Entrepreneurship Characteristics, Moderate Marketing Strategies, Marketing Challenges and Tech Startup Financial Performance

What the paper says

There has been a rapid emergence of startups that use novel technologies to promote products or services. This paper explores the impact of marketing mix strategy and marketing challenges on the financial performance of tech startups. The moderating role of entrepreneurship characteristics in improving financial performance is also explored. Methodology: In this descriptive and quantitative study, a structured questionnaire was used to collect data from 100 founders of Tech Startups from Bengaluru city, India. Partial least squares structural equation modelling (PLS-SEM) was performed to test the proposed conceptual model. Findings: The results show that all four marketing mix elements, namely, promotion, place, price and product, influenced the financial performance of tech startups in terms of increased market share and profitability. Further, challenges, such as lack of international market, shortage of funding, delay in sanction of loans, lack of corporate experience and managerial education, poor technical knowledge, and limited access to advanced technology and product innovations, lowered the performance of tech startups. However, entrepreneurship characteristics, such as risk-taking ability, decision-making, social networking, and acquisition of new skills, had a moderating effect. Conclusion: The study emphasizes on the integration of four marketing mix elements for improving the performance of tech startups. Furthermore, challenges in market, finance, management and technology domains must be addressed to improve the financial performance of tech startups. From the perspective of entrepreneurship characteristics, potential entrepreneurs should have technological knowledge and skills, risk-taking abilities and critical assessment of the scenario to go through different stages of startup.