Entrepreneurial marketing strategy, institutional environment, and business performance of SMEs in Egypt

Abstract

PurposeThe purpose of this research paper is to study the relationship between entrepreneurial marketing strategy (EMS), institutional environment (IE) and business performance (BP). Further, it examines the role of gender and entrepreneurial experience (EE) as moderators of EMS-BP and IE-BP relationships.Design/methodology/approachBased on the literature review, the authors proposed a conceptual model that was tested using a quantitative approach. Questionnaires were filled by 202 owners/entrepreneurs of small- and medium-sized enterprises (SMEs) in Egypt. Because of the absence of a formal population-frame for the Egyptian SMEs, non-probability quota sampling technique was used that considered differences in gender and EE. SmartPLS software was used for data analysis.FindingsThe results indicated that EMS has significant positive effect on BP. IE has significant positive effect on EMS but insignificant effect on BP. Gender was found to be moderating significantly both the EMS-BP and IE-BP relationships. However, EE was found to be an insignificant moderator in the EMS-BP relationship.Practical implicationsThe findings communicate insights to the SMEs on the importance of undertaking proactive, risk-taking and innovative activities while creating and delivering value to their customers. Also, it encapsulates further implications for policymakers to promote a better IE for entrepreneurship in Egypt.Originality/valueThis study contributes conceptually to the interdisciplinary research that investigated the integration between entrepreneurship and marketing as a successful functional strategy in SMEs and its effect on enhancing BP and market share. Empirically, it adds value to the available literature on contemporary strategic entrepreneurship by analysing these IE-EMS-EE-Gender-BP relationships in a promising, yet under-researched, transitional economy.