International Journal of Management Excellence

Volume 7 No.2 August 2017

Effect of E-Marketing Adoption Strategy on Export

Performance of SMEs
Humaira Erum1*, Hamid Rafique2, Asghar Ali3
1
Department of Management Sciences, National University of Modern Languages, Lahore Campus,
Pakistan
2
Department Business Administration, National College of Business Administration & Economics,
Pakistan
3
Department of Management Sciences, University of South Asia, Lahore Pakistan
[email protected]
[email protected]
[email protected]

*Corresponding author
Abstract: Purpose - The purpose of this study is to analyze the effect of e-marketing adoption strategy on export
performance of SMEs in Pakistan. The mediating effect of marketing activities on the relationship between e-marketing
adoption and export performance is also investigated.
Design/methodology/approach – Data was collected from 169 SMEs from four sectors, namely textile, leather, medical and
surgical goods and services. The five constructs namely e-marketing budget, e-marketing tools, pre sales activities, after
sales activities and export performance linked through eight hypotheses were tested using structural equation modeling in
AMOS version 5.
Findings - This study finds the positive impact of allocation of e-marketing resources for marketing activities and confirms
that mere adoption of e-marketing tools is not sufficient for improving marketing activities. Similarly, SMEs export
performance is positively influenced by allocation of e-marketing budget, adoption of e-marketing tools and after sales
activities, but pre sales activities does not produce significant effects on export performance of SMEs.
Research limitations/implications-- The data collected for this study was cross sectional in nature, whereas longitudinal
approach is more suitable for such a study, therefore, care should be taken while generalizing the results of the study.
Practical implications – The study points out that SME sector needs to be facilitated by providing IT infrastructure, training
employees and resources for utilizing e-marketing at its full potential.
Keywords: E-Marketing; Adoption Strategy; Export Performance; SMEs

1 INTRODUCTION adoption of e-marketing strategies has the potential to

change the shape of business for SMEs, that is why, most
Recent revolution and advancement in information of the companies find it crucial to have online presence
technologies, communication technologies and the for better performance, increased market share and higher
internet has given new dimensions to business and profits (Awiagah, Kang, & Lim, 2016[4]; S. A. Khan,
marketing practices. Indeed, using internet and Liang, & Shahzad, 2014)[27]. Although, effective
communication technologies for conducting business and management of e-marketing strategies is the subject of
creating a competitive edge has emerged as one of the great interest for researchers; but most of the studies are
most important development trend in last decade (Ahmad, conducted in developed countries (El-Gohary,
Abu Bakar, Faziharudean, & Mohamad Zaki, 2015)[1] . 2010a)[20]. There is lack of empirical evidence regarding
International trade is taking a new form with the spread of adoption of e-marketing by SMEs from developing
internet and e-marketing activities (Eid, 2005[16]; countries (Ahmad et al., 2015[1]; El-Gohary, 2010a[20];
Ivanauskiene, Auruskeviciene, Ramoniene, & Skudiene, Molla & Licker, 2005)[35].This study analyzes the impact
2015)[25]. The adoption of internet especially helps Small of e-marketing adoption for improving marketing
and Medium Enterprises (SMEs) that have limited activities and ultimately enhancing export performance of
resources for foreign visits, participation in international SMEs. The appropriate research question summarizing
trade exhibitions, allocation of resources for marketing this study is“What is the impact of e-marketing adoption
activities, that are considered some of the most on export performance of SMEs?”
significant factors recognized in research studies for To answer this question, the objectives of the study are:
enhancing export performance of the firms (Hsu, Chou, & first, to explore the relationship between e-marketing
Hsu, 2008[24]; Murphy, 2008[37]; Singh, 2009)[46]. The adoption and marketing activities of SMEs, secondly, to
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Volume 7 No.2 August 2017

