Modeling the Influence of Relationship Marketing, Green Marketing and Innovative Marketing on the Business Performance of Small, Medium and Micro Enterprises (SMMES)

  • Maziriri E T Vaal University of Technology,
  • Chinomona E Vaal University of Technology,

Abstract

Small, Medium and Micro Enterprises (SMMEs) are considered as economic engines for many countries. In South Africa, the Small, Micro and Medium Enterprises (SMMEs) sector has been acknowledged as the driving force to foster economic growth and job creations. This paper aimed at examining how relationship marketing, green marketing and innovative marketing influence the business performance of Small, Medium and Micro Enterprises (SMMEs) in Southern Gauteng, South Africa. The study utilized a quantitative research paradigm. A structured questionnaire consisting of validated scales for relationship marketing, green marketing, innovative marketing and business performance was administered to a sample of 231 SMMEs managerial employees in the Southern Gauteng region of South Africa. Smart PLS was used to analyze the data and the results indicated that there are positive relationships between the posited research variables. Implications of the findings are discussed and limitations and future research directions are alluded to.

Downloads

Download data is not yet available.

References

Alafeef, M. A. M. I. (2015). The Impact of Innovation Marketing Orientation in Achieving the Competitive Advantage in Hotel Establishments in Saudi Arabia Case Study-Al Baha City-KSA. International Journal of Scientific & Technology Research, 4(3), 193-198.

Armstrong, G. & Kotler, P. (2011). Introduction to Marketing. London. Prentice Hall.

Arslan, B. & Gögce, H. (2013). In the framework of green marketing activities: a study to determine the tendencies of university students towards using environment-friendly products. International Journal of Information Technology and Business Management, 29(19), 16-27.

Barney, J., Ketchen, D. & Wright, M. (2011). The future of resource based theory: Revitalization or decline? Journal of Management, 37(5), 1299–1315. DOI: https://doi.org/10.1177/0149206310391805

Barney, J. B. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. DOI: https://doi.org/10.1177/014920639101700108

Berry, A. E. (2002). The Economics of SMMEs in South Africa. Pretoria: Trade and Industry Policy Strategies.

Berry, L. L. (1983). Relationship marketing. In L. L. Berry, G. L. Shostack, & G. D. Upah (Eds.), emerging perspectives of services marketing. Chicago, IL: American Marketing Association.

Chahal, Dangwal & Raina. (2015). Understanding the role of strategic mix (initiatives) in enhancing relationship marketing practices and business performance: A case of SMEs in Jammu District. International Journal of Applied Business and Economic Research, 13(3), 1191-1211.

Chaston, I. (2014). Small Business Marketing. 2rd edition. Palgrave Macmillan. New York. DOI: https://doi.org/10.1007/978-1-137-32601-0

Chen, Y. S. (2010). The drivers of green brand equity: Green brand image, green satisfaction, and green trust. Journal of Business Ethics, 93(2), 307 –319 Chiloane-Tsoka, E. &Mmako, N. (2014). Effects of migration and immigration on SMMEs: the case study of Diepsloot informal settlement, South Africa, Problems and Perspectives in Management, 12(4), 377-383. DOI: https://doi.org/10.1007/s10551-009-0223-9

Chimucheka, T. & Rungani, S. (2012). Obstacles to Accessing Finance by Small Business Operators in the Buffalo City Metropolitan Municipality. Economic Research Southern Africa, Presentation for the African Development Finance Workshop University of Stellenbosch Business School, Cape Town South Africa , August 7-8, 2012.

Chimucheka, T. & Mandipaka, F. (2015). Challenges Faced By Small, Medium and Micro Enterprises in the Nkonkobe Municipality. The International Business & Economics Research Journal, 14(2), 309 -316. DOI: https://doi.org/10.19030/iber.v14i2.9114

Chimucheka, T. (2015). The Contribution of Entrepreneurship Education in Improving Entrepreneurial Skills and Knowledge of SMME Owners and Managers. Journal of Economics, 6(2), 149-155.

Chinomona, R. & Hove, P. (2015). The Influence of Supplier Involvement on Communication, Relationship Longevity and Business Performance in Small, Medium and Micro Enterprises in South Africa. Journal of Economics and Behavioral Studies, 7(3), 63-75.

Crook, T. R., Ketchen-Jr, D. J., Combs, J. G. & Todd, S. Y. (2008). Strategic resources and performance: A meta-analysis. Strategic Management Journal, 29, 1141- 1154. DOI: https://doi.org/10.1002/smj.703

Dahlstrom, R. (2011). Green marketing management. International ed. Kentucky, USA: South-Western Cengage Learning.

