Kwame Adom, Louis Numelio Tettey and George Acheampong
Relationship marketing (RM) has rarely been applied to micro-, small- and medium-sized enterprises (MSMEs) in the informal economy (IE). Thus, this study aims to explore the RM…
Abstract
Purpose
Relationship marketing (RM) has rarely been applied to micro-, small- and medium-sized enterprises (MSMEs) in the informal economy (IE). Thus, this study aims to explore the RM strategy of service rendering micro-enterprises in the IE of a sub-Saharan African country like Ghana.
Design/methodology/approach
This study used a qualitative research approach using a multiple case study design, semi-structured interview and a random sampling technique to sample 15 micro-enterprises. Thereafter, the case was analysed thematically.
Findings
Results show that micro-enterprises in the IE engage in multiple dimensions of RM in their line of business. Also, micro-enterprises in the IE perceived RM as customer care and somewhat their standard of RM benefits measurement are different from those firms in the formal sector. Furthermore, micro-enterprises in the IE face challenges such as high resource commitment, harassment and the technological gap in practising their RM strategy.
Practical implications
MSMEs in the IE should develop a framework to minimise the shortfall of the challenges associated with RM implementation for business continuity and growth because customers are the lifeblood of the business.
Originality/value
To the best of the authors’ knowledge, this is the first known study that looks at RM practices of MSMEs in the IE. It has thrown light on the understudied subject of RM in MSMEs. For micro-enterprises operating in the Ghanaian IE, the benefits to be derived from practising RM are rewarding. The adopted qualitative methodology has provided an in-depth insight into a vital area for both academics and practitioners.
Details
Keywords
Oliver Kwabena Aggrey, Alfred Kwadwo Djan, Naomi Abena Dei Antoh and Louis Numelio Tettey
This study aims to investigate the effectiveness of causation decision-making and effectual decision-making logic in challenging economic situations within agricultural small and…
Abstract
Purpose
This study aims to investigate the effectiveness of causation decision-making and effectual decision-making logic in challenging economic situations within agricultural small and medium-sized enterprises in Ghana.
Design/methodology/approach
The authors collect and derive composite variables from effectuation, causation, financial capital availability (FCA) and crisis performance data through a randomized system based on literature precedents. This study analyzes the data using descriptive analysis, confirmatory factor analysis and ordinary least squared regression through STATA 15.
Findings
The authors find that effectual managers are indeed better off during crisis conditions. Also, there is a significant moderation relationship between the effectuation, FCA and crisis performance.
Originality/value
From strategic management and entrepreneurial process standpoint, the effectuation theory thrives within uncertain business environments. This notwithstanding, literature has often focused on hypothetical, uncertain business environments. The authors present plausible evidence of effectual business behavior from a real crisis, from small agriculture firms’ perspectives and an emerging economy context.