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The impact of marginalization on entrepreneurs’ online presence and firm performance

The impact of marginalization on entrepreneurs’ online presence and firm performance This study aims to examine the relationship between marginalization, Web presence and firm performance for small- and medium-sized enterprises (SMEs).Design/methodology/approachThis study relies upon interviews and surveys of managers and/or owners of SMEs. Using confirmatory factor analysis and structural equation modeling, the authors tested an integrated model of the relationship between marginalization, Web presence and firm performance.FindingsFindings indicate that marginalization enhances the risk perceptions entrepreneurs assign to internet use. This enhanced risk perception then limits the extent to which an entrepreneur responds to online customer feedback, which has implications for the SME’s relationship and reputation management efforts with buyers, ultimately impacting the enterprise’s performance.Originality/valueThis study sheds light on the overlooked phenomena of marginalization and internet avoidance among entrepreneurs. The findings provide insight for entrepreneurs on the deleterious consequences associated with lacking an online presence. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Research in Marketing and Entrepreneurship Emerald Publishing

The impact of marginalization on entrepreneurs’ online presence and firm performance

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References (61)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
1471-5201
eISSN
1471-5201
DOI
10.1108/jrme-06-2021-0085
Publisher site
See Article on Publisher Site

Abstract

This study aims to examine the relationship between marginalization, Web presence and firm performance for small- and medium-sized enterprises (SMEs).Design/methodology/approachThis study relies upon interviews and surveys of managers and/or owners of SMEs. Using confirmatory factor analysis and structural equation modeling, the authors tested an integrated model of the relationship between marginalization, Web presence and firm performance.FindingsFindings indicate that marginalization enhances the risk perceptions entrepreneurs assign to internet use. This enhanced risk perception then limits the extent to which an entrepreneur responds to online customer feedback, which has implications for the SME’s relationship and reputation management efforts with buyers, ultimately impacting the enterprise’s performance.Originality/valueThis study sheds light on the overlooked phenomena of marginalization and internet avoidance among entrepreneurs. The findings provide insight for entrepreneurs on the deleterious consequences associated with lacking an online presence.

Journal

Journal of Research in Marketing and EntrepreneurshipEmerald Publishing

Published: Jun 27, 2022

Keywords: Firm performance; Customer engagement; Entrepreneurship; Risk; Marginalization; Webcare

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