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Examining the relationship between customer and entrepreneurial orientation on nascent firms’ marketing strategy

International Entrepreneurship and Management Journal volume 8, pages 203–222 (2012)Cite this article

Abstract

Is entrepreneurial marketing (EM) a “one type fits all” approach? Research suggests that EM is especially suitable for small firms. However, it is obvious that—despite their size—small firms show a myriad of different characteristics. In this paper, it is argued that different firm characteristics can be seen in different business orientations, namely customer orientation (CO) and entrepreneurial orientation (EO). In turn, different amounts of EO and CO lead to different forms of EM strategy. The Panel Study of Entrepreneurial Dynamics (PSED) serves as source to investigate relationships between EO, CO, and respective marketing strategies among nascent firms. The study suggests that innovativeness is strongly related to the importance of several marketing strategies, such as developing new or advanced product or process technologies. However, other strategies, such as lower prices or convenient location, are not related to either significant levels of CO or EO. The paper offers two main implications. Firstly, small business founders have to be aware of the fact that certain strategies cannot come “out of nowhere”. This paper shows that running proactive marketing strategies that aim for ongoing innovativeness require the existence of an underlying EO. Secondly, there are different forms of “small firm EM”; a finding that requires further research in the future.

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Notes

  1. The growth expectations for those preferring their business to grow as large as possible were still relatively modest. By year five, the median number of full-time employees expected was 10 (as opposed to 4 for those preferring to maintain a small size). Similarly, the percent growth expected by high growth was 45.62 for high growth and 9.43 for low growth. The medians were 9% and 3%, respectively. The distribution for those preferring smaller size are much less than the distribution for those preferring to grow as large as possible.

  2. While the US SBA definition of small business varies by industry, most industries are defined as 500 or 1000 employees.

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Authors and Affiliations

  1. Department of Marketing, Menlo College, 1000 El Camino Real, Atherton, CA, 94027–4301, USA

    Fabian Eggers

  2. Department of Management and Entrepreneurship, College of Charleston, 5 Liberty Street, Charleston, SC, 29401, USA

    David J. Hansen & Amy E. Davis

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  1. Fabian Eggers
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  2. David J. Hansen
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  3. Amy E. Davis
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Correspondence to Fabian Eggers.

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Eggers, F., Hansen, D.J. & Davis, A.E. Examining the relationship between customer and entrepreneurial orientation on nascent firms’ marketing strategy. Int Entrep Manag J 8, 203–222 (2012). https://doi.org/10.1007/s11365-011-0173-4

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Keywords

  • SME marketing
  • Entrepreneurial marketing
  • Entrepreneurial orientation
  • Customer orientation
  • Nascent entrepreneurs