innovative marketing in smes: a theoretical framework

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Innovative marketing in SMEs: a theoretical framework Michele O’Dwyer Department of Management and Marketing, Kemmy Business School, University of Limerick, Limerick, Ireland, and Audrey Gilmore and David Carson University of Ulster, Newtownabbey, UK Abstract Purpose – Previous research has identified and clarified the nature of innovative marketing in small and medium size enterprises (SMEs), providing a list of key constituent elements. While this list of innovative marketing variables goes some way towards explaining the nature of innovative marketing it does not aid the understanding of the relevance and inter-relationship of these variables. The aim of this paper is to develop a theoretical framework to facilitate further exploration of the core elements of innovative marketing in SMEs. Design/methodology/approach – A case study approach is adopted in order to facilitate the emergence of new theoretical relationships based on the understanding of the complex and dynamic nature of innovative marketing in SMEs. Eight case SMEs are recruited, two of the case SMEs from the service industry, three from manufacturing and three of the SMEs combined elements of both service and manufacturing. Findings – The findings of the study illustrate the component parts of innovative marketing and the inter-relationships between those parts in accordance with their role in innovative marketing and practices in SMEs. In order to categorise SME innovative marketing constructs, the conceptual framework transformation, assimilation, prediction and exceptionality (TAPE) is developed from relevant literature. This helps to encapsulate and explore elements of SME innovative marketing. Based on this study, the TAPE framework can more appropriately be changed to transformation, assimilation and prediction (TAP), to reflect the finding that exceptionality is inconclusive in terms of its relevance to innovative marketing in SMEs. The exclusion of exceptionality from the framework is a surprising insight emanating from the research as it contradicts previous studies. Traditionally, these elements will have been considered to be the core of innovative marketing. The conclusion here is that exceptionality be treated with caution in relation to SMEs. Originality/value – This paper presents a theoretical framework TAPE to re-conceptualise elements of innovative marketing. In light of the role each element plays in SME marketing activities and practices, this paper confirms the value of TAP but not exceptionality. Keywords Innovation, Small to medium-sized enterprises, Marketing Paper type Research paper Introduction Innovation in the context of doing business is a widely used term with many different interpretations. Cumming (1998) cited reports by the Zuckerman Committee in 1968 and Confederation of British Industry/Department of Trade and Industry Innovation Unit in 1996 to illustrate that early definitions of the word “innovation” have developed from its early interpretation as a process or the introduction of change, into its current interpretation which includes terms such as creativity, success, profitably and customer satisfaction. From a small and medium size enterprises (SMEs) perspective, innovation The current issue and full text archive of this journal is available at www.emeraldinsight.com/0955-534X.htm EBR 21,6 504 Received February 2009 Revised March 2009 Accepted March 2009 European Business Review Vol. 21 No. 6, 2009 pp. 504-515 q Emerald Group Publishing Limited 0955-534X DOI 10.1108/09555340910998805

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Page 1: Innovative marketing in SMEs: a theoretical framework

Innovative marketing in SMEs:a theoretical framework

Michele O’DwyerDepartment of Management and Marketing, Kemmy Business School,

University of Limerick, Limerick, Ireland, and

Audrey Gilmore and David CarsonUniversity of Ulster, Newtownabbey, UK

Abstract

Purpose – Previous research has identified and clarified the nature of innovative marketing insmall and medium size enterprises (SMEs), providing a list of key constituent elements. While this listof innovative marketing variables goes some way towards explaining the nature of innovativemarketing it does not aid the understanding of the relevance and inter-relationship of these variables.The aim of this paper is to develop a theoretical framework to facilitate further exploration of the coreelements of innovative marketing in SMEs.

Design/methodology/approach – A case study approach is adopted in order to facilitate theemergence of new theoretical relationships based on the understanding of the complex and dynamicnature of innovative marketing in SMEs. Eight case SMEs are recruited, two of the case SMEs fromthe service industry, three from manufacturing and three of the SMEs combined elements of bothservice and manufacturing.