explore the relationship between e-marketing adoption market share and higher profits. It is directly contributing
and export performance of SMEs and finally to towards increased business activity and economic
empirically test the model and assess the prospects of e- development of the country (Saboniene,
marketing in developing countries like Pakistan. 2015)[41].Exporters are found to be more productive
2 LITERATURE REVIEW than their domestic counterparts (Wagner, 2007)[52].
Export performance of a country directly or indirectly
2.1 Overview of Small and Medium affects GDP, balance of payment (BOP), employment
Enterprises (SMEs) and Key Variables level and foreign exchange rates. Export performance of
SMEs are those companies having employees below a the firms is affected by external factors like foreign trade
certain limit or paid capital or annual sales turnover up to policy, industry traits, foreign and local market traits and
a certain limit. As per SMEDA SME policy 2007, SME is firm specific internal factors like firm competencies,
defined as “A business entity employing not more than managerial knowledge, abilities and commitment. Among
250 employees, having paid up capital up to Rs.250 the export determinants, supported by research, are
million and annual sales up to Rs.250 million.” This study presence in multiple markets, intense and aggressive
is based on SMEDA policy 2007 definition of small and promotional campaign, participation in trade shows and
medium enterprise. exhibitions, top management commitment, staff skills and
SME sector plays an important role in the growth and use of commission agents (Murphy, 2008)[37].
progress of the country. Small enterprises out-number 2.3 Electronic Marketing (E- Marketing)
large companies and offer employment to much more The concept of e-business, e-commerce and e-marketing
people than the large companies do. SME’s contribution are based on the fact the internet users are increasing very
towards employment of labor; and their contribution to fast since last two decades. Not only that people
Gross Domestic Product (GDP) is quite significant connecting to internet are increasing daily but also the
especially in developing economies (Atanassova & number of hours they spend on-line and their on-line
Clark, 2015). In contrast to large scale companies, SMEs activities like information collection, socializing,
have limited financial and other resources. This innate education and entertainment, shopping are also growing.
feature of an SME calls for some support system that can So, internet’s ability to reach more and more people is
provide technical assistance, financial, marketing and providing opportunities to businesses to expand
human resource training (SMEDA). SME sector can be dramatically and at faster speed (Li, Wang, & Yu,
the engine for economic growth for many reasons like 2015)[31].
promotion of this sector can generate employment for Different researchers have provided different e-marketing
growing population that government cannot do, women definitions according to their background, experience and
population can be brought into effective workforce, loan judgment. Some of the researchers expressed it as
recovery in SME sector is much better than in large scale achievement of marketing objectives through the use of
industrial sector. That is why, SMEs remain the focus of electronic communication technology (Dave Chaffey,
research studies and government policies all over the 2007[10]; D Chaffey & Smith, 2005[11]; McDonald &
world. Wilson, 1999)[34] whereas others viewed it as process
SME sector plays a vital role in economic development of that facilitates business transactions and communication
the country. According to SMEDA and Economic Survey over networks (Reedy & Schullo, 2004)[39]. Strauss and
of Pakistan, approximately 3.2 million SMEs are working Frost (2001)[49] defined it as “The use of electronic data
in the country with 40% contribution in annual GDP and and applications for planning and executing the
employing 80% of non-agricultural labor force. SMEs conception, distribution and pricing of ideas, goods and
account for almost 90% of total enterprises in Pakistan services to create exchanges that satisfy individual and
that contribute to 25% exports of manufacturing goods. organizational objectives”(p. 454).
2.2 Export Performance Literature reveals that most commonly used tools of e-
Cavusgil and Zou (1994)[9] defines export performance marketing are internet marketing, e-mail marketing,
as achievement of economic and strategic objectives by mobile marketing, intranet marketing and extranet
exporting product into foreign market through the marketing (Dave Chaffey, 2007[10]; Eid & Trueman,
implementation export marketing strategy. Export 2002[19]; El-Gohary, 2010b[21]; Hofacker, Goldsmith,
