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The impact of product management on SME firm performance

David C. Roach (Faculty of Management, Dalhousie University, Halifax, Canada)

Journal of Research in Marketing and Entrepreneurship

ISSN: 1471-5201

Article publication date: 12 July 2011

Abstract

Purpose

This study seeks to address a gap in the literature by investigating product management (PM) as a set of firm‐level activities, distinct from the behaviours embedded within the market orientation (MO) construct. This research establishes PM as a set of organizational activities, which lie at the boundary between the traditional functions of the firm.

Design/methodology/approach

A model is proposed and tested using a heterogeneous sample of 316 Canadian small and medium‐sized enterprises, where PM mediates the relationship between MO and firm performance. Data were analyzed using a partial least squares, structural equation model.

Findings

PM behaviour is found to fully mediate the MO – firm performance relationship. Two of the three PM constructs, namely channel analysis/support and market/technical integration account for this effect.

Research limitations/implications

These results support the PM literature, which infers that more emphasis on external boundary spanning activities and internal coordination should positively influence firm performance. Limitations include the heterogeneous nature of the sample, time frame and geographic bias.

Practical implications

Managerial implications include the establishment of an empirical link between PM practices and how firms ultimately perform. This could assist practitioners in enhancing coordination activities between the marketing and technological factions within the organization.

Originality/value

This research establishes PM as a set of activities, which lie at the boundary between the traditional functions of the firm. These activities are found to fully mediate the MO – firm performance relationship and introduce the hereto untested link between PM and firm performance.

Keywords

Citation

Roach, D.C. (2011), "The impact of product management on SME firm performance", Journal of Research in Marketing and Entrepreneurship, Vol. 13 No. 1, pp. 85-104. https://doi.org/10.1108/14715201111147969

Publisher

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Emerald Group Publishing Limited

Copyright © 2011, Emerald Group Publishing Limited