Findings – The findings of the study illustrate the component parts of innovative marketing and theinter-relationships between those parts in accordance with their role in innovative marketing andpractices in SMEs. In order to categorise SME innovative marketing constructs, the conceptualframework transformation, assimilation, prediction and exceptionality (TAPE) is developed fromrelevant literature. This helps to encapsulate and explore elements of SME innovative marketing.Based on this study, the TAPE framework can more appropriately be changed to transformation,assimilation and prediction (TAP), to reflect the finding that exceptionality is inconclusive in terms ofits relevance to innovative marketing in SMEs. The exclusion of exceptionality from the framework isa surprising insight emanating from the research as it contradicts previous studies. Traditionally,these elements will have been considered to be the core of innovative marketing. The conclusion here isthat exceptionality be treated with caution in relation to SMEs.

Originality/value – This paper presents a theoretical framework TAPE to re-conceptualiseelements of innovative marketing. In light of the role each element plays in SME marketing activitiesand practices, this paper confirms the value of TAP but not exceptionality.

Keywords Innovation, Small to medium-sized enterprises, Marketing

Paper type Research paper

IntroductionInnovation in the context of doing business is a widely used term with many differentinterpretations. Cumming (1998) cited reports by the Zuckerman Committee in 1968 andConfederation of British Industry/Department of Trade and Industry Innovation Unit in1996 to illustrate that early definitions of the word “innovation” have developed from itsearly interpretation as a process or the introduction of change, into its currentinterpretation which includes terms such as creativity, success, profitably and customersatisfaction. From a small and medium size enterprises (SMEs) perspective, innovation

The current issue and full text archive of this journal is available at

www.emeraldinsight.com/0955-534X.htm

EBR21,6

504

Received February 2009Revised March 2009Accepted March 2009

European Business ReviewVol. 21 No. 6, 2009pp. 504-515q Emerald Group Publishing Limited0955-534XDOI 10.1108/09555340910998805

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commonly refers to new products or processes that address customer needs morecompetitively and profitably than existing solutions (O’Regan and Ghobadian, 2005).

Previous research in the field of innovative marketing in SMEs has focused onclarifying and identifying the nature of innovative marketing. Much of this work hasresulted in the compilation of a list of key constituent elements. While a list ofinnovative marketing variables goes some way towards explaining the nature ofinnovative marketing, it does not facilitate understanding of the significanceand inter-relationship of these variables. The aim of this paper is to develop atheoretical framework to facilitate further exploration of the significance of coreelements of innovative marketing in SMEs. First, the paper begins with a discussion ofinnovative marketing in SMEs and the constituent elements of innovative marketingas identified from the literature.

Innovative marketing in SMEsAlthough SMEs dominate international and European industry in terms of volume, theirsize mitigates against their potential influence in their markets, however, it is their size thataffords them competitive advantage (Hill, 2001). This competitive advantage is derivedfrom their distinctive marketing style which has little or no adherence to formal structuresand models. The marketing activity of small firms is inevitably restricted in its scope andactivity because of their limited resources. This results in marketing that is simplistic,haphazard, often responsive and reactive to competitor activity (Carson and Cromie, 1989).Coupled with a dynamic environment, these limitations challenge SMEs, driving theirneed for efficient and effective innovation to capitalise on marketplace opportunities;innovative marketing provides a significant mechanism in this process.

Within the complex reality of an SME’s environment, marketing is influenced by anumber of critical factors such as customers, markets, trends and competitors whoseinteraction helps SMEs develop a distinctive marketing style. SME marketing isrestricted by resource limitations, including finance, personnel, perception of function,skills and attitudes (Carson and Cromie, 1989). However, these limitations serve tostimulate innovation to overcome the associated obstacles, thus resulting in some kindof innovative marketing. Innovative marketing in SMEs has been variously definedfocusing on terms such as newness and opportunity, “creative, novel or unusualsolutions to problems and needs” including the “development of new products andservices, and new processes for performing organisational functions” (Knight et al.,1995, p. 4).

