Project Topics

THE IMPACT OF INNOVATIVE MARKETING STRATEGY ON SMALL FIRMS PERFORMANCE IN NIGER STATE

THE
IMPACT OF INNOVATIVE MARKETING STRATEGY ON SMALL FIRMS PERFORMANCE IN NIGER
STATE

 

 

 

CHAPTER
ONE

INTRODUCTION

1.1   BACKGROUND TO THE STUDY

A
driving force for competitive scuffle in the present chaotic environment is
innovative marketing strategy. Introducing new products and services are at the
nucleus of economic growth and development. The ability to innovate has caused
researchers to study activities leading to initiative advancement of
individuals and organizations. Small firms all over the world furnish a strong
increase to employment and economic growth specifically due to their innovative
activities which becomes a main force of explaining competitive advantage and
firm performance (Ussahawanitchakit, 2012). Accordingly, the values fashioned
by innovative marketing strategy shows potential circumstances that uncovered
new ways of doing things or new products and processes that add benefits to economic
fortunes.

A
firm performance is related to the ability of the firm to gain profit and
growth in order to achieve its general strategic objectives (Neu & brown,
2005). It is a consequence of the interaction between actions taken in relation
to competitive forces that allow the firm to adapt to the external environment,
thereby integrating competence and usefulness In both developed and developing
countries of the world, small companies have proofed to be prominent in terms
of employment and added values to gross domestic product, ‘yet their full
potential remains untapped’ Schlogl, (2004). The support given for the start up
of small firms, necessitate them to becoming important engines for innovation
and technological advancement especially in the field of marketing. In 2007,
The World business council for sustainable development gave a summary of the
weight small firms in general lend to government and individuals.Small
firms that are properly supervised become means of employment prospect and
affluence creation. They aid in the generation of revenue and create communal
solidity. Bigger organizations are provided with local services and supplies
and communities have access to affordable goods and services at lower costs.
Furthermore, ‘by working closely with small firms, large corporations can
develop a new customer base that may not be accessible to the traditional
distribution networks of these corporations’ (Menna, 2013). Thus small firms
are a reliable source of supply and have understanding of the pattern of
procurement.

Small
firms, world over have been found to provide jobs for about 75% of the
workforce of any country. In periods of liberalization and privatization small
firms especially in emerging economics, has become vital economic tools and
bedding seeds for entrepreneurship development and indigenous technology that
create employment and are better positioned over bigger firms in their capacity
to be innovative. However there are barriers to the activities of innovative
marketing strategy in small firms which according to Menna (2013) include a
lack in capital investment, infrastructure, education and training systems,
encumber regulations, and in general deficiencies in know-how and skills
acquisition. Other barriers include constrained managerial capabilities,
difficulty in utilizing technology which results in low productivity among
others. Consequently, investing in innovative marketing strategy strengthens
the profit base, knowledge of employees and individuals that drive resilience
of the organizations to create new products, processes, and new behaviour of
working that generates improve competitiveness and achievement of necessary
goals to shape performance.

Existing
literature has described innovative marketing strategy differently. For example
Aremu (2010) affirmed there are three types of innovative marketing strategy,
product, process and strategy or business model innovation. Hussien (2010)
explains
innovative marketing strategy to include five types: new products, new methods
of production, new sources of supply, the exploitation of new markets, and new
ways to organize business. For Allocca & Kessler (2006), innovative
marketing strategy will only be effective when there is a process of equipping
in new, improved capabilities or increased utility. The present study seeks to examine
the effect of innovative marketing strategy on small firm’s performance.

1.2   STATEMENT OF THE PROBLEM

It is understood that innovative marketing
strategy has become a key driver for better
competitiveness of firms. Some studies have found that innovative
marketing strategy is closely associated
with firm performance (Rosli et al., 2012; Mukhamad et al., 2011;
Pla-Barber & Alegre, 2007; Gunday et al., 2011; Gary et al.,
2008; Nada et al., 2008; Morgado et al., 2008; Gunnar et al., 2009).
Others suggested that the effect of process involved in innovative
marketing strategy to have produced different
results for firm performance (Geroski & Machin, 1993). Mark (2004) further
argued that innovative marketing strategy did not explain performance, whereas others discovered that the
process improvement did influence sales growth of small firms (Wolff &
Pett, 2006). However, this study is conducted on the innovative
marketing strategy of small firms to find
out if innovative activities in the marketing strategy have impact on firm performance.
This study attempts to gauge how strong that innovative marketing
strategy affects the performance of small firms, with special reference to
the mediating effect of organizational productivity and effectiveness.

1.3   OBJECTIVES OF THE STUDY

        The general objective of this study is
to analyze the impact of innovative marketing strategy on small
firm’s performance in Niger State while the following are the specific
objectives:

1.  To
examine the
impact of innovative marketing strategy on small
firms performance in Niger State.

2.  To
identify the types of innovative marketing strategy that can promote small
firm’s performance.

3.  To
determine the factors limiting small firm’s performance in Niger state.

1.4   RESEARCH QUESTIONS

1.  What
is the
impact of innovative marketing strategy on small
firm’s performance in Niger State?

2.  What
are the types of innovative marketing strategy that can promote small firm’s
performance?

3.  What
are the factors limiting small firm’s performance in Niger state?

1.5   HYPOTHESIS

HO:
Innovative
marketing strategy does not enhance small firm’s performance

HA:
Innovative
marketing strategy does enhance small firm’s performance

1.6   SIGNIFICANCE OF THE STUDY

        This
study on the impact of innovative marketing strategy on small
firm’s performance in Niger State will educate stakeholders in business sector
especially the marketers and the management team on the benefits of innovative
marketing strategy emphasizing how it can enhance the customer base of an
organization leading to improved firm’s performance. The study may also contribute to the
existing body of knowledge on the impact of innovative
marketing strategy on small firm’s performance. The study will be a good reference material to students
who may wish to use this study as a springboard to undertake their own
research.

1.7   SCOPE/LIMITATIONS OF THE STUDY

This
study on the impact of innovative marketing strategy on small
firm’s performance in Niger State will cover all the small firms in Niger State
by examine how innovative marketing strategy has improved their performance.
This study will also cover different types of innovative marketing strategy and
other factors limiting small firm performance in Niger state.

1.8   DEFINITION OF TERMS

Performance:
The accomplishment of a given task measured against preset known standards of
accuracy, completeness, cost, and speed. In a contract, performance is deemed
to be the fulfillment of an obligation, in a manner that releases the performer
from all liabilities under the contract.

Strategy:
A method or plan chosen to bring about a desired future, such as achievement of
a goal or solution to a problem.

Innovation:
The process of translating an idea or invention into a good or service that
creates value or for which customers will pay.


 

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