performance is a multi dimensional area in research. The Bridges, & Swilley, 2007)[23]. This research concentrates
most familiar conceptualization of the construct on these five e-marketing tools.
emphasizes on financial outcomes of exporting. Based on 2.4 E-Marketing Adoption And Marketing
this view export performance is measured by indicators Activities
like export sales, sales growth and export profits SME sector is probably the most researched sector and
(Cavusgil, 1984[8]; Cooper & Kleinschmidt, 1985[12]; gained a lot of attention from scholars from all over the
Koed Madsen, 1989)[28]. world. SMEs have some special characteristics which are
International trade is providing firms with the not found in large businesses like single owner, financial
opportunities to broaden their scope of business for more
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dependence on owner and owner as major decision Unified Theory of Acceptance And Use of
maker. Main problems faced by SME are availability of Technology (UTAUT) by Venkatesh (2003)
limited finance, marketing intricacies and low innovative proposes that usage behavior towards information system
capacity (Atanassova & Clark, 2015[2]; Tambunan, is determined by four factors including performance
2011)[50]. Under such a scenario where there is limited expectancy, effort expectancy, social influences and
availability of finance, e-marketing presents SMEs with facilitating conditions. Based on UTAUT, it is proposed
the opportunities to increase their global reach, maintain that SMEs adopt e-marketing in expectation of improved
direct and effective relationship with customers, suppliers marketing activities and better export performance.
and business partners at relatively low cost (Ivanauskiene Moreover, social influence by customers, competitors also
et al., 2015[25]; S. A. Khan et al., 2014)[27]. The efforts encourage SMEs to adopt e-marketing strategy
of marketing staff and skillful employment of EM tools (Venkatesh, Morris, Davis, & Davis, 2003). Thus, it is
(e-mail marketing, mobile marketing, internet marketing, comprehend able to say that
intranet marketing, extranet marketing) boost marketing 2. The E-marketing adoption (measured by E-marketing
performance and effectiveness and creates competitive budget and tools) has positive impact on export
advantage for the business (Avlonitis & Karayanni, 2000; performance of SMEs.
Eid & Elbeltagi, 2006). E-marketing adoption by SMEs However, SMEs need flexibility in marketing strategy to
can enhance marketing effectiveness and performance meet different requirements of export markets (Rundh,
(Avlonitis & Karayanni, 2000; Ivanauskiene et al., 2015), 2011). Internet does not prove to be an alternative of
information sharing and communication between physical market presence rather online channel support
employees (Daniel & Wilson, 2002), international greatly and positively influences export performance
activities and development of business networks in especially in the case of SMEs (Sinkovics & Sinkovics,
international markets (Bianchi & Mathews, 2016; 2013). Use of internet for acquiring and using export
Matthyssens et al., 2008; Morgan-Thomas, 2009). information positively improves firm’s export sales,
Therefore, we argue that market share and export profitability (Bianchi &
1. The E-marketing adoption (measured by E-marketing Mathews, 2016[6]; Köksal, 2008)[29]. Therefore, we
budget and tools) has positive impact on SMEs propose that
marketing activities (measured by pre sale activities 3. The marketing activities (measured by pre sale
and after sale activities). activities and after sale activities) have positive
Exporting is no longer a matter of choice but has become impact on export performance of SMEs.
a matter of survival for SMEs. Internet produces positive
impact on export performance when used as competitive 3 THEORETICAL MODEL AND
weapon for reducing cost (Li et al., 2015; Lu & Julian, HYPOTHESES
2007). Literature shows that use of internet and
communication technologies has enhanced firms’ Following model is proposed to accomplish the
international growth (Daniel & Wilson, 2002), influenced objectives set for this research study. This study
new sales and new customers (Simpson & Docherty, endeavors to empirically testify the impacts of e-
2004; Stockdale & Standing, 2004; Walczuch, Van marketing adoption on marketing activities and export
Braven, & Lundgren, 2000)[53], helped in gaining new performance of SMEs in Pakistan. For this purpose, the
market access (Walczuch et al., 2000) and increased model is adopted from literature (Eid & El-Gohary, 2013;
productivity (Stockdale & Standing, 2004[48]; Walczuch Shamsuddoha, 2005) and modified according to the
et al., 2000), requirement of this research study.
Figure 1: Conceptual Model

