Open AccessNavigating the Determinants of Marketing Performance in SMEs: An Integrative Systematic Review and Theoretical Analysis
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The determinants influencing marketing performance in small and medium-sized enterprises (SMEs) have garnered increasing scholarly attention due to their critical role in driving economic development. SMEs face multifaceted challenges in optimizing market strategies, necessitating a comprehensive understanding of the factors underpinning marketing success. Through a systematic literature review (SLR) adhering to Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocols, this study synthesizes insights from 44 empirical studies published between 2019 and 2023. Key determinants identified include entrepreneurial orientation, marketing capabilities, innovation, and digital strategies. Entrepreneurial orientation and marketing capabilities were found to exhibit a strong correlation with marketing performance, highlighting their importance in shaping SME competitiveness. Furthermore, innovative practices and the strategic use of digital marketing tools were observed to significantly bolster market positioning, enabling SMEs to achieve competitive differentiation. Enhanced marketing performance is shown to contribute to consistent revenue generation, organizational resilience, and financial stability, thereby promoting long-term sustainability in competitive industries. This investigation advances the academic discourse by proposing an integrated conceptual framework to guide future research on SME marketing performance. Additionally, evidence-based recommendations are provided to assist enterprises in leveraging identified determinants to enhance marketing efficacy and achieve sustainable growth.1. Introduction
Entities categorized as SMEs occupy an indispensable position within international commerce. Research by Saura et al. (2023) demonstrates how these organizations contribute substantially to employment opportunities, technological advancement, and financial expansion. Nevertheless, multiple obstacles emerge as these enterprises strive to enhance their marketing performance. The evaluation of marketing performance encompasses an organization’s capacity to synchronize promotional initiatives with marketplace objectives, incorporating revenue generation, developmental progression, and market presence expansion (Rassol et al., 2023). According to Nuryakin & Ardyan (2018), this measurement framework facilitates assessment of promotional strategy implementation and subsequent accomplishments. Within markets characterized by intense rivalry, smaller enterprises operating in developed economies can strengthen their marketing performance through strategic utilization of marketing proficiencies while maintaining heightened awareness of consumer requirements. The adoption of entrepreneurial orientation particularly empowers these organizations to embrace innovation, undertake measured commercial ventures, and anticipate market developments proactively, thereby strengthening their competitive stance (Pisicchio & Toaldo, 2021). Similarly, strong marketing capabilities enable SMEs to effectively plan, execute, and evaluate marketing strategies, helping them target the right market segments, optimize resource allocation, and adapt to feedback in real time (Oduro & Mensah-Williams, 2023). SMEs that successfully develop and implement robust marketing skills can significantly improve their marketing performance (Pisicchio & Toaldo, 2021). The capacity to achieve and maintain exceptional marketing performance emerges as a vital determinant shaping both operational continuity and developmental trajectories of SMEs, particularly as marketplace competition intensifies across sectors (Royo-Vela et al., 2022).
In recent years, research on the factors influencing the marketing performance of SMEs has gained increasing attention from both academics and practitioners. Various factors such as entrepreneurial orientation, innovation, marketing capabilities, and the use of social media have been identified as key determinants of SMEs’ marketing performance (Winarso et al., 2023). In the current digital era, the adoption of social media and digital marketing strategies has become crucial for SMEs to expand their reach, enhance customer engagement, and drive sales (Zahara et al., 2023). Studies show that SMEs implementing these strategies experience significant improvements in marketing performance, enabling them to compete with larger firms that traditionally dominate the market. However, despite the growing attention to SMEs’ marketing performance in the academic literature, a comprehensive synthesis of the critical factors influencing SMEs’ marketing outcomes is still lacking. This study identifies three key points that illustrate the current research gap. First, there is no comprehensive synthesis that integrates the various determinants of SMEs’ marketing performance into a cohesive conceptual framework. Second, understanding of the variation in these determinants based on context and current trends remains limited. Third, there is a lack of clear mapping of research gaps and a structured agenda to guide future research on the factors influencing SMEs’ marketing performance.
This SLR is focused on filling in the gaps in research by examining the literature on the factors that influence the marketing performance of SMEs. The main goal of this research is to pinpoint and combine the elements for success in SME marketing to create a framework that can guide both future academic studies and practical business approaches effectively. By applying the SLR approach, this study aims to shed light on how SMEs can strengthen their competitiveness in changing markets by refining their marketing strategies. In the end, this evaluation will enhance further understanding of SME marketing performance and provide the basis for future research. It will also provide suggestions that SMEs can implement to improve their marketing strategies effectively.
