Which SMEs has the best marketing performance?

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Abstract

Marketing science and entrepreneurship interface have grown significantly in terms of the number of researchers and literature in the last decade. This interface is known as Entrepreneurial Marketing, usually used by Small and Medium Enterprise (SMEs). SMEs in Indonesia have an important role since they contribute 60% of national income. In addition, Indonesian SMEs have a very different characteristic compared to SMEs in other countries. The performance of SMEs will reach its peak when the entrepreneurial marketing orientation matches with right marketing strategy. This study aims to develop entrepreneurial marketing dimensions and marketing strategy typologies that are suitable with Indonesian SMEs characteristics; and also to identify the profiles of the SMEs that forms from a fit entrepreneurial marketing dimensions and marketing strategy used. An empirical quantitative study had conducted on 130 SME owners of various industry, with a concept fit method, specifically profile deviation. Based on factor analysis techniques, it found that there are seven dimensions of entrepreneurial marketing that described the characteristics of Indonesian SMEs: customer focus, innovativeness, value creation, opportunity focus, proactiveness, calculated risk taking, and resources leveraging. Further, based on a hierarchical cluster analysis technique, there are five clusters of SME in Indonesia: Aggressive marketers, mass marketers, value marketers, traditional marketers, and minimizer marketers. Profile deviation analysis proves that the higher fit of entrepreneurial marketing dimensions with marketing strategy, marketing performance of SMEs will be higher. The SMEs with the highest performance are the aggressive marketers, and the lowest performance generated by the minimizer marketers. So, for SMEs owners in Indonesia should have the characteristics like aggressive marketers cluster by improving the knowledge and competencies both in entrepreneurial marketing and marketing strategy. This study has also enriched the RA theory (Hunt, 1995) that intangible resources more valuable in getting higher performance for SMEs than tangible resources.

Original languageEnglish
Title of host publicationProceedings of the 12th European Conference on Innovation and Entrepreneurship, ECIE 2017
EditorsChristophe Loue, Sonia Ben Slimane, Sonia Ben Slimane
PublisherAcademic Conferences and Publishing International Limited
Pages68-77
Number of pages10
ISBN (Print)9781911218555
Publication statusPublished - 1 Jan 2017
Event12th European Conference on Innovation and Entrepreneurship, ECIE 2017 - Paris, France
Duration: 21 Sep 201722 Sep 2017

Publication series

NameProceedings of the European Conference on Innovation and Entrepreneurship, ECIE
Volume2017-September
ISSN (Print)2049-1050

Conference

Conference12th European Conference on Innovation and Entrepreneurship, ECIE 2017
CountryFrance
CityParis
Period21/09/1722/09/17

Keywords

  • Entrepreneurial marketing
  • Marketing strategy
  • Profile deviation
  • Small and medium enterprises

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