Description
Within this information relating to a dialectic relational approach for understanding entrepreneurial.
A DIALECTIC RELATIONAL APPROACH FOR UNDERSTANDING ENTREPRENEURIAL
MARKETING – WORK IN PROGRESS
Frode Fjelldal-Soelberg
Bodø Graduate School of Business
Nordland University
Bodø, Norway
[email protected]
Frank Lindberg
Bodø Graduate School of Business
Nordland University
Bodø,Norway
[email protected]
Øystein Jensen
Bodø Graduate School of Business
Nordland University
Bodø,Norway
[email protected]
ABSTRACT
The paper takes the advantage of a dialectic relational perspective in exploring applied marketing in
new ventures. This perspective is derived from phenomenology and philosophical hermeneutics, and implies
that any marketing activity is a lived experience of a situated entrepreneur (subject) that is always involved in
dialogues within contexts and time. Entrepreneurs find themselves thrown into the marketplace and inherently
constrained by lack of resources, and therefore unable and unwilling to adhere to traditional advice from
marketing management.
Key words: Entrepreneurial marketing, New ventures, Phenomenology, Dialectic
INTRODUCTION
Marketing and marketing strategy remain central issues within tourism research. As a complex
phenomenon tourism, has been approached from a wide spectrum of disciplines (Darbellay & Stock, 2012) and
tourism marketing related problems have frequently been addressed by researchers from various disciplinary
backgrounds, for example geography (Lew & Duval, 2010; Buhalis, 2000). One of the problems that can be
discussed is whether the dominant perspectives within tourism marketing research are too narrow to keep up
with the challenges of contemporary tourism (Li & Petrick, 2008; Hall, 2008). Furthermore, it can be questioned
whether the marketing frameworks applied by researchers from non-marketing management related disciplines
generally are sufficiently up-dated compared to recent developments within marketing research, such as within
marketing strategy (Hall, 2005, 2008; Buhalis & Costa, 2006).
Despite advances within certain aspects of tourism marketing the preference for applying more
traditional tourism management perspectives expressed through dominantly formal, rational planning
perspectives may not be feasible (Li & Petrick, 2008). This question is, in particular, of concern with regard to
local entrepreneurial tourism firms that constitute a great proportion of the companies within the tourism sector.
This paper challenges the application of a formal, rational perspective within entrepreneurial marketing strategy.
Research on marketing in new ventures (entrepreneurial marketing) has established that new ventures
are challenged with an array of problems particular to them. These are associated with the new ventures limited
experience, its modest size, and its uncertain and turbulent markets (Gruber 2004 gives an extensive review).
Notably, these challenges are prone to be present in any industry (Bhidé 2000). Entrepreneurial marketing as a
stream of research currently involves two main directions; 1) a normative school of entrepreneurial marketing
that seeks to make marketing more innovative and creative, and 2) an interpretative study of applied marketing
in entrepreneurial contexts (Siu & Kirby 1998; Chaston 2000; Grant & Perren 2002, Bjerke & Hultmann 2002;
Hills & al 2008). New venture creation is one of many such contexts.
This research effort originates from the interpretative direction, as the marketing practices of new firms
has been explored and interpreted. However, the question; “How is marketing performed in new businesses?”
has been raised by several researchers, and numerous papers have been published on this topic. Yet, most
contributions are heavily influenced by traditional thinking, and therefore frequently dub marketing in new
businesses as unprofessional, unsophisticated, or DIY (Do-It-Yourself) marketing when compared to Marketing
Management (Carson, 1985). This conclusion follows naturally from the analytical rational perspective, but it is
nevertheless quite condescending. Recent developments within entrepreneurial marketing seriously questions
the relevance of mainstream marketing management in new or very young ventures (Gruber 2007; Fletcher &
Watson 2007; Jones & Holt 2008).
The purpose of this paper is to contribute to a more holistic and less analytic rational understanding of
marketing in new ventures, by reporting entrepreneurs’ marketing activities from a dialectic relational
framework. Inspired by phenomenology we focus on the entrepreneur as a dynamic and situated being-in-the-
world who constructs meaning through experiences. Through empirical findings we show how entrepreneurs
face paradoxes and ambiguities when taking on marketing challenges.
