THE EFFECT OF INSTITUTIONAL ENVIRONMENT TOWARD ENTREPRENEURIAL MARKETING AND ITS IMPACT ON CULINARY SMEs' PERFORMANCE

Zakiyah Zahara; Muslimin Muslimin; Cikal Rambasae N.

doi:10.21776/ub.jam.2023.021.04.11

Authors

Zakiyah Zahara
[email protected]
Faculty of Economics and Business, Tadulako University, Indonesia, Indonesia
Muslimin Muslimin Faculty of Economics and Business, Tadulako University, Indonesia, Indonesia
Cikal Rambasae N. Faculty of Economics and Business, Tadulako University, Indonesia, Indonesia

Vol. 21 No. 4 (2023)

Articles

Submitted January 4, 2023

Published December 1, 2023

Downloads

PDF

Abstract
How to Cite
Metrics
References

SMEs necessitate effective marketing approaches and strategies to augment their marketing performance. Entrepreneurial marketing functions as an alternative to appropriate marketing management in order to portray the current state of SMEs. The aim of this investigation is to scrutinize the influence of the institutional environment on marketing performance, with entrepreneurial marketing serving as a mediating factor. Scholars executed a descriptive-causal examination, accumulating data from 100 participants who were selected from a pool of 5,830 SMEs in Palu City, Indonesia. The process of data collection was conducted through online and offline methods, employing questionnaires and Google Forms. Subsequently, the gathered data was assessed employing the Smart-PLS software and a structural equation model. The discoveries divulge that all hypotheses, encompassing both direct and indirect impacts, were accepted, apart from the association between the institutional environment and marketing performance, which was refuted. This study emphasizes the pivotal role of the institutional environment in shaping the circumstances of entrepreneurial marketing and amplifying the marketing performance of SMEs.

Adel, H. M., Mahrous, A. A., and Hammad, R. 2020. Entrepreneurial Marketing Strategy, Institutional Environment, and Business Performance of SMEs in Egypt. Journal of Entrepreneurship in Emerging Economies, 12(5), pp. 727â€“746. DOI: https://doi.org/10.1108/JEEE-11-2019-0171.

Ahsan, M., Adomako, S., and Mole, K. F. 2021. Perceived Institutional Support and Small Venture Performance: The Mediating Role of Entrepreneurial Persistence. International Small Business Journal: Researching Entrepreneurship, 39(1), pp. 18-39. DOI: https://doi.org/10.1177/0266242620943194.

Aidis, R., Estrin, S., and Mickiewicz, T. 2008. Institutions and Entrepreneurship Development in Russia: A Comparative Perspective. Journal of Business Venturing, 23(6), pp. 656â€“672. DOI: https://doi.org/10.1016/j.jbusvent.2008.01.005.

Alqahtani, N. and Uslay, C. 2020. Entrepreneurial Marketing and Firm Performance: Synthesis and Conceptual Development. Journal of Business Research, 113(October 2017), pp. 62â€“71. DOI: https://doi.org/10.1016/j.jbusres.2018.12.035.

Alqahtani, N., Uslay, C., and Yeniyurt, S. 2022. Entrepreneurial Marketing and Firm Performance: Scale Development, Validation, and Empirical Test. Journal of Strategic Marketing, 00(00), pp. 1-22. DOI: https://doi.org/10.1080/0965254X.2022.2059773.

Astuti, D. 2019. Penentuan Strategi Promosi Usaha Mikro Kecil dan Menengah (UMKM) menggunakan Metode CRISP-DM dengan Algoritma K-Means Clustering. Journal of Informatics, Information System, Software Engineering and Applications (INISTA), 1(2), pp. 60â€“72. DOI: https://doi.org/10.20895/inista.v1i2.71.

Aulia, R., M. and Ridwan, H. 2019. Meningkatkan Kinerja Pemasaran Melalui Orientasi Pasar dan Orientasi Kewirausahaan. Jurnal Ilmiah Manajemen Dan Bisnis, 20(1), pp. 27-38. DOI: https://doi.org/https://doi.org/10.30596/jimb.v20i1.2397.

Bandara, K., Jayasundara, J., Gamage, N., Ekanayake, E., Rajapackshe, P., Abeyrathne, G., and Prasanna, R. 2020. Entrepreneurial Marketing Performance of Small Medium Enterprises in Developed and Developing Economies : A Conceptual Exploration. MPRA, 104341. https://mpra.ub.unimuenchen.de/104341/.

