The impact of entrepreneurial marketing on new venture brand image and performance: a capability perspective

Abstract

Purpose This study aims to examine the underlying mechanisms through which entrepreneurial marketing (EM) promotes the development of a favorable brand image and enhances sales growth and market share in new ventures (NVs). Design/methodology/approach The authors tested the theoretical model using a multi-informant design in which survey data were collected from NV entrepreneurs and marketing managers. Hypotheses were tested using linear regression and PROCESS analysis. Findings The authors demonstrate the significance of EM as comprising two NV capabilities – first, the level of complementarity between entrepreneurial orientation (EO) and market orientation (MO) as a dynamic capability, and second, brand management capabilities (BMCs) as an operational capability – in shaping a favorable NV brand image and promoting market performance. Research limitations/implications The authors offer a novel perspective by demonstrating that EO and MO yield complementarities in driving NVs’ BMCs, which, in turn, drive brand image development and market performance for NVs. In doing so, the authors demonstrate novel theoretical implications for the relevance of EM to NV branding, which, to date, has received scant attention in the literature. Practical implications The authors identify a potential avenue for entrepreneurs and NV managers to mitigate the potential failure rates by simultaneously pursuing a higher level of EO and MO and investing in brand-building activities. Such efforts can help enhance brand image, drive sales growth and foster long-term success. Originality/value To the best of the authors’ knowledge, this study is the first to include brand capabilities as an element of EM, examine EM in NV brand image development and identify the role of EM capabilities relevant to NV brand building and market performance simultaneously.