TOWARDS A DIALECTIC RELATIONAL PERSPECTIVE
The dialectic relational perspective differs from rationalism (objective world view) on one hand, and
constructivism (subjective world view) on the other, by claiming that reality is a product of dialogue
(intersubjective world view) (Husserl, 1900/2001). This is a notion that is profoundly present in phenomenology
as philosophy (Heidegger, 1927/1996), or which could be labeled being-in-the-world philosophy. The emphasis
is then on replacing dualism(s) with a focus on the situatedness and belonging of humans. Dichotomies such as
man-world and mind-body can be argued to be fundamentally false constructions of our time, and the focus is
hereafter on that the meanings that entrepreneurs construct are embedded in lived experiences of the world.
As a philosophy, phenomenology is focusing on the dynamic aspect of time and emotions, and their
inseparability from any conceivable understanding of human experiences (Fløistad, 1993). Therefore, and
according to Heideggerian (1927/1996) thought, entrepreneurs are continually “thrown” into situations (or
possibilities) before thinking and acting. They are embedded in socio-cultural and socio-historical contexts, and
situations, with their implicit logics, languages, and meanings. The future embraces humans’ continued
existence and involves understanding, thinking, and acting “for the future” (Fløistad, 1993, p. 133). Every
interpretation “for the future” implies actions and relations that are aimed toward something or someone at
present, and the process would mostly depend on how the subject is situated as “thrown” from the past. Thus,
the three aspects of time cannot be understood without the other two.
Applying the dialectic relational perspective on entrepreneurial marketing, will therefore imply that any
marketing activity is a lived experience of a situated entrepreneur (subject). However, subjects are dynamic.
Thus, entrepreneurs cannot be viewed in isolation or as static beings: They are always involved in dialogues
(“interactions-with”) within contexts and time. Furthermore, these dynamic characteristics define the
experiences and the construction of meaning. The marketing challenges inherit to developing a prosperous
business and how entrepreneurs handle these are, therefore, the focal point of this research effort.
PHENOMENOLOGY WITHIN TOURISM AND ENTREPRENEURIAL MARKETING
Phenomenology has had limited influence on tourism research. However, one early contribution was
made by Cohen (1979) on tourist experiences, while no contribution is found on tourism entrepreneurs. In their
critical review, Pernecky and Jamal (2010) argue that experiential and existential issues related to being-in-the-
world remains unexplored, and that the paucity of discussions “has been ambiguous at best” and further claims
“many publications tend to avoid the discussion of phenomenology” . Thus, phenomenological tourism research
could be strengthened by greater attention to its philosophical underpinnings (Szarycz, 2009).
Depending on the ontological and epistemological position, phenomenology is often conceptualized as
a philosophy or as a methodology within the social sciences (Goulding, 2005). According to Ritchie & Hudson
(2009, p. 117), research within tourism uses phenomenology mainly as “methodologies for understanding the
consumer/tourist experience” from the perspective of the tourist. Ryan (2000) argues that the implications
behind tourism researchers’ interest in understanding lived experiences are that “the ontological and
epistemological assumptions of positivistic research methodologies are insufficient” (Ryan, 2000, p. 121).
Positivistic research is insufficient because of its dualistic ontology and representational epistemology.
Within entrepreneurial marketing there are two classical strands of research that dominate. These take
the advantage of the seminal writings of Schumpeter (1983) and Kirzner (1973) thus; some epistemological
viewpoints are inherited from these scholars. The common thread in classical writings is the notion of the
latency of business opportunities. Latency holds that business opportunities are preexisting and only needs to be
discovered by the alert entrepreneur. Thus, there is a sharp distinction between entrepreneurs and opportunities
in this body of research. Ontologically this points towards objectivism. However, Kirznerian thought implies the
acknowledgement of a market process that involves entrepreneurial creativity, industrial partners, customers,
competitors and other relational aspects. It would therefore be incorrect to put Kirzner into this frame of
thinking. The major sources of inspiration to entrepreneurial marketing therefore have different ontological
viewpoints. Thus, research findings are often in contrast to its philosophical underpinnings (Chabaud & Ngijol
2004), resulting in an emerging awareness in the entrepreneurial marketing literature that new perspectives are
in demand (Bruyat & Julien 2000; Sarason & al 2006; Fletcher & Watson 2007). The emerging perspective is
inspired by the market process view, and suggest that entrepreneurs, opportunities and contexts are
idiosyncratic.