E Marketing
E-marketing adoption Adoption Marketing activities Export performance

H1 Pre- sales H7
Activities
E-marketing Budget
H5 Export Performance
H3
H2
HH6
6

E-marketing Tools
H8
After Sales Activities
H4

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The proposed model examines following and 4.7% have employee count between 50 to 250
hypotheses workers.
H1 The higher the E-marketing budget, the greater
4.3 Measurement
the impact on the pre sales marketing activities.
The independent variable e-marketing adoption consists
H2 The higher the E-marketing budget, the greater
of two dimensions: EM budget and EM tools. EM budget
the impact on the after sales marketing activities.
refers to percentage of marketing budget accounted for E-
H3 The adoption of E-marketing tools has positive
marketing. It is adopted from Alvonitis and Karayani
impact on the pre sales marketing activities.
(2000)[3]. EM tools include e-mail marketing, mobile
H4 The adoption of E-marketing tools has positive
marketing, internet marketing, intranet marketing,
impact on the after sales marketing activities.
extranet marketing. Respondent were requested to show
H5 The higher the E-marketing budget, the greater
their dependence in percentage terms on each e-marketing
the impact on the export performance of SME.
tool for conducting marketing activities. The scale for e-
H6 The adoption of E-marketing tools has positive
marketing tools consisted of 5 items and taken from Eid
impact on the export performance of SME.
and Trueman (2004) and El- Gohary et al. (2008a,
H7 Pre sales marketing activities have significant
2008b). The Cronbach’s alpha value of 0.793 supported
positive impact on the export performance of
the reliability of the scale.
SME.
The mediating variable marketing activities also consists
H8 After sales marketing activities have significant
of two dimensions: Pre sales activities and after sale
positive impact on the export performance of
activities. Pre sales activities are measured by four items
SME.
namely faster discovery of customer needs, greater
customization of products, faster communication with
4 METHOD customers and faster adaptability of customer needs. After
sales activities are measured by four items namely
4.1 Participants and Procedure providing better service quality, developing new products,
To test the suggested hypotheses, the data was collected good customer relationships and increased customer
from the exporting SMEs who have been in business for satisfaction. Respondents were requested to show their
at least 3 year, have employees less than 250 and have response on five – point Likert scale (1= strongly
employed at least one of the five EM tool. To draw the disagree; 5 = strongly agree). The scale for marketing
sample, a list of SMEs from the directory of Lahore activities was adopted from Eid and Trueman (2004) and
Chamber of Commerce and Industry (LCCI) and El- Gohary et al. (2008a, 2008b). The Cronbach’s alpha
directory of Small and Medium Enterprises Development value of 0.646 supported the reliability of the scale.
Authority (SMEDA) fulfilling our population criterion The dependent variable export performance points out to
was solicited. The researcher introduced the purpose of the degree to which firm’s export goals are achieved
research and solicited their consent to participate in against targets set in terms of export sales, profits, growth
research study. The anonymity and confidentiality of and entry in new markets. Respondents are requested to
information was assured and communicated to every provide their assessment for four items on five – point
respondent SME. A total of 534 firms from different Likert scale (1= below expectations; 5 = more than
sectors (textiles, leather products, medical and surgical expectations). The scale for export performance was
goods, services) were selected and questionnaires were adopted from Shamsuddoha (2005). The Cronbach’s
sent to 300 firms that fulfilled population criteria and alpha value of 0.906 rendered reliability to the scale.
consented for participation in study. Out of 300 Nunnally, (1978) suggested the Cronbach’s alpha value
questionnaires sent, 201 were received back making a greater than 0.60 is considered acceptable, therefore,
response rate of 67%. 169 out of 201 questionnaires were scales for all the constructs are reliable.
properly filled and complete and considered fit for data
analysis. 5 ANALYSIS AND RESULTS
4.2 Sample Before proceeding to hypotheses testing, we first tested
The study was dominated by trading SMEs with 88.8 % the unidimensionality of the scales using confirmatory
participation, followed by 7.7% of services SMEs and factor analysis (CFA) as suggested by Gerbing and
3.6% of manufacturing SMEs. As regards to number of Anderson (1988). Several fit indices like GFI, AGFI, CFI
years in the business shown as business experience of as suggested by experts were calculated to check the
SME, 57.4% firms have 3 to 10 years experience, 29% acceptability of each of factor model. The acceptable
fall in 11 to 20 years category and 13.6% firms have the level and results shown in table 1 indicate that all scales
business experience of more than 20 years. The frequency were unidimentional.
distribution of number of employees shows that 74% of This structural equation model resulted in a chi square
the respondent SMEs have less than 20 employees, 11.8% value of 143.976, p < .001 with 85 degrees of freedom.
have up to 29 employees, 8.9% employ 30 to 39 workers Although the model chi-square in this case is significant,