Six variables dominate this listing as illustrated in Table I (O’Dwyer et al., 2009);marketing variables (product enhancement, alternative channels and methods ofproduct distribution, and altering the marketing mix), modification (proaction andchange management), integrated marketing (marketing integration and the permeationof marketing), customer focus, market focus (vision, profit and market-centred), andunique proposition (uniqueness, newness and unconventionality).

While this description of SME innovative marketing variables identifies the keyconstituents of innovative marketing and facilitates insight into the key constituents, itdoes not increase understanding of possible hierarchies or inter-relationships betweenvariables. In addition, the list does not increase comprehension of the role played bysuch variables in innovative marketing in SMEs. This paper offers a framework thatcategorises these constructs (marketing variables, modification, integrated marketing,

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customer focus, market focus and unique proposition) in accordance with their role ininnovative marketing and practices in SMEs.

Marketing and modification variablesIn discussing marketing and modification variables, the underlying theme of change inSME innovative marketing activities and practices is evident. For example, productenhancement refers to SMEs engaging in identifying, designing and implementingproduct improvements, which transform products and services making them moreattractive to customers (Mostafa, 2005; McEvily et al., 2004). This is reflected in howSMEs alter the marketing mix, adapt marketing activities and practices, excludetraditional marketing elements and/or include elements specific to their business(Cummins et al., 2000; Kleindl et al., 1996). This “transformation” activity can alsoinclude alteration of the distribution channel to gain competitive advantage, costefficiency or customer satisfaction (Johne, 1999; Carson et al., 1998).

In addition, elements such as proaction and change are also part of thetransformation process which is integral to SMEs; where proaction refers to SMEsengaging in prediction and anticipation in their marketing activities, with a view toacting rather than reacting (Cummins et al., 2000; Kleindl et al., 1996). Change refers tothe SME actively exploring and embracing marketing transformations which wouldbenefit it (Carroll, 2002). Therefore, it is argued here that these marketing andmodification variables should be recognised as transformation variables. In thiscontext, transformation refers to change, or conversion, to better the nature, function orcondition of marketing activities and practices within SMEs. This process oftransformation is one of the key elements of innovation within SMEs enabling it totransform in anticipation of and in response to internal and external stimulus.

SME innovativemarketing variables Elements

Marketing variables Product enhancement (Mostafa, 2005; McEvily et al., 2004; Nieto, 2004; Carsonet al., 1998)Alteration of the marketing mix (Cummins et al., 2000; Kleindl et al., 1996;Stokes, 1995)Alteration of the distribution channel (Johne, 1999; Carson et al., 1998)

Modification Proaction (Cummins et al., 2000; Kleindl et al., 1996; Stokes, 1995)Change (Carroll, 2002; McAdam et al., 2000; Johne, 1999)

Customer focus Customer focus (Narver et al., 2004; Martins and Terblanche, 2003; Morris andLewis, 1995)

Integrated marketing Marketing integration (Cummins et al., 2000; Knight et al., 1995)Permeation of marketing throughout SME (Cummins et al., 2000; Knight et al.,1995)

Market focus Vision (Johne, 1999; Ahmed, 1998; Kuczmarski, 1996)Market centred (Johannessen et al., 2001; Cummins et al., 2000; Kleindl et al.,1996)Profit (Cummins et al., 2000; Day and Reynolds, 1997; Kleindl et al., 1996)

Unique proposition New (Arias-Aranda et al., 2001; Johne, 1999; Kleindl et al., 1996)Unique (Johannessen et al., 2001; McAdam et al., 2000; Martinez Lorente et al.,1999)Unconventional (Kleindl et al., 1996; Knight et al., 1995)

Table I.Categorisation of SMEinnovative marketingvariables

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Integrated marketingThe incorporation and integration of SME marketing activities and practices into allorganisational functions was found to be a critical element of innovative marketingenabling SMEs to maximise resource usage (Cummins et al., 2000; Knight et al., 1995).Through the permeation of marketing in all organisational functions, SME personnelin non-marketing roles undertake marketing activities and practices as an integral partof their role (Cummins et al., 2000). This assimilation of innovative marketing activitiesand practices illustrates the process by which marketing activities and practices areabsorbed and incorporated into SMEs.

