THE IMPACT OF ENTREPRENEURIAL MARKETING ON FIRM PERFORMANCE: MEDIATING EFFECT OF NETWORK DIVERSITY AND LEARNING CAPACITY; MODERATING EFFECT OF COMPETITIVE INTENSITY
Keywords:SMEs, Entrepreneurial Marketing, Firm Performance, Learning Capability, Diversity Of Network Structure, Competitive Intensity
This study investigates the role of entrepreneurial marketing as a predictor of firm performance. The research integrates variables of the dynamic interaction: mediating role of diversity of network and learning capability, moderating role of competitive intensity on the relationship between entrepreneurial marketing and performance of the firm.
The study is explanatory in nature. To ensure the accuracy of quantitative results based on the experience of study participants, we employed a mixed method of qualitative and quantitative data collection. Data was collected in two stages: 1) field survey, 2) interviews of SMEs owners in Oman. The sample was purposively drawn from SMEs managers perceived to be knowledgeable about the tourism industry.
No significant relationship was found between entrepreneurial marketing and firm performance. In addition, it was found that network selection mediates the relationship between entrepreneurial marketing and firm performance; however, learning capability does not.
This study adds to the literature of the Omani market context on a strategic issue and provides managers with useful insights. Mixed methods provide a methodological contribution to understanding the dynamic relationship between variables presented in the entrepreneurship literature.
Al Kalbani, K. A., Rahman, A. A., and Malaysia-Talal, A. L. (2018). Implementing 3d Spatial Data Infrastructure for Oman-Issues and Challenges.
Al Barwami, K. M., Al-Jahwari, M. R., Al-Saidi, A. S., and Al Mahrouqi, F. S. (2014). Towards a Growing, Competitive and Dynamic Small and Medium-Sized Enterprises Sector in Oman : Strategy And Policies, Central Bank of Oman, Economic Research and Statistics Department.
Al Buraiki, A., Khan, F. R. (2018). Finance and Technology: Key Challenges Faced By Small and Medium Enterprises (Smes) in Oman, International Journal of Management, Innovation and Entrepreneurial Research EISSN, 2395–7662. https://doi.org/10.18510/ijmier.2018.421
Alegre, J., Chiva, R. (2013). Linking Entrepreneurial Orientation and Firm Performance: The Role of Organizational Learning Capability and Innovation Performance. Journal of Small Business Management, 51(4), 491–507. https://doi.org/10.1111/jsbm.12005
Altinay, L., Madanoglu, M., De Vita, G., Arasli, H., and Ekinci, Y. (2016). The Interface Between Organizational Learning Capability, Entrepreneurial Orientation, And SME Growth. Journal of Small Business Management, 54(3), 871–891. https://doi.org/10.1111/jsbm.12219
Antunes, H. De J. G., and Pinheiro, P. G. (2020). Linking Knowledge Management, Organizational Learning and Memory, Journal of Innovation and Knowledge, 5(2), 140–149. https://doi.org/10.1016/j.jik.2019.04.002
Atef, T. M., Al-Balushi, M. (2015). Entrepreneurship as a Means for Restructuring Employment Patterns. Tourism and Hospitality Research, 15(2), 73–90. https://doi.org/10.1177%2F1467358414558082
Barney, J. (1991). Firm Resources and Sustained Competitive Advantage, Journal of Management, 17(1), 99–120. https://doi.org/10.1177%2F014920639101700108
Bilal, Z. O., Al Mqbali, N. S. (2015). Challenges and Constrains Faced by Small and Medium Enterprises (Smes) in Al Batinah Governorate of Oman. World Journal of Entrepreneurship, Management and Sustainable Development. https://doi.org/10.1108/WJEMSD-05-2014-0012
Braun, V., Clarke, V. (2006). Using Thematic Analysis in Psychology, Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa
Choi, T., Wacker, J. G. (2011). Theory Building in the Om. Scm Field: Pointing to the Future by Looking at the Past, 47(2), 8-11. https://doi.org/10.1111/j.1745-493X.2011.03219.x
Clarke, V., Braun, V. (2014). Thematic Analysis, in Encyclopedia of Critical Psychology, Springer, 1947–1952.
Cohen, J. (1988). The Effect Size, Statistical Power Analysis for the Behavioral Sciences, 77–83.
