Designing a Marketing Decision-Making Model Based on Entrepreneurial Risks

Abstract

This study aims to develop a fitted model for marketing decision-making based on the risks faced by entrepreneurs in small and medium-sized enterprises (SMEs) while considering the controlling effect of various marketing strategies on risk reduction. It is a descriptive-applied research that employs a mixed-methods approach, integrating both quantitative and qualitative methods. A conceptual model, comprising various variable factors and their interrelations, was designed, and the prioritization of risks was conducted through structural analysis. Data were collected using a semi-structured questionnaire with a five-point Likert scale through expert interviews. Subsequently, structural equation modeling (SEM) was employed using PLS3 and SPSS software to analyze the relationships among the variables from a marketing perspective to inform risk-related decision-making. In the present study, 11 marketing strategies influencing decision-making were identified. Their impact on the risk indicators faced by entrepreneurs was assessed based on the theory of realization. According to the statistical analysis results, after eliminating certain reflective indicators, all the aforementioned strategies were deemed essential in the model's design. Their effects on credit, operational, market, and liquidity risks were analyzed. Out of the 48 tested hypotheses, 27 were confirmed, while 21 were rejected and subsequently removed from the conceptual research model.