[The Relevance of Business Networks to High-tech SME Marketing]

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CHAPTER #4: ANALYSIS AND INTERPRETATION

Methodology for analysis

The methodology for this study is quantitative research method. In quantitative method, the numeric data is collected from the respondents to evaluate the findings statistically by using analytical techniques. Partial least square regression is used for finding out the model fit. Moreover, descriptive analysis is also used to analyse the research questions. For the reliability analysis of the data, cronbach's alpha and exploratory facto analysis techniques are used to see that whether the data set given in the variables is reliable or not and whether the data is valid or not.

Reliability and validity of data

Cronbach's alpha analysis

Reliability Statistics

Cronbach's Alpha

N of Items

.814

109

Cronbach's alpha is the test of internal consistency that whether the results are repeatable or not, according to a rule of thumb, if the value of cronbach's alpha is 0.5 or above, it means that the data is reliable and it has internal consistency. The value of cronbach's alpha is 0.814, it indicates that the data is highly reliable and it has internal consistency.

Exploratory factor analysis

Exploratory factor analysis is carried out to know the reliability of the data obtained in response of the marketing networking and marketing activities practices by the biotechnologies SMEs. All the variables related to marketing network were taken into account and marketing contacts used by biotechnology SMEs was taken as a selection variable. First, the factor analysis, then the variables whose values in the communalities was less than absolute value (0.55) was eliminated and then test was reran. There were cross loadings; varimax rotation technique was applied, and cross loadings were removed. Following is the set of the components' that contains valid and reliable variables those are significant for the model. It tells the latent strength of the model.

Rotated Component Matrixa,b

Component

1

2

3

4

5

MNG1A

.866

MNG1B

.791

MNG1C

.860

MNG1E

.770

MNG1F

-.732

MNG2A

.799

MNG2B

.848

MNG2C

.946

MNG2D

-.644

MNG3A

.877

MNG3B

.604

MNG3C

.876

MNG3D

.913

MNG3E

.839

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 10 iterations.

b. Only cases for which SD1B = 2 are used in the analysis phase.

FINDINGS OF QUESTIONNAIRE IN RELATION TO RESEARCH QUESTIONS

Analysis of importance of marketing networks to biotechnology SMEs

R1a: Do Biotechnology SMEs engage in large marketing networks (assuming large being at least 45 links per company)?

Please indicate approximately, if known, how many contacts/links you have that you (and/or your company's employees ) use to support marketing activity such as product development, launch, and promotion

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

0

1

1.6

1.6

1.6

1-9

14

22.6

22.6

24.2

10-25

19

30.6

30.6

54.8

26-44

13

21.0

21.0

75.8

45-74

7

11.3

11.3

87.1

75-99

3

4.8

4.8

91.9

100+

5

8.1

8.1

100.0

Total

62

100.0

100.0

The above table shows that Biotechnology SMEs engage in large marketing networks as the frequency of business having marketing networks is 28. Thirty four respondents have reported that their business have marketing contracts less than or equal to 25. Remaining twenty eight respondents answered that their businesses have marketing networks contracts above 45.

R1b: Do Biotechnology SMEs engage in marketing networks with highly formal links?

I do things formally with my network

Frequency

Percent

Valid Percent

Cumulative Percent

Valid

strongly disagree

3

4.8

4.8

4.8

disagree

16

25.8

25.8

30.6

neutral

24

38.7

38.7

69.4

agree

18

29.0

29.0

98.4

strongly agree

1

1.6

1.6

100.0

Total

62

100.0

100.0

The above table shows that it is not necessary that respondents do work formally with their network as nineteen respondents agreed and strongly agreed, and in te same ratio respondents disagreed and strongly ...