on the implementation

of marketing strategiesC Strategic inertia (attachment to past strategies)C Failed to connect to marketing planning to

organization macro planningC Lack of control and attention to environmental forcesC Failure to comply/coordination between marketing

strategies and macro-organizational strategyC Inability to prioritize goalsC Lack of a systematic approach to planningC Top-down approach in planningC Insufficient attention to planningC Affecting company planning by the external events

Organizational resources: Limited resources toimplement marketing strategies.

Operations:C Lack of a plan to carry out planned activitiesC Uncertainty about implementation policy and the

relevant terms and conceptsC Focusing too much on the details in the form of rigid

annual programC Lack of participation in the process of implementing

the marketing planC Time constraints in the implementation ofplanned

activitiesC Absence/lack of motivation among non-marketers to

execute marketing strategies

Much research has been done in this regard in Iranand abroad. The following are some of the research ispresented.

Literature review: Duho and Onumah[30] examined thenexus between diversification strategy and intellectualcapital in banks. The study found that intellectual capitaldetermines the choice of diversifying. Precisely,intellectual capital motivates asset diversity but itdissuades income diversification. Human capital andstructural capital are major components that determine

asset diversity decisions. Income diversification decisionin this case to choose a focus strategy is determined byhuman capital.

This gives credence for the human capital theory inGhana. Competition encourages a focus strategy. Banksize and leverage enhances income diversification whilestock exchange listing and government ownership fostersthe focus strategy. Diversification strategy, knowledgebase of staff, corporate governance and internal controlhave been considered as factors leading to the collapse ofsome Ghanaian banks in 2017-2018.

The business of banking is basically a business ofrisk management. Strategies employed by banks mayhave implications for profitability, efficiency, stability andproductivity[31, 32].

Basically, there are two fundamental theories ondiversification strategy. The conglomeration hypothesisopinions that organization wide managerial efforts areenhanced by diversifying. The strategic-focus hypothesisopinions that high earnings volatility, agency costs, highmonitoring costs and difficulty in monitoring areassociated with diversification. In line with thesehypotheses, it is needful to examine how the intellectualcapital efforts of banks drive their diversification strategy.It can be argued that banks with high intellectual capitalwill have experience and knowledgeable employees,strong IT infrastructure, good internal processes andprocedures and will be able to venture intoprovidinginnovative products and services which will increase theirrevenue. On the other hand, it can also be argued thatbanks with high intellectual capital will tend to focus onthe traditional banking business and provide it with highquality, agility and speed. These relationships explain theinconclusive and ambiguous nature of how diversificationrelates with various factors[32].

The results of the study found that intellectual capitaldrives the choice of an asset diversification strategy inbanks. This is driven by the human capital and structuralcapitalbase of the banks. Income diversification on theother hand is negatively influenced by intellectual capital,suggesting that intellectually-rich banks prefer a focusstrategy to diversification in terms of their revenue model.The human capital base is the main factor motivating thechoice for focusing strategy for the revenue model.Competition in the industry motivates the choice of afocused strategy above the diversified strategy. InAddition, bank size and leverage enhance the choice of adiversified strategy as opposed to a focus strategy. Bankslisted on the stock exchange prefer a focused strategy tothose that are unlisted. Also, government-owned banksprefer a focus strategy to a diversified strategy for theirrevenue model. The study is of relevance for policymaking, practice, future research and teaching[30].

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Tao[33] examined the dynamics of bank strategies andperformance in retail deposit markets. He developed aninfinite-horizon computational dynamic equilibriumduopoly model of value-maximizing banks. It is used toanalyze several critical aspects of behavior in localbanking markets such as price and non-price competition,strategic interactions between small and large banks, denovo bank growth and consumer switching. The resultssuggest that growing banks offer higher deposit interestrates than established banks. Established banks are morelikely to engage in non-price competition which canimpede the effectiveness of de novo bank strategies andgrowth.