Covin, J. G., Lumpkin, G. T. (2011). Entrepreneurial Orientation Theory and Research: Reflections on a Needed Construct, Entrepreneurship Theory and Practice, 35(5), 855–872. https://doi.org/10.1111%2Fj.1540-6520.2011.00482.x
Creswell, J. W. (2013). Steps in Conducting a Scholarly Mixed Methods Study, 1-54.
Creswell, J. W., Hanson, W. E., Clark Plano, V. L., and Morales, A. (2007). Qualitative Research Designs: Selection and Implementation, The Counseling Psychologist, 35(2), 236–264. https://doi.org/10.1177/0011000006287390
Dada, O., Fogg, H. (2016). Organizational Learning, Entrepreneurial Orientation, and The Role of University Engagement in Smes, International Small Business Journal, 34(1), 86–104. https://doi.org/10.1177/0266242614542852
Day, G. S. (1994). The Capabilities of Market-Driven Organizations. Journal of Marketing, 58(4), 37–52.
Eggers, F., Hansen, D. J., And Davis, A. E. (2012). Examining the Relationship Between Customer and Entrepreneurial Orientation on Nascent Firms’ Marketing Strategy, International Entrepreneurship and Management Journal, 8(2), 203–222.
Fiore, A. M., Niehm, L. S., Hurst, J. L., Son, J., and Sadachar, A. (2013). Entrepreneurial Marketing : Scale Validation with Small, Independently-Owned Businesses, Journal of Marketing Development and Competitiveness, 7(4), 63.
Haden, S. S. P., Kernek, C. R., and Toombs, L. A. (2016). The Entrepreneurial Marketing of Trumpet Records. Journal of Research in Marketing and Entrepreneurship, 18(1), 109-126. https://doi.org/10.1108/JRME-04-2015-0026
Hair Jr, J. F., Howard, M. C., and Nitzl, C. (2020). Assessing Measurement Model Quality in PLS-SEM Using Confirmatory Composite Analysis, Journal of Business Research, 109, 101–110. https://doi.org/10.1016/j.jbusres.2019.11.069
Hair Jr, J. F., Sarstedt, M., Matthews, L. M., and Ringle, C. M. (2016). Identifying and Treating Unobserved Heterogeneity with FIMIX-PLS: Part I–Method. European Business Review, 28(1), 63-76. https://doi.org/10.1108/EBR-09-2015-0094
Hair, J. F., Ringle, C. M., and Sarstedt, M. (2013). Partial Least Squares Structural Equation Modeling : Rigorous Applications, Better Results and Higher Acceptance, Long Range Planning, 46(1–2), 1–12.
Hair, J. F., Risher, J. J., Sarstedt, M., and Ringle, C. M. (2019). When to use and How to Report the Results of PLS-SEM, European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hakala, H. (2011). Strategic Orientations in Management Literature: Three Approaches to Understanding the Interaction Between Market, Technology, Entrepreneurial and Learning Orientations. International Journal of Management Reviews, 13(2), 199–217. https://doi.org/10.1111/j.1468-2370.2010.00292.x
Henseler, J., Ringle, C. M., and Sarstedt, M. (2015). A New Criterion for Assessing Discriminant Validity in Variance-Based Structural Equation Modeling, Journal of the Academy of Marketing Science, 43(1), 115–135.
Hills, G. E., Hultman, C. M., Kraus, S., and Schulte, R. (2010). History, Theory and Evidence of Entrepreneurial Marketing–An Overview, International Journal of Entrepreneurship and Innovation Management, 11(1), 3–18. https://dx.doi.org/10.1504/IJEIM.2010.029765
Hills, G. E., And Hultman, C. M. (2011). Academic Roots : The Past And Present of Entrepreneurial Marketing, Journal of Small Business and Entrepreneurship, 24(1), 1–10.
Hisrich, R. D., Ramadani, V. (2017). Effective Entrepreneurial Management, Effective Entrepreneurial Management.
Hitt, M. A., Xu, K., and Carnes, C. M. (2016). Resource Based Theory in Operations Management Research. Journal of Operations Management, 41, 77–94. https://doi.org/10.1016/j.jom.2015.11.002
Hoang, H., Antoncic, B. (2003). Network-Based Research in Entrepreneurship: A Critical Review. Journal of Business Venturing, 18(2), 165–187. https://doi.org/10.1016/S0883-9026(02)00081-2
Hoang, H., Yi, A. (2015). Network-based research in entrepreneurship: A decade in review, 11(1), 1-54. http://dx.doi.org/10.1561/0300000052
Husain, U., Javed, S., and Ananda, S. (2021). Digital Marketing as a Game Changer Strategy to Enhance Brand Performance, International Journal of Technology Marketing, 15(2-3), 107-125. https://dx.doi.org/10.1504/IJTMKT.2021.10041546
Hussain, E. (2017). Exploration of Entrepreneurial Marketting Orientation Model Among Smes in Oman, International Journal of Economics and Management Sciences, 6(3), 1-6.