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the ratio of chi-square to degrees of freedom (CMIN/DF = 1.694) is within the acceptable limits of 2 to 1.
Table 1. CFA of Model Constructs
Construct CMIN/Df GFI AGFI CFI RAMSEA
Acceptance Level <2 > 0.9 > 0.9 > 0.9 < 0.5
E-Marketing Tool usage 0.825 0.998 0.971 0.999 0.001
Presales Activities 0.496 0.997 0.995 0.999 0.000
After sales Activities 1.382 0.996 0.959 0.994 0.048
Export Performance 0.141 0.999 0.996 0.999 0.000
This ratio indicates that model adequately fits the data fit as it is less affected by sample size (Bentler, 1988).
(Krause, Scannell, & Calantone, 2000[30]; Schumacker & The CFI value of 0.966 exceeds the acceptable limit of
Lomax, 1996)[43]. AMOS output provides a number of 0.90 (Bentler, 1988)[5], indicating a overall good model
other indices like comparative fit index (CFI = 0.966), fit. Moreover, the Akaike information criterion (AIC =
root mean square error of approximation (RMSEA = 305.976) for proposed model is less than the AIC for
0.064) indicating a good fit for model. The values of saturated model (342.000). This signifies model
goodness-of–fit index and the adjusted goodness-of–fit parsimony. All these indices show that the proposed
were 0.914 and 0.826 respectively indicating a good fit. model fits the data reasonably well.
The CFI is recommended to be taken as measure of model
Figure 2 Empirically Tested Structural Model

E-marketing adoption Marketing activities Export Performance

H1 (0.483) Pre- sales

Activities H 7(-0.07)

E-marketing
Budget H 5 (0.105) Export
Performance
H 3(-0.459)
H 2 (0.414)
H 6 (0.495)

E-marketing
Tools H8 (0.263)

H4(-0.130) After-sales
Activities

Fig. 2 shows the path diagram for the casual model. It after sales activities (H2: β = 0.414, p < 0.001). The
presents the estimated standardized parameters for the relationship between EM tools and pre sales activities is
causal model and their level of significance. Most of the significant but negative (H3:β = -0.459, p < 0.001) and
relationships among the predicting variables and export the relationship between EM tools and after sales
performance were significant in expected direction with activities is insignificant and negative (H4: β = -0.130, p
few exceptions. The non-significant relationships were > 0.01). Export performance is positively and
retained in the model, rather than re-specifying them, significantly predicted by EM tools (H6: β = 0.495, p <
reason being, the proposed model adequately fits the data. 0.001) and after sales activities (H8: β = 0.263, p < 0.05)
Thus, all the variables were retained in the final structural but EM budget (H5: β = 0.105, p > 0.01) and Pre sales
model. The detailed analysis of results is presented in activities (H7: β = -0.070, p > 0.01) did not come out to
table 2. The results indicate that EM budget positively be the significant predictors of Export performance.
affects pre sales activities (H1: β = 0.483, p < 0.001) and

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Table 2 Results of Structural Equation Model Analysis

Structural Model Standardized p Conclusion
Estimates
EM Budget  Pre sales Activities 0.483 *** H 1: Supported
EM Budget  After sales Activities 0.414 *** H 2: Supported
EM Tools  Pre sales Activities -0.459 *** H 3: Not Supported
EM Tools  After sales Activities -0.130 0.185 H 4: Not Supported
EM Budget  Export Performance 0.105 0.209 H 5: Not Supported
EM Tools  Export Performance 0.495 *** H 6: Supported
Pre sales Activities  Export Performance -0.070 0.353 H 7: Not Supported
After sales Activities  Export Performance 0.263 ** H 8: Supported
Significance level : *** p< 0.001, **p<0.05
The EM adoption may affect export performance directly standardized path coefficients (Asher, 1983). The total
or indirectly, that is, mediated by marketing activities or effects are the sum of direct and all indirect effects.
both. The indirect effects are the multiplicative sum of The standardized direct, indirect and total effects are
presented in table 3.

