Unveiling the linkages between entrepreneurial culture, innovation capability, digital marketing capability and sustainable competitive performance of manufacturing SMEs: evidence from emerging countries

Abstract

Purpose

Although the importance of entrepreneurial culture (EC) has been recognized, it remains unclear how EC affects sustainable competitive performance (SCP). This study aims to explore how EC affects SCP via the mediating role of innovation capability (IC) and the moderating role of digital marketing capability (DMC).

Design/methodology/approach

Based on data gathered from manufacturing small and medium-sized enterprises (SMEs) in Malaysia, the proposed model was tested using partial least squares structural equation modeling via SmartPLS software.

Findings

The analysis results indicate that EC affects IC, which in turn has a positive effect on SCP. In addition, IC mediates the EC-SCP relationship. Importantly, DMC positively moderates the EC–SCP relationship.

Research limitations/implications

This study combines IC, DMC and SCP under resource-based view and dynamic capabilities theory into a single framework. Results confirm EC's impact on SMEs' manufacturing sector SCP, with IC mediating this link. However, the cross-sectional design restricts deeper respondent analysis.

Practical implications

This study offers SME managers/owners and decision-makers insights on enhancing EC for better performance and competitive edge. It highlights IC's crucial role in translating EC into innovation and value creation. Policymakers can also use these findings to design programs for SMEs in emerging markets.

Social implications

This study underscores the significance of EC adoption not only to generate a sustainable competitive advantage for the firm but also to increase the social as well as economic well-being of the firm, especially in the context of emerging economies, such as Malaysia; which are characterized by diverse ethnic groups contributing to their unique social fabric.

Originality/value

This work fills the knowledge gap by providing empirical evidence for the mediating and moderating role of IC and DMC, respectively, in the link between EC and SCP, thus significantly contributing to emerging markets, where managers seek to enhance their understanding of using EC for fostering SCP.

Citation

Al Koliby, I.S., Mehat, N.A.B., Al-Swidi, A.K. and Al-Hakimi, M.A. (2024), "Unveiling the linkages between entrepreneurial culture, innovation capability, digital marketing capability and sustainable competitive performance of manufacturing SMEs: evidence from emerging countries", The Bottom Line, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BL-08-2023-0241