Massaro et al.[34] examined two key purposes. First,the study examined how intellectual capital developmentis influenced by strategic intent. Second, it explored howintellectual capital impacts product and servicediversification. Employing alagged analysis with astructured questionnaire with 1,392 responses in thesmall- and mediumsized accounting practices context, thestudy found that all three intellectual capital measures(i.e., human capital, structural capital and relationalcapital) strongly affect product and service diversification.Also, both strategic intent and intellectual capital areevidenced to be influencing each other. Hashim et al.[35]

explored intellectual capital disclosure which is distinctfrom intellectual capital performance of the banks. Also,Massaro et al.[34] employed the structural equationmodelling in small-and medium-sized accountingpractices. These studies provide apremise for a furtherinvestigation into how intellectual capital and itscomponents affect diversification strategy. Although thestudies attempted to draw the nexus between the twovariables, they did not either use a quantitative measurefor intellectual capital (like the VAIC™ model) or theincome or asset diversification indices. Moreover, someof these studies were notdone in the banking industry andconsidering the services nature of banking business whichis accompanied with higher focus on intellectual capitals(knowledge-based assets) a study is warranted. In spite ofthe increase in studies in this area, current studies failedto explore the implications of intellectual capital ondiversification strategy of banks. This study seeks to fillthe dearth in literature by examining this nexus in thecontext of an emerging (frontier) economy.

Huang et al.[36] done network analyze of the strategicfunction of marketing and developing qualityperformance. They expressed basis of strategic decisionon market -orientation approach based on three types ofassessment: the consumer (market), the strengths andweaknesses of the organization and competitors. Thisstudy conducted in three main phases. Based on theresults, the three priority action for the studied companyinclude: the production of a new generation oftechnology-based products distinct from existing products

on the market (strategy long jump), producing productswith better design and characteristics more up to date thancompetitor’s products and the development of topattractions and extensive advertising (direct attackstrategy).

Sanchez et al.[37] on issues such as poorunderstanding of the concept of marketing, lack orabsence of marketing analysis, development of marketingstrategies without analysis or formulate tactical plans formarketing mix, close view of the external environment ofmarketing. Lack of intelligence marketing andmanagement information systems, understanding andinadequate support from senior management, poorinternal communication between functional units relatedto marketing. Inattention or neglect to the planningactivity, the impact of domestic and internationaloperational and organizational events on planning andpersonnel, lack of trust and confidence.

Astuti et al.[38] performed a study entitled “Marketingstrategies based on marketing mix in Indonesia. Theresults of the study show that four strategies of product,price, promotion and distribution have a significantrelationship between the customer’s purchasing behaviorand intention to repurchase them. The results also showthat the correct implementation of marketing strategiesbased on marketing mix is also very important.

McDonald and Wilson focus on the barriers tomarketing planning. The principal barriers includeconfusion between marketing tactics and strategy,isolating the marketing function from operations,confusion between the marketing function and themarketing concept, organizational barriers, lack of indepth analysis, confusion between process and output,lack of knowledge and skills, lack of a systematicapproach to marketing planning, failure to prioritizeobjectives and hostile corporate cultures. A strong leaderis required to bring the company out of the leadershipcrisis phase and into the next, relatively calm period ofdirected evolution.

Caliskan[39] examined marketing strategic planningand select appropriate strategies using analytic hierarchyprocess technique. In this study, with emphasis on theconcept of strategic management and using grouphierarchical analysis technique is one of the operationalresearch techniques, appropriate strategies for PipeCompany selected. According to the information obtainedand the use of main strategy matrix, company position inthe identified market and appropriate strategies identified.In order to choose the best strategy, a questionnairecontaining 115 questions distributed among managers anddecision makers and the results were analyzed usinghierarchical analysis. At the end of three strategies with 1to 3 priorities have been identified that include: productdevelopment, horizontal integration and assimilationvariety.

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Amir et al.[40] performed a study titled “identify andprioritize the factors affecting the selection of the optimalmarketing strategy in a recession using fuzzy hierarchicalanalysis in Iran. This study investigated previous studiesrelating to strategies used during a recession andinterviews with experts to identify and prioritize thefactors that play a major role in determining and selectingthe appropriate marketing strategy. So, fuzzy hierarchicalanalysis methods were used which is a technique knownand widely used decision-making at a global level. Theresults indicated that among the important factorsinfluencing the selection of appropriate marketingstrategies in order of priority is: price, product,distribution networks and employees.

