Entrepreneurial marketing and firm performance: scale development, validation, and empirical test

Abstract

This research introduces a new scale (ENMAR) for measuring entrepreneurial marketing (EM). The interrelationships between EM, market orientation (MO), entrepreneurial orientation (EO), firm performance, and the moderating effects of network structure (i.e. size, diversity, and strength), environmental variables (i.e. market turbulence, technological turbulence, competitive intensity, supplier power, and market growth), and firm size are empirically examined. Using structural equation modeling, data from 401 U.S. based firms representing a broad spectrum of industries and firm sizes are analyzed. Empirical findings demonstrate that even after controlling for MO and EO, EM has a positive and significant impact on firm performance, and that impact becomes even more pronounced under highly uncertain market conditions. EM partially mediates the well-established relationships between MO, EO, and firm performance. While EM robustly boosts firm performance, it is more frequently practiced by young firms and those in B2B markets, though it may be particularly beneficial for mid-sized firms.