Does social capital provide marketing benefits for startup business? An emerging economy perspective

ABSTRACT

Purpose>This study explores the relevance of social capital resources generated through networks to address the marketing challenges of startups. It looks into the marketing issues faced by startup firms in emerging markets and examines how they leverage their social capital to reach out to their customers and other stakeholders for marketing their products and services.Design/methodology/approach>The case study analysis using the abduction method, semi-structured interview and content analysis were used for answering the research questions.Findings>This study finds the importance of developing social capital by startups for marketing activities. Social capital also acts as a strategic advantage that the competitors cannot easily emulate. Findings show that the development of social capital happens through the network of startup entrepreneurs and social connections involving customers, dealers and suppliers, among others.Originality/value>This study is a novel attempt to emphasize the potential of social capital for marketing activities in a startup firm. This study expands the literature on social capital with a marketing perspective in an emerging economy context. The academic and managerial implications have also been highlighted in the study.