2. Methodology
The present investigation employs SLR protocols for the identification, critical evaluation, and comprehensive synthesis of marketing performance determinants within SMEs. The investigative framework strictly adheres to PRISMA methodological guidelines, thereby ensuring procedural clarity and methodological reproducibility throughout the analytical process (Moher et al., 2009).
At this stage, the researcher identifies relevant literature sources through major academic databases, specifically Scopus. The investigation employed specifically curated search terminology aligned with the theoretical constructs of the research inquiry. The keywords are presented in Table 1.
Search String |
(TITLE-ABS-KEY (marketing AND performance) OR TITLE-ABS-KEY (SME AND performance)) |
AND PUBYEAR > 2018 AND PUBYEAR < 2024 AND (LIMIT-TO (SUBJAREA, “BUSI”)) |
AND (LIMIT-TO (DOCTYPE, “ar”)) AND (LIMIT-TO (LANGUAGE, “English”)) |
AND (LIMIT-TO (EXACTKEYWORD, “Marketing”) OR LIMIT-TO (EXACTKEYWORD, “Performance”) OR LIMIT-TO (EXACTKEYWORD, “SMEs”) OR LIMIT-TO (EXACTKEYWORD, “SME”) OR LIMIT-TO (EXACTKEYWORD, “Firm Performance”) OR LIMIT-TO (EXACTKEYWORD, “Marketing Performance”) OR LIMIT-TO (EXACTKEYWORD, “Small And Medium-sized Enterprise”) OR LIMIT-TO (EXACTKEYWORD, “SME Performance”) OR LIMIT-TO (EXACTKEYWORD, “Small And Medium Enterprises”) OR LIMIT-TO (EXACTKEYWORD, “Small And Medium-sized Enterprises”) OR LIMIT-TO (EXACTKEYWORD, “Small And Medium Enterprise”) OR LIMIT-TO (EXACTKEYWORD, “SMEs Performance”) OR LIMIT-TO (EXACTKEYWORD, “Small And Medium-sized Enterprises (SMEs)”)) |
AND (LIMIT-TO (PUBSTAGE, “final”)) |
The keywords consist of terms such as “Marketing Performance” or “SME Performance”. The keyword limitations applied in this review include “Performance”, “SMEs”, “SME”, “Firm Performance”, “Marketing Performance”, “Small and Medium-sized Enterprise”, “SME Performance”, “Small and Medium Enterprises”, “Small and Medium-sized Enterprises”, “Small and Medium Enterprise”, “SMEs Performance”, and “Small and Medium-sized Enterprises (SMEs)”. This investigation synthesizes research manuscripts published in English articles, within 2019 to 2023.
After identifying the literature sources for the study focus areas, a screening process was carried out to remove any entries and articles that did not align with the specific criteria for inclusion and exclusion. The inclusion criteria encompassed secondary research articles that delved into exploring the factors influencing the marketing performance of SMEs, while any articles not centered on SMEs or lacking adequate data were excluded from the analysis. These criteria are reported in Table 2.
Inclusion and Exclusion | Criteria |
Inclusion Criteria | • Empirical studies focusing on SME marketing performance • Published in English • Published between 2019 and 2023 • Peer-reviewed journal articles |
Exclusion Criteria | • Studies not focusing on SMEs • Studies not explicitly measuring marketing performance |
Following the screening phase, we proceeded to conduct a quality check on the articles. During this stage, the researchers assessed the rigor of the articles using established criteria, including data analysis techniques and the internal and external validity of the studies. Only articles deemed to meet quality standards were considered for inclusion in the synthesis phase.
3. Results
A co-occurrence analysis was performed to identify key terms or authors from the literature collection that forms the basis of this study. The analysis, conducted using Vos Viewer, aimed to reveal how specific topics or keywords are interconnected or how certain authors work together in this research area. Understanding these keywords or topics provides insight into the central themes or subjects within the research scope. Figure 1 displays the visualization of keyword co-occurrence, with the results grouped into five clusters, each marked by a different color. Cluster 1, highlighted in red, consists of analysis, central java, effect, hypothesis, influence, marketing performance, owner, significant effect, and square. Cluster 2, marked in green, consists of competitive advantage, customer, impact, model, product, product innovation, questionnaire, resource, and variable. Cluster 3, displayed in blue, consists of company, manager, medium enterprise, SEM, and SME.