Boxall and Purcell[41] implementation barriers ofmarketing strategy including lack of support of executivedirector, lack of plans to carry out planned activities, useof the market share and sales figures instead of goals andwritten marketing strategy, separating programming fromother parts of the task in the company, failure inconnection with the marketing plan macro-organizationalplanning, marketing planning submission to planners.

Dehdashti Shahrokh and Pourhoseini[42] was done astudy titled “A model investigated the effect of salestrategy and marketing on sales performance in Iran,recently concluded that marketing literature seen at thespecial strategic level from purely functional elements arelocated and the strategic element is improved. But what isthe sales strategy and how does it affect sales performancein relation to the external environment inside theorganization? The aim of this study is to identify theimpact of sales and marketing strategies on theperformance of sales and moderating effects of internaland external environment and background and salesstrategy. This study combined a combination ofqualitative and quantitative research. The population wassales managers, marketing experts and companies activein the food industry are members of the Tehran StockExchange. The study data in the quantitative study of 26and in the quantitative study of 66 members werecollected. Findings suggest that sales and marketingstrategy positively and significantly associated with salesperformance and transformational leadership, the intensityof competition and technological developments,moderating effect on this relationship; the effect ofdemand uncertainty on the relationship between salesstrategy and sales performance was not confirmed.

According to Sagner[43] a bank must consider itsphilosophical approach to lending in the development ofa credit function. Two approaches in use today are a valuefocus and a concern for profitability with otherapproaches including market-share and specific bankindustry focuses .Examples of the first two strategies arenoted below. Some banks take a long range outlooktoward the business of banking and consider credit and

non credit services as a package of benefits with which toestablish a corporate partnership. Banks that are valuefocused pursue borrowers with strong or improving creditquality with strong planning and control systems in theeffort to develop a consistent market presence. The creditdecision on loans is conservative with an emphasis ondiversification and stability. Because of pressure frominvestors for stock price performance, a large number ofbanks emphasize profits and shorter term goals. However,the clear focus has been profitability, risk and stockholderreturns and the lending decision is keenly focused onwhether it is likely to contribute to return on equity.

Lihalo[44] examined previous studies and examinesthe barriers to strategy implementation by mid-sizedcompanies in Kenya. The study looks closely at thebarriers which can either be internal; management,communication, human factors such as resistance tochange, leadership, organizational structure, informationsystems and technology or external factors; changes to theoperating environment, un-anticipated competition orentrants by new players in the industry and changes ingovernment policies. It further recommends ways on howto overcome these barriers.

According to Amoako[45], the essence of developinga marketing strategy for a company is to ensure that thecompany’s capabilities are matched to the competitivemarket environment in which it operates, not just fortoday but into the foreseeable future. For a commercialorganization such as bank, this means ensuring that itsresources and capabilities match the needs andrequirement of the market in which it operate. For anystrategy to be effective, it needs to be well turned both tothe needs and requirements of customers (the marketconditions in which it is implemented), and to theresources and capabilities of the firm seeking toimplement it. No matter how wonderfully crafted andarticulated the strategy if it is not focused on meeting theneeds of customers it is doomed to be a failure.

Similarly, if the organizational resources necessaryfor its implementation are not available, or cannot beacquired, success will be elusive. Marketing strategyshould be set in the context of the overall corporatestrategy. Once the overall direction of the bank has beendecided with appropriate input from all relevantstakeholders, the marketing strategy will need to bealigned to ensure that direction is achieved. Once thepurpose of the bank has been defined the marketingstrategy can be crafted to help achieve that purpose. Wecan view the development of marketing strategy at threemain levels: the establishment of a core strategy, thecreation of the company’s competitive positioning, andthe implementation of the strategy. The Bank wouldachieve profitability with the effective use of strategicmarketing. This involves long term strategic goals andobjectives that the bank wishes to achieve.

