Entrepreneurial Marketing & Performance of Small & Medium Enterprises in Developed and Developing Economies: A Conceptual Exploration

Bandara, KBTUK and Jayasundara, JMSB and Naradda Gamage, Sisira Kumara and Ekanayake, EMS and Rajapackshe, PSK and Abeyrathne, GAKNJ and Prasanna, RPIR (2020): Entrepreneurial Marketing & Performance of Small & Medium Enterprises in Developed and Developing Economies: A Conceptual Exploration.

Abstract

Small and Medium Enterprises (SMEs) are renowned as the engine of economic development in both developed and developing regions in the era of economic globalization. However, the existing knowledge in the field outlines numerous factors that hinder SMEs’ growth and survival and lead to business failures in terms of bankruptcy and liquidation. In such a context, Entrepreneurial Marketing (EM) is one of the critical determinants of growth and survival of the SME sector since their marketing approaches do not fit with established traditional marketing theories. Successful SMEs can acquire a competitive advantage on their unique benefit of “smallness,” often under limited resource conditions and uncertain market circumstances. Hence, this paper aims to review the literature on EM and its impact on the performance of SMEs, particularly in developed and developing regions. Accordingly, the review identified a range of EM dimensions that directly affect SME performance in developed and developing regions. The study also identified many other variables have a causal effect on the relationship between EM and SME performance, including external environment, internal venture environment, and venture approach to marketing. Finally, the study provides practical implications for practitioners and theoretical implications for researchers as an array of progressive areas for future endeavors.

• Item Type: MPRA Paper
• Language: English
• Keywords: Entrepreneurial Marketing, Marketing, Small and Medium Enterprises, SME Performance
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M2 - Business Economics; M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing

References

Aslam, S., Shahid, M. N., Qureshi, M. H., & Qureshi, A. M. (2018). Investigating Innovativeness and Emotional Intelligence as Mediator to Explore Entrepreneurial Marketing Strategy Focused on Firm Performance: A Case in Pakistan. J. Appl. Environ. Biol. Sci, 8(1), 48-60.

Bayarçelik, E. B., Taşel, F., & Apak, S. (2014). A research on determining innovation factors for SMEs. Procedia-Social and Behavioral Sciences, 150, 202-211.

Becherer, R.C., Haynes, P.J. and Helms, M.M., (2008). An exploratory investigation of entrepreneurial marketing in SMEs: The influence of the owner/operator. Journal of Business and Entrepreneurship, 20(2), p.44.

Becherer, R. C., Helms, M. M., & McDonald, J. P. (2012). The effect of entrepreneurial marketing on outcome goals in SMEs. New England Journal of Entrepreneurship, 15(1), 3.

Beverland, M., & Lockshin, L. S. (2004). Crafting a competitive advantage: tempering entrepreneurial action with positioning‐based values. Qualitative market research.

Bjerke, B. & Hultman, C. (2004). Entrepreneurial marketing: The growth of small firms in the new economic era. Edward Elgar Publishing.

Carson, D. & Gilmore, A. (2000). Marketing at the interface: not ‘what’ but ‘how’. Journal of marketing theory and practice, 8(2), 1-7.

Eggers, F., Niemand, T., Kraus, S., & Breier, M. (2020). Developing a scale for entrepreneurial marketing: Revealing its inner frame and prediction of performance. Journal of Business Research, 113, 72-82. 9

Ekanayake, E. M. S., Jayasundara, J. M. S. B., Abeyrathne, G. A. K. N. J., Naradda Gamage, S. K., Rajapakshe, P. S. K., & Prasanna, R. P. I. R. (2020). Determinants of Technological Progress of SMEs in the Era of Economic Globalization: A Systemic Review. National Research Symposium of Management, Rajarata University of Sri Lanka, Mihintale, Sri Lanka.

Fard, M. H., & Amiri, N. S. (2018). The effect of entrepreneurial marketing on halal food SMEs performance. Journal of Islamic Marketing.

Fatoki, O. (2019). Entrepreneurial Marketing and Performance of Small and Medium Enterprises in South Africa. Journal of Reviews on Global Economics, 8, 1429-1437.

