The Effect of Entrepreneurial Marketing on Manufacturing SMEs’ Performance during Pandemic: The Mediating Role of Innovative Performance

Abstract

The majority of research on entrepreneurial marketing (EM) indicates a favourable impact on SME performance. Those studies, however, lacks insights on the existence of such relationship during unstable setting like pandemic. Therefore, the study seeks to investigate and determine the impact of EM on the performance of manufacturing-based SMEs in India during Covid-19. Furthermore, the paper investigates the mediating effect of innovative performance on EM-SME performance. The study employed questionnaires and schedules to collect information from 302 SMEs throughout India. The propositions were analysed through Structural Equation Modelling. The result shows that EM has a positive and significant influence on SME performance and Innovative performance. Moreover, innovative performance partially mediates the relationship between EM-SME performances. The findings suggest that, EM strategies were helpful for manufacturing SMEs (worst-hit industry) to innovate, sustain and develop during pandemic. The study tests the theoretical notion that EM may be successful in unexpected circumstances (COVID-19). The findings can help SMEs as a roadmap, particularly those in developing countries to implement innovative strategies and increase their chances of success. A detailed review of the extant EM literature has rarely identified it as a higher order concept. To the best of our knowledge, there is a lack of investigation on the effect of EM on innovative performance. Furthermore, the study is among the few to test the effectiveness of EM during pandemic like Covid-19