Marketing in Chinese Small and Medium Enterprises (SMEs): The State of the Art in a Chinese Socialist Economy

This paper adopts the context-embedded approach to examine the marketing practices of 307 small and medium enterprises (SMEs) in the People’’s Republic of China by comparing the survey findings with that of Hong Kong and Guangdong SMEs. Chinese SMEs focus on regional markets to avoid direct competition with Hong Kong SMEs in the international markets and also their Guangdong counterparts in the turbulent nationwide market. To market their own brands, Chinese SMEs have to analyze the market and use superior marketing strategies in the competitive markets. Chinese SMEs do not attain the superior competitive positions as that of their Guangdong counterparts, but they use customer satisfaction surveys and claims investigation to help develop excellence in product performance. Also, Chinese SMEs have to provide value-added products and services and also a well-rounded marketing competitive strategy to gain market shares. The traditional state-owned enterprise structure in China facilitates the development of hierarchical organizational structure and joint decision making process. Thus, care should be taken in assuming that marketing tools and techniques are equally applicable across all places, even in similar cultural contexts. Socio-cultural influences and mediating environmental factors should be considered when attempting to understand the marketing practices of Chinese small firms, specifically when China is in transition to a socialist market economy.     

中国中小企业进入全球营销的模式选择

中国中小企业参与全球营销从趋势上看将是必然选择,虽然目前无论是数量上还是质量上都不可观。本文首先说明中国中小企业完全可以同国内外大企业一样平等参与全球营销;然后针对中国中小企业的不同情况,分别阐述了中国中小企业应该如何选择适合自己的全球营销进入模式。     

Critical factors underpinning the e-CRM activities of SMEs

Abstract

Small and medium-sized enterprises (SMEs) are vital components of our economies, but many struggle to perform the marketing prescribed theoretically for large organisations. In practice, marketing is performed in SMEs through an intrinsic customer orientation, which exhibits striking resemblances to customer relationship management (CRM) theory. This paper presents research evidence to help us understand the impact of Internet-based technologies (IBTs) on the CRM activities (that is e-CRM) of SMEs in Ireland. A quantitative approach (online survey questionnaire) was adopted and distributed to 1445 SMEs. Exploratory factor analysis uncovered eight distinct yet inter-related factors underpinning the practices and processes of e-CRM in SMEs. Briefly, findings illustrate that SMEs are performing e-CRM to varying extents, reaping a range of performance benefits and facing a range of challenges. It is true that SMEs are not adopting e-CRM per se, as described in the large organisation-biased literature, but they are adopting relatively simple IBTs to improve their customer communication and information management capabilities and thus to create competitive advantage in their own strategic way. The study adopts a strong managerial focus, where pertinent practical implications and recommendations around e-CRM are provided for SME owner-managers, helping to bridge the gap between theory and practice.     

Investigating CSR communication in SMEs: a case study among Danish middle managers

This paper seeks to analyse small‐ and medium‐sized enterprise (SME) managers' representations of corporate social responsibility (CSR) and CSR communication in a corporate communication perspective. The basic question is: how strategic is CSR communication in SMEs? Corporate communication and CSR theories are used to establish an ideal typology of CSR concepts informing an analysis of qualitative data in the form of interviews with three middle managers in two Danish SMEs. A CSR communication model published earlier by the authors is challenged from a SME perspective. Results from an Internet‐based questionnaire survey of 1071 SMEs pave the way for the analysis. Our analysis shows that SME managers clearly have an inside‐out approach to CSR, with a strong emphasis on the internal (corporate culture) dimension. However, SMEs and/or SME managers tend not to communicate externally about the CSR activities of the company. Based on these findings, the paper argues that CSR communication in SMEs is challenged by the global economy and is under revision. The contribution of the paper is to provide an insight into SMEs' present stage in relation to a possible future approach to strategic CSR communication. The paper also reminds us that SMEs have no interest in turning their local and authentic practice into a forced marketing and branding exercise, leaving them with an artificial picture of who they are and strive to be in the future. They should keep on acting locally but force themselves to think globally.     