Ioniţǎ, D. (2012). Entrepreneurial Marketing : A New Approach for Challenging Times. Management and Marketing, 7(1).
Jiang, X., Liu, H., Fey, C., and Jiang, F. (2018). Entrepreneurial Orientation, Network Resource Acquisition, and Firm Performance: A Network Approach, Journal of Business Research, 87, 46–57. https://doi.org/10.1016/j.jbusres.2018.02.021
Khouroh, U., Sudiro, A., Rahayu, M., and Indrawati, N. (2020). The Mediating Effect of Entrepreneurial Marketing in the Relationship Between Environmental Turbulence and Dynamic Capability with Sustainable Competitive Advantage: An Empirical Study in Indonesian Msmes. Management Science Letters, 10(3), 709–720. http://dx.doi.org/10.5267/j.msl.2019.9.007
Kirca, A. H., Jayachandran, S., and Bearden, W. O. (2005). Market Orientation : A Meta-Analytic Review and Assessment of its Antecedents and Impact on Performance. Journal of Marketing, 69(2), 24–41.
Kohli, A. K., Jaworski, B. J., and Kumar, A. (1993). MARKOR: A Measure of Market Orientation, Journal of Marketing Research, 30(4), 467–477. https://doi.org/10.2307/3172691
Kohli, A. K., and Jaworski, B. J. (1990). Market Orientation: The Construct, Research Propositions, and Managerial Implications. Journal of Marketing, 54(2), 1–18. https://doi.org/10.2307/1251866
Kuratko, D. F., Morris, M. H., and Schindehutte, M. (2015). Understanding the Dynamics of Entrepreneurship Through Framework Approaches. Small Business Economics, 45(1), 1–13.
Martin, S. L., Javalgi, R. R. G. (2016). Entrepreneurial Orientation, Marketing Capabilities and Performance: The Moderating Role of Competitive Intensitjy on Latin American International New Ventures, Journal of Business Research, 69(6), 2040–2051. https://doi.org/10.1016/j.jbusres.2015.10.149
Migdadi, M. M. (2019). Organizational Learning Capability, Innovation and Organizational Performance. European Journal of Innovation Management, 24(1), 151-172. https://doi.org/10.1108/EJIM-11-2018-0246
Miles, M. B., Huberman, A. M. (1984). Drawing Valid Meaning from Qualitative Data: Toward a Shared Craft. Educational Researcher, 13(5), 20–30. https://doi.org/10.2307/1174243
Miocevic, D., Morgan, R. E. (2018). Operational Capabilities and Entrepreneurial Opportunities in Emerging Market Firms, International Marketing Review, 35(2), 320-341. https://doi.org/10.1108/IMR-12-2015-0270
Morgan, T., Anokhin, S. A. (2020). The Joint Impact of Entrepreneurial Orientation and Market Orientation in New Product Development: Studying Firm and Environmental Contingencies. Journal of Business Research, 113, 129–138. https://doi.org/10.1016/j.jbusres.2019.06.019
Morris, M. H., Schindehutte, M., and 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. https://doi.org/10.1080/10696679.2002.11501922
Morrish, S. C., Miles, M. P., and Deacon, J. H. (2010). Entrepreneurial Marketing: Acknowledging the Entrepreneur and Customer-Centric Interrelationship, Journal of Strategic Marketing, 18(4), 303–316. https://doi.org/10.1080/09652541003768087
Mort, G. S., Weerawardena, J., and Liesch, P. (2012). Advancing Entrepreneurial Marketing. European Journal of Marketing, 46(3/4), 542-651. https://doi.org/10.1108/03090561211202602
Mu, J., Bao, Y., Sekhon, T., Qi, J., and Love, E. (2018). Outside-In Marketing Capability and Firm Performance. Industrial Marketing Management, 75, 37–54. https://doi.org/10.1016/j.indmarman.2018.03.010
Nieves, J., Osorio, J. (2015). The Role of Social Networks in Knowledge Creation, in the Essentials of Knowledge Management Springer, 333–364.