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Hosseini et al.[46] conducted a research entitled “Analysisof the marketing strategies of service companies in arecession”. The aim of this study was to identify factorsthat were carried out in Iran and indicators of marketingstrategy in crane rental companies during the recession toidentify the impact of each on the sale of the managers. The research population was managers of successfulfirms hire a crane in Tehran. Based on the famous seventypes of service) product, price, place, distribution,personnel, facilities and physical assets and processes(with sales of companies, each of the indices and usingthe Student t test and Friedman analysis of variance werestudied. Finally, the relationship of all factors exceptfactors to promote sales and Distribution Companyapproved the sale rate. Another result is that successfulcompanies during the recession have not been to thereduced activity and lower costs but the recession asopportunity and development strategy and differentiationwere used.

Paswan et al.[47] in a study examined the relationshipmarketing channel and marketing strategies. The resultsshowed that aggressive marketing strategy and priceleadership strategy is positively correlated with the levelof relationship in marketing channels. In contrast, productdifferentiation strategy (focus) is negatively correlatedwith the level of relationship in marketing channels.

Lin and Wu[48] performed an study titled determineappropriate marketing strategies for Taiwan non-governmental hotels. The three strategies: cost leadership,differentiation and market segmentation according to theresources available were considered private hotels andthen TOPSIS and ANP techniques of questionnaire datawere analyzed. The results showed that the best marketingstrategies in non- governmental hotels is differentiationstrategy.

Fuentelsaz and Gomez[49] examined that entry in newgeographical markets has been impeded by the strategicinteractions between entrants and incumbents. Second,savings banks exhibit a preference for closer locations atthe time of expanding which may have undermined theeffects of deregulation and its potential benefits forconsumers.

According to Clarke et al.[50], financial institutionssee or consider marketing moves in a strategic light.Marketing therefore, plays an active role in the formationof corporate strategies. This therefore recognizesmarketing as very important as marketing decisions aretaken at the corporate level. The marketing conceptaccording to Kotler and Keller 10th Edition, posit that“the key of achieving organizational goals consists ofdetermining the needs and satisfaction more effectivelyand efficiently more than competitors”. EffectiveStrategic marketing is a very key area to improve theoverall profitability of rural banks at this stage it enablesthe banks to understand and respond to the investment

nature or behavior of their customers using suchstrategies as segmentation[51]. A strategy is the matchingof the activities of the organization to the environmentin which it operate and to its own resourcecapabilities[52].

Ajay[53] examined the implications of studyingindustry competitive patterns at the level of resourceaccumulation and the relationship between resourceendowments and firm performance outcomes in the USbanking industry. It uses the strategic group framework toevaluate two models of rivalry and programme andconcludes by discussing the implications of the findingsfor competitive analysis, strategic group theory and thebanking industry. Following Cool and Schendel[54], heoperationalized firm market strategies by examining theirscope and resource deployments.

MATERIALS AND METHODS

Research in terms of purpose is applied research andin terms of data-collection is descriptive research. Since,this research is descriptive-correlation and therefore, astructural equation model was used. In this study,researcher used questionnaire and library methods for datacollection. The questionnaire was used in this studyconsists of 2 parts, the first part contains questions aboutpersonal information respondents, including age, gender,education, revenue and organizational post. The secondpart marketing strategy implementation barriersinvestigated. Also, should note that sampling methodswas quota sampling that according to Cochran formulathe sample size was 394 but to ensure that about 400questionnaires among experts and manager of SamanBank in Tehran province distributed.

The Cochran formula allows us to calculate an idealsample size given a desired level of precision, desiredconfidence level and the estimated proportion of theattribute present in the population. Cochran’s formula isconsidered especially appropriate in situations with largepopulations. Cochran equation:

2

0 2

Z PQn

e

According to Cochran formula Z is the confidencelevel with 95%, p is the estimated proportion of anattribute that is present in the population, q = 1-p with theratio 0/5 and desired level of precision (e) is 0/05.