METHOD
Philosophical Hermeneutics, developed by Hans G. Gadamer is influenced by Heideggerian thought. It
can be said that Gadamer merges phenomenology and hermeneutics into a unique philosophy of science that
draws attention to three ontological principles/conditions of human existence: Humans are; 1) interpretative, 2)
historically situated, and 3) linguistic (Gadamer, 1960/1989). From this philosophical position some
methodological principles can be drawn (Højberg 2004), and this research effort was conducted accordingly.
Thus, 29 Norwegian entrepreneurs/founders of new/very young ventures (both hospitality and non-
hospitality businesses) was interviewed – both face-to-face, and by telephone – in order to develop insights in
collaboration with actors in the actual context (phronesis). In addition, business plans from 13 new/very young
enterprises were included in the analysis - of which 4 was stemming from the group of 29 interviewed
entrepreneurs. The interviews were transcribed and, together with business plans, analyzed using Nvivo 9. The
analysis took the advantage of both free coding and theoretical coding. The resulting hierarchy of codes consists
of 83 different codes that are divided in 3 theoretical codes, 6 dimensions and 29 properties.
FINDINGS AND DISCUSSION
An important finding, and a contrast to previous findings (Carson 1985), is that marketing in new firms
is strategically focused, even though implied and not always formalized. The assumed link between new venture
success and formal strategic planning (as advocated by marketing management) is not supported by the analysis.
New ventures fail or succeed regardless of mode of strategy development. Importantly, this does not support the
idea that a strategic process is superfluous in new ventures - quite the contrary. Strategy is important, but the
mode of strategic development is not. Moving on to marketing tactics we found mainly the use of interactive
approaches, but both transactional, database and network approaches can be found in most new firms. In brief
marketing tactics may be characterized as low-cost-marketing, however, not to be confused with unprofessional
or unsophisticated marketing.
The heuristics of entrepreneurial decision making is highlighted in the analysis. This is a finding that
typically is reported from research on marketing in new ventures. However, in this research effort application of
market analysis and other market planning activities appears simultaneously in several cases. This is an
interesting paradox as entrepreneurs do not start doing formal market analysis without the occurrence of external
pressure. To fully understand this paradoxical situation one has to appreciate the desperate financial position
most new ventures and their entrepreneurs have to deal with. This causes bootstrapping and several creative
ways to fund the business. One of these funding strategies is to apply for support from governmental agencies
and, hence, the interpretation that institutional pressures cause the existence of these two conflicting information
processing practices in new firms is plausible. Another possible interpretation may be that increasing
knowledge, and thus better problem definitions, paves the way for an analytical approach to information
generation.
Even if it is possible to develop analytical skills as the business grows bigger or older, external pressure
is suspected to have greater influence on this entrepreneurial practice. The reason for this is the widespread
orientation towards governmental funds in the sample. Governmental agencies offering financial support require
formal business planning, and thus insist on the existence of a strategic planning process in new firms. For most
entrepreneurs this is not feasible – as noted earlier mode of strategy development does not predict new venture
success. Additionally, formal planning requires the skills of marketing professionals that are far beyond the
financial resources of bootstrapped entrepreneurs. Thus, entrepreneurs adapt to this regimen both by honest
internalization (by doing their best), and by a more cunning opportunism: In order to qualify for support a pro
forma business plan is written without the intention to follow through. In most cases included in the sample the
business plan appears as a mechanical adaptation to external pressure, through the use of standardized templates
provided by the funding agencies.
1/3 of the investigated new ventures have an innovative business idea. Most new ventures copy an
already existing business idea. The sad demise of truly innovative businesses included in this research project,
demonstrates the vulnerability of “first-mover-advantage” strategies for small new firms. High risk strategies,
like “First-mover-advantage”, are resource intensive, and thus not compatible with the proverbial bootstrapped
position and low-cost-marketing practice of most new ventures. In other words, survival rates suggest that
moderate or incremental innovators and plain copying entrepreneurs are far better off than radical innovators.