Dileep, K. M. (2013). Does Green Marketing Works With Consumers? Wulfenia Journal, 20(3), 329-347

Eboru, R. (2014). An investigation into Relationship Marketing in South African Family Businesses. Master of Management in Strategic Marketing, University of the Witwatersrand, Johannesburg.

Eneizan, B. M., Wahab, K. A. & Bustaman, U. S. A. (2015). Effects of green marketing strategy 4ps on firm performance. International Journal of Applied Research, 1(12), 821-824.

Epetimehin, F. M. & Babalola, J. A. (2000). The Impact of Relationship Marketing on the Performance of Insurance Organisation. Recent Researches in Social Science, 1(2), 1-24.

Fumo, N. D. & Jabbour, C. J. (2011). Barriers faced by MSEs: Evidence from Mozambique. Journal of Industrial Management and Data Systems, 111(6), 849-868. DOI: https://doi.org/10.1108/02635571111144946

Ghodeswar, B. M. & Kumar, P. (2014). A Study of Green Marketing Practices in Indian Companies. International Journal of Applied Management Sciences and Engineering, 1(2), 51-69. DOI: https://doi.org/10.4018/ijamse.2014070104

Gibson, B. & Cassar, G. (2005). Longitudinal analysis of relationships between planning and performance in small firms. Small Business Economics, 25, 207-222. DOI: https://doi.org/10.1007/s11187-003-6458-4

Gordon, T. L. O., Pires, G. D. & Stanton, J. (2008). The relationship marketing orientation of Hong Kong financial services industry managers and its links to business performance. Journal of Financial Services Marketing, 13(3), 193–203. DOI: https://doi.org/10.1057/fsm.2008.22

Gottlichova, M. & Soukalova, R. (2015). Options for innovation of marketing approaches to the market in the non-profit sector. Procedia - Social and Behavioral Sciences, 17(5), 334 – 341. DOI: https://doi.org/10.1016/j.sbspro.2015.01.1208

Grant, J. (2008). Green marketing. Strategic Direction, 24(6), 25-27. DOI: https://doi.org/10.1108/02580540810868041

Greenley, G., Hooley, G. & Saunders, J. (2004). Management processes in marketing planning. European Journal of Marketing, 38(8), 933 – 955. DOI: https://doi.org/10.1108/03090560410539104

Grönroos, C. (1994). From marketing mix to relationship marketing: Towards a paradigm shift in marketing. Management Decision, 32(2), 4–20. DOI: https://doi.org/10.1108/00251749410054774

Gunday, G. & Ulusoy, G. (2011). Effects of innovation types on Firm performance. International journal of production economics, 133(2), 662-676. DOI: https://doi.org/10.1016/j.ijpe.2011.05.014

Gunner, K. & Stefansson, L. (2009). Performance issues of smart transportation management systems. International Journal of productivity and performance management, 8(1), 58-68.

Haghighinasab, M., Sattari, B., Ebrahimi, M. & Roghanian, P. (2013). Identification of Innovative Marketing Strategies to Increase the Performance of SMEs in Iran. International Journal of Fundamental Psychology & Social Sciences, 3(2), 26 -30

Hassan, M. U., Shaukat, S., Nawaz, M. S. & Naz, S. (2013). Effects of Innovation Types on Firm Performance: an Empirical Study on Pakistan’s Manufacturing Sector. Pakistan Journal of Commerce and Social Sciences, 7(2), 243-262.

Hove, P., Sibanda, K. & Pooe, D., (2014). The impact of Islamic banking on entrepreneurial motivation, firm competitiveness and performance in South African small and medium enterprises. Mediterranean Journal of Social Sciences, 5(15), 165-174. Kozlenkova, I. V., Samaha, S. A. & Palmatier, R. W. (2014). Resource-based theory in marketing. Journal of the Academy of Marketing Science, 42(1), 1-21. DOI: https://doi.org/10.5901/mjss.2014.v5n15p165

Kumar, K. (2002). Market orientation, organizational competencies and performance: An empirical investigation of a path-analytic model. Journal of American Academy of Business, 1(2), 371-376.

Lamb, C. W., Hair, J. F., McDaniel, C., Boshoff, C. & Terblanche, N. S. (2010). Marketing - South African 4th edition. Cape Town: Oxford University Press Southern Africa.

Lamprecht, J. L. D. (2011). A comparison of the characteristics of internationalizing SMEs in South Africa and the BRIC countries. M.com Dissertation. North West University. Potchefstroom.

