Impact of integrated communication on entrepreneurial companies’ finacial performance: a developing economy

Jovanov, Tamara and Sofijanova, Elenica and Davcev, Ljupco and Temjanovski, Riste (2015) Impact of integrated communication on entrepreneurial companies’ finacial performance: a developing economy. In: 16th EBES Conference, May 2015, Istanbul, Turkey. (In Press)

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Abstract: Entrepreneurial companies are the basis for national and global economic growth and, it is more than necessary to identify the factors of influence on their financial success, so they can achieve proper allocation of scarce resources. The mode of communication, shown through the communication mix and the media that transmit the promotional message, are factors that influence the financial success of a company. The objectives of this paper are to present the current situation, i.e. state of the art in the communication processes of entrepreneurial companies that operate within an emerging economy, as well as the relationship and impact of integrated communications on financial success, specifically profitability. The research is a part of an ongoing project entitled: “Strengthening the business capacity of women entrepreneurs in Republic of Macedonia, as a developing country”. The paper is based on the initial hypothesis that integrated communications lead to increased profitability, which than can be the basis for further development and success of the company. The method of research is used, with parallel application of quantitative and qualitative methods. The research is conducted by the technique of questionnaires and personal interviews with managers of entrepreneurial companies form the food industry. The data are processed with IBM SPSS19 and, conclusions are made based on descriptive and deductive statistics. The results show that companies within the analyzed emerging economy, regardless of their size, are giving priority to economic propaganda and sales promotion as a way of promotion, and they mostly use non-personal, mass media, mainly national television. On the other side, it was found that the greatest influence on profitability comes from combination of several elements of the promotional mix, i.e. integrated communications. Also, it was confirmed that the effects on profitability are better when a combination of media for promotion is used, instead of only one or two of them. The research confirmed the direct impact of integrated communications on companies’ profitability. The conclusion suggest that entrepreneurial companies should implement integrated communications in relations to their consumers and other stakeholders, because of the positive effect on the financial performance and increase in the chances of investment in further development. The conclusion gives recommendations to overcome the identified deficiencies, as well as indications for future research.

Keywords: integrated communication, entrepreneurship, financial performance, developing economy, food industry

JEL: M370, L260, P210, L660

Item Type: Conference or Workshop Item (Paper)
Subjects: Social Sciences > Economics and business
Social Sciences > Media and communications
Divisions: Faculty of Economics
Depositing User: Tamara Jovanov
Date Deposited: 03 Sep 2015 11:43
Last Modified: 16 Aug 2018 06:56

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