Title: The determinants of marketing capability for SMEs

Authors: Popy Rufaidah

Addresses: Faculty of Economics and Business, Department of Management and Business, Universitas Padjadjaran, Jl. Dipati Ukur No. 35, Bandung 40132, West Java, Indonesia

Abstract: Marketing capability is the most under-researched topic notably in the context of small and medium enterprises (SMEs). This study developed a measurement scale for marketing capability of SMEs. The literature posits that marketing capability is the determinative factor of the firms' performance. Nevertheless, indicators that form SMEs' marketing capability are not potentially discovered. The study is used for marketing capability theory as the theoretical foundation for the bases of creating the scale item. A total of 315 survey responses have been collected from the business owners of SMEs. The study performs statistical techniques; first, to uncover the underlying structure using exploratory factor analysis, and second, to verify the factor structure using confirmatory factor analysis (CFA). Three factors emerge to measure marketing capability of the SMEs, namely, marketing intelligence, marketing execution and marketing strategy. The study is considered as one of the foremost studies synchronously examining the measurement of SMEs' marketing capability.

Keywords: marketing capability; SMEs; small and medium enterprises; measurement; scale.

DOI: 10.1504/JGBA.2017.091930

Journal for Global Business Advancement, 2017 Vol.10 No.6, pp.671 - 700

Received: 07 Mar 2017
Accepted: 08 Jul 2017
Published online: 21 May 2018 *

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