Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective

Abstract

Underpinned by the Resource-Based View (RBV) and Competence-Based View (CBV) of the firm, this study investigates how marketing capabilities relate to SME competitive performance in an emerging economy, Ghana. The study adopted a quantitative study design through a survey questionnaire and utilized Structural Equation Model-Partial Least Square (SEM-PLS) variance-based approach to test the formulated hypotheses of 506 samples. Results reveal that: (1) Marketing communication capability, channel management capability, and product development capability significantly and positively influence marketing performance, customer performance, and adaptability performance of SMEs, but not financial performance; (2) Marketing implementation capability positively and significantly influences the financial performance, marketing performance, and customer performance, but not adaptability performance of SMEs; (3) Selling capability and marketing planning capability have a significant, positive effect on all the competitive performance—financial performance , marketing performance, customer performance, and adaptability performance of SMEs. The implication is that, with their limited resources and budget constraint, SMEs can be selective in developing their marketing capabilities based on particular performance goals they set to achieve in a given time. The value of the study lies in its all-encompassing comprehensive assessment of the marketing capabilities—SME competitive performance relationships, using a holistic, multidimensional approach to performance measurement in an emerging market context. The study provides SMEs and practitioners with valuable insights vis-à-vis the marketing capabilities they can selectively and strategically use to enhance their competitiveness.