Effect of E-Marketing Adoption Strategy on Export Performance of SMEs

Abstract

Purpose - The purpose of this study is to analyze the effect of e-marketing adoption strategy on export performance of SMEs in Pakistan. The mediating effect of marketing activities on the relationship between e-marketing adoption and export performance is also investigated.

Design/methodology/approach – Data was collected from 169 SMEs from four sectors, namely textile, leather, medical and surgical goods and services. The five constructs namely e-marketing budget, e-marketing tools, pre sales activities, after sales activities and export performance linked through eight hypotheses were tested using structural equation modeling in AMOS version 5.

Findings - This study finds the positive impact of allocation of e-marketing resources for marketing activities and confirms that mere adoption of e-marketing tools is not sufficient for improving marketing activities. Similarly, SMEs export performance is positively influenced by allocation of e-marketing budget, adoption of e-marketing tools and after sales activities, but pre sales activities does not produce significant effects on export performance of SMEs.

Research limitations/implications-- The data collected for this study was cross sectional in nature, whereas longitudinal approach is more suitable for such a study. Moreover, the data was collected from four sectors from Pakistan (a developing country), therefore, care should be taken while generalizing the results of the study.

Practical implications – The study points out that SME sector needs to be facilitated by providing IT infrastructure, training employees and resources for utilizing e-marketing at its full potential.

Key Words: E-Marketing, Adoption Strategy, Export Performance, SMEs