Interestingly, such a critique has not been given much attention in the literature. Furthermore, the innovative
business ideas are celebrated in society, and embraced by industrial policy and governmental funds. Thus the
cultural image of an entrepreneur as a successful innovator is blurring the reality of entrepreneurs as
bootstrapped, and resource constrained founders of small new ventures.
A major interpretation made in the analysis is that business opportunities are not spontaneously
discovered. They are carefully developed over a longer period of time. The interpretation that the business
opportunity continuously changes is even possible. Therefore, entrepreneurs and their new ventures are
embedded in market processes. In these processes entrepreneurs relate to other market participants through
dialogue. The business opportunity is thus understood as developed through dialogue between partners in
ongoing relationships. Hence, the “latency-of-opportunities” view is seriously challenged by this finding. This
implies that traditional marketing research has limited value to entrepreneurs when developing business
opportunities, even though it is advocated by the marketing management literature. The paradoxical situation for
the entrepreneur is that he is advised to conduct market analysis, by business consultants, when he/she perceives
the dialogue with relationship partners as far more relevant to the development of business opportunities. The
finding in this study actually supports this entrepreneurial praxis.
Furthermore, the inadequacy of a traditional stepwise and chronological approach to venture creation
and strategic development is demonstrated when entrepreneurs enter the market. Planning before launch of the
new venture is virtually non-existing in the investigated cases, and is better described as daydreaming, as
entrepreneurs do not have the time or money to plan carefully. Instead they are thrown into the marketplace. The
rather urgent financial situation that characterizes new ventures makes it impossible to ignore the importance of
generating sales. Thus, entrepreneurs gain momentum the very minute they involve in market relations. These
may be industrial partners, customers or even competitors, and governmental funds. Thus, the agenda is set by
the market process initiated by the act of creating a new venture. The finding is, thus, that opportunity
development, venture creation, and opportunity exploiting are inseparable events. They are idiosyncratic.
CONCLUSION
The major contribution to the research field is that marketing in new ventures may be understood as a
dialectic and relational process. According to this entrepreneurs are thrown into the marketplace, and
continuously strive with the demands and challenges of creating a new venture. Traditional marketing
management advice is not feasible in this situation, but new ventures are nevertheless strategically focused.
Furthermore, a ground breaking interpretation is that marketing can be understood as a non-cyclical
process. This implies a step away from traditional conceptualizations (that often are linear or cyclical) and, thus,
offer new insights on opportunity recognition, marketing strategy, and marketing tactics in new firms. In
conclusion, the major contribution of applying a dialectic perspective is a non-cyclic conceptualization of
marketing in new firms. This is in stark contrast to previous findings.
REFERENCES
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Bjerke, Bjørn, & Hultman, Claes M. (2002). Entrepreneurial Marketing: The Growth of Small Firms in
the New Economic Era, Edward Elgar.
Buhalis, D. (2000). Marketing in the competitive destination of the future, Tourism Management, 21: 97-116
Buhalis, D. & Costa, C. (2006). Tourism Management Dynamics: Trends, Management and Tools, London:
Butterworth Heinemann.
Bruyat, Christian & Perre-André Julien (2000). Defining the field of research in entrepreneurship,
Journal of Business Venturing, 16, side 165-180.
Carson. (1985). The evolution of marketing in small firms. European Journal of Marketing Retrieved 5, 19
Chabaud, D. & Ngijol J. (2004). The recognition of opportunities by entrepreneurs: Towards a constructivist
perspective, UIC-symposium on marketing and entrepreneurship, Conference proceedings, UIC.
Chaston, Ian (2000): Entrepreneurial marketing: Competing by challenging convention, MacMillan
Business.
Cohen, E. (1979). A Phenomenology of Tourist Experiences. Sociology, 13(2), 179-201.
Darbellay, F. & Stock, M. (2012). Tourism as complex interdisciplinary research object, Annals of Tourism
Research, 39(1): 441-458
Fløistad, G. (1993). Heidegger: en innføring i hans filosofi (Heidegger: an introduction to his philosophy).