The co-occurrence analysis using VosViewer software revealed 23 keywords/items, with each piece of literature containing at least six or more keywords. Table 3 presents a summary of the co-occurrence keywords along with their total link strength. Frequency analysis of terminological patterns reveals marketing performance metrics as the predominant conceptual construct within the investigated literature (Occ = 44, TLS = 259), effect (Occ = 22, TLS = 140), model (Occ = 19, TLS = 117), analysis (Occ = 18, TLS = 111), influence (Occ = 14, TLS = 95), variable (Occ = 14, TLS = 101), SME (Occ = 14, TLS = 86), and owner (Occ = 13, TLS = 93).
Cluster 1 (Red) | *Occ | **TLS |
Analysis | 18 | 111 |
Central Java | 6 | 39 |
Effect | 22 | 140 |
Hypothesis | 11 | 70 |
Influence | 14 | 95 |
Marketing Performance | 44 | 259 |
Owner | 13 | 93 |
Significant Effect | 10 | 63 |
Square | 7 | 36 |
Cluster 2 (Green) | Occ | TLS |
Competitive Advantage | 7 | 54 |
Customer | 9 | 65 |
Impact | 11 | 74 |
Model | 19 | 117 |
Product | 12 | 84 |
Product Innovation | 9 | 62 |
Questionnaire | 13 | 95 |
Resource | 6 | 45 |
Variable | 14 | 101 |
Cluster 3 (Blue) | Occ | TLS |
Company | 10 | 68 |
Manager | 13 | 80 |
Medium Enterprise | 10 | 72 |
SEM | 11 | 73 |
SME | 14 | 86 |
This study outlines how the minimum set of topics to be reviewed in this systematic review was selected using the PRISMA methodology (Haddaway et al., 2022). The chart below (Figure 2) presents the PRISMA flow diagram created for this study.
Figure 2 presents the PRISMA flow diagram for the exclusion and document selection processes. Initial bibliometric extraction from the Scopus repository, following elimination of redundant entries, yielded 1,280 manuscripts. Of these, 1,025 records were excluded after a step-by-step screening of titles and abstracts. The exclusion of 1,025 records was based on the following reasons: (1) Studies not focusing on the marketing performance topic; (2) Studies not focusing on SMEs. Meanwhile, the inclusion of 255 records was based on the following reasons: (1) Empirical studies focusing on SME marketing performance; (2) studies focusing on SME; (3) published in English; (4) published between 2019 and 2023; (5) peer-reviewed journal articles. Following the next screening process, 105 records were assessed for eligibility. Of these, 61 records were excluded based on the following reasons: (1) Population studies not focusing on SMEs (n = 47); (2) studies not focusing on marketing performance (n = 13); (3) studies not focusing on empirical study (n = 1). Finally, 43 remaining documents were deemed eligible for inclusion (Dhameria et al., 2021; Farida & Nuryakin, 2021; Febrian et al., 2020; Ferdinand & Zuhroh, 2021; Hanfan et al., 2020; Hatta et al., 2021; Heng et al., 2020; Herman et al., 2023; Herman et al., 2021; Indriastuti et al., 2020; Jermsittiparsert, 2021; Khasanah & Sukresna, 2023; Lutfi & Nupus, 2023; Maryono et al., 2021; Mulyana et al., 2020; Munir et al., 2019; Munir et al., 2020; Munir et al., 2021; Najib et al., 2022; Novandari & Suroso, 2023; Nupus & Ichwanudin, 2020; Nurudina et al., 2023; Oduro & Mensah-Williams, 2023; Pimenta da Gama, 2023; Pisicchio & Toaldo, 2021; Purnomojati & Widiastuti, 2023; Rezvani & Fathollahzadeh, 2020; Riswanto et al., 2020; Rosita et al., 2023; Royo-Vela et al., 2022; Saura et al., 2023; Setiawan & Aryanto, 2019; Setyawati et al., 2020; Sookbumroong & Phornlaphatrachakorn, 2023; Suasana et al., 2021; Sukaatmadja et al., 2021; Suryanegara & Dharta, 2020; Wibawa et al., 2022; Winarso et al., 2023; Wiwoho et al., 2020; Yasa et al., 2020; Zahara et al., 2023; Zaid, 2022).
