Linking SMEs Profitability to Brand Orientation and Market-Sensing Capability: A Service Sector Evidence

The key question among policy makers and marketing scholars alike is 'how can SMEs become more financially viable?' bearing in mind that we now live in a highly globalized society that is driven by technological, social and economic forces. Consequently, for SMEs to become more financially...

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Bibliographic Details
Published inPeriodica polytechnica. Social and management sciences Vol. 24; no. 1; pp. 34 - 40
Main Authors Osakwe, Christian Nedu, Chovancova, Miloslava, Ogbonna, Benson U.
Format Journal Article
LanguageEnglish
German
Published Budapest Periodica Polytechnica, Budapest University of Technology and Economics 2016
Subjects
Analysis
Brand identification
Competition
Hypotheses
Marketing
Profitability
Service industries
Small & medium sized enterprises-SME
Strategic planning
Studies
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Summary:The key question among policy makers and marketing scholars alike is 'how can SMEs become more financially viable?' bearing in mind that we now live in a highly globalized society that is driven by technological, social and economic forces. Consequently, for SMEs to become more financially viable in the changing business landscape, it becomes more imperative now than ever before for this set of enterprises to develop some core business orientations and/or capabilities, particularly that of brand orientation and market-sensing capability. Against this backdrop, the current article examines the role of brand orientation and market-sensing capability in relation to the profitability of SMEs in the context of a financial intermediation sector. Based on the findings from 119 surveyed financial services SMEs in one of Africa's largest economies, we have empirical support that both brand orientation and market-sensing capability contribute significantly to SMEs profitability. Our results demonstrate the need for SMEs in the African financial intermediation sector to develop an 'in-house' branding culture that takes into cognizance 'local' market conditions, and more particularly employee involvement. More so, SMEs should endeavour to develop market-sensing capability given that this unique capability is key to unlocking both present and future marketing opportunities.
ISSN:1416-3837
1587-3803
DOI:10.3311/PPso.8069