Does Marketing Strategy Matter for Microcredit Firms? Market Orientation, Innovation and Performance in Developing Economies

Frontiers of Entrepreneurship Research: Vol. 32: Iss. 19, Article 1, 2012

Posted: 20 Mar 2015

See all articles by Steven W. Bradley

Steven W. Bradley

Baylor University

Jeffery S. McMullen

Indiana University - Kelley School of Business - Management & Entrepreneurship

Christopher Phillips Blocker

Colorado State University

Kendall W. Artz

Baylor University - Department of Management & Entrepreneurship

Edward Simiyu

Jomo Kenyatta University of Agriculture and Technology

Date Written: 2012

Abstract

Entrepreneurship as a means for alleviating poverty has garnered significant attention among businesses, policy makers, and scholars in recent years. Yet, little attention has been given to the approach by which the poor actually seek out and interact with customers to offer goods and services and participate in the marketplace. Marketing capabilities are central to business innovation and performance but are underdeveloped in the entrepreneurship and management literatures. Building from theory in strategic marketing, we examine customer orientation as a key intervening variable between individual antecedents and business outcomes in a subsistence economy. We sample over 600 small business owners involved in a microcredit program in Nairobi, Kenya, finding that customer orientation has positive effects and selling orientation has negative or nonsignificant effects on business performance. Further, a customer orientation is facilitated by cognitive and emotional empathy with the customer, but empathy is hampered by the level of poverty deprivation for the entrepreneur. We also find that necessity-motivated entrepreneurs are less likely to adopt a customer orientation.

Suggested Citation

Bradley, Steven W. and McMullen, Jeff and Blocker, Christopher Phillips and Artz, Kendall W. and Simiyu, Edward, Does Marketing Strategy Matter for Microcredit Firms? Market Orientation, Innovation and Performance in Developing Economies (2012). Frontiers of Entrepreneurship Research: Vol. 32: Iss. 19, Article 1, 2012. Available at SSRN: https://ssrn.com/abstract=2580263

Steven W. Bradley (Contact Author)

Baylor University ( email )

PO Box 98011
Waco, TX 76798-8011
United States

HOME PAGE: http://https://business.baylor.edu/directory/?id=Steve_Bradley

Jeff McMullen

Indiana University - Kelley School of Business - Management & Entrepreneurship ( email )

Bloomington, IN 47405
United States

Christopher Phillips Blocker

Colorado State University ( email )

Fort Collins, CO 80523

Kendall W. Artz

Baylor University - Department of Management & Entrepreneurship ( email )

PO Box 98006
Waco, TX 76798-8006
United States
254-710-1093 (Fax)

Edward Simiyu

Jomo Kenyatta University of Agriculture and Technology

P.O. Box 62000
Nairobi, NAIROBI 00200
Kenya

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