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Role of Innovative Marketing Strategy for Success of Micro, Small, and Medium Enterprises (MSMEs)

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New Horizons in Management, Leadership and Sustainability

Part of the book series: Future of Business and Finance ((FBF))

Abstract

The study aims to investigate the influence of innovative marketing strategy on the development of MSMEs in Sri Lanka. Primary data collection was adopted to collect data from owners of MSMEs by using questionnaires. A stratified proportionate random sampling method was utilized to select samples. A total of 686 valid questionnaires were collected from respondents. The researcher used exploratory factor analysis to identify the dimensions of factors and structural equation modeling to investigate the strength of the relationship among variables. The results of the study proved that MSMEs enhance their performance through innovative marketing strategy. In particular, the application of the innovative marketing strategy for MSMEs caused an increase in the internal process performance, customer performance and learning, and growth performance and financial performance. This research indicates that owners of MSMEs need to apply the innovative marketing strategy to develop their firms and to upgrade micro firms towards small and medium level.

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Author information

Authors and Affiliations

  1. University of Jaffna, Jaffna, Sri Lanka

    V. Sathana, T. Velnampy & S. Rajumesh

Authors
  1. V. Sathana
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  2. T. Velnampy
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  3. S. Rajumesh
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Corresponding author

Correspondence to V. Sathana .

Editor information

Editors and Affiliations

  1. School of Business, Woodbury University, Burbank, CA, USA

    Satinder Dhiman

  2. Department of Management, Monash University, Clayton, VIC, Australia

    Ramanie Samaratunge

Appendices

Appendices

1.1 Appendix 4.1

Sector

Criteria

Medium

Small

Micro

Manufacturing sector

Annual turnover

Rs. Mn. 251–750

Rs. Mn.16–250

Less than Rs. Mn. 15

No. of employees

51–300

11–50

Less than 10

Service sector

Annual turnover

Rs. Mn. 251–750

Rs. Mn.16–250

Less than Rs. Mn. 15

No. of employees

51–200

11–50

Less than 10

1.2 Appendix 4.2

 

SME groups

Criteria (number of persons engaged)

Industry and construction

Micro

1–4

Small

5–24

Medium

25–199

Large

200 and above

Trade

Micro

1–3

Small

4–14

Medium

15–34

Large

35 and above

Services

Micro

1–4

Small

5–15

Medium

16–74

Large

75 and above

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Sathana, V., Velnampy, T., Rajumesh, S. (2021). Role of Innovative Marketing Strategy for Success of Micro, Small, and Medium Enterprises (MSMEs). In: Dhiman, S., Samaratunge, R. (eds) New Horizons in Management, Leadership and Sustainability. Future of Business and Finance. Springer, Cham. https://doi.org/10.1007/978-3-030-62171-1_4

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