Customer and market focusIn terms of SME innovative marketing activities and practices, customer and marketorientation are founded on predicting and forecasting customer and market needs.Customer focus is a central element of prediction for SMEs, given its ability tomaximise customer intelligence to predict and then satisfy customer needs profitably(Narver et al., 2004; Martins and Terblanche, 2003). The significance of prediction isreflected in SME vision, in the articulation of a future-oriented strategic vision for thebusiness (Johne, 1999; Ahmed, 1998; Kuczmarski, 1996). An SME strategic vision thatis market centred, focused on market intelligence to anticipate conditions and identifymarketing activities and practices for future will help maximise efficiency,effectiveness and profitability (Johannessen et al., 2001; Cummins et al., 2000;Kleindl et al., 1996). This process of prediction in SME innovative marketing refers tothe act of forecasting, anticipating or calculating for the purposes of marketingactivities and practices.

Unique propositionExplorations of the three variables which comprise unique proposition illustrate thesignificance of unusual or exceptional elements to SMEs innovative marketingactivities and practices. In this context, the variable “new”, refers to SMEs introductionof new products, services or processes as part of its marketing activities and practices(Arias-Aranda et al., 2001; Johne, 1999) while unique focuses on the uniqueness of eachnew element introduced (Johannessen et al., 2001; McAdam et al., 2000). In addition, theunconventional aspect of the SME strives for exceptionality by adapting or eschewingthe industry norm in its approach to marketing activities and practices for at leastsome of its business, product or service (Kleindl et al., 1996; Knight et al., 1995).Therefore, literature illustrates that SMEs are driven by a need to develop marketingactivities and practices that are in some way exceptional. In this context, exceptionalitydenotes unusual skills and accomplishments; these skills and accomplishmentscontribute to elements of SME business that they deem to be rare or unique.

Based on this exploration of hierarchies and inter-relationships between innovativemarketing variables four key constructs emerge; transformation, assimilation,prediction and exceptionality (TAPE). These constructs are re-conceptualised in anew innovative marketing framework, TAPE, which takes these constructs andcategorises them in accordance with their role within SMEs; that is, transformingmarketing activities, assimilating marketing practices throughout the SME, predictingmarketing requirements and developing an exceptional product or service as shown inFigure 1.

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Research approachThe case study research method was used to investigate the nature of innovativemarketing within SMEs operating in a turbulent market environment. The researchgoal was to understand the complex and dynamic issue of innovative marketing inSMEs. According to Harden and Harker (2000), SME marketing experiences benefitfrom being relayed for discussion in case study format, as this provides betterunderstanding of the research issue in its natural context. Moreover, Eisenhardt (1989,p. 549) commends case study research as being “highly complementary to incrementaltheory building”, thereby facilitating the emergence of new theoretical relationships, aswas necessary for this research.

Eight case SMEs were recruited in accordance with Glaser and Strauss’s (1967)recommendation that case companies were recruited until no new data were foundfrom the participation of additional case firms. The case SMEs reflected the ability toextend the theory to a broad range of organisations (Eisenhardt, 1989), the mix ofSMEs represented service and manufacturing aspects of their industries with twoof the case SMEs from the service industry, three from manufacturing and the threeremaining SMEs combined elements of both service and manufacturing. One of theprimary strengths of case study research in its application to SMEs is its use ofmultiple methods such as interviews, direct observation, documentation, archivalrecords, participation, observation and physical artefacts, all of which combined toenable converging lines of inquiry on historical, attitudinal or behavioural issues forthis research (Yin, 1994). Each method was guided by the use of a topic list whichfacilitated in-depth exploration of the strength of significance of the role (as identifiedby the case participants) played by each of the key innovative marketing variables.The data derived from the research process was interpreted and analysed using the

Figure 1.TAPE conceptualisationof innovative marketing inSMEs

Innovative marketingin SMEs

Exceptionality

• Unique proposition

Assimilation

• Integrated marketing

Transformation

• Marketing variables• Modification

Prediction

• Market focus• Customer focus

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“N VIVO software package to facilitate ease of identification of inter-relationshipsbetween and within data” (Maclaran and Catterall, 2002).

