Innovative Marketing Strategy for (MSMEs): Scale Development and Validation

Abstract

Small and Medium Enterprises (SMEs) play a prominent role in the growth and development of a nation. Accordingly, this study intends to develop a scale to measure innovative marketing strategy in MSMEs in Sri Lanka. In the first phase, a preliminary set of indicators were identified from the innovative marketing literature and in-depth interviews were conducted with 10 MSME owners to further evaluate the identified indicators. Additionally, two group discussions and expert views of Marketing academics were also obtained to review the initial set of indicators. The final scale which consisted of 17 items was tested by collecting data from 696 MSME owners from the Northern Province of Sri Lanka using the stratified sampling method. An exploratory factor analysis was conducted to provide evidence of scale reliability and validity. The results revealed that there are three dimensions of innovative marketing strategy namely: marketing variables, unique proposition and integrated marketing. This paper contributes to develop and validate a scale for innovative marketing strategy in MSMEs.