The nature of the relationship between an entrepreneurial marketing orientation and small business growth: evidence from Malaysia

Abstract

Guided by resource-based theory, this study examines the nature of the relationship between an entrepreneurial marketing orientation (the interplay between market-oriented and entrepreneurially-oriented behaviours) and small business growth. Survey responses were collected from 421 smaller-sized firms in Malaysia. After assessing the statistical data for all major robustness checks, hierarchical regression was used to evaluate the conceptual framework. The results suggested that on their own, market orientation and entrepreneurial orientation have linear (positive) relationships with small business growth. More importantly, an entrepreneurial marketing orientation exhibited a nonlinear (inverted U-shaped) association with small business growth. Thus, owner-managers are faced with the challenge of fostering an 'optimal-level' of an entrepreneurial marketing orientation to avoid potentially harmful performance consequences. Consequently, unique insights have emerged regarding the complexities of the marketing/entrepreneurship interface, with stronger evidence pertaining to the dangers of implementing 'too little' or 'too much' of an entrepreneurial marketing orientation.

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