Also, to test the measurement models and to ensuretheir accuracy, confirmatory factor analysis was used andthe results obtained from LISREL Software. In this study,the researcher checks the proportion of variances forfactor analysis of the (KMO) test. One the other hand, to

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Table 1:Gender dispersion of respondents 316 men (79%) and 84women (21%)

Variable name Variable codeGenderMen 316Women 84Total 400

Table 2: Dispersion of the age of respondentsAge (Years old) Number26-35 11636-0 14241-45 8446-50 3951-60 19

Table 3: Dispersion of education level of respondentEducation level NumberBachelor 142Masters 239Ph.D 19

Table 4: Dispersionof respondent work experienceAmount of work experience NumberBetween 1 and 5 years 65Between 6 and 10 years 103Between 11 and 15 years old 58Between 16 and 20 years 116Over 20 years old 58

Table 5: Dispersionof respondent organizational postOrganization post NumberExpert 90Senior expert 116Mid-level manager 97Senior management 77Consultant 20

ensure that the proportion of variances based on the matrix of correlations which is the basis ofthe analysis in the statistical community, it is notequal to zero the Bartlett test was used. The demographic characteristics of the sample can see inTable 1-5.

Gender dispersion: According to the gender dispersionof respondents, the following table is provided: As we seein the chart, the total number of respondents is 400,including 316 men and 84 women. In other words, 79% ofrespondents are men and 21% of the total respondents arewomen.

Age dispersion: In this regard, considering the dispersionof the age group of the survey respondents (Table 2).

Dispersion of education level: In this regard with regardto the dispersion of the education level of the respondents,(Table 3).

Dispersion of work experience: In this regard,considering the dispersion of the work experience of therespondents, (Table 4).

Organizational post dispersion: In this regard,considering the dispersion of the organizational post ofrespondents (Table 5).

Limitations and suggestions for further research: Ingeneral, the case study approach can produce results witha high level of validity from which generalizations can bedrawn. This study was exploratory in nature; thus, severallimitations should be highlighted. Narrow scope of thisstudy-investigating a single case from one country- doesnot permit broad generalizations. The propositions that aresuggested in this study, however can be transformed intotestable hypotheses; these can be investigated in futurestudies. More studies are needed in internationalmarketing strategy research about how the exploitation ofmarketing analytics shape internationalization processes.It should be noted that my research was limited to acertain group of the population in a specific geographiclocation. Testing the external validity of the findings willbe of particular importance when the studies areconducted in other countries with different economic,cultural, social, political and legal conditions. Therefore,the findings of this research cannot be generalized to othercases because different results might be achieved. Giventhe novelty of the approach adopted in this study, I drewthe barriers of implementing strategic marketing plans,not causation. In addition, the study was restricted toSaman bank and to a small sample which may reduce thegeneralize-ability of its findings and conclusions. Thisstudy also did not assess the quality of marketing practice;future research might use a management perspective inassessing the effectiveness and perceived value of specificpractices. With these findings and the limitationshighlighted, i believe that this study opens up avenues forpotential future research.

Furthermore, this study included firms from a rangeof industries and offerings. An interesting branch ofresearch development may be to conduct a study withinthe same industry. Moreover, this study was restricted tothe Iranian market; a replication of this revision to othercountries and/or markets, along with a comparison ofresults would increase the validity and application ofthese findings and allow for greater insights into its abilityof generalization to be shared. Future studies can alsobuild on our results to develop and examine certainhypotheses that were beyond the objectives and thecapacity of this study. Finally, although testing theeffectiveness of marketing practice on performance wasa valid step, checking other antecedents of performance,such as customer retention would yield even greaterinsights still (Table 6-9).

