UNDERSTANDING THE IMPACT OF DIGITAL MARKETING CAPABILITIES AND FEMALE-OWNER BEHAVIORS ON THE PERFORMANCE OF ENTREPRENEURIALLY ORIENTED FIRMS IN THE DIGITAL ECONOMY

Entrepreneurial enterprises take risks, innovate, and remain proactive in seeking business opportunities. For the past 30 years, entrepreneurial orientation theory has been the basis of exploring organizational behavior and has proven to be a reliable measure of what drives firm performance. Entrepreneurial firms remain adaptive by directing their internal and external capabilities to capture digital commerce and customer-linking opportunities. Thus, online marketing has gained in significance, suggesting that firms with the ability to leverage their digital marketing capabilities position themselves to gain a greater market advantage. In addition, the digital environment also offers unique opportunities for female-led firms with an entrepreneurial orientation. The possibility now exists for high levels of connectivity, adding value to the female owner’s ability to expand networks and increase social capital. Digitization of markets suggests new prospects for connectivity and performance gains not previously accessible. There is a gap in the literature as it relates to a firm’s digital marketing capabilities and firm performance outcomes. In addition, there is a dearth of research regarding entrepreneurially oriented female owners navigating contemporary digital and social environments where greater opportunities exist to leverage networks to creating social capital and improve firm performance. A quantitative study was conducted utilizing a client database from the Carolina Small Business Development Fund, a state-wide community development financial institution offering small loans and grants to business owners in the state of North Carolina, and surveys collected from LinkedIn social media platform. The surveys provided data for this study evaluating the connection between entrepreneurial orientation and firm performance when moderated by digital marketing capabilities and female owner behaviors.