The impact of technological marketing on Porter's competitive forces model and SMEs' performance

• Main Author: Hove, Progress
• Format: Others
• Language: English
• Published: University of Fort Hare 2012
• Subjects: Small business > South Africa > Eastern Cape; Marketing > Mathematical models; Marketing > South Africa > Eastern Cape > Technique; Telemarketing > South Africa > Eastern Cape; Competition > South Africa > Eastern Cape
• Online Access: http://hdl.handle.net/10353/d1007120

It is commonly understood that the adoption and development of technological marketing capabilities by firms provides them with immense opportunities to transform their business practices and strategies, so as to strategically position themselves in the market and enhance firm performance. Nevertheless, little attention has, thus far, been given to the empirical investigation of the impact of adopting and developing the technological marketing on Porter‟s five competitive forces and firm performance of SMEs. The principal objective of this study was to fill this void by investigating the influence of the technological marketing on Porter‟s five competitive forces model (industry structure) of SMEs in the Buffalo City Metropolitan Municipality. Secondarily, the study sought to determine the influence of technological marketing capability on firm performance of SMEs in the Buffalo City Metropolitan Municipality; in order to ascertain whether or not the competitiveness of SMEs impacts on their firm performance; to determine whether or not SMEs adopt new and advanced technological capabilities when marketing their products/services and to examine whether or not SMEs adopt new and advanced technological capabilities in order to enhance their performance. The study employs a quantitative method in data collection. Sample data from 211 SME owners/managers in the retail and manufacturing sectors of Buffalo City Metropolitan Municipality was collected for the final data analysis of this project. The sample data was analysed by performing a Confirmatory Factor Analysis (CFA) and Structural Equation Modeling (SEM) using AMOS 7 Statistical Analysis software. The principal finding of this study reveals that technological marketing has no significant impact on Porter‟s five forces. In addition, the results showed that technological marketing capability has a positive and significant influence on firm performance. The findings also revealed that SMEs adopt new and advanced technologies when marketing their products and services. The conclusions and implications of the research findings are provided and recommendations are suggested. The researcher recommended non technological strategies for improving SMEs‟ competitiveness and the following technological strategies to boost performance: creating a customer-centric e-commerce strategy, embracing outsourcing, joining e-business community and integrating information management into new marketing technologies. Strategies were also recommended to the government as the policy maker. These include introducing e-business finance arrangement, marketing hubs for SMEs and promoting synergies between technology vendor companies and the small enterprises. The study tried to address marketing technologies‟ policy deficiencies on the side of both SMEs and the government.