The exploratory nature adopted here may haveimpeded in-depth exploration within each category.Future research could take by examining one or morestrategic problems in more depth. For instance, future

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Table 6: Fit indices obtained from confirmatory factor analysisFit indices of model Index Dimension Desirable ResultRelative χ2 χ2/df 2.88 3> Very wellRoot mean square error of approximation RMSEA 0.89 0.02> Good fitNormalized fit index NFI 0.95 0.89< AcceptableNon-Normed fit index NNFI 0.95 About 1 Very wellComparative fit index CFI 0.98 0.89< Very wellRelative fit index RFI 0.95 0.89< Very wellIncremental fit index IFI 0.98 0.89< Very wellGoodness of fit index GFI 0.95 0.90< Very well

Table 7: The reliability of each dimension detectedDimension name Cronbach’s alphaHuman barriers 0.799Content barriers 0.825Communication barriers 0.845Structural barriers 0.836Organizational resource barriers 0.825Strategic barriers 0.814Total 0.847

Table 8: 6 barriers identified affecting effective implementation of marketing strategy at Saman Bank Barriers IndicatorsHuman resource barriers Leadership by managers at different levels to implement the decisions of the Saman bank takes strategic

Marketing, is not enough. The bank's decision-makers are not sufficiently committed to implementingmarketing strategies. Director, board members or senior executives of the Saman bank, the implementation of strategic marketing decision support necessary to not act. The reward system in theSaman Bank has not enough motivation. In the implementation of strategic marketing decisions in theSaman Bank, there are no guidelines or model to guide the implementation of the strategy

Content barriers To implement strategic marketing decisions in the Saman Bank, we are faced with a lack of alignmentof staffIn Saman Bank, employees and managers of the concept of strategic planning and marketing strategyhave a good understanding. The time allotted by the directors of the Saman Bank for the implementationof the marketing strategy is not enough. Implementation of strategic marketing decisions on the SamanBank, facing interact with inappropriate and ineffective communication between staff at all levels. In the implementation of strategic marketing decisions in the Saman Bank, we faced with inefficientplanning

Communication barriers There is no interaction between the drafters and implementers of strategic marketing programs at theSaman Bank. In the implementation process of strategic marketing decisions in the Saman Bank, doesnot justify the lack of attention to describing programs and staff, we are facing. In the Saman Bank whendeveloping strategic marketing plans, strategic development partnership is not part of the executive. In the implementation process of strategic marketing decisions in the Saman Bank, a division of tasksand responsibilities ignored. There are not certain indicators and transparent to measure the success ofmarketing strategic decisions implemented by the Saman Bank. To implement strategic decisions inSaman Bank in marketing, administrative activities and key tasks defined in sufficient detail

Structural barriers In the implementation of strategic marketing decisions in the Saman Bank control issues encounteredduring implementation is weak. Beliefs and values of the Saman Bank staff with strategic marketingdecisions are in conflicts with interest in the industry. Priorities and objectives of the Saman Bank staffwith strategic marketing decisions are in conflicts with interest in the industry. In the implementationof strategic marketing decisions in the Saman Bank, the mismatch and lack of support strategiescompanies are facing organizational culture. To implement strategic marketing decisions in the SamanBank we face with environmental uncertainty

Organizational resource barriers Coordinate the activities of the executive in the implementation of strategic marketing decisions on theSaman Bank is weak and inefficient. In the Saman Bank, organizational structure to implement theorganization's strategic marketing decisions is antithetic. To implement strategic marketing decisionsin the Saman Bank, there are limited resources (money, materials and labor). To implement strategicmarketing decisions in the Saman Bank, the weakness and the inadequacy of the information systemsare facing. In the implementation of strategic marketing decisions in the Saman Bank with theparticipation of units of the task we face

Strategic barriers Marketing strategic decisions taken by the Saman Bank are not clear. Marketing goals and strategies forthe Saman Bank are not consistent with each other and multiple. Quality marketing strategy designedto run in the Saman Bank has not good quality. Marketing strategy developed at different levels of theSaman Bank is not enough to run the association