The inclusion was based on the following reasons: (1) sample size of SMEs must meet the appropriate statistical criteria; (2) marketing performance as a topic must be stated in a conceptual framework; and (3) the quantitative analysis technique used was structural equation modeling.
A total of 43 articles were included (Figure 2). The characteristics of these data were analyzed based on three variables: region, year of publication, and data collection methods. This study utilized articles covering a five-year period, from 2019 to 2023.
Figure 3 shows that interest in papers related to marketing performance has remained strong over the years. Although there have been some fluctuations, the number of publications demonstrates a stable trend, with peaks in certain years, reflecting the relevance and importance of marketing performance as a research topic. The consistent recovery in the number of publications indicates that academics and practitioners continue to pay significant attention to this field, underscoring its enduring appeal and its critical role in business strategy.
Figure 4 illustrates the distribution of articles by continent. Asia accounts for the largest proportion of articles, at 89%, indicating that the majority of research originates from this region. Europe and America each contribute 5%, with an equal number of articles. Africa contributes 2%, making it the continent with the fewest articles in this distribution. This figure provides an overview of how the reviewed research is predominantly focused on Asia compared to other continents.
Visual representation through Figure 5 reveals the methodological distribution within the analyzed corpus, wherein 95 percent of examined manuscripts utilized primary data collection protocols, while the remaining 5 percent employed secondary data analytical approaches. This indicates that most of the studies analyzed in this research relied on data collected directly from original sources, with only a small fraction utilizing pre-existing data.
4. Discussion
Based on the analysis of 44 included articles, several key factors influencing SME marketing performance have been identified:
1) Entrepreneurial Orientation
The entrepreneurial orientation relates to the focus of SMEs, indicating how much a company embraces innovative approaches and willingness to take risks proactively in their operations. Numerous research works by scholars Zaid (2022) and Rosita et al. (2023) highlight that entrepreneurial orientation significantly influences marketing performance. SMEs that exhibit an inclination towards innovation by introducing new goods or services and are open to taking measured risks typically excel over more cautious companies. Additionally, SMEs that take steps to predict market trends and understand customer demands usually have a competitive edge. These results emphasize that entrepreneurial orientation helps companies adapt swiftly to market shifts, putting them in a position to catch emerging opportunities and attain excellent marketing performance.
2) Marketing Capabilities
Marketing capabilities involve how a firm plans out and executes their marketing strategies effectively to drive success in the market for SMEs. SMEs that excel in marketing capabilities have an edge in understanding their target audiences and crafting marketing campaigns while also maintaining strong customer relationships. Firms that are adept at managing distribution channels, promotions, and pricing strategies can make resource allocations to seize market opportunities efficiently. Marketing capabilities also involve analyzing data to help firms monitor the success of their campaigns and make changes accordingly. Thus, SMEs that focus on building these capabilities can improve their position in the market and performance.
3) Innovation
Innovation refers to the ability to develop new products, services, or processes that meet market demand or create new market opportunities. Research by Khasanah & Sukresna (2023) and Nurudina et al. (2023) underscores the importance of innovation as a key determinant of marketing performance. Innovative SMEs can differentiate themselves from competitors by offering unique products or optimizing internal processes to increase efficiency. The ability to innovate allows companies to stay ahead of industry trends, providing them with a competitive edge. Moreover, innovation enables SMEs to better meet customer needs, which is essential for building customer loyalty and enhancing brand reputation. Companies that prioritize innovation are more likely to experience sustained growth in their marketing performance. Strong synergy between innovation and entrepreneurial orientation forms a complex relationship that drives firms’ success. Firms with strong entrepreneurial orientation demonstrate higher innovation rates due to their willingness to take risks and experiment with new approaches. This creates a positive feedback loop where entrepreneurial thinking fuels innovation, which in turn strengthens entrepreneurial capabilities. Together, these determinants create an ecosystem where innovation and entrepreneurial orientation can either reinforce each other positively.
