Richard C. Becherer

The moderating effect of environmental variables on the entrepreneurial and marketing orientation of entrepreneur-led firms

A firms marketing orientation and entrepreneurial orientation intuitively should relate to organizational performance. Considerable theory can be found concerning the causes and consequences of each orientation as well as their relationship, but little empirical evidence exists, especially for small-firm samples. This paper examines the relationship between the two concepts and how this relationship is moderated by the firms external environment. In addition, the relationship of marketing orientation and entrepreneurial orientation to firm performance and the moderating effects of the environment on these two relationships are examined. The sample consists of entrepreneurs, defined as those individuals who have started or purchased a small business, and who are still leading the business they started or purchased.

Small and Mid-Sized Businesses and Internet Use: Unrealized Potential?

The findings of a study by Auger and Gallaugher (1997), in addition to suppositions and anecdotal evidence provided in a number of articles, suggest that there may be key areas of difference as well as similarities in Internet usage patterns among small and mid‐sized businesses. Since large businesses are both potential customers of and suppliers to small to mid‐sized businesses, it is important to understand their Internet usage patterns as well. The study was designed as a preliminary examination contrasting such usage among large and small and mid‐sized owner‐operated firms. Study findings suggest mid‐sized businesses may be at a competitive disadvantage in their current operational use of the Internet. Small businesses in the study were more likely than mid‐sized or large firms to have a home page and to reveal computer/technology programs as potential Internet services needed to improve current operations. Future research must continue to examine the role the Internet can play in allowing small and mid‐sized businesses to be more competitive in today’s technology based global environment.

Customer Orientation and Performance in Small Firms: Examining the Moderating Influence of Risk‐Taking, Innovativeness, and Opportunity Focus

Customer orientation is considered to be an essential element for small firm success despite relatively little empirical evidence to support such a claim. This research examines the customer orientation–performance relationship among 180 small firms, and the moderating influence of risk‐taking, innovativeness, and opportunity focus on that relationship. Results support the overall positive influence of customer orientation on performance and indicate that the influence is stronger as risk‐taking, innovativeness, and opportunity focus increase. Interestingly, customer orientation does not positively influence small firm performance under low levels of risk‐taking, innovativeness, and opportunity focus.

Marketing Orientation in SMEs: Effects of the internal environment

Marketing orientation can be described as a culture in which organizations strive to create superior value for their customers (and superior performance for the business) by focusing on customer needs and long‐term profitability. Some studies have found that firms with a high degree of marketing orientation experience improved performance; othershave found mixed or non‐significant results. While all firms are strongly influenced by their external environment, small to medium sized firms (SMEs) may be even more influenced by their own internal culture. The smaller firms are less bureaucratic and more a reflection of their own specific leadership and internal circumstances. The marketing orientation of these firms may in part be determined by such factors as the scope of the business or the managerial style of the president. This study examines the market orientation of SMEs relative to several characteristics of the organization and the managerial style and background of the company president. In addition, marketing orientation is examined relative to company performance in terms of both change in sales and change in profits. The results of this study confirm some earlier research on marketing orientation and provide some new insights and questions on this important strategic dimension.

Characteristics and internet marketing strategies of online auction sellers

Internet marketing is a field that is continuing to grow, and the online auction concept may be defining a totally new and unique distribution alternative. Very few studies have examined auction sellers and their internet marketing strategies. This research examines the internet auction phenomenon as it relates to the marketing mix of online auction sellers. The data in this study indicate that, whilst there is great diversity among businesses that utilise online auctions, distinct cost leadership and differentiation marketing strategies are both evident. These two approaches are further distinguished in terms of the internet usage strategies employed by each group.

An option‐based approach for pricing perishable services assets

The concept of option pricing is used to develop an alternative model for pricing services that have a fixed availability and expiration. The binomial option pricing model and abandonment theory are financial models used to demonstrate that the option to cut price contributes positively to a service’s expected profitability. Pricing of hotel rooms is used to demonstrate in a marketing context the use of this option model approach. Airline seats, events, and vacation house rentals are some of the many other alternative applications among consumer services, as broadcast time is a similar example among industrial services.

Marketing orientation in SMEs: Effects of the internal environment

Marketing orientation refers to a culture in which organizations strive to create superior value for their customers (and superior performance for the business) by focusing on customer needs and long-term profitability. Some studies have found that firms with a high degree of marketing orientation experience improved performance; others have found mixed or nonsignificant results. The marketing orientation of small businesses has not been thoroughly investigated, however. This study of more than 200 small business CEOs examines the marketing orientation levels of small to medium-sized firms (SMEs) as well as the impact of various internal variables (sales/profit performance, company characteristics, and CEO characteristics) on marketing orientation levels. The results confirm some earlier research on marketing orientation and provide new insights into this important strategic dimension.

Internet Auction Sellers: Does Size Really Matter?.

Internet marketing is a field which is continuing to grow, and the online auction concept may be defining a totally new and unique distribution alternative. Very few studies have examined auction sellers and their Internet marketing strategies. This research examines the Internet auction phenomenon as it relates to the marketing mix of online auction sellers. The data in this study indicate that, while there is great diversity among businesses that utilize online auctions, distinct cost leadership and differentiation marketing strategies are both evident. These two approaches are further distinguished in terms of the Internet usage strategies employed by each group.

The Effect of Entrepreneurial Marketing on Outcome Goals in SMEs

This study examines how entrepreneurial marketing dimensions (proactiveness, opportunity focused, leveraging, innovativeness, risk taking, value creation, and customer intensity) are related to qualitative and quantitative outcome measures for the SME and the entrepreneur (including company success, customer success, financial success, satisfaction with return goals, satisfaction with growth goals, excellence, and the entrepreneurʼs standard of living). Using factor analysis, three success outcome variables (financial, customer, and strong company success) emerged together. A separate factor analysis identified satisfactory growth and return goals. Stepwise regression revealed entrepreneurial marketing impacts outcome variables, particularly value creation. Implications for entrepreneurs and areas for research are included.

Separated at Birth: An Inquiry on the Conceptual Independence of the Entrepreneurship and the Leadership Constructs

Entrepreneurship and leadership may flow from the same genealogical source and the appearance of separation of the two constructs may be due to differences in the contexts through which the root phenomenon flows. Entrepreneurship and leadership are figuratively different manifestations of the need to create. To better understand the origin of entrepreneurship and leadership, research must first focus on the combinations or hierarchy of traits that are necessary, but perhaps not sufficient, to stimulate the two constructs. Factors that trigger a drive to create or take initiative within the individual in the context of a particular circumstance should be identified, and the situational factors that move the individual toward more traditional leader or classic entrepreneurial-type behaviors need to be understood.