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Table 9: The effect of barriers on strategic marketing plansCasual relationships Standardcoefficient Significant value ResultsThe impact ofhumanbarriers onthe implementation of the strategic 0.61 9.61 Acceptmarketing planThe impact ofcontent barriers onthe implementation of the strategic 0.63 9.13 Acceptmarketing planThe impact ofcommunication barriers on the implementation of 0.86 11.72 Acceptthe strategic marketing planThe impact ofstructuralbarriers onthe implementation of the strategic 0.41 7.31 Acceptmarketing planThe impact of organizational resourcebarriers onthe implementation of 0.54 9.83 Acceptthe strategic marketing planThe impact ofstrategic barriers onthe implementation of the strategic 0.69 13.94 Acceptmarketing plan

work could investigate to what extent strategy isapplied in the marketing context. Moreover, we did nothave access to objective income data from the firm.Future research containing these barriers should analyzethe effect of the strategy on firm’sprofit ability. However,it would also be interesting to analyze the level of trainingof employees. Finally, to generalize our findings, futureresearch could determine to propose barriers ofimplementing strategic marketing from other countries ordata from other sectors with similar characteristics.

RESULTS AND DISCUSSION

In the first phase and to ensure the integrity andsuitability of questions designed, exploratory factoranalysis was applied. The results of this analysis alsopresented six structures that the eigenvalues greater thanone earns and 69% of the total variance explained.According to the literature the six factors were humanresources, content, communication, structural, strategicand organizational resources barriers. It should be notedthat the value of KMO index was equal to 0.78 that ismore than essential value which is 0.60. Significant levelof Bartlett’s test (sig) was <0.05 which indicates data forfactor analysis is appropriate and data sufficiency isconfirmed. It should note according to the rotation matrixof size and weight of each item, statements of lack ofability, lack of proper information transfer betweendifferent levels of the organization, the current inadequatestructure, lack of alignment between processes, systemswork and other aspects of the organization with strategicdecisions and misallocation of resources because of theacquisition of factor loadings <0.50 and also cross factorloadings over 0.35 was eliminated in the second round ofexploratory factor analysis, exploratory factor analysis byeliminating the items in the second order carried.

By removing these items KMO is equal to 0.78 andsignificance level of Bartlett test is <0.05 and again sixfactors with eigenvalues above the one obtained, the sixof a total of 69.65% of the total variance explained so theresearch model can be 69.65% of the obstacles affecting

the implementation of the strategy. The results ofconfirmatory factor analysis used to confirm the findingsobtained in the following figure which shows the standardvalues obtained are significant. A is human resourcebarriers; B is content barriers, C communication barriers,D structural barriers, E organizational resource barriersand F strategic barriers (Fig. 1 and 2).

In the confirmatory factor analysis results, significantnumbers of model parameters (such as factor loading andits error) and correlation between 6 latent variable humanbarriers, content barriers, communication barriers,structural barriers, organizational resources obstacle andstrategic barriers is >1.96. As well the indicators ofgoodness of fit is also significant (Table 6 fit indicesobtained from confirmatory factor analysis shows in thefollow).

As observed, all numbers are significantly >1.96andif the weight of items is larger 1.96 and in other words tobe significant and it is indicative of satisfactory ofconvergent validity.

After identifying the six barriers for implementationof the marketing strategy in Samanbank, to assess thereliability, Cronbach’s alpha calculated for each of thesedimensions (Table 7).

According to there liability ofeach dimension andonce the total dimension is larger than 0.70 confirmed,there liability of the model was developed. Afterconfirming the reliability and validity of the model sixdimensions and each of the six indices showed in thefollowing table (Table 8).

After stage approval of confirmatory factor atsecond-order to demonstrate and evaluate the impact ofthese barriers on the implementation of the marketingstrategy used that results in the table below is visible.According to the table, it can be said that thecommunication barriers have the greatest impact on theimplementation of the marketing strategy (standardized coefficient of 0.86) and the structural barriers has the least impact on the implementation of themarketing strategy (standardized coefficient of 0.41)(Table 9).