Baum, J. A. C. and Oliver, C. 1991. Institutional Linkages and Organizational Mortality. Administrative Science Quarterly, 36(2), pp. 187. DOI: https://doi.org/10.2307/2393353.

Becherer, R. C., Helms, M. M., and McDonald, J. P. 2012a. The Effect of Entrepreneurial Marketing on Outcome Goals in SMEs. New England Journal of Entrepreneurship, 15(1), pp. 7-18. DOI: https://doi.org/10.1108/neje-15-01-2012-b001.

Becherer, R. C., Helms, M. M., and McDonald, J. P. 2012b. The Effect of Entrepreneurial Marketing on Outcome Goals in SMEs. New England Journal of Entrepreneurship, 15(1), pp. 7-18. DOI: https://doi.org/10.1108/NEJE-15-01-2012-B001.

Bowen, H. P. and De Clercq, D. 2008. Institutional Context and the Allocation of Entrepreneurial Effort. Journal of International Business Studies, 39(4), pp. 747-767. DOI: https://doi.org/10.1057/palgrave.jibs.8400343.

Buccieri, D., Javalgi, R. R. G., Gross, A., and Buccieri, D. 2021. Innovation and Differentiation of Emerging Market International New Ventures the Role of Entrepreneurial Marketing. Journal of Strategic Marketing, 00(00), pp. 1-29. DOI: https://doi.org/10.1080/0965254X.2021.1952293.

Chadee, D. and Roxas, B. 2013. Institutional Environment, Innovation Capacity and Firm Performance in Russia. Critical Perspectives on International Business, 9(1), pp. 19-39. DOI: https://doi.org/10.1108/17422041311299923.

Chowdhury, F., Audretsch, D. B., and Belitski, M. 2019. Institutions and Entrepreneurship Quality. Entrepreneurship: Theory and Practice, 43(1), pp. 51â€“81. DOI: https://doi.org/10.1177/1042258718780431.

Clark, B. H., Abela, A. V, and Ambler, T. 2014. An Information Processing Model of Marketing Performance. Journal of Marketing Theory and Practice, 14(3), pp. 191-208. DOI: https://doi.org/10.2753/MTP1069-6679140302.

Collinson, E. and Shaw, E. 2001. Entrepreneurial Marketing: A Historical Perspective on Development and Practice. Management Decision, 39(9), pp. 761â€“766. DOI: https://doi.org/10.1108/EUM0000000006221.

Crick, J. M., Karami, M., and Crick, D. 2021. The Impact of the Interaction between an Entrepreneurial Marketing Orientation and Coopetition on Business Performance. International Journal of Entrepreneurial Behaviour and Research, 27(6), pp. 1423-1447. DOI: https://doi.org/10.1108/IJEBR-12-2020-0871.

Dees, J. G. 2008. Philanthropy and Enterprise: Harnessing the Power of Business and Social Entrepreneurship for Development. Innovations: Technology, Governance, Globalization, 3(3), pp. 119â€“132. DOI: https://doi.org/10.1162/itgg.2008.3.3.119.

Estrin, S., Korosteleva, J., and Mickiewicz, T. 2013. Which Institutions Encourage Entrepreneurial Growth Aspirations?. Journal of Business Venturing, 28(4), pp. 564-580. DOI: https://doi.org/10.1016/j.jbusvent.2012.05.001.

Fard, H. M. and Amiri, S. N. 2018. The Effect of Entrepreneurial Marketing on Halal Food SMEs Performance. Journal of Islamic Marketing, 9(3), pp. 598-620. DOI: https://doi.org/10.1108/JIMA 12-2016-0097.

Franco, M., Santos, M. de F., Ramalho, I., and Nunes, C. 2014. An Exploratory Study of Entrepreneurial Marketing in SMEs: The Role of the Founder-Entrepreneur. Journal of Small Business and Enterprise Development, 21(2), pp. 265-283. DOI: https://doi.org/10.1108/JSBED-10-2012-0112.

Friedman, V. J. and Desivilya, H. 2010. Integrating Social Entrepreneurship and Conflict Engagement for Regional Development in Divided Societies. Entrepreneurship and Regional Development, 22(6), pp. 495-514. DOI: https://doi.org/10.1080/08985626.2010.488400.

