The role of SME’s owner-manager decision-making styles in marketing strategies and organizational performance

Abstract

Purpose Although studies have analyzed individual factors and their impact on marketing strategies and organizational performance, little is known about the owner-manager’s decision-making style. In the marketing literature of micro, small and medium enterprises (SMEs), little attention has been paid to the decision-maker. This study aims to gauge the impact of the manager's decision-making styles (rational, intuitive, dependent, avoidant and spontaneous) on marketing strategy creativity, on its implementation effectiveness and, consequently, on organizational performance. Design/methodology/approach This study uses a quantitative and descriptive approach. The data collection technique was through a survey with structured questionnaires in an online format. The data were collected from Brazilian micro, small and medium enterprises (SMEs) in the commerce and service sectors. The nonprobabilistic sampling included 206 valid responses. The data were analyzed using the technique of structural equation modeling (SEM) through the partial least squares method (PLS). Findings Among the main results, it was observed that rational, dependent and avoidant styles influence the creativity and implementation effectiveness of marketing strategies, and that these two factors positively impact organizational performance. In addition, it was found that part of the effect of rational, dependent and avoidant styles on performance occurs through the creativity and implementation effectiveness of the marketing strategy. However, the effect of the intuitive style and spontaneous style was not significant. Practical implications For owner-managers, the main implication is that they need to be rational, carefully analyzing the information and options available, ask for support when necessary for their team or partners and avoid procrastinating decisions. This can aid the development of more creative and effective implementations of their marketing strategies, which consequently, may contribute to better performance results. Originality/value The main contribution of this study was to add a new approach (decision-making styles) to the SME marketing literature. Moreover, this study integrates organizational (focused on marketing) and behavioral (focused on the manager's decision-making style) perspectives as factors that improve organizational performance.