FindingsThe empirical findings are discussed under the elements of the proposed theoreticalframework (Figure 1), transformation (marketing variables and modification),assimilation (integrated marketing), prediction (customer and market focus) andexceptionality (unique proposition).

TransformationTransformation activities include marketing variables, modification and SME image.Marketing variables contribute strongly to the innovative marketing activities andpractices of most (five) of the case companies. This corroborates previous studieswhich suggest that marketing variables are an important constituent of innovativemarketing (Mostafa, 2005; McEvily et al., 2004; Nieto, 2004; Cummins et al., 2000).

The lack of prioritisation of marketing variables by the other three SMEs studied ispartially explained by the languid nature of some of the SMEs and the nature of theindustry segments in which they operate. Thus, these companies prioritise innovationin other aspects of their business, such as, modification and market focus, renderingmarketing variables subject to slow change.

In exploring the significance of modification to the innovative marketing activitiesand practices of the case SMEs, most (six) of the case companies identified modificationas being very important in their marketing activities and practices. This findingsupports previous studies which suggest that modification is a significant constituentof innovative marketing (Carroll, 2002; Cummins et al., 2000). For example, SME 7 hasdeveloped a more proactive change strategy for its market and its customers,a strategy which acknowledges that its:

[. . .] niche in the market is created by good quality editorial and having a product that they[customers] want. One thing that we always watch is that our editorial is aimed at theyounger people [. . .] because they are small buyers but if you catch them at 18-19 years of ageyou’ve got them for life.

In addition to the variables identified in previous studies, all of the cases in this studydemonstrated the significance of image to the transformation aspect of SME innovativemarketing. SME 1 has identified its image as that of a world class sub-supplier ofembedded-system development solutions to major industries worldwide, as beingpivotal to its marketing activities and practice. This is reflected by SME 2 who statesthat “aesthetics and image are important in this industry”. SME 8 has designed amarketing strategy “to create a strong corporate image [which will help to] transmitour message to a wider audience, thereby increasing our overall market share”. Thus,the study illustrates that the two transformation elements identified from literature(marketing variables and modification) and one transformation element identified fromthe findings (image), are all core elements of SME innovative marketing.

AssimilationIntegrated marketing was found to be very important to the innovative marketingactivities and practices of all of the case companies. This supports literature oninnovative marketing, which suggests that integrated marketing is an integral

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constituent of innovative marketing (Cummins et al., 2000; Knight et al., 1995). It isnoteworthy that all of the case companies classified integrated marketing as stronglysignificant to their innovative marketing activities and practices. This is echoed bySME 5 who found that an integrated marketing function is critical not only for the SMEbut also for its customers:

[. . .] if they haven’t seen what we can do, then we can show them the possibilities and ourabilities. Ideally they should come twice a year so that they can see new products and processes[. . .] a visit takes three to four days. One day for a tour [of the plant, meeting personnel, seeingdesign, engineering, production, despatch, purchasing, finance, sales, marketing – allfunctional areas], one day with [marketing manager], and one day with the person in-housewho “minds” them – their contact [. . .] sometimes the end customer comes too.

