Entrepreneurial marketing orientation adoption and youth entrepreneurship performance: Examining the mediating factors

Abstract

The study investigates the intricate relationships that shape the entrepreneurial journey of youth entrepreneurs, shedding light on the transformative potential of entrepreneurial marketing orientation (EMO). Due to volatility in business environments, the EMO dimensions have been the focus of many studies. However, this study’s originality lies in being amongst the first few that delve into the mediation effects of knowledge of business (KoB), managerial skills (MS), and organisational structure (OS) to unveil critical pathways through which EMO and its integrated dimensions influence youth entrepreneurial performance (YEP). While the mediation of MS was found wanting, OS exhibited multifaceted mediation effects like departmentalization, centralization of decision-making authority, and coordination of work process procedures that are vital ingredients for firm performance. It emerged that learning the business principles positively impacts superior business returns, a clear indication that KoB mediates the relationship between EMO and YEP. The findings offer excellent opportunities to refocus EMO literature on integrating its dimensions and introduce mediation factors. The study addresses a pressing concern, the underperformance of youth entrepreneurs, and sets forth a comprehensive framework to enhance their success. In light of conflicting prior research, this research clarifies the relationships between EMO dimensions and YEP, determines the influence of integrating the EMO dimensions on YEP, and examines the mediating effect of KoB, MS and OS on the relationship between EMO and YEP. Guided by objectivism and the correspondence theory of truth, the research employs the Psychological Theory of Entrepreneurship (PET) and the Contingency Theory of Entrepreneurship (CTE) to unravel the complex interplay between EMO and YEP. The study used a quantitative survey research strategy and statistically collected data from 417 youth entrepreneurship businesses in Botswana. Smart Partial Least Squares the Fourth Version (Smart PLS4) structural equation modelling technique and IBM Statistical Package for Social Science (SPSS Version 28) software were used to analyse the data. Adopting a positivist philosophy, the study employs a deductive approach to formulate hypotheses built upon established EMO literature. The factor analysis of the fourteen EMO variables used in this study confirmed consistency with earlier studies. Both the descriptive and inferential analyses of the EMO dimensions generally had high levels apparent within YEP. While the mediation of MS was found wanting, OS exhibited multifaceted mediation effects like departmentalisation, centralization of decision-making authority, and coordination of work process procedures, which are vital for firm performance. The study acknowledges a plethora of challenges experienced by youth entrepreneurs, such as unfavourable government policies and low technology uptake. Furthermore, the findings enrich extant EMO theories and contribute to entrepreneurial marketing practices in both developed and emerging economies. The study exposes a lack of entrepreneurial knowledge and management skills vital for YEP. The study recommends collaborative approaches between the government and private sector to foster practical entrepreneurial activities that impart the relevant skills. Recommendations are for mutually beneficial strategic partnerships between the industry and start-up firms. The study's invaluable contributions extend beyond statistical significance, revealing a blueprint for enhancing youth entrepreneurial success. This research equips policy makers, educators, and practitioners with actionable insights to foster thriving youth entrepreneurship by identifying critical mediating factors and introducing novel perspectives on EMO integration.