Do family SME managers value marketing capabilities' contribution to firm performance?

Abstract

Purpose -This paper seeks to extend knowledge on the impact of different marketing capabilities on various measures of organisational performance in the context of family-run small to medium-sized enterprises (SMEs). Design/methodology/approach -Aspects regarding marketing capabilities in family-owned SMEs and their impact on superior performance are identified and briefly discussed according to the existing literature. Then, quantitative research is presented followed by a discussion of the findings. The paper ends with the conclusion, managerial implications, limitations and lines for future research. Findings -The results of the study show the relevance of marketing capabilities for product differentiation to gain stakeholders' satisfaction. Other marketing capabilities related to marketing planning and pricing have a positive impact on financial performance. Originality/value -Different marketing capabilities have a different impact on various measures of performance. The nature of the marketing capabilities under consideration determines whether their main impact is on financial performance rather than on stakeholders' satisfaction.

The Influence of Selected Marketing and Branding Practices on the Financial Performance of Family SMEs

“…Given this weak relationship between "product differentiation" and "perceived financial performance," one could claim that the findings of the current study are somewhat in line with Pérez-Cabañero et al (2012) who found no significant relationship between product differentiation and financial performance of family businesses. According to them, adopting a product differentiation had no direct effect on the financial performance of family businesses.…”

“…In contrast to other studies, they found that product differentiation did not directly influence the financial performance of family SMEs, but instead product differentiation directly influences the non-financial performance of these businesses (Pérez-Cabañero et al 2012). Their study found that product differentiation directly contributes to stakeholder satisfaction, which in turn positively influences financial performance.…”

“…This finding is supported by both Pérez-Cabañero et al (2012) and Craig et al (2008) who contend that family businesses often differentiate themselves in the market through product differentiation. Such a product orientation emphasises innovation, research and development and the delivery of high-quality products to highly priced market segments.…”

“…Ferrell and Hartline (2013) as well as Pérez-Cabañero et al (2012) explain that the underlying goal of product differentiation is to ensure a less elastic demand curve, which implies that the ultimate economic goal of product differentiation is to ensure customers are less sensitive to price changes. It is recognised that loyal customers are willing to pay a premium price for a product that is perceived as non-substitutable as a result of its unique features or attributes.…”

SMEs in the UAE’s Creative Industries: Female Employees and Lax Marketing Efforts

“…For example, approximately 99% of all European businesses are SMEs, with nine out of ten being micro-enterprises employing fewer than ten people (Pérez-Cabañero, González-Cruz, & Cruz-Ross, 2012). Marketing in SMEs tends to focus on the needs of the business, so they a lack planned and controlled promotional activities, leading to assumption that marketing in SMEs is simplistic, spontaneous, informal, reactive, haphazard, and built to correspond with industry values (Fuller, 1994;Parry, Jones, Rowley, & Kupiec-Teahan, 2012;Reijonen, 2010).…”