Joint Ventures as an Internationalisation Strategy for SMEs

For some time believed to be inferior to Wholly Foreign-Owned Enterprises, Joint Ventures have become a popular vehicle for foreign market servicing. Although there are various proponents of the joint venture strategy as a means of enabling SMEs with limited productive resources and/or market knowledge to enter international markets, relatively few have focused on the actual joint venturing activities of SMEs. This article examines the activities of 9 U.K. and 12 German SMEs that have joint ventures in China. Based on a questionnaire survey and in-depth case interviews, it reveals that the initiatives appear to have been successful but that they are not without their problems and in many ways the experiences of the firms involved seem similar to those of the large multi-national enterprises. It argues that the key to success appears to be the choice of the joint venture partner and concludes that, given the limited resources of small firms, assistance is required to help them locate and select appropriate partners.     

Sources of opportunities used by growth minded owner managers of small and medium sized enterprises

The purpose of this paper is to investigate the sources and nature of opportunities used by owner-managers of small and medium size (SMEs) firms in order to grow their businesses. In addition to the owner-manager's desire for growth, clearly there needs to be both opportunities to pursue and sufficient management activities that will discover such opportunities, so that a business can grow. These opportunities may originate through some form of environmental change such as advances in technology or by exploiting changes in the marketplace, for example, the exit of a competitor.Research was carried out within twenty SMEs whose owner-manager's aimed to grow their businesses. The focus of the research was on the sources of opportunities they encountered and how and why opportunities were recognized by these firms.The key findings of this research illustrate that the majority of sources for business opportunities for SMEs in this study lie in the market place and are not a direct consequence of environmental change. Traditional marketing analysis tools can, therefore, identify significant sources and scope for growth opportunities for SMEs.     

The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs

International e-commerce is a strong global trend pushed by a tail wind of bolstering economic policies, changing customer behaviors, and improved logistics and technologies. This study investigates the reasons for performance variations among international e-commerce SMEs. Building on the capabilities perspective and market orientation literature, a research model is developed and tested with linear regression and mediation analysis on an effective sample of 99 Swedish SMEs which use e-commerce as an international sales channel. Our study shows that online marketing capabilities are necessary but not sufficient to increase performance among these companies. Our results show that marketing ambidexterity, reflected by both market-driven and market-driving approaches, is instrumental to leverage the effect of online marketing capabilities.     

Realising the Marketing Advantages of International Standard-Setting Activities: Opportunities for Innovative Technology-Based SMEs

Despite a growing literature exploring the impact of international standards on the long-term competitive position of large technology-based multinational enterprises and, as a corollary, how these firms participate in standard-setting, comparatively little attention has been given to these phenomena with regard to the internationalisation of small and medium-sized enterprises (SMEs). This is perhaps a reflection of a 'master storyline' that assumes international standard-setting activities are almost solely the purview of larger organisations. Accordingly, this paper explores how small and medium technology-based enterprises participate in international standard-setting processes and the strategic marketing advantages that may accrue through such participation, using a qualitative case-study approach involving six technology-based SMEs in Australia. Summary frameworks depicting different means of participation and marketing related benefits are presented. The findings suggest that innovative technology-based SMEs may use the international standard-setting environment and processes more strategically than often supposed.     

Optimising relationship marketing programmes: a holistic approach

Optimising relationship marketing programmes in terms of the mix of marketing activities represents a daunting task; however, it is crucial for the formation of successful marketing strategy. An analysis of research into optimisation of marketing programmes reveals models largely focus on the optimisation task, but fail to present a holistic view. Whilst adopting a systematic approach, this paper develops a model for judging the appropriateness of a relationship marketing programme from the optimisation standpoint. As such, relationship marketing programme optimisation is treated as a complex problem consisting of three partial problems related on a parametric basis. These are forming an optimal relationship marketing programme, measuring return on relationship marketing activities and calculating costs of such activities. The methods applied integer programming, multiple regression analysis, factor analysis and heuristic algorithms. The model was tested by using large-scale data on 40,000 SMEs provided by a bank. The results showed a dramatic increase in efficiency when optimising marketing decisions by applying the suggested model. This paper is among the first to present such a holistic approach and to offer an original framework.     

