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Connections between entrepreneurial orientation, marketing capability and business performance perception: empirical evidence from micro and small business retailers

The academic literature presents current progress in understanding the development of business strategies, how to improve the skills and resources to meet competition and turbulence of the competitive environment. This paper examined the relationships of the constructs entrepreneurial orientation (Naman; Slevin, 1993) and marketing capability (VORHIES; HARKER, 2000) on business performance (GONZÁLES-BENITO et al., 2009) perceived by managers, focusing on small business retailers. We evaluated the empirical models proposed in the literature for entrepreneurial orientation, marketing capabilities, business performance and the role of their relationships under the moderating effects of the type of firm, location, and age since its foundation. Data were collected in a non-probabilistic cross-sectional sample of 262 retail and service business in the Mato Grosso do Sul State. The hypotheses tested by means of statistical approaches and exploratory factor analysis and by structural equations modeling, using the maximum likelihood estimation and fit indices of the conceptual model. Review of data provides empirical evidence for the confirmation of the theoretical models adopted, favoring the inference that small retailers achieve higher business performance, when greater is the intensity of entrepreneurial orientation and the marketing capability. Empirical evidence supports that there are no significant differences in the practices of entrepreneurial orientation and marketing capability among firms like micro or small business. However, practices were observed between these two different constructs for businesses as their location, age and business sector, like retail or service. With regard to managerial implications, due to the results of this paper, leads to the suggestion that businessman retailer adopt a posture more entrepreneurial, knowledge of the strategic actions of competitors and in understanding the wants and needs of consumers, such as in the intensification of marketing tools for obtaining greater business performance. We highlight the originality of this study to address the possible shortcomings of the few empirical studies related to strategic actions and business performance of small retailers available in the national and international literature.

Entrepreneurial Orientation; Marketing Capability; Business Performance; Small Retailers; Mato Grosso do Sul


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