As well as exploring the variables identified in previous studies all of the case SMEsstrongly emphasised the significance of strategic alliances to their innovative marketingactivities and practices. Strategic alliances are used by the case companies to compete withlarger organisations, which allow them to act with the capacity of a large or multi-nationalcompany, that is, expanding resources, skills and abilities and geographic spread. SME 1has formed strategic alliances with many of its key customers, which enables theelicitation of intimate knowledge regarding the strategic orientation of customers therebyfacilitating proactive new-product development and marketing activities. SME 1 notesthat “if you look at the strategic alliance formed by one of your large competitors thenthat’s a major obstacle” to getting new customers, entering new markets and accessingnew technologies. Thus, the study illustrates that the transformation element identifiedfrom literature (integrated marketing) and one transformation element identified from thefindings (strategic alliances) are core elements of SME innovative marketing.

PredictionOne of the key findings of the study is the identification of market focus as beingstrongly significant to SMEs’ innovative marketing activities and practices in all of thecase companies. This supports the literature on innovative marketing where marketfocus is considered to be a significant constituent of innovative marketing(Johannessen et al., 2001; Cummins et al., 2000; Johne, 1999). SME 8 illustrates thedynamism in market conditions which demands an innovative response from it:

[. . .] the market conditions could be very different in a few months time and we’ll be lookingat a different type of sales and marketing [. . .] looking back to last year we thought we’d beselling to a different market. This year the whole market has been our main market. Nowwe’re still holding our main market but we’re putting our concentration in other places we’retaking advantage of the home holiday, day trips and all of that.

In exploring the importance of customer focus to the innovative marketing activitiesand practices of the case SMEs, most of the companies identified customer focus asstrongly significant. This focus on customer needs is echoed by SME 5 who states that:

I think we’re pretty much up there, if there’s anything new on the market the customer tells uspretty quickly, can you match this, can you do this, can you do that, then we have to make astrategic decision.

This corroborates the literature which suggests that customer focus is a significantconstituent of innovative marketing (Narver et al., 2004; Martins and Terblanche, 2003).

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Thus, the study illustrates that the two prediction elements identified, customer andmarket focus, are core elements of SME innovative marketing.

ExceptionalityOne of the key findings of the study is that unique proposition was found to be of lesssignificance and demonstrated by fewer cases to be an integral element of SME innovativemarketing activities and practices, a finding which is in contrast with the predominantbody of literature on innovative marketing. Previous studies suggest that the uniqueness ofits selling proposition is a significant constituent of SME innovative marketing, a findingwhich is inconsistent with SME perspectives that incremental and continuous innovation,and the establishment of low levels of newness, uniqueness and unconventionality aremore acceptable to SME customers (Arias-Aranda et al., 2001; Johannessen et al., 2001;McAdam et al., 2000). This is illustrated by SME 5’s comment that: “Nobody ever got firedfor buying an IBM”, that is, highly innovative products or services are more acceptablefrom large companies, where a buyer can rely on an established, international reputationrather than risking their reputation as a buyer by choosing a less “reliable” vendor, such asan SME. Thus, SMEs respond in kind, by producing less risk laden innovations, with lessemphasis on new products or services being unique and/or unconventional.

In addition to the variables identified in previous studies all of the cases in thisstudy strongly emphasised the significance of product quality to their innovativemarketing activities and practices. SME 6 stated that:

There isn’t a question that you can have a sub-standard product [. . .] there’s enormouspressure on most products and you just have to benchmark it against what’s out there.And you need to be at least as good, if not better.

Thus, given that the empirical research findings for all of the case companies echoed theconstructs identified in literature as very important to their innovative marketingactivities and practices, product quality was found to be central to the case SMEsinnovative marketing. Thus, the study illustrates that the exceptionality elementidentified from literature (unique proposition) is not a core element of SME innovativemarketing, while product quality has been identified from the findings as a core element.

DiscussionThe analysis undertaken for this research utilised the framework of TAPE to facilitatean overview of the literature review and the research findings. The findings illustratethat transformation, assimilation and prediction (TAP) are strongly relevant to theinnovative marketing activities and practices of the SMEs who participated in thisresearch; a finding which corroborates the extant literature.