Lekhanya, L. M. (2010). The Use of Marketing Strategies by Small, Medium and Micro Enterprises in Rural KwaZulu-Natal. Doctor of Technology in marketing dissertation. Durban. Durban University of Technology.

Li, M., Dong, Z. Y. & Chen, X. (2012). Factors influencing consumption experience of mobile commerce: A study from experiential view. Internet Research, 22(2), 120-141. DOI: https://doi.org/10.1108/10662241211214539

Lombard, M. R. (2001). The influence of the marketing concept on company performance with specific reference to customer services within the travel agency industry in the Western Cape. Masters Dissertation. Peninsula Technikon. Capetown.

Mago, S. & Toro, B. (2013). South African Government’s Support to Small, Medium Micro-Enterprise (SMMEs): The Case of King William’s Town Area. Journal of Economics, 4(1), 19-28. DOI: https://doi.org/10.1080/09765239.2013.11884961

Mahadea, D. & Pillay, M. K. (2008). Environmental conditions for SMME development in a South African Province. South African journal of Economic and Management Sciences, 11(4), 431-448.

Maheshwari, A. & Malhotra, G. (2011). Green Marketing: A Study on Indian Youth. International Journal of Management and Strategy, 2(3), 1-15.

Makadok, R. (2001). Toward a synthesis of the resource-based and dynamic-capability views of rent creation. Strategic Management Journal, 22, 387-401. DOI: https://doi.org/10.1002/smj.158

Maloka, C. M. (2013). The Contribution of Small, Medium and Micro Enterprises towards Local Economic Development in Mankweng Township, Limpopo Province. Master of Administration in Development, University of Limpopo. Limpopo Turlop.

Matsoso, M. L. (2014). Performance Measures in Supply Chain Management of Small Manufacturing Enterprises. Master of Technology: Cost and Management Accounting Dissertation. Cape Peninsula University of Technology, Cape Town.

Mgxaji, B. (2015). The Predictors of Business Performance in the Investment Management Industry. Master of Management in Strategic Marketing, University of the Witwatersrand, Johannesburg.

Minnikova, M. (2013). The Link between Green Marketing and Firm Performance Specific recommendations based on applying green marketing strategies to better firm performance. Henrietta-Newyork. Rochester Institute of Technology.

Mohammed, A. A. & Rashid, B. (2012). Customer Relationship Management (CRM) in Hotel Industry: A framework proposal on the relationship among CRM dimensions, Marketing Capabilities, and Hotel performance. International Review of Management and Marketing, 2(4), 220 -230.

Mukhamad, N. & Kiminami, A. (2011). Innovation, Cooperation, and Business Performance. Journal of agribusiness in developing and emerging economies, 1(1), 75-96. National Small Business Act 102 of 1996). Available from https://www.thedti.gov.za/sme_development /docs/act.pd (accessed 10 January, 2016).

Newbert, S. L. (2007). Empirical research on the resource-based view of the firm: an assessment and suggestions for future research. Strategic management journal, 28, 121-146. DOI: https://doi.org/10.1002/smj.573

Nickel, W. G., McHugh, J. M. & McHugh, S. M. (2007). Understanding business. 8th edition. Boston: McGraw-Hill.

O’regan, N., Sims, M. A. & Gallear, D. (2008). Leaders, loungers, laggards: the strategic –planning environment performance relationship re-visited in manufacturing SMEs. Journal of Manufacturing Technology Management, 19(1), 6-21. DOI: https://doi.org/10.1108/17410380810843426

Ocloo, C. E. & Tsetse, E. K. (2013). Customer retention in the Ghanaian mobile telecommunication industry. European Journal of Business and Social Sciences, 2(7), 136-160.

O'Dwyer, M., Gilmore, A. & Carson, D. (2009). Innovative marketing in SMEs: an empirical study. Journal of Strategic Marketing, 17(5), 383-396. DOI: https://doi.org/10.1080/09652540903216221

Ogunmokun, T., Tripolitano, N. & Rose, S. (2012). An examination of firms environmental marketing practices, sustainability and business performance. International Journal of Humanities and Social Science, 2(3), 49-53.

Ottman, A. J., Strafford, R. E. & Hartman, L. C. (2006). Avoiding green myopia: Ways to improve consumer appeal for environmentally friendly preferable products. Environment: Science and Policy for Sustainable Development, 48(5), 22-36.

Peattie, K. & Crane, A. (2006). Green Marketing: Legend, Myth, Farce or. Prophesy? Quality Marketing Research, 8(4), 357-370. DOI: https://doi.org/10.1108/13522750510619733

Pride, W. M. & Ferrell, O. C. (2008). Marketing, 14th edition. New York: Houghton Mifflin.