Table 3 Standardized Direct, Indirect and Total Effects of EM Adoption

Criterion Predictor DE IE TE
Pre sales Activities EM Budget 0.483 0.000 0.483
EM Tools 0.459 0.000 0.459
After sales Activities EM Budget 0.414 0.000 0.414
EM Tools 0.130 0.000 0.130
Export Performance EM Budget 0.105 0.095 0.181
EM Tools 0.495 0.003 0.493
Pre sales Activities 0.070 0.000 0.070
After sales Activities 0.263 0.000 0.263
DE = Direct Effect IE = Indirect Effect TE = Total Effect
6 DISCUSSION responded negatively to such factors resulting in weak
negative relationship between usage of EM tools and
Many studies in literature (Brodie, Winklhofer, Coviello, marketing (pre sales and after sales) activities.
& Johnston, 2007[7]; Domke-Damonte & Levsen, In addition to above explanation, the negative relationship
2002[14]; Drennan & McColl-Kennedy, 2003[15]; Garbi, between e-marketing tools and marketing activities can be
2002[22]; M. R. Khan & Motiwalla, 2002; Wu, Mahajan, interpreted by the fact that mere adoption of e-marketing
& Balasubramanian, 2003)[54] found positive tools does not guarantee accomplishment of marketing
relationship between internet usage or e-marketing goals and marketing success rather strategic planning and
adoption and marketing and business performance. In this skillful use of e-marketing tools is required to gain the
study, the e-marketing budget showed significant positive potential advantage (Samiee, 1998). Avlonitis&Karayanni
relationship with pre sales activities and after sales (2000) and Eid& El-Gohhary 2013 also supported the
activities (H1 and H2 supported). E-marketing budget above point of view that only the use of e-marketing tools
explains 48.3 % of pre sales activities and 41.4% of after does not automatically result in marketing success,
sales activities, that is, in line with previously conducted instead, the efforts and expertise of marketing staff leads
research studies in different countries in different sectors. to successful e-marketing implementation. The SMEs
As regards to e-marketing tools, the results of this export performance was measured by four indicators
research study are unexpected. The relationship between namely export sales, export profits, export sales growth
e-marketing tools and marketing activities (pre sales and and new market entry. The two predicting variables, e-
after sales) turned out negative (H3 and H4: not marketing tools and after sales marketing activities, have
supported). The reason for this negative relationship can significant positive relationship with export performance
be traced by analyzing the factors indicating marketing of SMEs (H6 and H8 supported). The use of e-marketing
activities. These activities include factors like faster tools explains 49.5% change in export performance and
discovery of customer needs, faster adaptability to after-sales activities explains 26.3% change in export
customer needs, greater customization of products and performance. Literature supports the findings that e-
developing new products but the respondent SMEs marketing positively influence sales growth and new
participating in study were mostly trading companies that customers (Simpson & Docherty, 2004[45]; Stockdale &
do not offer customized products but sell standardized Standing, 2004[48]; Walczuch et al., 2000)[53], gaining
products. Moreover, they do not make any special effort new market access (Walczuch et al., 2000), increased
to develop new products. Therefore, these SMEs productivity (Daniel & Wilson, 2002; Stockdale &
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Standing, 2004; Walczuch et al., 2000), information intranet, extranet to provide insight as how E-
sharing and communication between employees (Daniel Marketing affects export performance of SMEs
& Wilson, 2002). in less developed countries like Pakistan.
The relationship between e-marketing budget and export  Policy makers in improving, restructuring and
performance is positive but insignificant (H5: not upgrading export assistance programs to include
supported). But at the same time the relationship between new information, skills and training to be
e-marketing budget and marketing activities is significant imparted in export managers.
and positive (H1: supported). This can be clarified by Like other studies, this study also has some limitations
stating that allocation of e-marketing budget enhances fast which need to be taken into account in future studies. To
communication with customers, quick response to examine the effect of e-marketing adoption on export
customer queries and fast and improved adaptability to performance, longitudinal approach is more suitable as it
customer needs resulting in good customer relationship takes into account the e-marketing experience from
and increased customer satisfaction. Therefore there adoption to completion stage. The data used in this study
