Marketing for survival: a comparative case study of SME software firms

Purpose This study seeks to explore the success and failure of two similar small software technology firms from a marketing perspective. Using a dyadic approach, the research aims to compare the degree of customer orientation and innovativeness exhibited in both firms and to understand contributing factors for success and failure. Design/methodology/approach A two‐case comparative case study was employed as the primary method of investigation. Participant‐observation in both firms and 22 semi‐structured interviews with owner‐managers, employees and customers provided a holistic approach to how these firms perceived and prioritised marketing and innovation. Findings There is a need for small software firms to strike a balance between customer orientation and innovativeness in order to survive. In terms of customer orientation, the findings show that it is not only related to customer contacts and relationships, but is also about delivering on the promise. The small firm's ability to achieve this is highly dependent on managerial style, communication between the firms and their customers, business planning, market research, promotion and firm culture. Practical implications The benefits of this study, which demonstrates the stark contrast between successful and unsuccessful behaviour, can act as a useful guide for small to medium‐sized enterprise (SME) managers who often have technical but less managerial competencies. Originality/value This is a unique study comparing two software SMEs, particularly one which failed and one which succeeded under similar conditions, thus illustrating good practice by contrasting with bad practice. It also contributes to the literature on how SMEs conduct marketing in the software industry and how to secure small firm sustainability and growth in developing regions.