However, surprisingly, since it is so strong in the body of literature, exceptionalitywas not found to be integral to innovative marketing in SMEs, and is, therefore,perceived as being of inconclusive relevance to SME innovative marketing. Thisempirical finding is remarkable for two reason, first, this finding demonstrates theSME factor of variance, that is, the literature is inappropriate when set in the context ofSMEs. Second, given that exceptionality and its components (newness, uniqueness andunconventionality) are perceived to be of significance in the extant literature however,based on the empirical findings, competitive advantage for SMEs does not appear to beintrinsically linked to exceptionality.

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This finding is unexpected given the consensus in the relevant literature with regard tothe argument that the creation and sustenance of competitive advantage stems fromengaging in innovative practices, a key factor in SME profitability, long-term growth andsurvival (Johannessen et al., 2001; Knight et al., 1995; Pelham and Wilson, 1995; Zairi, 1995;Salavou, 2004; Quinn, 2000; Doyle, 1998; Tower and Hartman, 1990). Furthermore, from anSME perspective, innovation commonly refers to new products or processes whichaddress customer needs more competitively and profitably than existing solutions(O’Regan and Ghobadian, 2005; Zahra et al., 1999; Mone et al., 1998).

Consequently, based on the findings from this study, the TAPE framework iscondensed to TAP. In addition to the variables acknowledged by literature, innovativemarketing was found to include the emergent variables product quality, strategicalliances, and SME image (Figure 2). The implication of these additions to theperceived scope of innovative marketing has considerably widened the body ofliterature to include published sources which were previously loosely associated withmarketing. For example, although product quality and SME image could previouslyhave been considered areas related to innovative marketing (through its marketingheritage), strategic alliance literature is not generally incorporated into innovativemarketing literature; this research suggests that it should be.

ConclusionInnovative marketing research has been dominated by firm-specific characteristics ofinnovations, and/or the effect of the external environment, large firms, market-based

Figure 2.Findings: innovativemarketing in SMEs – TAP

Innovative marketingin SMEs

Assimilation

• Integrated marketing• Strategic alliances

Transformation

• Marketing variables• Modification• SME image

Prediction

• Market focus• Customer focus

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constructs, product innovativeness, product or business success with little researchundertaken into innovative marketing in the context of SMEs. It is evident from theliterature that much of the research results in lists of components or attributes ofinnovative marketing.

This paper sought to develop a framework that categorises SME innovativemarketing constructs (marketing variables, modification, integrated marketing,customer focus, market focus and unique proposition) in accordance with their rolein innovative marketing and practices in SMEs. Thus, the theoretical frameworkTAPE was developed to encapsulate and explore elements of SME innovativemarketing. Building on these elements the framework categorised these constructs inaccordance with their role in transforming SME marketing activities and practices;assimilating marketing practices throughout the SME, predicting SME marketingrequirements, and developing an exceptional product or service. The frameworkfacilitates the identification of themes, and the exploration of the significance of suchthemes which contributed to the theory building required for this research.

Based on this study, the TAPE framework should more appropriately be changed toTAP, to reflect the finding that exceptionality is inconclusive in terms of itssignificance to innovative marketing in SMEs. The exclusion of exceptionality from theframework is a surprising insight emanating from the research that contradictsprevious studies. Traditionally these elements would have been considered to be thecore of innovative marketing.

Implications for SMEs arising from this study focus on their need to formulate andmaintain a profit-based vision for their business. This will involve focusing on along-term depiction of a profitable business relating to strategic rather than tacticalissues, and should form a major component of business efficiency programmestargeted at SME owner/managers. Additionally, SMEs need to further emphasisecustomer and market focus in their marketing activities and practices, in addition tointegrating marketing across all organisational functions. Such focus and integrationcan best be achieved by educating the heads of function and all employees in therudiments of innovative marketing with a clear focus on how this function is anintegral element of their job.

In extending this research in the future it is proposed to explore the applicabilityand representativeness of the findings to a range of SMEs in a wider range ofgeographic locations, exploring the impact of size and industry, thereby adding furtherrichness to the data.

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Corresponding authorAudrey Gilmore can be contacted at: [email protected]

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