Does Organizational Culture Mediate the Relationship between Relationship Marketing and SME Performance?

Abstract

This study investigates whether organizational culture (OC) mediates the relationship between Relationship marketing strategies (RMS) and SME performance in Bangladesh, with a focus on enhancing SME outcomes through cultural dynamics. The research employs a quantitative approach using a cross-sectional survey. Self-administered questionnaires were distributed to 386 SME owners in Bangladesh, selected through random cluster sampling. Data analysis was conducted using Structural Equation Modeling (SEM) with SPSS-AMOS version 25.0. The results demonstrate that Relationship marketing strategies significantly influence SME performance, both directly and indirectly. Organizational culture was shown to play a crucial role in mediating this relationship, albeit partially, by enhancing the effectiveness of Relationship marketing strategies on performance outcomes. The study is limited to SMEs in Bangladesh and uses cross-sectional data. Future research could expand by employing longitudinal methods and exploring diverse regional contexts for broader generalizability. The findings underscore the importance of fostering a robust organizational culture within SMEs to optimize the impact of Relationship marketing strategies. Policymakers and stakeholders are encouraged to design support programs that integrate cultural development as part of SME performance enhancement initiatives. This study contributes uniquely to the literature by exploring the mediating role of organizational culture in the RMS-SME performance relationship, providing actionable insights for both practitioners and policymakers in the SME sector.