Modeling Entrepreneurial Marketing, Social Media Marketing, Product Innovation and SME's Performance

Abstract

Extensive research was available that measures the influence of entrepreneurial marketing effect on SME's performance. However, studies scant those measures the influence of entrepreneurial marketing via seven dimensions (proactiveness, opportunity focus, calculative risk-taking, customer intensity, resource, value creation and innovativeness) on SME's performance of manufacturing industry of Pakistan via intervening role social media marketing and product innovation. A simple random sampling technique applied to collect data from owners/managers of the sports industry in Sialkot, Punjab, Pakistan. A total of 400 questionnaires were distributed and 345 complete questionnaires were used for data analysis. For data analysis, two-stage structural equation modeling techniques was used. At the first stage, validity and reliability were measured for each latent construct via confirmatory factor analysis. Secondly, the structural model is employed for causal relationships among latent constructs. A study found that entrepreneurial marketing has a significant positive effect on social media marketing and product innovation, whereas an insignificant effect on SME's performance. Furthermore, Social media marketing and product innovation have a significant positive effect on SME's performance. As the direct effect of entrepreneurial marketing was insignificant in SME's performance, social media marketing and product innovation fully mediate the causal relationship.