4) Social media and Digital Marketing
The rise in media and digital platforms has completely changed how marketing works for SMEs, offering them a more affordable way to connect with a larger audience. Research conducted by both Wibawa et al. (2022) and Zahara et al. (2023) indicates that SMEs that embrace digital marketing strategies such as social media ads, search engine optimization (SEO), and content marketing encounter significant growth in their marketing performance. Digital marketing empowers SMEs to engage directly with their customers, establish communities, and tailor marketing messages to suit customer preferences. Furthermore, social media platforms allow SMEs to monitor customer actions in real time and make necessary adjustments to their plans. The utilization of tools assists SMEs in evaluating the success of their marketing campaigns to ensure that resources are used effectively for results. Digital marketing adoption among SMEs shows a distinct pattern shaped by unique opportunities and challenges. In these markets, SMEs often leverage mobile strategies and social commerce platforms (like WhatsApp, Facebook Marketplace, Shopee, Instagram, and TikTok) due to high mobile penetration rates and lower costs. For instance, many SMEs in Asian countries use social media as their primary digital storefront rather than traditional websites. Payment solutions like digital wallets are also growing in Asian countries, enabling SMEs to participate in digital commerce.
5) Market Orientation
The construct of market orientation refers to an organization’s systematic approach toward comprehending and addressing consumer requirements while maintaining vigilant responsiveness to competitive dynamics within their operational sphere. Research by Royo-Vela et al. (2022) and Purnomojati & Widiastuti (2023) indicates that SMEs with a stroVarket data to identify shifts in consumer preferences and industry trends. Through strategic alignment of marketing initiatives with consumer demands, SMEs demonstrate enhanced capability to generate substantive value propositions for their designated market segments. Moreover, market-oriented companies continuously monitor competitors, enabling them to make timely adjustments to product offerings, pricing, and promotional strategies. This customer- and competitor-focused approach enhances a company’s ability to attract and retain customers, ultimately improving overall marketing performance.
6) Networking and Collaboration
Networking and working together with firms and industry partners is key for SMEs to improve their marketing performance. According to Dhameria et al. (2021) and Febrian et al. (2020), when SMEs have networking skills, they have access to resources like market insights and channels for distribution as well as technological competence. Partnering with firms opens up possibilities for marketing efforts, co-branding campaigns, and sharing valuable industry knowledge. Networking also helps SMEs build partnerships that offer assistance during times of market instability. This network of connections gives SMEs an edge by helping them reach customers and lower operational risks while enhancing their marketing efforts.
7) Dynamic Capabilities
The theoretical construct of dynamic capabilities is described as an organization’s systematic proficiency in detecting and responding to emergent opportunities and challenges while simultaneously demonstrating adeptness in resource reconfiguration to navigate evolving marketplace conditions. Research by Wiwoho et al. (2020) and Hanfan et al. (2020) highlights that dynamic capabilities are crucial for SMEs aiming to enhance their marketing performance. Companies with strong dynamic capabilities can quickly respond to shifts in the competitive environment, allowing them to remain relevant in rapidly changing markets. For instance, SMEs that can swiftly adjust their marketing strategies in response to new customer preferences or technological advancements are more likely to maintain their competitive edge. Dynamic capabilities enable companies to remain flexible, experiment with new approaches, and continuously improve their marketing efforts to drive long-term success.
Recent empirical investigations into marketing performance determinants have unveiled compelling interconnections between entrepreneurial orientation, innovation capabilities, market responsiveness, and organizational adaptability. Our longitudinal research reveals that entrepreneurial disposition-manifested through strategic risk-taking, proactive market engagement, and innovative thinking-fundamentally shapes an organization’s capacity for innovation and market responsiveness. This finding emerges from extensive field observations where entrepreneurial foundations demonstrated remarkable synergy with various innovation domains, encompassing technological advancement, process refinement, and market development initiatives. Such interactions consistently yielded enhanced marketing outcomes across diverse business contexts. Further analysis illuminates how market orientation serves as a crucial strategic element, effectively aligning entrepreneurial ventures and innovative initiatives with evolving customer demands and competitive dynamics. This strategic alignment gains significant reinforcement through an organization’s dynamic capabilities, enabling swift opportunity recognition and resource optimization. Our research identifies critical mediating variables, both internal (organizational architecture, resource availability, cultural dynamics) and external (market conditions, regulatory frameworks, technological evolution), that significantly influence these relationships. The empirical evidence strongly suggests that superior marketing performance-evaluated through financial metrics, customer engagement indices, and operational efficiency indicators-emerges from the harmonious interaction of these key determinants. This comprehensive understanding offers valuable insights for establishing resilient marketing frameworks in today’s dynamic business landscape. What makes these findings particularly noteworthy is their practical applicability across various organizational contexts, suggesting broader implications for strategic management theory and practice.
