Can entrepreneurial marketing compensate for late market entry? A moderated mediation analysis

Abstract

The study tested whether entrepreneurial marketing (EM) can create unique resource advantages for startups and small firms and compensate for late market entry. The authors collected the responses from 509 fast-food restaurants in Kuwait and analyzed the data through structural equation modeling. The evidence supports a direct effect of time-in-market on market share. However, customer-focused market penetration strategies (MPS) mediated the relationship between time-in-market and market share. Further, innovative, culturally influenced customer relationship management (CRM) moderated the impact of time-in-market and MPS on market share, compensating for late market entry.The authors utilize the Resource Advantage (R-A) Theory to inform market entry literature and provide novel solutions to resource-constrained late entrants who can offset the advantages of early market entrants and gain market share through an entrepreneurial marketing approach. It offers a practical approach for implementing entrepreneurial marketing in assisting small firms in seeking market advantages despite late entry and resource limitations. The study's findings have implications for small firms and marketing managers of late-entrant firms, who can leverage innovative MPS and CRM incorporating cultural artifacts to generate behavioral, emotional, and psychological engagement leading to higher market share.

Keywords

• Entrepreneurial marketing
• Entry timing
• Market penetration
• Relationship marketing
• Market share
• Kuwait