Determinants of Marketing Innovations in Small and Medium-Sized Enterprises

An Empirical Study

Abstract

Purpose: This study aims to examine the effects of internal factors (organizational culture and leadership, resources and human capital, technological capabilities) and external pressures (shifts in Consumer Behavior, Competitive Intensity, Institutional and Regulatory Pressures) on marketing innovations in SMEs in Bamenda III, Cameroon

Methods: Based on Schein’s Organizational Culture and Leadership Theory (1985), the resource-based view (RBV) of Barney (1991), and the Dynamic Capabilities Framework (Teece, 2007), the study used a quantitative design. A convenience sampling approach was used to select 133 SMEs, as it was justified on the grounds of its practicality, cost-effectiveness, and accessibility. Multiple correspondence analysis was used to construct indices for organizational culture and leadership, resources and human capital, technological capabilities, shifts in consumer behavior, competitive intensity, and institutional and regulatory factors. The ordinary least squares estimation technique was used to test the hypotheses of the study

Results: Organizational Culture and Leadership (OCL) had a negative and statistically significant effect on marketing innovation, whereas Technological Capabilities (TEC) had a negative but statistically insignificant effect. Resources and Human Capital (RHC) had a negative and significant effect on marketing innovations, and shifts in Consumer Behavior (SCB) exhibited a positive and statistically significant relationship with marketing innovation. that Competitive Intensity (CI) had a positive and statistically significant effect on marketing innovations, and Institutional and Regulatory Pressures (IRP) had a positive and highly significant effect on marketing innovation. A negative and statistically significant effect was observed for firms with 6–7 years of experience, suggesting that older SMEs may exhibit innovation fatigue or strategic inertia, relying on established routines rather than exploring new marketing approaches.

Implications: This study underscores the complex interplay between internal and external factors that influence marketing innovations among SMEs in Bamenda III, Northwest Cameroon. While external pressures like consumer shifts, competitive intensity, and regulatory environment encourage innovation, internal factors such as organizational culture, leadership, and resources can hinder it if not properly managed. For SMEs to remain competitive and sustainable, targeted policies must foster a supportive environment that enhances internal capabilities and leverages external market dynamics.