Leadership and Marketing Capabilities in Small Businesses of Subsistence Marketplaces

Abstract

Small businesses are vital in developing countries. Usually, the marketplaces in the most impoverished areas are subsistence marketplaces, and small businesses are frequently created as the only form of subsistence for the entrepreneur and their family. These businesses working in subsistence marketplaces have distinct marketing needs. These businesses may require leadership to use their marketing capabilities to be competitive. This paper analyzes the mediation of marketing capabilities and leadership as sources of competitive advantage in subsistence small businesses using a partial least square technique and timber industry data from a region in Argentina. This paper confirms that transformational leadership and marketing capabilities are a source of competitive advantage in subsistence small businesses. In particular, leaders use marketing capabilities to generate a competitive advantage.