Oslo: Pax.
Fletcher, D. E. & Watson, T. J. (2007). Entrepreneurship, Management Learning, and negotiated Narratives:
Making it Otherwise Us - Otherwise for Them, Management Learning, Vol. 38, 1, pp 9-26.
Gadamer, H.-G. (1960/1989). Truth and method (2nd, rev. ed.). London: Sheed & Ward.
Goulding, C. (2005). Grounded theory, ethnography and phenomenology: A comparative analysis of three
qualitative strategies for marketing research. European journal of marketing, 39(3/4), 294-294-308.
Gruber, Marc (2004): Marketing in New Ventures: Theory and Empirical Evidence, Schmalenbach
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contingency perspective, Journal of Business Venturing, 22, side 782-807.
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Hall, C. M. (2008). Tourism Planning. Policies, Processes and Relationships. Harlow (England): Pearson
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Heidegger, M. (1927/1996). Being and time. Albany: State University of New York Press.
Hills, Gerald E, Claes M. Hultman & Morgan P. Miles (2008): The evolution and development of
entrepreneurial marketing, Journal of Small Business Management, 46, 1, side 99-112.
Husserl, E. (1900/2001). Logical Investigations (J. N. Findlay, Trans.). London: Routledge.
Jones, O. & Holt R. (2008). The creation and evolution of new business ventures: an activity perspective,
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doc_228279264.pdf
Within this information relating to a dialectic relational approach for understanding entrepreneurial.
A DIALECTIC RELATIONAL APPROACH FOR UNDERSTANDING ENTREPRENEURIAL
MARKETING – WORK IN PROGRESS
Frode Fjelldal-Soelberg
Bodø Graduate School of Business
Nordland University
Bodø, Norway
[email protected]
Frank Lindberg
Bodø Graduate School of Business
Nordland University
Bodø,Norway
[email protected]
Øystein Jensen
Bodø Graduate School of Business
Nordland University
Bodø,Norway
[email protected]
ABSTRACT
The paper takes the advantage of a dialectic relational perspective in exploring applied marketing in
new ventures. This perspective is derived from phenomenology and philosophical hermeneutics, and implies
that any marketing activity is a lived experience of a situated entrepreneur (subject) that is always involved in
dialogues within contexts and time. Entrepreneurs find themselves thrown into the marketplace and inherently
constrained by lack of resources, and therefore unable and unwilling to adhere to traditional advice from
marketing management.
Key words: Entrepreneurial marketing, New ventures, Phenomenology, Dialectic
INTRODUCTION
Marketing and marketing strategy remain central issues within tourism research. As a complex
phenomenon tourism, has been approached from a wide spectrum of disciplines (Darbellay & Stock, 2012) and
tourism marketing related problems have frequently been addressed by researchers from various disciplinary
backgrounds, for example geography (Lew & Duval, 2010; Buhalis, 2000). One of the problems that can be
discussed is whether the dominant perspectives within tourism marketing research are too narrow to keep up
with the challenges of contemporary tourism (Li & Petrick, 2008; Hall, 2008). Furthermore, it can be questioned
whether the marketing frameworks applied by researchers from non-marketing management related disciplines
generally are sufficiently up-dated compared to recent developments within marketing research, such as within
marketing strategy (Hall, 2005, 2008; Buhalis & Costa, 2006).
Despite advances within certain aspects of tourism marketing the preference for applying more
traditional tourism management perspectives expressed through dominantly formal, rational planning
perspectives may not be feasible (Li & Petrick, 2008). This question is, in particular, of concern with regard to
local entrepreneurial tourism firms that constitute a great proportion of the companies within the tourism sector.
This paper challenges the application of a formal, rational perspective within entrepreneurial marketing strategy.
Research on marketing in new ventures (entrepreneurial marketing) has established that new ventures
are challenged with an array of problems particular to them. These are associated with the new ventures limited
experience, its modest size, and its uncertain and turbulent markets (Gruber 2004 gives an extensive review).
