Networking and Social Capital in Entrepreneurial Marketing Orientation

Insights from the Igbo Spare Parts Entrepreneurs in Nigeria

Abstract

This study investigates the role of networking practices and social capital in shaping the Entrepreneurial Marketing Orientation (EMO) and business performance of Igbo spare parts entrepreneurs. Through a hybrid approach, combining quantitative surveys and qualitative interviews, we examine how these entrepreneurs leverage their social networks to enhance their marketing strategies and overall business success. The quantitative findings reveal that networking practices significantly influence EMO, with a positive regression coefficient (β = 0.45, p < 0.001), indicating that active networking correlates with higher levels of proactiveness and innovation. Additionally, social capital was found to have a substantial impact on marketing strategies (β = 0.38, p < 0.01), particularly in fostering trust and reciprocity, which are crucial for customer loyalty and relationship-building. Furthermore, the interaction of networking and social capital was shown to significantly enhance business performance (β = 0.50, p < 0.001), suggesting that a synergistic effect exists where combined social and business networks lead to increased profitability, market share, and customer retention. Qualitative insights further underscore the importance of resource sharing, trust-based reciprocity, and collective problem-solving within these networks. The study also highlights the deep cultural influences on business practices, with community support and collective success being central to the entrepreneurs' strategies. Based on these findings, the study recommends that policymakers and business support organizations focus on fostering networking opportunities and strengthening social capital among entrepreneurs. By doing so, they can enhance the competitiveness and sustainability of small businesses, particularly in ethnically driven, informal markets like the Igbo spare parts industry.