Assessing Value Co-Creation and New Product Success from Cultural Orientations and Relationship Marketing Perspectives

This study's main objective was to assess value co-creation and new product success among small and medium enterprises (SMEs) in Indonesia by incorporating cultural orientations and relationship marketing perspectives. The samples were purposely selected in two sectors: handcraft and food and drink. They were approached through a door-to-door distribution of the questionnaires. The findings indicated that relationship quality can enhance value co-creation and new product success when SMEs have a favorable combination of learning, market, and entrepreneurial orientations. However, this study suggests that SMEs do not utilize their relationships as arenas for learning and learning orientation can affect relationship quality only when it is supported by the other orientations.     

The Moderating Role of Trust in SME Owner/Managers' Decision-Making about Collaboration

This paper analyzes the impact of trust and trust agents on small to medium-sized enterprises' (SMEs) ability to derive benefits from it. The findings suggest that trust is a significant factor moderating the way SME owners/managers perceive the potential benefits of networks. These findings support earlier research that posited that networking provides an avenue for SME owners/managers to learn about potential business opportunities. However, Australian owner/managers that belong to networks do not demonstrate behavior and practices typical of either explorative or exploitative networks. Instead, the findings suggest that in addition to the typical networks, a third type of network should be added to the literature—embryo-explorative networks. Such networks describe SMEs owners/managers who attend network meetings and report on what they learn about new opportunities from the networks; however, they do not tend to engage in typical collaborative activities (such as joint marketing venture) as described in the networking literature. Embryo-explorative networks are defined as those that have yet to develop into the explorative networks—probably because there has been insufficient time to build trusting relationships required to foster collaborative ventures that involve some risks.     

论我国中小企业绿色物流和绿色营销

我国中小企业在发展初期大多以牺牲自然资源和生态环境为代价换取利润的增长。在如今大力建设可持续发展社会的背景下,我国广大企业为了适应社会环境变化、谋求自身长远发展,必须尽快实施绿色营销和绿色物流。本文通过对现行中小企业实施绿色物流和绿色营销存在的问题进行分析,提出了实施绿色物流和绿色营销的相应对策。     

Critical Success Factors for Manufacturing Networks as Perceived by Network Coordinators

While networking among small and medium-sized manufacturing firms (SMEs) is a growing phenomenon, there has been little empirical study of the factors that lead to the success of these networks. This study identifies the following eight success factors for manufacturing networks of SMEs, which are ranked by perceived degree of importance to the success of the network: (1) participant character; (2) chief executive officer (CEO) support; (3) confidence; (4) dedication; (5) capabilities; (6) external relationships; (7) intermediary; and (8) information technology. Four success factors were perceived to be significantly more important in joint production and marketing networks compared to joint learning and resource sharing networks: (1) participant character; (2) confidence; (3) external relationships; and (4) information technology.     

Barriers to internationalization: A study of small and medium enterprises in India

Small and medium enterprises (SMEs) play a significant role in the growth of the economy. Many SMEs have set up activities beyond their home markets, and their role is more important in contributing to future growth. They are confronted with international competition and forced to compete in international markets. In this study, authors have categorized obstacles to firm internalization as internal and external barriers. The three dimensions of external barriers include governmental and economic political/legal barriers, procedural, and currency barriers, and task and socio-cultural barriers. The internal barriers considered for the purpose of the study were informational barrier, managerial barriers, financial barriers, and marketing barriers. Authors have used adapted scale from previous researches in these domains. Database accumulated the SMEs that were involved in manufacturing activities in the state of Rajasthan, India. The measurement model is a confirmatory factor analysis. The measures used within this study were within the acceptable levels supporting the reliability of the constructs. The analysis of the data revealed that there was moderate correlation between the external and internal factors. Within the external factors, procedural and currency barriers showed the highest obstacle for SMEs in their pursuit for internationalization followed by task and socio-cultural factors. Results specified that the entrepreneurs were not able to handle and manage foreign exchange fluctuations due to their lack of knowledge in this field.     