exists positive relationship between EM budget and was cross sectional collected over a shorter period of time
marketing activities. But mere allocation of EM budget that limits the in depth understanding of the phenomenon.
cannot directly increase the exports of the firm so the Another limitation is related to data collection. The data is
relationship between EM budget and export performance collected from four sectors in the particular region in
turned out insignificant. These findings are supported by Pakistan which is a developing country. Therefore, care
literature. Lages et al. (2008) found that firm allocation of should be taken regarding generalizability of the results
financial resources affects all the four dimensions of across different sectors. In addition to this, not all SMEs
marketing strategy. Firm’s marketing activities are greatly are registered in any official record or databases.
enhanced by the use of internet technologies (Prasad, Therefore sampling frame was developed from limited
Ramamurthy, & Naidu, 2001). Internet produces positive databases available with different institution that again
impact on export performance when used as competitive make generalization of study limited. So, within the
weapon (Lu & Julian, 2007). Use of internet for acquiring Pakistani context of SMEs, unavailability of population
and using export information positively improves firm’s databases, cross sectional data and use of non probability
export sales, export profitability and market share sampling were the major constraints of the study.
(Köksal, 2008)[29].
The relationship between pre sales activities and export 8 CONCLUSION OF THE STUDY
performance turned out negative and insignificant (H7: Based on data analysis, it is concluded that e-marketing
not supported). The reason for this negative relationship adoption positively affects the marketing activities
can be traced by analyzing the factors indicating pre sales provided skillful marketing staff and effective strategy is
marketing activities. These activities include factors like employed. Mere use of e-marketing tools is not sufficient
faster discovery of customer needs, faster adaptability to for generating desired positive effect on marketing
customer needs, greater customization of products and activities. On the other hand, export performance of
faster communication with customers but as stated in SMEs is enhanced by adopting e-marketing which is
preceding paragraphs, the respondent SMEs participating consistent with the earlier studies.
in study were mostly trading companies that do not offer There is a growing trend for e-marketing adoption in
customized products but sell standardized products. Pakistan, like other developing countries of the world, but
7 IMPLICATION AND LIMITATIONS the SMEs owner’s/ manager’s technical know-how of the
tools of e-marketing and the perception of e-marketing
OF THE STUDY potential is in early stage in Pakistan. Therefore, it is
Based on literature, this study genuinely attempts to highly recommended that government in collaboration
develop and test a model to investigate the effects of E- with private sector should pay attention and encourage
marketing adoption on export performance of SMEs. To SMEs to skillfully adopt e-marketing and utilize its
the best of our knowledge, no such attempt has been made potential at its full. In this regard, firm level internal
earlier in Pakistan. Furthermore, it provides empirical factors like training of employees, management
assessments of elements of marketing activities commitment, employment of effective export strategy etc
influencing export performance of SMEs. So this study and government level external factors like development of
adds to the present knowledge on the subject. IT and communication infrastructure, availability of high
In Pakistan, SMEs have great potential to play their role speed internet connectivity and power supply etc need to
in economic growth of country and internet can prove a be addressed. Moreover, the export assistance programs
vital path for SMEs to have global reach. Boosting should include IT training and providing guidance and
exports is the need of hour so this study proves helpful. facilitating e-marketing adoption by SMEs.
The results of this study provide assistance to
 Managers and entrepreneurs as how to get
benefit of e-marketing tools like internet, email,

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9 FUTURE RESEARCH DIRECTIONS [8] Cavusgil, S. T. (1984). Organizational characteristics

associated with export activity. Journal of
The results and limitations of the study provide basis for Management Studies, 21(1), 3-22.
future research direction. There are many areas in which [9] Cavusgil, S. T., & Zou, S. (1994). Marketing strategy-
future research can be directed like similar studies can be performance relationship: An investigation of the
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