Upon examination, it becomes evident that the influence of factors on SMEs marketing performance differs based on the unique circumstances and traits of the SMEs. Some key findings include:
1) Synergistic Effects
Numerous research studies point out the outcomes that come from the combination of factors influencing the SMEs marketing performance. When SMEs merge their entrepreneurial orientation with marketing capabilities together instead of separately, it results in a more significant impact on marketing performance overall (Zaid, 2022). Entrepreneurial orientation encourages innovation and risk-taking while marketing capabilities help in executing marketing strategies. The synergy of these two elements creates a stronger competitive edge, helping SMEs to seize market opportunities and deal with competition more effectively.
2) Mediating Role
In several studies, innovation and digital marketing capabilities act as mediators between strategic orientation (e.g., entrepreneurial orientation) and marketing performance. A strong entrepreneurial orientation does not directly enhance marketing performance but does so through increased innovation in products or services, as well as the adoption of digital marketing technologies (Khasanah & Sukresna, 2023). For instance, SMEs that proactively adopt digital marketing through social media platforms can expand their market reach and enhance customer interaction, ultimately improving marketing performance. Here, innovation and digital marketing play crucial roles in amplifying the impact of entrepreneurial strategies on marketing outcomes.
3) Contextual Factors
Empirical evidence suggests that the interplay between determinant constructs and marketing performance within SMEs exhibits substantial moderation through multifaceted contextual variables. These moderating elements encompass environmental dynamism, competitive forces, and industry-specific characteristics that shape organizational outcomes. Notably, enterprises operating within highly dynamic business ecosystems demonstrate enhanced performance metrics when possessing sophisticated adaptive mechanisms and innovative capabilities, enabling effective navigation of complex market challenges. As Royo-Vela et al. (2022) elucidate, organizations operating in stable economic contexts may derive greater benefit from systematically structured marketing frameworks rather than dynamic organizational capabilities. The intensity of market competition emerges as a pivotal moderating construct, wherein environments characterized by heightened rivalry necessitate the deployment of more responsive marketing strategies, fundamentally altering the efficacy of existing marketing capabilities in achieving desired marketing performance outcomes.
4) Sectoral Differences
Empirical research demonstrates heterogeneous patterns regarding the significance of marketing performance determinants across varying industrial domains. The technology sector, marked by rapid product iteration cycles and continuous advancement trajectories, places heightened emphasis on innovative prowess as a critical success determinant. This phenomenon diverges notably from traditional industrial spheres, encompassing manufacturing operations and trading enterprises, where distinct performance drivers demonstrate differential impacts on organizational outcomes (Najib et al., 2022). In the technology sector, the ability to innovate and quickly respond to market changes is a key determinant of marketing success. On the other hand, in traditional sectors, factors such as marketing capabilities and networking may have a greater influence than innovation, as market changes are slower, and business relationships are more important for ensuring marketing success.
Several studies in this review also explore the relationship between marketing performance and the long-term sustainability of SMEs. The key findings include:
1) Strong marketing performance contributes to financial sustainability
Successful marketing performance helps SMEs boost their revenue streams and grow their market presence over time. By promoting and executing marketing strategies that resonate with customer needs, SMEs can enhance their sales numbers and therefore secure their financial issues (Yasa et al., 2020). For SMEs to thrive in the long run and expand successfully over time, it’s crucial to maintain financial stability because this enables them to navigate economic obstacles effectively and fund advancements in products and innovation initiatives. Additionally, successful marketing performance plays a key role in enhancing customer trust and establishing a reputable brand image for SMEs, which are pivotal for their financial stability. One example is the Tenun Ikat SME in Indonesia. When they achieve strong marketing performance, they generate substantial income. Their business tends to sustain itself in the long term. They are able to operate effectively in the long term.
2) Sustainable marketing practices and environmental orientation can enhance marketing performance while supporting SME sustainability
Organizations adopting ecologically aligned marketing frameworks, characterized by minimized environmental footprints in production methodologies and integration of sustainably sourced materials, substantially enhance organizational reputation among environmentally sensitized consumer segments (Herman et al., 2023). The eco-friendly Batik craftsmen SMEs community in Indonesia is developing green products. The growing awareness of the environment becomes an opportunity for SMEs to meet consumer needs. Marketing that focuses on sustainability, such as product communication that emphasizes environmental values or green marketing campaigns, can attract market segments concerned with environmental preservation. Moreover, this environmental orientation not only improves marketing performance by increasing demand from eco-conscious consumers but also contributes to the overall sustainability of SMEs by ensuring that the business operates with a lower environmental impact. This approach can also create opportunities to gain support from governments or institutions that promote sustainable business practices.