中小企业如何识别国际市场机会──基于偏离-份额分析法的机会分析与评估

中国中小企业经历一段高速发展之后,出口竞争力有所弱化。再加上世界金融危机的影响,企业的生存和发展存在困难。如何帮助中小企业更好地识别国际市场机会、提高竞争力,是国际市场营销研究者应该关注的问题。本文应用偏离-份额分析法(Shift-Share Method,缩写成SSM),对国际市场潜力进行分析和评估。为了更好地说明SSM的应用,本文选取了2004-2008年南美国家从中国进口工艺陶瓷制品的数据,进行了市场潜力的分析和评估。     

Cheers in China! International marketing strategies of Spanish wine exporters

Due to the globalization of the wine sector and the increase in competition, multinational enterprises (MNEs) and small and medium-sized enterprises (SMEs) have increased their presence in emerging markets, especially in China. This paper presents an in-depth analysis of the specific case of Spanish wine exporters to China, and examines the different external and internal factors impacting their international marketing decisions. Employing the case-study methodology, it is revealed that external factors force companies to adapt their back labels, distribution channels, prices and communications, while the internal factor of corporate strategy is the main cause for the standardisation of their product ranges, brand names, main labels and positioning. This paper also exposes the need to include the variable of firm size as an internal factor that is observed to have a major effect on the development and control of the marketing mix, as well as access to Guanxi networks.     

The influence of innovation on the performance of small and medium enterprises in Zimbabwe

Abstract

Based on a survey of 200 SMEs, this research investigated innovation’s influence on the performance of small and medium enterprises (SMEs) in Harare, Zimbabwe. The study found that SMEs were somewhat innovative. The performance of SMEs was found to somewhat increase over the period SMEs were innovating. Innovation was found to positively predict the performance of SMEs. Organizational innovation and product innovation positively predicted the performance of SMEs while marketing innovation and process innovation did not. The influence of innovation on enterprise performance varied from industry to industry. The research has implications for managers and future researchers.     

Determinants of SME International Marketing Communications

ABSTRACT

This research article discusses the factors affecting international marketing communications in small- and medium-size enterprises (SMEs). International commitment and brand adaptation in overseas markets were found significantly influencing the effectiveness of international marketing communications. The results suggest that international marketers need to have resources input, such as human and financial, to drive international marketing communications. Brand adaptation also needs to be performed in order to achieve a better international marketing communications. There are two factors affecting international marketing communications suggesting international marketers of SMEs need to be concerned with both internal resource and external factors in international ventures.     

Brand Management in Small to Medium‐Sized Enterprises*

Although an impressive body of literature has emerged focusing on the critical activities involved in brand management for larger organizations with well‐established brands and substantial marketing budgets, no research has been undertaken to examine branding within small to medium‐sized enterprises (SMEs). The present study therefore seeks to assess the nature and scope of brand management within an SME context. Findings show significant differences between small and large organizations along 9 of the 10 brand management dimensions reported in Keller's brand report card. Moreover, different brand management practices are associated with business performance in SMEs. Implications of the study are highlighted, limitations noted, and directions for future research outlined.     

Overcoming the double hurdles to investing in technology

Technological activities of small and medium-sized enterprises (SMEs) have received considerable attention from researchers and policy makers since the mid-1980s. Small firms could nurture entrepreneurship and facilitate the creation and application of new ideas. In spite of their potential in generating innovations, it is also observed that SMEs shy away from formal R&D activities, and the firm size itself seems to be a barrier for R&D activities. SMEs operating in developing countries face extra hurdles to investing in R&D. Given the massive share of SMEs, it becomes crucial to realize their developmental potential in developing countries. In this paper, we study the drivers of R&D activities in SMEs in Turkish manufacturing industries by using panel data at the establishment level for the 1993–2001 period. Our findings suggest that SMEs are less likely to conduct R&D, but if they overcome the first obstacle of conducting R&D, they spend proportionally more on R&D than the LSEs do. R&D intensity is higher in small than in large firms. Moreover, public R&D encourages firms to intensify their R&D efforts. The impact of R&D support is stronger for small firms.