Entrepreneurial performance and marketing analytics: the role of new product innovation
Journal of Small Business and Enterprise Development
ISSN: 1462-6004
Article publication date: 27 February 2024
Issue publication date: 28 March 2024
Abstract
Purpose
Previous studies focus on the direct effects of marketing analytics on entrepreneurial performance, but few explore the underlying mechanisms. Drawing on affordance theory, this study explores pathways through new product innovation (NPI) for the effects of marketing analytics on business performance. NPI is a market-based innovation concept comprising customer- and competitor-driven NPD and incremental innovation.
Design/methodology/approach
Using survey data collected from UK-based entrepreneurial firms operating in the IT and telecoms industries, we apply confirmatory factor analysis and a sequential structural equation model to test the mediating role of NPI in the effect of marketing analytics on market performance and financial performance.
Findings
The results show that marketing analytics enhances business performance through competitor-driven but not customer-driven NPD. Although using marketing analytics to generate customer knowledge for existing product innovation may enhance market performance, this positive effect becomes negative when competitor-driven NPD is undertaken to improve existing product innovation.
Originality/value
This study makes significant contributions to the innovation and NPD literature. It delves deeper into the existing view on the positive contributions of customer engagement to business value creation, revealing the significance of competitor knowledge to enhance business performance through marketing analytics, particularly in the context of IT and telecoms entrepreneurial firms.
Keywords
Citation
Lin, F. and Eng, T.-Y. (2024), "Entrepreneurial performance and marketing analytics: the role of new product innovation", Journal of Small Business and Enterprise Development, Vol. 31 No. 2, pp. 418-440. https://doi.org/10.1108/JSBED-06-2023-0253
Publisher
:Emerald Publishing Limited
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