A Synthesis of Entrepreneurial Orientation and Entrepreneurial Marketing to Enhance the Effectiveness of Approaching the Market by SMEs in Periods of Economic Transition

Abstract

Small and Medium Sized Enterprises (SMEs) make a significant contribution to gross domestic product (GDP) and employment in every economy. However, in transition economies (TEs) they often struggle to approach the market effectively. This study extends theoretical understanding of the interface between entrepreneurship and marketing. The study identifies Entrepreneurial Orientation (EO) and Entrepreneurial Marketing (EM) as key to the success of these SMEs. It proposes a synthesis of the two concepts, and the practices they describe, as a basis for better understanding and improving SME approach to market in economies experiencing the disruption of transition. The overall aim of the study is to assist SMEs in approaching the market more effectively, especially in TEs. Its specific objectives are threefold. First, to identify the antecedent behaviours that underlie EO. Second, to scope the components that interlink the concepts of EO and EM. Third, to propose marketing strategies that are especially applicable to SMEs in general and, in particular, to SMEs operating in a TE context. These objectives are informed by phenomenologically oriented analysis of twenty-nine (n29) semi-structured interviews with entrepreneurs who manage or own an SME in Saudi Arabia in various sectors including SME consultants. Their reports of their lived experience suggest seven antecedents of EO ordered according to their perceived importance. In addition, two elements that interlink EO and EM are identified; these are human capital and access to market information. Thus, and contrary to previous academic practice, this study treats EO and EM as essentially interrelated nature and explores how market engagement is more effective when SMEs embrace both in their practice. Finally, the study evaluates different marketing strategies and tools generated at the EO-EM interface, that can be most effective for SMEs in TEs. The study concludes with managerial implications, suggestions for policy makers and directions for further research