Reijonen, H. (2008). Understanding the small business owner: what they really aim at and how this relates to firm performance: a case study in North Karalia, Eastern Finland. Management Research News, 31(8), 616-629. DOI: https://doi.org/10.1108/01409170810892172

Rogerson, C. M. (2008). Tracking SMME development is South Africa: Issues of Finance, Training and the regulatory. Urban Forum, 19(1), 1-10. Rootman, C. & Kruger, J. (2010). Adapting SMME business functions during economic turmoil. Actacommercii, 10(1), 107-119. DOI: https://doi.org/10.1007/s12132-008-9025-x

Saungweme, P. W., Naicker, V. & Chuma W. (2010). Relationship marketing: Strategic and tactical challenges for SMEs. African journal of business management, 4(13), 2596-2603.

Sin, L. Y. M., Tse, A. C. B., Yau, O. H. M., Jenny, S. Y. L. & Chow, R. (2002). The effect of relationship marketing orientation on business performance in a service-oriented economy. Journal of Services Marketing, 16(7), 656–676. DOI: https://doi.org/10.1108/08876040210447360

Sula, T. & Banyar, M. (2015). Innovative marketing as a tool for building a positive image of an institution of higher education and increasing the competitiveness of its graduates – Analysis of the functional use of projects of the Department of Marketing Communications at the Faculty of Multimedia communications of TBU in Zlin and their potential for integration into the teaching process. Procedia- Social and Behavioral Sciences, 175(1), 146-153. DOI: https://doi.org/10.1016/j.sbspro.2015.01.1185

Teece, D. J., Pisano, G. & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management Journal, 18(7), 509-533. DOI: https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

The Department of Trade and Industry (DTI). (2008). Annual review of small business in South Africa 2005-2007. Pretoria: Department of Trade and Industry.

The Department of Trade and Industry (DTI). (2010). Available from http://www.smmes.co.za (accessed 10 January, 2016.

Troup, J. N. (2010). Green marketing perceptions and opinions: An online comparative company case study of communication strategies. Schaltungsdienst Lange, Berlin: Lambert Academic Publishing.

Van Tonder, E. (2016). Trust and Commitment as Mediators of the Relationship between Quality Advice and Customer Loyalty. Journal of Applied Business Research, 32(1), 289-302. DOI: https://doi.org/10.19030/jabr.v32i1.9538

Vieira V. A. (2010). Antecedents and consequences of market orientation: a Brazilian meta-analysis and an international mega-analysis. Brazilian Administration Review, Curitiba, 7, 44-58. DOI: https://doi.org/10.1590/S1807-76922010000100004

Walsh, J. &Anurit, P. (2008). Development of excellent entrepreneurs in small and medium enterprises in Laos and Cambodia. GMSARN International Journal, 2(4), 147-156.

Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5, 171-180. Widana, G. O., Wiryono, S. K., Purwanegara, M. S. & Toha, M. (2015). Exploring the impact of Islamic business ethics and relationship marketing orientation on business performance: the Islamic banking experience. Asian Academic of Management Journal, 20(1), 1-25. Wongrassamee, S., Gardiner, P. D. & Simmons, J. E. L. (2003). Performance measurement tools: the balanced scorecard and the EFQM excellence model. Measuring Business Excellence, 7(1), 14-29. DOI: https://doi.org/10.1002/smj.4250050207

Wu, S. I. & Lin, T. R. (2014). The Influence of Relational Bonds and Innovative Marketing on Consumer Perception– A Study of Theme Parks. Journal of Management and Strategy, 5(4), 54-67. DOI: https://doi.org/10.5430/jms.v5n4p54

Yasuda, H. (2005). Formation of strategic alliances in high-technology industries: Comparative study of the resource-based theory and the transaction-cost theory. Technovation, 25, 763-770. DOI: https://doi.org/10.1016/j.technovation.2004.01.008

Zhang, M., Tansuhaj, P. & Mccullough, J. (2009). International entrepreneurial capability: The measurement and a comparison between born global firms and traditional exporters in China. Journal of International Entrepreneurship, 7, 292-322. DOI: https://doi.org/10.1007/s10843-009-0042-1

Published
2016-07-03
How to Cite
E T, M., & E, C. (2016). Modeling the Influence of Relationship Marketing, Green Marketing and Innovative Marketing on the Business Performance of Small, Medium and Micro Enterprises (SMMES). Journal of Economics and Behavioral Studies, 8(3(J), 127-139. https://doi.org/10.22610/jebs.v8i3(J).1294
Section
Research Paper