The impact of product management on SME firm performance

Abstract

PurposeThis study seeks to address a gap in the literature by investigating product management (PM) as a set of firm‐level activities, distinct from the behaviours embedded within the market orientation (MO) construct. This research establishes PM as a set of organizational activities, which lie at the boundary between the traditional functions of the firm.Design/methodology/approachA model is proposed and tested using a heterogeneous sample of 316 Canadian small and medium‐sized enterprises, where PM mediates the relationship between MO and firm performance. Data were analyzed using a partial least squares, structural equation model.FindingsPM behaviour is found to fully mediate the MO – firm performance relationship. Two of the three PM constructs, namely channel analysis/support and market/technical integration account for this effect.Research limitations/implicationsThese results support the PM literature, which infers that more emphasis on external boundary spanning activities and internal coordination should positively influence firm performance. Limitations include the heterogeneous nature of the sample, time frame and geographic bias.Practical implicationsManagerial implications include the establishment of an empirical link between PM practices and how firms ultimately perform. This could assist practitioners in enhancing coordination activities between the marketing and technological factions within the organization.Originality/valueThis research establishes PM as a set of activities, which lie at the boundary between the traditional functions of the firm. These activities are found to fully mediate the MO – firm performance relationship and introduce the hereto untested link between PM and firm performance.