Assessing Marketing Capabilities as a Driver of Firm Performance in the Retail Industry
DOI:
https://doi.org/10.26437/ajar.v11i1.850Keywords:
Capabilities. emerging market. firm. performance. retail industryAbstract
Purpose: This study aims to assess the role of marketing capabilities as a driver for firm performance, specifically for small and medium-sized enterprises (SMEs) in the retailing sector within an emerging market context.
Design/Methodology/Approach: A single-method approach was employed, with quantitative data from surveys administered to retail owner-managers. The quantitative component involved a structured questionnaire distributed to 482 SMEs in the retailing sector. A purposive sampling technique was deployed to select the respondents. Data were analysed using structural equation modelling (SEM) to test the hypothesised relationships between marketing capabilities and firm performance.
Findings: The findings reveal that SMEs with robust marketing capabilities experience significantly higher levels of firm performance. Notably, three of the hypotheses were significant, while one was insignificant. The study also highlights the importance of entrepreneurial marketing practices in enhancing performance during economic fluctuations.
Research Limitation: The study could not demonstrate any real causal effects of marketing capability antecedents on firm performance.
Research Limitation: The study is restricted to the Ghanaian retailing sector; therefore, it cannot vouch for the generalizability of the findings.
Practical Implication: By investing in these areas, companies can create a robust framework that enhances their competitive advantage and overall performance in the retail sector.
Social Implications: By leveraging dynamic marketing capabilities, these firms can develop products and services that address social needs, contribute to community welfare, and enhance their brand image.
Originality/Value: This research contributes to the existing literature by providing empirical evidence on the marketing capabilities that drive performance in retail SMEs within an emerging market context.
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