The influence of selected marketing and branding practices on the financial performance of family SMEs

Abstract

The primary objective of this study was to investigate the influence of selected marketing and branding practices on the “perceived financial performance” of family SMEs. A survey using a structured questionnaire was used to gather the necessary data. The population consisted of all owners of family SMEs operating within the borders of the Eastern Cape province of South Africa. Criterion and convenience sampling were used, and questionnaires were administered by field workers. In total, 325 questionnaires were useable for statistical analysis. Scale validity and reliability were assessed, descriptive statistics calculated, and Pearson’s product moment correlations established. Multiple regression analysis was undertaken to investigate the hypothesised relationships. The results show that only “product differentiation” influences the financial performance of family SMEs, but given the low beta reported for this relationship claiming any serious linear relationship would be erroneous.

Keywords: small- and medium-sized enterprises (SMEs); family SMEs; family business; marketing; branding; financial performance