Are brand-oriented and customer retention-driven SMEs more inclined to exploiting emarketing opportunities?

Abstract

This exploratory study is aimed at empirically investigating cogent factors that might be responsible for SMEs to make use of eMarketing channels for the singular purpose of enhancing their brand competitiveness in a business environment that is characterized by demand uncertainty as well as stern competition from the more established brands in the (e)marketplace. More specifically, this study examines the exploitation of eMarketing opportunities from the viewpoint of a firm's strategic orientation(s) as well as its demographics. Prior to arriving at some of the new insights we have provided in this paper, survey data of 205 effective responses were obtained from SMEs in Nigeria. A non-probabilistic sampling technique, more precisely the quota sampling method was adopted for the purpose of actualizing the main objective of the study. Importantly, within the confines of this study, we presented a broader dimension of eMarketing channels utilization by enterprises and it includes at least the use of one of these tools - corporate website, blogging service, online social networks, search engine optimization technique, mobile marketing (bulk/customized SMS), and email marketing. Based on the study's findings, there is evidence (p<0.001) to show that firms that are more customer retention-driven (CRD) are more highly inclined to exploit eMarketing opportunities for the purposes of enhancing their brand competitiveness, such as brand image projection, customers' collaboration, and offering 'customized' solutions to clients' needs in the (virtual) marketplace. Further, brand orientation (BO) on its own does not have a significant positive influence on the outcome variable (i.e., inclination to exploit eMarketing opportunities) but that the relationship is significantly moderated by CRD. The moderating effect is statistically significant (p<0.001) at high CRD versus high BO. Further findings suggest that firms' demographics are equally important drivers of SMEs capacity to exploit eMarketing opportunities for enhanced brand competitiveness. The findings in this study could be of strategic value to entrepreneurs, scholars, and including policy makers given the immense contributions of SMEs to the global economy, especially African economies. Finally, the author wishes to acknowledge the fact that the current study did not take into account industry differences given that the surveyed SMEs are from a multiple industry setting. Consequently, this limitation calls for further research in this highly under-explored context area.