Gorica, K., & Buhaljoti, A. (2016). Entrepreneurial Marketing: Evidence from SMEs in Albania. American Journal of Marketing Research, 2(2), 46-52.

Hacioglu, G., Eren, S. S., Eren, M. S., & Celikkan, H. (2012). The effect of entrepreneurial marketing on firms’ innovative performance in Turkish SMEs. Procedia-Social and Behavioral Sciences, 58, 871-878.

Hadiyati, E., & Lukiyanto, K. (2019). The Effect of Entrepreneurial Marketing Dimensions On Micro, Small, and Medium Enterprise Performance in Indonesia. International Journal of Scientific & Technology Research, 8(10).

Hamali, S. (2015). The effect of entrepreneurial marketing on business performance: Small garment industry in Bandung City, Indonesia. Developing Country Studies, 5(1), 2225-0565.

Hills, G. E., & Hultman, C. (2013). Entrepreneurial marketing: Conceptual and empirical research opportunities. Entrepreneurship Research Journal, 3(4), 437-448.

Hill, J., & Wright, L. T. (2000). Defining the scope of entrepreneurial marketing: a qualitative approach. Journal of Enterprising Culture, 8(01), 23-46.

Hoque, A. S. M. M., & Awang, Z. (2019). Does gender difference play a moderating role in the relationship between entrepreneurial marketing and Bangladeshi SME performance? Accounting, 5(1), 35-52.

Hoque, A. S. M. M., Awang, Z., & Gwadabe, U. M. (2018). The Effect of Entrepreneurial Marketing on Bangladeshi SME performance and the Role of Organizational Culture: A Structural Equation Modelling. Journal of Management and Operation Research, 1, 1-21. (T)

IFC. Financials and Projects; International Finance Corporation: Washington DC, USA, (2011).

Jayasundara, J. M. S. B, Rajapakshe, P. S. K, Prasanna, R. P. I. R, Naradda Gamage, S. K., Ekanayake, E. M. S, & Abeyrathne, G. A. K. N. J. (2019). The Nature of Sustainability Challenge in Small and Medium Enterprises and its Management. MPRA/ https://mpra.ub.uni-muenchen.de/98418/

Jones, R. & Rowley, J. (2011) Entrepreneurial marketing in small businesses: A conceptual exploration. International Small Business Journal, 29(1), 25–36.

Kilenthong, P., Hills, G. E., & Hultman, C. M. (2015). An empirical investigation of entrepreneurial marketing dimensions. Journal of International Marketing Strategy, 3(1), 1-18.

Kurgun, H., Bagiran, D., Ozeren, E., & Maral, B. (2011). Entrepreneurial marketing-The interface between marketing and entrepreneurship: A qualitative research on boutique hotels. European Journal of Social Sciences, 26(3), 340-357.

Miles, M. P. & Darroch, J. (2006). Large firms, entrepreneurial marketing processes, and the cycle of competitive advantage. European journal of marketing, 40(5/6), 485-501.

Mojekeh, M. O., Nwokolie, C. E., & Okwuraiwe F. E. (2018). Entrepreneurial Marketing and the Performance of the Selected Small and Medium Scale Enterprises in Nigeria. Journal of Economics, Business, and Management, 2, 1-23. DOI: 10.21276/sjebm.2018.5.10.9.

Morris, M. H., Schindehutte, M., & LaForge, R. W. (2002). Entrepreneurial marketing: a construct for integrating emerging entrepreneurship and marketing perspectives. Journal of marketing theory and practice, 10(4), 1-19.

Mugambi, E. N., & Karugu, W. N. (2017). Effect of entrepreneurial marketing on the performance of real estate enterprises: A case of Optiven Limited in Nairobi, Kenya. International Academic Journal of Innovation, Leadership and Entrepreneurship, 2(1), 46-70.

Najib, M. & Kiminami, A. (2011). Innovation, cooperation, and business performance: Some evidence from Indonesian small food processing cluster. Journal of Agribusiness in Developing and Emerging Economies, 1(1), 75-96.