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Fig. 1: Output of confirmatory factor analysis (standard coefficients)

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Fig. 2: Output of confirmatory factor analysis (significant amounts)

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CONCLUSION

The focus of the marketing strategy is an appropriateallocation of company and lack of coordinating activitiesand marketing resources to meet the operationalobjectives of company in terms of a particular productmarket. Therefore, the main issue that concerns the scopeof the marketing strategy is to set a specific target marketfor a product family or a specific product, then,implementing strategy is developing companies throughmarketing mix according to needs and demands ofpotential customers in the target market, followed bycompetitive advantage and create synergies. The basis ofstrategic planning at all level is to identify threats andopportunities in order to prevent and avoid and takeadvantage of it. The main strategic responsibility of anymanager is external control and care or activities thecompany in order to harmonize it with changes in theenvironment.

Since, the successful marketing executives within thecompany and customers, distributors and competitors areusually more familiar with conditions and changes in themarket environment. As a result, these managers are notonly responsible for the strategic plan of their product, butalso are the main participants in the planning process atall levels of trading firm.

Noticeable point is that today the following reasonsin implementation of marketing strategies are becomingmore difficult: increasing complexity of environmentalfactors, more difficult to predict the future and reduce theaccuracy of these predictions, the number of variablesaffecting organizational performance, high speed obsoleteeven the best programs and increasing the number ofdomestic and international events affecting theorganization. Due to the aforementioned reasons, it seemsas if managers and others human resources involved in theimplementation of marketing strategies affecting theimplementation of the strategy and the reasons for theirfailure to act do not have sufficient knowledge of thetheoretical framework provided by professors, successfulimplementation of corporate strategies will be verydifficult and sometimes impossible. Increased use ofstrategic programs in recent years has caused thepathological process of implementation need to be moresensible.

Due to these barriers and problems faced bymanagers in implementing marketing strategies designedto continue is the main purpose of the present study andin the next section the results discussed. According to theresults, communication barriers have greatest effect on theimplementation of the marketing strategy.

These people without taking into account takingothers to develop their strategy, implementation ofmarketing strategy with the sufferings and problems willbe the participation of a representative of each department

or operational unit strategy appears essential. In thisregard, it seems that the executive branch should havegreater involvement in the formulation of strategies forgreater involvement of employees in the strategy inaddition to expand participation in the organization’sculture and creativity and innovation of the resistance andthe staff will reduce better implementation of the strategywill be. As well as to communicate strategy to employeesand asking them to implement the strategies requires tostaff about the goals, philosophy and explain why ordersand decisions.

Since, the implementation of the marketing strategyis a participative activity and not limited only to a groupcalled planners and all members of organization have aparticular role in the right implementation. Therefore, ifthe development of marketing strategy is limited to acertain number of organizations and individuals withouttaking others view to develop their strategy,implementation of marketing strategy will face problemsand so the participation of representatives of eachdepartment or operational unit strategy appears essential. In this regard, it seems that the executive branch shouldhave greater involvement in the formulation of strategiesfor greater involvement of staff in developing strategy inaddition to expand participation in the organization’sculture and creativity and innovation will reduce the staffstrength and better implementation of the strategy will beeffective. As well as to communicate strategy toemployees and asking them to implement the strategiesrequires to explain staff about the goals, philosophy andwhy orders and decisions.

In organizations and in most cases, the editors of thestrategy are researchers outside the organization which donot have information regarding the organization andespecially, its culture, regardless of their culture staff todevelop strategies. Employees who opposed this strategywith their corporate culture they are trying to oppose it.Even if organization well developed their goals thequestion raised how an organization can ensure thatorganizational culture supports its development strategy?Does the organizational culture and human resourcesstrategies increase organizational success are independentmethods or interact with each other? In this regard, it isnecessary to pay attention to corporate culture andstrategy as well as the beliefs and values of staff whendone.

Organizations determining their current position andprogress in today’s competitive environment that is basedon knowledge-based economy should be regular andconsistent used models for evaluating their performanceand the use of strategic planning and performancemanagement systems is essential, so that, we can moreeffectively manage and measure success and progress inachieving the strategic objectives of the company. Duringimplementation, follows control systems, the actual

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performance and deviations from planned levels ofperformance for corrective action taken. Control processis following the actual operation and use of diversions forimplementing corrective actions that will ensure theimplementation of the strategy. The establishment ofcontrol systems in the organization can be effective inimplementing the strategy.

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