Notably, these challenges are prone to be present in any industry (Bhidé 2000). Entrepreneurial marketing as a
stream of research currently involves two main directions; 1) a normative school of entrepreneurial marketing
that seeks to make marketing more innovative and creative, and 2) an interpretative study of applied marketing
in entrepreneurial contexts (Siu & Kirby 1998; Chaston 2000; Grant & Perren 2002, Bjerke & Hultmann 2002;
Hills & al 2008). New venture creation is one of many such contexts.
This research effort originates from the interpretative direction, as the marketing practices of new firms
has been explored and interpreted. However, the question; “How is marketing performed in new businesses?”
has been raised by several researchers, and numerous papers have been published on this topic. Yet, most
contributions are heavily influenced by traditional thinking, and therefore frequently dub marketing in new
businesses as unprofessional, unsophisticated, or DIY (Do-It-Yourself) marketing when compared to Marketing
Management (Carson, 1985). This conclusion follows naturally from the analytical rational perspective, but it is
nevertheless quite condescending. Recent developments within entrepreneurial marketing seriously questions
the relevance of mainstream marketing management in new or very young ventures (Gruber 2007; Fletcher &
Watson 2007; Jones & Holt 2008).
The purpose of this paper is to contribute to a more holistic and less analytic rational understanding of
marketing in new ventures, by reporting entrepreneurs’ marketing activities from a dialectic relational
framework. Inspired by phenomenology we focus on the entrepreneur as a dynamic and situated being-in-the-
world who constructs meaning through experiences. Through empirical findings we show how entrepreneurs
face paradoxes and ambiguities when taking on marketing challenges.
TOWARDS A DIALECTIC RELATIONAL PERSPECTIVE
The dialectic relational perspective differs from rationalism (objective world view) on one hand, and
constructivism (subjective world view) on the other, by claiming that reality is a product of dialogue
(intersubjective world view) (Husserl, 1900/2001). This is a notion that is profoundly present in phenomenology
as philosophy (Heidegger, 1927/1996), or which could be labeled being-in-the-world philosophy. The emphasis
is then on replacing dualism(s) with a focus on the situatedness and belonging of humans. Dichotomies such as
man-world and mind-body can be argued to be fundamentally false constructions of our time, and the focus is
hereafter on that the meanings that entrepreneurs construct are embedded in lived experiences of the world.
As a philosophy, phenomenology is focusing on the dynamic aspect of time and emotions, and their
inseparability from any conceivable understanding of human experiences (Fløistad, 1993). Therefore, and
according to Heideggerian (1927/1996) thought, entrepreneurs are continually “thrown” into situations (or
possibilities) before thinking and acting. They are embedded in socio-cultural and socio-historical contexts, and
situations, with their implicit logics, languages, and meanings. The future embraces humans’ continued
existence and involves understanding, thinking, and acting “for the future” (Fløistad, 1993, p. 133). Every
interpretation “for the future” implies actions and relations that are aimed toward something or someone at
present, and the process would mostly depend on how the subject is situated as “thrown” from the past. Thus,
the three aspects of time cannot be understood without the other two.
Applying the dialectic relational perspective on entrepreneurial marketing, will therefore imply that any
marketing activity is a lived experience of a situated entrepreneur (subject). However, subjects are dynamic.
Thus, entrepreneurs cannot be viewed in isolation or as static beings: They are always involved in dialogues
(“interactions-with”) within contexts and time. Furthermore, these dynamic characteristics define the
experiences and the construction of meaning. The marketing challenges inherit to developing a prosperous
business and how entrepreneurs handle these are, therefore, the focal point of this research effort.
PHENOMENOLOGY WITHIN TOURISM AND ENTREPRENEURIAL MARKETING
Phenomenology has had limited influence on tourism research. However, one early contribution was
made by Cohen (1979) on tourist experiences, while no contribution is found on tourism entrepreneurs. In their
critical review, Pernecky and Jamal (2010) argue that experiential and existential issues related to being-in-the-
world remains unexplored, and that the paucity of discussions “has been ambiguous at best” and further claims
“many publications tend to avoid the discussion of phenomenology” . Thus, phenomenological tourism research
could be strengthened by greater attention to its philosophical underpinnings (Szarycz, 2009).
