Networking as an entrepreneurial marketing tool: the link between effectuation and word of mouth

Abstract

Purpose Effectuation has received increased attention in the field of entrepreneurship. However, previous studies have focused on performance rather than on networking and word-of-mouth (WOM) marketing. Therefore, the purpose of this study is to understand the mediating effect of networking on the relationship between effectuation and WOM marketing. Design/methodology/approach This study used partial least squares structural equation modeling to investigate the relationship between effectuation and WOM marketing mediated through networking. The research model was assessed using data from a sample of 256 entrepreneurs. Findings The results reveal that effectuation positively influences WOM marketing, mediated by networking. This study provides new insights into the precursors of WOM marketing and highlights the importance of networking in this process. Practical implications The implications of these findings suggest that entrepreneurs should create networking plans that focus on the maintenance and creation of new customers. This plan could be tracked via email, cell phone or online social data to maintain awareness of the failures and successes of the process and for continual improvement. Originality/value A vast number of studies have been conducted on effectuation and networking. However, to the best of the authors’ knowledge, no previous study has investigated the influence of these two variables on WOM marketing. Entrepreneurs face long-term sales challenges, and this study proposes that networking could be a solution, thereby increasing WOM marketing sales.