Marketing capabilities, enterprise optimization programs and performance in early transition economies: The case of Cuban SOEs

This paper examines for the first time the consequences of the marketing capabilities of state-owned enterprises (SOEs) in the early phase of an economic transition as well as the role of government enterprise optimization programs in such environments. A survey of 254 Cuban SOEs found that marketing capabilities (either market orientation or a competitive marketing mix) improve traditional business performance. Additionally, a competitive marketing mix mediates the relationship between the market orientation of SOEs and performance. Moreover, participating in the Cuban Enterprise Optimization Program seems to enhance the marketing capabilities of SOEs. In summary, in the early phase of an economic transition, marketing capabilities make a significant contribution to SOEs' competitiveness, and enterprise optimization programs may be effective in enhancing the SOEs' marketing capabilities. © University of Latvia, 2002-2011.