Depending on the ontological and epistemological position, phenomenology is often conceptualized as
a philosophy or as a methodology within the social sciences (Goulding, 2005). According to Ritchie & Hudson
(2009, p. 117), research within tourism uses phenomenology mainly as “methodologies for understanding the
consumer/tourist experience” from the perspective of the tourist. Ryan (2000) argues that the implications
behind tourism researchers’ interest in understanding lived experiences are that “the ontological and
epistemological assumptions of positivistic research methodologies are insufficient” (Ryan, 2000, p. 121).
Positivistic research is insufficient because of its dualistic ontology and representational epistemology.
Within entrepreneurial marketing there are two classical strands of research that dominate. These take
the advantage of the seminal writings of Schumpeter (1983) and Kirzner (1973) thus; some epistemological
viewpoints are inherited from these scholars. The common thread in classical writings is the notion of the
latency of business opportunities. Latency holds that business opportunities are preexisting and only needs to be
discovered by the alert entrepreneur. Thus, there is a sharp distinction between entrepreneurs and opportunities
in this body of research. Ontologically this points towards objectivism. However, Kirznerian thought implies the
acknowledgement of a market process that involves entrepreneurial creativity, industrial partners, customers,
competitors and other relational aspects. It would therefore be incorrect to put Kirzner into this frame of
thinking. The major sources of inspiration to entrepreneurial marketing therefore have different ontological
viewpoints. Thus, research findings are often in contrast to its philosophical underpinnings (Chabaud & Ngijol
2004), resulting in an emerging awareness in the entrepreneurial marketing literature that new perspectives are
in demand (Bruyat & Julien 2000; Sarason & al 2006; Fletcher & Watson 2007). The emerging perspective is
inspired by the market process view, and suggest that entrepreneurs, opportunities and contexts are
idiosyncratic.
METHOD
Philosophical Hermeneutics, developed by Hans G. Gadamer is influenced by Heideggerian thought. It
can be said that Gadamer merges phenomenology and hermeneutics into a unique philosophy of science that
draws attention to three ontological principles/conditions of human existence: Humans are; 1) interpretative, 2)
historically situated, and 3) linguistic (Gadamer, 1960/1989). From this philosophical position some
methodological principles can be drawn (Højberg 2004), and this research effort was conducted accordingly.
Thus, 29 Norwegian entrepreneurs/founders of new/very young ventures (both hospitality and non-
hospitality businesses) was interviewed – both face-to-face, and by telephone – in order to develop insights in
collaboration with actors in the actual context (phronesis). In addition, business plans from 13 new/very young
enterprises were included in the analysis - of which 4 was stemming from the group of 29 interviewed
entrepreneurs. The interviews were transcribed and, together with business plans, analyzed using Nvivo 9. The
analysis took the advantage of both free coding and theoretical coding. The resulting hierarchy of codes consists
of 83 different codes that are divided in 3 theoretical codes, 6 dimensions and 29 properties.
FINDINGS AND DISCUSSION
An important finding, and a contrast to previous findings (Carson 1985), is that marketing in new firms
is strategically focused, even though implied and not always formalized. The assumed link between new venture
success and formal strategic planning (as advocated by marketing management) is not supported by the analysis.
New ventures fail or succeed regardless of mode of strategy development. Importantly, this does not support the
idea that a strategic process is superfluous in new ventures - quite the contrary. Strategy is important, but the
mode of strategic development is not. Moving on to marketing tactics we found mainly the use of interactive
approaches, but both transactional, database and network approaches can be found in most new firms. In brief
marketing tactics may be characterized as low-cost-marketing, however, not to be confused with unprofessional
or unsophisticated marketing.
The heuristics of entrepreneurial decision making is highlighted in the analysis. This is a finding that
typically is reported from research on marketing in new ventures. However, in this research effort application of
market analysis and other market planning activities appears simultaneously in several cases. This is an
interesting paradox as entrepreneurs do not start doing formal market analysis without the occurrence of external
pressure. To fully understand this paradoxical situation one has to appreciate the desperate financial position
most new ventures and their entrepreneurs have to deal with. This causes bootstrapping and several creative
ways to fund the business. One of these funding strategies is to apply for support from governmental agencies
and, hence, the interpretation that institutional pressures cause the existence of these two conflicting information
processing practices in new firms is plausible. Another possible interpretation may be that increasing
knowledge, and thus better problem definitions, paves the way for an analytical approach to information
generation.
