How Interaction between Relationship and Entrepreneurial Marketing May Affect Organizational Competencies in Small UK Manufacturing Firms

Abstract

Studies of innovative businesses, especially in the SME sector, suggest such organizations practice entrepreneurial marketing. Another widely promoted view is that there are significant benefits available to firms by moving away from transactional marketing towards building long term relationships with customers. It is proposed that a merger of relationship and entrepreneurial marketing can results in four alternative marketing styles. To determine whether these styles exist, a survey of small manufacturing firms was undertaken. The results of the survey suggest that an orientation towards an entrepreneurial and/or relationship marketing style will enhance the overall performance of small manufacturing firms. In relation to the impact of style on organizational competencies, it was found that both entrepreneurial-transactional and entrepreneurial-relationship firms exhibit high capability in the area of new product management. The survey also suggests that as firms move closer to customers, they also exhibit higher competencies in areas such as HRM, employee productivity, management of quality and the utilization of information to enhance decision making. Two generalized competency acquisition process models are presented and comment made upon the implications of these findings in terms of the provision of Government-funded support services to UK SME sector firms.