Naradda Gamage, S. K., Ekanayake, E. M. S, Abeyrathne, G. A. K. N. J, Prasanna, R. P. I. R, Jayasundara, J. M. S. B, & Rajapakshe, P. S. K. (2019). Global Challenges and Survival Strategies of the SMEs in the Era of Economic Globalization: A Systematic Review. MPRA./ https://mpra.ub.uni-muenchen.de/98419/

Naradda Gamage, S. K., Ekanayake, E. M. S., Abeyrathne, G. A. K. N. J., Prasanna, R. P. I. R., Jayasundara, J. M. S. B., Rajapakshe, P. S. K. (2020a). The Survival Strategies of Small and Medium Enterprises (SMEs) Facing the Global Challenges. National Research Symposium of Management, Rajarata University of Sri Lanka, Mihintale, Sri Lanka.

Naradda Gamage, S. K., Ekanayake., E. M. S., Abeyrathne, G. A. K. N. J., Prasanna, R. P. I. R., Jayasundara, J. M. S. B., & Rajapakshe, P. S. K. (2020b). A Review of Global Challenges and Survival Strategies of Small and Medium Enterprises (SMEs). Economies, 8(4), 1-23.

Naradda Gamage, S. K., Prasanna, R. P. I. R., Jayasundara, J. M. S. B., Ekanayake, E. M. S., Rajapakshe, P. S. K., Abeyrathne, G. A. K. N. J., Kumudumali, S. H. T., & Nedelea, A. M. (2020c). Social Capital and SME: A Systematic Literature Review and Research Directions. Ecoforum, 9(3).

Nel, P., Maritz, A., & Thongprovati, O. (2010). Motherhood and entrepreneurship: the mumpreneur phenomenon. International Journal of Organizational Innovation, 3(1), 6-34.

Paliwoda, S. J., Slater, S., Kocak, A., & Abimbola, T. (2009). The effects of entrepreneurial marketing on born global performance. International Marketing Review.

Prasanna, R. P. I. R., Jayasundara, J. M. S. B., Gamage, S. K. N., Ekanayake, E. M. S., Rajapakshe, P. S. K., & Abeyrathne, G. A. K. N. J. (2019). Sustainability of SMEs in Competition: A Systematic Review on Technological Challenges and SME Performance. Journal of Open Innovation: Technology, Market and Complexity, 1-18.

Priyanath, H. M. S. & Premaratne, S. P. (2015). Government SME Development Programs in Sri Lanka: A Review in the Lens of Transaction Cost Economics. Sabaragamuwa University Journal, 13(2).

Rashad, N. M. (2018). The impact of entrepreneurial marketing dimensions on the organizational performance within Saudi SMEs. Eurasian Journal of Business and Management, 6(3), 61-71.

Rizvandi, A., & Tojari, F. (2019). Entrepreneurial marketing effects on sports club manager performance (Conceptual Model).

Sadiku-Dushi, N., Dana, L. P., & Ramadani, V. (2019). Entrepreneurial marketing dimensions and SMEs performance. Journal of Business Research, 100, 86-99.

Stokes, D. (2000). Putting entrepreneurship into marketing: the processes of entrepreneurial marketing. Journal of research in marketing and entrepreneurship, 2(1), 1-16.

Stokes, D., & Wilson, N. (2010). Small business management and entrepreneurship. Cengage Learning EMEA.

United States of America Bureau of Labour Statistics (2018).https://www.bls.gov/bdm/entrepreneurship/entrepreneurship (accessed on 25 October 2020).

Whalen, P. S., & Akaka, M. A. (2016). A dynamic market conceptualization for entrepreneurial marketing: the co-creation of opportunities. Journal of Strategic Marketing, 24(1), 61-75.

World Bank Report (2018). Small and Medium Enterprises (SMEs) Finance. https://www.worldbank.org/en/topic/smefinance (accessed on 28 October 2020).

World Bank, Enterprise Surveys; World Bank Group: Washington DC, USA, 2017.