Gunday, G., Ulusoy, G., Kilic, K., and Alpkan, L. 2011. Effects of Innovation Types on Firm Performance. International Journal of Production Economics, 133(2), pp. 662-676. DOI: https://doi.org/10.1016/j.ijpe.2011.05.014.

Hair, J. F., Matthews, L. M., Matthews, R. L., and Sarstedt, M. 2017. PLS-SEM or CB-SEM: Updated Guidelines on which Method to Use. International Journal of Multivariate Data Analysis, 1(2), pp. 107. DOI: https://doi.org/10.1504/ijmda.2017.087624.

Haro, S. G., Correa, J. A. A., and Pozo, E. C. 2011. Differentiating the Effects of the Institutional Environment on Corporate Entrepreneurship. Management Decision, 49(10), pp. 1677â€“1693.

Hatta, I. H. 2015. Orientasi Pasar, Orientasi Kewirausahaan, Kapabilitas Pemasaran dan Kinerja Pemasaran. Jurnal Aplikasi Manajemen (JAM), 13(4), pp. 653â€“661.

Hendrayati, H. and Gaffar, V. 2016. Innovation and Marketing Performance of Womenpreneur in the Fashion Industry in Indonesia. Procedia - Social and Behavioral Sciences, 22(4), pp. 299â€“306. DOI: https://doi.org/10.1016/j.sbspro.2016.04.034.

Hidayatullah, S., Firdiansjah, A., Patalo, R. G., and Waris, A. 2019. The Effect of Entrepreneurial Marketing and Competitive Advantage on Marketing Performance. International Journal of Scientific and Technology Research, 8(10), pp. 1297â€“1301.

Hisrich, R. D. and Ramadani, V. 2017. Effective Entrepreneurial Management (1st ed.). Springer Cham. DOI: https://doi.org/10.1007/978-3-319-50467-4.

Hitt, M. A., Ireland, R. D., and Hoskisson, R. E. 2019. Strategic Management: Concepts and Cases: Competitiveness and Globalization (13th ed.). Cengage Learning.

McMullen, J. S., Bagby, D. R., and Palich, L. E. 2008. Economic Freedom and the Motivation to Engage in Entrepreneurial Action. Entrepreneurship Theory and Practice, 32(5), pp. 875â€“895. DOI: https://doi.org/10.1111/j.1540-6520.2008.00260.x.

Morris, M. H., Schindehutte, M., and LaForge, R.W. 2002. Entrepreneurial Marketing: A Construct for Integrating E-merging Entrepreneurship and Marketing Perspectives. Journal of Marketing Theory and Practice, 10(4), pp. 1â€“19. DOI: https://doi.org/10.1080/10696679.2002.11501922.

Oktavinus, Zaid, S., and Yusuf, H. 2019. Pengaruh Orientasi Pasar dan Inovasi Produk Terhadap Keunggulan Bersaing dan Kinerja Pemasaran Pengolahan Rumput Laut di Wakatobi. Jurnal Ilmu Manajemen Universitas Tadulako, 5(2), pp. 211â€“227.

Pazos, A. J. B., Ruiz, B. C., and PÃ©rez, B. M. 2020. Digital Transformation of University Teaching in Communication During the COVID-19 Emergency in Spain: An Approach from Students' Perspective. In Revista Latina de â€¦. search.proquest.com.

Pino, C., Felzensztein, C., and Chetty, S. 2021. Institutional Knowledge in Latin American SMEs. Journal of Small Business Management, 59(4), pp. 648â€“674. DOI: https://doi.org/10.1111/jsbm.12518.

Sadiku-Dushi, N., Dana, L. P., and Ramadani, V. 2019. Entrepreneurial Marketing Dimensions and SMEs Performance. Journal of Business Research, 100(8),pp. 6â€“99.

Sambharya, R. and Musteen, M. 2014. Institutional Environment and Entrepreneurship: An Empirical Study Across Countries. Journal of International Entrepreneurship, 12(4), pp. 314â€“330. DOI: https://doi.org/10.1007/s10843-014-0137-1.

Sari, E. N. 2010. Mengukur Kinerja Pemasaran: Kajian Konseptual Perkembangan Teori. Jurnal Riset Akuntansi dan Bisnis, 10(2), pp. 119â€“135.

Schindehutte, M., Morris, M. H., and Kuratko, D. F. 2000. Triggering Events, Corporate Entrepreneurship and the Marketing Function. Journal of Marketing Theory and Practice, 8(2), pp. 18â€“30. DOI: https://doi.org/10.1080/10696679.2000.11501865.