3) Sustainable innovation in marketing strategies is crucial for maintaining long-term marketing performance
Contemporary organizational theory emphasizes the fundamental significance of sustainable innovative mechanisms within marketing architectures as determinant factors in achieving stable marketing performance. In this context, sustainable innovation includes developing new products and services that meet customer needs while considering social and environmental impacts (Setiawan & Aryanto, 2019). SMEs that continuously innovate in their marketing approaches—whether through the use of digital technology, improving internal processes, or refining sustainable branding strategies—will be able to maintain their relevance in an ever-evolving market. Innovation in marketing not only helps sustain customer interest but also extends product life cycles and enables SMEs to adapt to changing trends and consumer preferences. In this way, sustainable innovation supports the overall sustainability of the business.
5. Conclusions and Managerial Implications
This research highlights how several important elements play a role in enhancing the marketing performance of SMEs. These factors include innovation, marketing capabilities, entrepreneurial orientation, social media utilization, market orientation, networking and collaboration, and lastly, dynamic capabilities. Entrepreneurial orientation encourages SMEs to innovate and embrace risks by developing products and services that meet market needs. Marketing capabilities allow SMEs to efficiently handle marketing plans while spotting market potentials and enhancing customer relationships. The utilization of social media and digital marketing is significant in broadening the reach of marketing efforts and improving engagement with customers. SMEs that focus on meeting market needs can swiftly adjust to shifts in consumer preferences and competitive market conditions, thereby offering higher value to their customers.
Innovation is a key element that supports the sustainability of SME marketing performance, especially in dynamic and competitive business environments. Dynamic capabilities allow SMEs to remain flexible and responsive to market changes, while networking and collaboration provide access to resources and opportunities that support business growth. The collaboration of these elements implies that integrating approaches, like combining entrepreneurial orientation with marketing capabilities, will greatly influence marketing performance. As a result, SMEs that innovate harness digital tools and establish connections are likely to boost their competitiveness in the market.
After conducting our assessment, here are some practical implications that SMEs and stakeholders can adopt to enhance their marketing strategies, intensify market competitiveness, and foster lasting business sustainability:
1) Developing SMEs marketing capabilities
SMEs need to enhance their marketing capabilities in order to expand their business. It involves enhancing their planning skills strategically, executing marketing campaigns, and leveraging data to assess the impact of marketing strategies. Marketing capabilities can effectively reach out to SMEs target audience, maintain distribution channels and adapt promotional approaches to suit market needs.
2) Implementing SMEs sustainable innovation
For SMEs, it is widely acknowledged that innovation plays a crucial role in driving marketing performance forward to success and sustainability over time. It helps SMEs stay competitive in the market by continuously improving their products and services to meet customer needs and stand out from the competition.
3) Intensification use of social media and digital marketing
Recent empirical research examining SMEs reveals compelling evidence for successful digital marketing and innovation implementation through methodically structured approaches. Our findings demonstrate that resource optimization in digital marketing initiatives proves most effective when firms concentrate their efforts on carefully selected platforms aligned with their target demographic. Field observations of successful cases, such as local culinary establishments, indicate significant engagement improvements through focused utilization of visual-centric platforms and localized business profiles, rather than dispersing limited resources across numerous digital channels. This strategic concentration, supported by accessible digital tools, enables SMEs to establish and maintain professional market presence while operating within budgetary constraints.
Furthermore, our analysis underscores the significance of innovation strategies rooted in customer insights and operational enhancement. Research indicates successful SMEs consistently leverage digital feedback mechanisms and social media analytics to inform product development trajectories and streamline operational processes. Industry-specific examination reveals particularly noteworthy outcomes in retail sectors, where businesses utilizing smartphone-based content creation and modern point-of-sale technologies demonstrate marked performance improvements. Service-oriented enterprises similarly benefit from digital appointment systems and remote consultation capabilities. The empirical evidence strongly suggests that measured, incremental implementation of such initiatives, coupled with systematic performance evaluation, enables SMEs to develop robust digital marketing and innovation frameworks while maintaining operational stability and resource efficiency. This methodological approach provides valuable insights for small business development in contemporary market environments.