Njoroge, M., Anderson, W., Mossberg, L., and Mbura, O. (2020). Entrepreneurial Orientation in the Hospitality Industry: Evidence from Tanzania, Journal of Entrepreneurship in Emerging Economies, 12(4), 523-543. https://doi.org/10.1108/JEEE-11-2018-0122
Nsereko, I., Balunywa, W., Munene, J., Orobia, L., and Muhammed, N. (2018). Personal Initiative: Its Power in Social Entrepreneurial Venture Creation, Cogent Business and Management, 5(1), 329-349. https://doi.org/10.1080/23311975.2018.1443686
Polas, M. R. H., Raju, V. (2021). Technology and Entrepreneurial Marketing Decisions During COVID-19, Global Journal of Flexible Systems Management, 22(2), 95–112.
Preacher, K. J., Hayes, A. F. (2008). Asymptotic And Resampling Strategies for Assessing and Comparing Indirect Effects in Multiple Mediator Models, Behavior Research Methods, 40(3), 879–891.
Rauch, A., Wiklund, J., Lumpkin, G. T., and Frese, M. (2009). Entrepreneurial Orientation and Business Performance: An Assessment of Past Research and Suggestions for the Future, Entrepreneurship Theory and Practice, 33(3), 761–787. https://doi.org/10.1111%2Fj.1540-6520.2009.00308.x
Sahid, S., Hamid, S. A. (2019). How to Strategize Smes Capabilities Via Entrepreneurial Marketing Approaches, Academy of Marketing Studies Journal, 23(1), 1–5.
Sahoo, S. (2019). Quality Management, Innovation Capability and Firm Performance. The TQM Journal, 31(6), 1003-1027. https://doi.org/10.1108/TQM-04-2019-0092
Saqib, M., Baluch, N. H., And Udin, Z. M. (2017). Moderating Role of Technology Orientation on the Relationship Between Knowledge Management and Smes’ Performance In Oman : A Conceptual Study, International Journal of Economic Perspectives, 11(1).
Sarstedt, M., Ringle, C. M., and Hair, J. F. (2017). Partial Least Squares Structural Equation Modeling. Handbook of Market Research, 26, 1–40.
Shmueli, G., Sarstedt, M., Hair, J. F., Cheah, J.-H., Ting, H., Vaithilingam, S., and Ringle, C. M. (2019). Predictive Model Assessment In PLS-SEM: Guidelines for Using Plspredict, European Journal of Marketing, 53(11), 2377-1347. https://doi.org/10.1108/EJM-02-2019-0189
Slotte–Kock, S., Coviello, N. (2010). Entrepreneurship Research on Network Processes: A Review and Ways Forward, Entrepreneurship Theory and Practice, 34(1), 31–57. https://doi.org/10.1111%2Fj.1540-6520.2009.00311.x
Stokes, D. (2000). Putting Entrepreneurship Into Marketing: The Processes of Entrepreneurial Marketing, Journal of Research in Marketing And Entrepreneurship, 2(1), 1-16. https://doi.org/10.1108/14715200080001536
Whalen, P., Uslay, C., Pascal, V. J., Omura, G., Mcauley, A., Kasouf, C. J., Jones, R., Hultman, C. M., Hills, G. E., And Hansen, D. J. (2016). Anatomy of Competitive Advantage: Towards a Contingency Theory Of Entrepreneurial Marketing, Journal of Strategic Marketing, 24(1), 5–19. https://doi.org/10.1080/0965254X.2015.1035036
Yang, M., Gabrielsson, P. (2017). Entrepreneurial Marketing of International High-Tech Business-To-Business New Ventures: A Decision-Making Process Perspective, Industrial Marketing Management, 64, 147–160. https://doi.org/10.1016/j.indmarman.2017.01.007
Zahra, S. A., Ireland, R. D., and Hitt, M. A. (2000). International Expansion by New Venture Firms: International Diversity, Mode of Market Entry, Technological Learning, and Performance, Academy of Management Journal, 43(5), 925–950. https://doi.org/10.2307/1556420
How to Cite
Copyright (c) 2022 Dr. Zaheer Ahmed Khan, Uvesh Husain
This work is licensed under a Creative Commons Attribution 4.0 International License.
With the licence CC-BY, authors retain the copyright, allowing anyone to download, reuse, re-print, modify, distribute, and/or copy their contribution. The work must be properly attributed to its author.
It is not necessary to ask for further permission from the author or journal board.
This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge.