The Impact of Marketing Strategy on Entrepreneurial Success: Exploring the Mediating Role of Technological Advancement through an Advanced Hierarchical Approach

The Impact of Marketing Strategy on Entrepreneurial Success: Exploring the Mediating Role of Technological Advancement through an Advanced Hierarchical Approach

Collins Marfo Agyeman^*1, Jonas Asiamah-Afoakwah ²

^1,2Faculty, Department of Marketing, All Nations University, Ghana

^*Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2025.9010314

Received: 07 January 2025; Accepted: 11 January 2025; Published: 20 February 2025

ABSTRACT

In an increasingly competitive business landscape, understanding how marketing strategies influence entrepreneurial outcomes is crucial for sustained growth and innovation. This study investigates the impact of marketing strategy on entrepreneurial success, emphasizing the mediating role of technological advancement through an advanced hierarchical approach. By employing a cross-sectional research approach, the study uses quantitative surveys of entrepreneurs as case study, allowing for a comprehensive analysis of the dynamics at play. The advanced hierarchical approach facilitates a nuanced understanding of how different levels of marketing strategies and technological integration affect entrepreneurial performance. Findings suggest that entrepreneurs who strategically leverage technology in their marketing efforts experience significantly higher levels of success compared to those who do not. This research posits that effective marketing strategies not only directly contribute to entrepreneurial success but also interact with technological advancements to enhance this relationship. Therefore, it equips entrepreneurs with the knowledge to navigate the complexities of modern marketing, thereby fostering innovation and strengthening their competitive advantage in the marketplace. Ultimately, it contributes to marketing and entrepreneurship by providing actionable insights for entrepreneurs seeking to optimize their marketing strategies through technology.

Keywords; Marketing Strategy, Entrepreneurial Success, Technological Advancement, Competitive Advantage

INTRODUCTION

In the contemporary business environment, the relationship between marketing strategy and entrepreneurial success has become increasingly critical, particularly as entrepreneurs strive to navigate complex market dynamics. Marketing strategy, defined as a comprehensive plan formulated to achieve marketing objectives, plays a pivotal role in determining the success of entrepreneurial ventures (Kotler & Keller, 2016). It encompasses various elements, including market segmentation, targeting, positioning, and the marketing mix, which collectively influence a firm’s ability to attract and retain customers (Baker & Hart, 2018). In the context of the New Juaben Municipality, where local businesses face unique socio-economic challenges and opportunities, the effectiveness of marketing strategies is paramount for achieving sustainable growth and competitive advantage.

Entrepreneurial success is often measured through various indicators, such as profitability, market share, and business growth (Rauch et al., 2009). However, the pathway to success is not linear; it is influenced by a multitude of factors, including the strategic choices made by entrepreneurs. Recent studies have highlighted the importance of integrating technological advancements into marketing strategies, suggesting that technology can enhance the effectiveness of marketing efforts and, consequently, entrepreneurial outcomes (Chaffey, 2019). Technological advancements, such as digital marketing tools, data analytics, and social media platforms, enable entrepreneurs to engage with customers more effectively, optimize their marketing campaigns, and gain valuable insights into consumer behavior (Kumar et al., 2016).

Despite the growing recognition of the interplay between marketing strategies, technological advancement and entrepreneurial success, there remains a notable gap in the literature regarding the specific mechanisms through which these elements interact, particularly in the context of emerging markets like the New Juaben Municipality. While previous research has established a positive relationship between marketing strategy and entrepreneurial performance (Morris et al., 2006), the mediating role of technology in this relationship has not been extensively explored. This study aims to address this gap by investigating how technological advancement mediates the impact of marketing strategy on entrepreneurial success in the New Juaben Municipality.

The significance of this research extends beyond theoretical contributions; it offers practical implications for local entrepreneurs. By understanding the effective integration of marketing strategies and technological advancements, businesses in the New Juaben Municipality can enhance their competitive positioning and drive sustainable growth. Furthermore, this study will employ an advanced hierarchical approach to provide a nuanced understanding of these relationships, contributing to the broader discourse on entrepreneurship and marketing.

In summary, this research explores the impact of marketing strategy on entrepreneurial success in the New Juaben Municipality, with a specific focus on the mediating role of technological advancement. By shedding light on these dynamics, the study aims to empower local entrepreneurs with insights that can inform their strategic decision-making and foster long-term business success.

This study aims to employ an advanced hierarchical approach to investigate the impact of marketing strategies on entrepreneurial success, with a particular focus on the mediating effects of technological advancement. By utilizing this methodological framework, the research will delve into the complexities of these relationships, offering a nuanced understanding of how marketing strategies can be tailored to leverage technological advancements for enhanced entrepreneurial outcomes.

Problem Statement

As the New Juaben Municipality is experiencing significant entrepreneurial growth, many entrepreneurs face challenges in achieving sustained success despite the proliferation of startups. While marketing strategies are widely acknowledged as essential for driving business growth and customer engagement, empirical evidence regarding their specific impact on entrepreneurial success in this context is limited (Morris et al., 2013). Entrepreneurs often struggle to implement effective marketing strategies that align with their business objectives and resonate with their target markets, leading to suboptimal performance and reduced competitiveness (Agyapong, 2016).

Moreover, the rapid advancement of technology presents both opportunities and challenges for entrepreneurs. Technological tools and platforms can enhance marketing efforts, yet the extent to which technological advancement mediates the relationship between marketing strategies and entrepreneurial success remains underexplored (Kumar et al., 2016). This lack of understanding can hinder entrepreneurs from fully leveraging technology to optimize their marketing strategies, resulting in missed opportunities for growth and innovation.

Consequently, this study seeks to address the following critical questions: How do marketing strategies impact entrepreneurial success in the New Juaben Municipality? What role does technological advancement play in mediating this relationship? By investigating these questions, the research aims to provide valuable insights that can inform entrepreneurs, policymakers, and stakeholders, ultimately contributing to the development of a more robust entrepreneurial ecosystem in the region.

Objectives

1. To analyze the relationship between marketing strategy and entrepreneurial success.
2. To examine the role of technological advancement on marketing strategies.
3. To explore the mediating effect of technological advancement on marketing strategy and entrepreneurial success.

LITERATURE REVIEW

The relationship between marketing strategy and entrepreneurial success has been a focal point of research in the fields of marketing and entrepreneurship. This literature review synthesizes existing studies on marketing strategy, entrepreneurial success, and the mediating role of technological advancement, particularly in the context of emerging markets like the New Juaben Municipality.

Marketing strategy is a critical determinant of entrepreneurial success, as it encompasses the planning and execution of activities aimed at meeting customer needs and achieving business objectives (Kotler & Keller, 2016). A well-defined marketing strategy can enhance brand visibility, customer engagement, and ultimately, business performance (Morris et al., 2006). Research indicates that effective marketing strategies, including market segmentation, targeting, and positioning, significantly contribute to the growth and sustainability of entrepreneurial ventures (Baker & Hart, 2018). For instance, a study by O’Dwyer and Gilmore (2018) found that small businesses that employed strategic marketing practices experienced higher levels of customer loyalty and sales growth compared to those that did not.

Technological advancement has transformed the marketing landscape, providing entrepreneurs with innovative tools and platforms to enhance their marketing efforts. The integration of technology into marketing strategies allows for more precise targeting, improved customer insights, and enhanced engagement through digital channels (Chaffey, 2019). Kumar et al. (2016) emphasize that technology facilitates data-driven decision-making, enabling entrepreneurs to tailor their marketing strategies to meet the evolving preferences of consumers. Furthermore, technological advancements such as social media, search engine optimization, and email marketing have become essential components of modern marketing strategies, particularly for small and medium-sized enterprises (SMEs) (Holliman & Rowley, 2014).

While the direct relationship between marketing strategy and entrepreneurial success is well documented, the mediating role of technological advancement is less explored. Some studies suggest that technology acts as a catalyst that enhances the effectiveness of marketing strategies, thereby influencing entrepreneurial outcomes (Rogers, 2016). For example, a study by Ainin et al. (2015) found that the use of social media marketing positively impacted business performance, with technological capabilities serving as a significant mediator in this relationship. This suggests that entrepreneurs who effectively leverage technology in their marketing strategies are more likely to achieve higher levels of success.

The New Juaben Municipality, located in Ghana, presents a unique context for examining the interplay between marketing strategy, technological advancement, and entrepreneurial success. The region is characterized by a growing entrepreneurial ecosystem, yet local businesses often face challenges related to limited access to technology and resources (Agyapong, 2016). Understanding how marketing strategies can be effectively implemented in this context, and how technology can mediate their impact, is crucial for fostering entrepreneurial growth. Research by Osei et al. (2020) highlights the importance of adapting marketing strategies to local market conditions and leveraging technology to overcome barriers faced by entrepreneurs in emerging markets.

In summary, the literature indicates a strong relationship between marketing strategy and entrepreneurial success, with technological advancement playing a crucial mediating role. However, there remains a gap in understanding these dynamics within the specific context of the New Juaben Municipality. This research aims to fill this gap by exploring how marketing strategies can be optimized through technological advancements to enhance entrepreneurial success in this region.

Conceptual Model

Fig. 1: Mediated Relationship

Source: Developed for the study

The above model has been developed based on the literature review. A well-defined marketing strategy is expected to have a positive impact on entrepreneurial success by effectively reaching and engaging customers. The model posits that technological advancement mediates the relationship between marketing strategy and entrepreneurial success. This means that the effectiveness of marketing strategies is enhanced through the use of technology, which in turn leads to greater entrepreneurial success.

Hypothesis Formulations

The following hypotheses have been formulated on the basis of the review of literature and the discussion;

H1: There is a positive relationship between marketing strategy and entrepreneurial success.

H2: Technological advancement mediates the relationship between marketing strategy and entrepreneurial success.

METHODOLOGY

This study adopted a quantitative research method to facilitate the examination of relationships between the variables. A cross-sectional research design was utilized to collect data at a single point in time, allowing for the analysis of the impact of marketing strategies on entrepreneurial success and the mediating role of technological advancement.

The target population for this study consisted of entrepreneurs and small business owners operating in the New Juaben Municipality. This included businesses across various sectors, such as retail, services, and manufacturing. A sample size of 200 entrepreneurs were targeted to ensure statistical validity and reliability. This sample size is deemed sufficient to detect significant relationships among the variables based on power analysis.

A stratified random sampling technique was employed to ensure representation across different sectors and business sizes. This approach helped to capture a diverse range of perspectives and experiences related to marketing strategies and technological advancements.

A structured questionnaire was developed to collect data on the following key constructs:

• Marketing Strategy: Measured using a scale that assesses various dimensions such as market segmentation, targeting, positioning, and marketing mix (e.g., product, price, place, promotion).
• Technological Advancement: Assessed through questions related to the use of digital marketing tools, data analytics, social media engagement, and e-commerce platforms.
• Entrepreneurial Success: Measured using indicators such as financial performance (profitability, revenue growth), market performance (market share), and customer performance (customer retention, satisfaction).

The survey was administered both online and in-person to accommodate different preferences among respondents. Participants were recruited through local business associations, social media platforms, and community events.

The collected data were analyzed using statistical software (IBM SPSS) to test the hypotheses and examine the relationships among the variables. The following analyses were conducted:

• Descriptive Statistics: To summarize the demographic characteristics of the respondents and the key variables.
• Correlation Analysis: To assess the strength and direction of relationships between marketing strategy, technological advancement, and entrepreneurial success.
• Hierarchical Regression Analysis: To test the direct effect of marketing strategy on entrepreneurial success and the mediating effect of technological advancement.

Participants were informed about the purpose of the study, and their consent were obtained before data collection. They were assured of the confidentiality and anonymity of their responses. Participation in the study was voluntary, and respondents had the right to withdraw at any time without any consequences. All collected data were securely stored and used solely for research purposes, in compliance with relevant data protection regulations.

RESULTS AND DISCUSSION

Descriptive Statistics

The survey collected responses from 200 entrepreneurs in the New Juaben Municipality. The demographic characteristics of the respondents included:

Table 1: Frequency distributions of respondents (n=200)

Source: Field Data, 2024

63% of the respondents were males, with 45% aged between 30-39 years, with the majority being in the retail business and top management and finally, 53% of them had been in business for 5 years or less.

The descriptive statistics indicated that the majority of entrepreneurs had a basic understanding of marketing strategies and were increasingly adopting technological advancements in their operations.

Cronbach’s Alpha Test of Reliability

The reliability analysis for the constructs in this study yielded the following Cronbach’s alpha values: Marketing Strategy (α = 0.82), indicating good internal consistency; Entrepreneurial Success (α = 0.88), indicating good internal consistency; and Technological Advancement (α = 0.90), indicating excellent internal consistency. These results suggest that the items used to measure each construct are reliable and suitable for further analysis.

Hypothesis Testing

Hypothesis 1 (H1): There is a positive relationship between marketing strategy and entrepreneurial success.

Results: The regression analysis revealed a significant positive relationship between marketing strategy and entrepreneurial success (β = 0.65, p < 0.01). This indicates that effective marketing strategies are associated with higher levels of entrepreneurial success, supporting H1.

Hypothesis 2 (H2): Technological advancement mediates the relationship between marketing strategy and entrepreneurial success.

Results: The hierarchical regression analysis was conducted to test the mediation effect. The results showed that when technological advancement was included in the model, the direct effect of marketing strategy on entrepreneurial success decreased (from β = 0.65 to β = 0.45, p < 0.01), while the effect of marketing strategy on technological advancement was significant (β = 0.55, p < 0.01).

Furthermore, technological advancement had a significant positive effect on entrepreneurial success (β = 0.35, p < 0.01).

The Sobel test confirmed that technological advancement significantly mediated the relationship between marketing strategy and entrepreneurial success (z = 3.45, p < 0.01). Thus, H2 is supported.

Discussion

The findings of this study provide valuable insights into the dynamics between marketing strategy, technological advancement, and entrepreneurial success in the New Juaben Municipality.

Impact of Marketing Strategy: The significant positive relationship between marketing strategy and entrepreneurial success underscores the importance of well-defined marketing approaches for entrepreneurs. This aligns with existing literature that emphasizes the role of marketing in enhancing business performance (Morris et al., 2006; Baker & Hart, 2018). Entrepreneurs in the New Juaben Municipality who effectively segment their markets, target the right customers, and utilize a comprehensive marketing mix are more likely to achieve higher levels of success.

Role of Technological Advancement: The study highlights the mediating role of technological advancement in the relationship between marketing strategy and entrepreneurial success. As entrepreneurs increasingly adopt digital marketing tools and technologies, they enhance their marketing effectiveness, leading to improved business outcomes. This finding is consistent with research that indicates technology can amplify the impact of marketing strategies (Ainin et al., 2015; Rogers, 2016). The integration of technology allows entrepreneurs to engage with customers more effectively, analyze market trends, and optimize their marketing efforts.

Practical Implications

The results suggest that entrepreneurs in the New Juaben Municipality should prioritize the development of robust marketing strategies that incorporate technological advancements. Training programmes and workshops focused on digital marketing and technology utilization could be beneficial in enhancing the skills of local entrepreneurs. Additionally, policymakers could support initiatives that promote access to technology and digital resources for small businesses.

Limitations and Future Research

While this study provides important insights, it is not without limitations. The reliance on self-reported data may introduce bias, and the cross-sectional design limits causal inferences.

Future research could adopt a longitudinal approach to better understand the evolving relationships among these variables over time. Additionally, qualitative studies could provide deeper insights into the specific marketing strategies and technological tools that entrepreneurs find most effective.

CONCLUSION

In conclusion, this study demonstrates that effective marketing strategies significantly contribute to entrepreneurial success in the New Juaben Municipality, with technological advancement serving as a crucial mediator in this relationship. These findings underscore the importance of integrating technology into marketing efforts to enhance business performance and provide a foundation for future research and practical applications in the field of entrepreneurship.

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