Entrepreneurial marketing, organizational agility and business ties: implications for manufacturing SMEs performance in India

Abstract

Purpose While the field of entrepreneurial marketing (EM) is well-established, its specific impact on manufacturing-based small and medium-sized enterprises (SMEs) in India remains poorly understood. Moreover, there is scant research investigating the mediating role of organizational agility (OA) in the relationship between EM and performance in such enterprises. Drawing on dynamic capabilities theory, this study aims to examine the interrelationships among EM, OA and manufacturing-based SME performance. It also explores the moderating role of business ties (BT) in these relationships. Design/methodology/approach Survey data were collected from 624 owners and managers of manufacturing-based SME in India. Partial least squares structural equation modeling was used to test the proposed hypotheses. Findings The results indicate that EM has a positive influence on both OA and manufacturing-based SME performance. In addition, OA partially mediates the relationship between EM and the performance of manufacturing-based SMEs. Interestingly, BT was found to negatively moderate both the direct and indirect effects of EM on the performance of manufacturing-based SMEs. Practical implications Manufacturing SMEs in developing economies should recognize the strategic value of EM and OA for navigating turbulent environments. However, managers must be prudent in managing BT, as excessive reliance on them can diminish the effectiveness of EM and OA strategies. Originality/value This study contributes to EM literature by focusing on the under-researched context of manufacturing-based SMEs in India. It extends prior work by demonstrating the mediating role of OA and the conditional effects of BT. The findings challenge the assumption that all external ties are beneficial, emphasizing the importance of agility and strategic marketing alignment.