Even if it is possible to develop analytical skills as the business grows bigger or older, external pressure
is suspected to have greater influence on this entrepreneurial practice. The reason for this is the widespread
orientation towards governmental funds in the sample. Governmental agencies offering financial support require
formal business planning, and thus insist on the existence of a strategic planning process in new firms. For most
entrepreneurs this is not feasible – as noted earlier mode of strategy development does not predict new venture
success. Additionally, formal planning requires the skills of marketing professionals that are far beyond the
financial resources of bootstrapped entrepreneurs. Thus, entrepreneurs adapt to this regimen both by honest
internalization (by doing their best), and by a more cunning opportunism: In order to qualify for support a pro
forma business plan is written without the intention to follow through. In most cases included in the sample the
business plan appears as a mechanical adaptation to external pressure, through the use of standardized templates
provided by the funding agencies.
1/3 of the investigated new ventures have an innovative business idea. Most new ventures copy an
already existing business idea. The sad demise of truly innovative businesses included in this research project,
demonstrates the vulnerability of “first-mover-advantage” strategies for small new firms. High risk strategies,
like “First-mover-advantage”, are resource intensive, and thus not compatible with the proverbial bootstrapped
position and low-cost-marketing practice of most new ventures. In other words, survival rates suggest that
moderate or incremental innovators and plain copying entrepreneurs are far better off than radical innovators.
Interestingly, such a critique has not been given much attention in the literature. Furthermore, the innovative
business ideas are celebrated in society, and embraced by industrial policy and governmental funds. Thus the
cultural image of an entrepreneur as a successful innovator is blurring the reality of entrepreneurs as
bootstrapped, and resource constrained founders of small new ventures.
A major interpretation made in the analysis is that business opportunities are not spontaneously
discovered. They are carefully developed over a longer period of time. The interpretation that the business
opportunity continuously changes is even possible. Therefore, entrepreneurs and their new ventures are
embedded in market processes. In these processes entrepreneurs relate to other market participants through
dialogue. The business opportunity is thus understood as developed through dialogue between partners in
ongoing relationships. Hence, the “latency-of-opportunities” view is seriously challenged by this finding. This
implies that traditional marketing research has limited value to entrepreneurs when developing business
opportunities, even though it is advocated by the marketing management literature. The paradoxical situation for
the entrepreneur is that he is advised to conduct market analysis, by business consultants, when he/she perceives
the dialogue with relationship partners as far more relevant to the development of business opportunities. The
finding in this study actually supports this entrepreneurial praxis.
Furthermore, the inadequacy of a traditional stepwise and chronological approach to venture creation
and strategic development is demonstrated when entrepreneurs enter the market. Planning before launch of the
new venture is virtually non-existing in the investigated cases, and is better described as daydreaming, as
entrepreneurs do not have the time or money to plan carefully. Instead they are thrown into the marketplace. The
rather urgent financial situation that characterizes new ventures makes it impossible to ignore the importance of
generating sales. Thus, entrepreneurs gain momentum the very minute they involve in market relations. These
may be industrial partners, customers or even competitors, and governmental funds. Thus, the agenda is set by
the market process initiated by the act of creating a new venture. The finding is, thus, that opportunity
development, venture creation, and opportunity exploiting are inseparable events. They are idiosyncratic.
CONCLUSION
The major contribution to the research field is that marketing in new ventures may be understood as a
dialectic and relational process. According to this entrepreneurs are thrown into the marketplace, and
continuously strive with the demands and challenges of creating a new venture. Traditional marketing
management advice is not feasible in this situation, but new ventures are nevertheless strategically focused.
Furthermore, a ground breaking interpretation is that marketing can be understood as a non-cyclical
process. This implies a step away from traditional conceptualizations (that often are linear or cyclical) and, thus,
offer new insights on opportunity recognition, marketing strategy, and marketing tactics in new firms. In
conclusion, the major contribution of applying a dialectic perspective is a non-cyclic conceptualization of
marketing in new firms. This is in stark contrast to previous findings.
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