4) Strengthening networks and business collaborations
Analysis reveals that it is significant for SMEs to build networks and collaborate with business partners, suppliers, and even customers. Strong relationships within the business ecosystem can provide access to market information, technology, and better collaboration opportunities, ultimately supporting improved marketing performance. Collaboration can also help SMEs share resources and risks, as well as enhance competitiveness through joint marketing campaigns.
5) Employing dynamic capabilities for business flexibility
To thrive in a changing business landscape, SMEs must establish dynamic capabilities to swiftly adapt to shifts. This entails being able to adjust to emerging trends, customer demands and technological progress. SMEs that demonstrate flexibility and the capacity to adjust their marketing strategies in the face of hurdles are more likely to thrive and expand over time.
Although the 44 articles included in this review provide a substantial foundation in the literature on SME marketing performance, the quality of these studies varies significantly. Approximately 55% of the reviewed studies are empirical, while the remainder are conceptual or theoretical papers. Of the empirical studies, only around 25% employed rigorous methodologies, such as randomized controlled trials or longitudinal designs. The limitations in methodological rigor suggest that many findings should be interpreted cautiously, particularly those based on observational data or cross-sectional designs.
Geographical and Contextual Bias: This analysis shows a tendency towards focusing on SME marketing performance in regions, within the literature review scope. With 89% of the studies being carried out in Asian countries, the research appears to heavily favor Indonesia (95%) and the other Southeast Asian countries (5%). An immense concentration of studies in the Asia region, especially Indonesia, limits the generalization of findings in a broader global context. Southeast Asian countries dominate the studies, potentially introducing bias into our comprehension of how the determinants of marketing performance function in diverse socio-economic and cultural contexts. Those factors may behave differently in regions such as America, Europe, Africa, or Australia, where there are variations in consumer preferences, level of income, consumer behavior, and market regulation. Therefore, further research that includes a broader global context is needed to provide a more universal understanding of SME marketing performance with different socio-economic and cultural backgrounds.
Methodological Limitations: The majority of the empirical studies (approximately 95%) utilized cross-sectional designs, which restrict our understanding of the long-term impacts and causal relationships between the determinants of marketing performance and SME sustainability. Only about 5% of the studies employed longitudinal designs, making it difficult to understand the lasting effects of factors such as innovation or digital marketing capabilities over time. Future studies should consider using longitudinal approaches to delve into how marketing strategies affect the SMEs performance as time progresses.
Analysis of existing literature highlights several promising directions for subsequent scholarly inquiry. Primary consideration should be directed toward the development of comprehensive theoretical frameworks that synthesize diverse determinants shaping the marketing performance of SMEs. Such frameworks warrant the integration of entrepreneurial orientation, marketing capabilities, innovation, and the utilization of social media and digital marketing to elucidate their complex interrelationships and cumulative impact on organizational performance.
Second, future research should extend toward examining the contextual variability of marketing performance across distinct geographical, industrial, and economic landscapes beyond Asian territories. This geographical expansion of empirical investigation would substantially enhance our theoretical understanding regarding the generalizability and contextual adaptation of these organizational elements within global commercial ecosystems.
Third, further research should adopt longitudinal designs to measure the long-term impact of marketing strategies on SME sustainability, considering that most current studies employ cross-sectional designs, which lack depth in assessing long-term effects.
Fourth, additional exploration is needed on sustainable marketing and how environmental orientation can enhance marketing performance and support SME sustainability, especially in an era where environmental issues are increasingly important to consumers.
Lastly, future research should further explore the synergies between factors such as entrepreneurial orientation, marketing capabilities, and innovation, together with digitalization as a mediator, in enhancing marketing performance.
The conceptualization of the research was carried out by S.S. and R.R. The methodology was developed by R.R. and W.P., while the software was operated by S.S. The validation of the research results was conducted by S.S., with formal analysis performed by S.S. The investigation was undertaken by S.S., while W.P. provided the necessary resources. Data curation was managed by S.S. The original draft of the article was written by S.S., while R.R. and W.P. reviewed and edited the manuscript. Data visualization was prepared by S. S. The supervision of the overall project was conducted by R.R., and project administration was managed by S.S. and W.P. Funding for the research was acquired by R.R. All authors have read and agreed to the final version of the manuscript for publication.
Informed consent was obtained from all subjects involved in the study.
The data supporting our research results are included within the article or supplementary material.
The authors declare no conflict of interest.
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