Seelos, C., Mair, J., Battilana, J., and Tina Dacin, M. 2011. The Embeddedness of Social Entrepreneurship: Understanding Variation across Local Communities. In Research in the Sociology of Organizations, Vol. 33. Emerald Group Publishing Ltd. DOI: https://doi.org/10.1108/s0733558x(2011)0000033013.

Sine, W. D. and David, R. J. 2010. Institutions and entrepreneurship. In Research in the Sociology of Work, Vol. 21, Issue 2010. Elsevier. DOI: https://doi.org/10.1108/S02772833(2010)0000021005.

Torkkeli, L., Kuivalainen, O., Saarenketo, S., and Puumalainen, K. 2019. Institutional Environment and Network Competence in Successful SME Internationalisation. International Marketing Review, 36(1), pp. 31-55. DOI: https://doi.org/10.1108/IMR-03-2017-0057.

Urbano, D., Audretsch, D., Aparicio, S., and Noguera, M. 2020. Does Entrepreneurial Activity Matter for Economic Growth in Developing Countries? The Role of the Institutional Environment. International Entrepreneurship and Management Journal, 16(3), pp. 1065â€“1099. DOI: https://doi.org/10.1007/s11365-019-00621-5.

ValdÃ©s, K. N., Alpera, S. Q. Y, and SuÃ¡rez, L. M. C. 2021. An Institutional Perspective for Evaluating Digital Transformation in Higher Education: Insights from the Chilean Case. Sustainability. https://www.mdpi.com/20711050/13/17/9850.

Wei, Y. 2022. Regional Governments and Opportunity Entrepreneurship in Underdeveloped Institutional Environments: An Entrepreneurial Ecosystem Perspective. Research Policy, 51(1), pp. 104380. DOI: https://doi.org/https://doi.org/10.1016/j.respol.2021.104380.

Williams, N. and Vorley, T. 2015. Institutional Asymmetry: How Formal and Informal Institutions Affect Entrepreneurship in Bulgaria. International Small Business Journal: Researching Entrepreneurship, 33(8), pp. 840-861. DOI: https://doi.org/10.1177/0266242614534280.

Wirawan, Y. R. 2017. Pengaruh Orientasi Pasar, Orientasi Kewirausahaan Terhadap Kinerja Pemasaran UMKM Batik di Kabupaten Jombang. Equilibrium: Jurnal Ilmiah Ekonomi dan Pembelajarannya, 5(1), pp. 56-69. DOI: https://doi.org/10.25273/equilibrium.v5i1.1006.

Wu, M., Zhang, L., Xing, Q., Dai, L., and Du, H. 2007. A Study for Understanding E-Commerce Adoption in China's Service SMEs from Web Usability Perspective. 2007 International Conference on Wireless Communications, Networking and Mobile Computing, pp. 3415â€“3418. DOI: https://doi.org/10.1109/WICOM.2007.846.

Yasa, N. N. K., Ketut-Giantari, I. G. A., Setini, M., and Rahmayanti, P. L. D. 2020. The Role of Competitive Advantage in Mediating The Effect of Promotional Strategy on Marketing Performance. Management Science Letters, 10(12), pp. 2845â€“2848. DOI: https://doi.org/10.5267/j.msl.2020.4.024.

Zahara, Z., Ikhsan, Santi, I. N., and Farid. 2023. Entrepreneurial Marketing and Marketing Performance Through Digital Marketing Capabilities of SMEs in Post-Pandemic Recovery. Cogent Business and Management, 10(2), pp. 2204592. DOI: https://doi.org/10.1080/23311975.2023.2204592.

How to Cite

Zahara, Z., Muslimin, M. and N., C.R. (2023) “THE EFFECT OF INSTITUTIONAL ENVIRONMENT TOWARD ENTREPRENEURIAL MARKETING AND ITS IMPACT ON CULINARY SMEs’ PERFORMANCE”, Jurnal Aplikasi Manajemen, 21(4), pp. 1001–1016. doi:10.21776/ub.jam.2023.021.04.11.

Download Citation

THE EFFECT OF INSTITUTIONAL ENVIRONMENT TOWARD ENTREPRENEURIAL MARKETING AND ITS IMPACT ON CULINARY SMEs' PERFORMANCE

Authors

Downloads

How to Cite

Similar Articles

Login

submit

about

index

Indexed In

Keywords

Information

tools

Tools