Empirical Insights into Wage Dynamics and MarketingCompetitiveness: A Systematic Review of India’s MSME Sector
DOI:
https://doi.org/10.14419/ha3yzf61Published
17-12-2025Keywords:
Wage Dynamics; Labor Economics; MSMEs; Marketing Competitiveness; Wage Inequality; IndiaAbstract
Purpose: This paper systematically reviews the literature on wage dynamics and marketing competitiveness within India’s Micro, Small, and Medium Enterprises (MSMEs). The review identifies the interplay between labor economics, marketing orientation, and enterprise competitiveness, emphasizing empirical insights into wage formation, gender pay gaps, productivity linkages, and market signaling mechanisms.
Design/Methodology/Approach: Following the PRISMA 2009 protocol, this systematic literature review (SLR) synthesizes 70 peer-reviewed papers from Scopus, Web of Science, and Google Scholar published between 2000 and 2025. Keywords included “wage dynamics,” “labour economics,” “marketing competitiveness,” “MSMEs,” “India,” and “labour productivity.” Only English-language empirical studies on Indian MSMEs were included. Conceptual and policy-based studies were excluded.
Findings: The analysis indicates that marketing competitiveness significantly influences wage structures through three pathways: (1) productivity-linked incentive systems, (2) labour market signaling of brand strength and firm reputation, and (3) marketing-driven product diversification that enhances labour demand. However, wage rigidity persists in micro-units due to informal employment and limited financial literacy. Studies reveal wide inter-sectoral wage dispersion, gendered wage patterns, and a positive elasticity between export orientation and average wages.
Practical Implications: This study aids policymakers and MSME managers by highlighting how marketing strategies and labor investments co-determine firm competitiveness. It further proposes integrating marketing analytics with wage-performance dashboards for equitable compensation planning.
Originality/Value: Few systematic reviews exist at the intersection of labour economics and marketing within MSMEs. This paper fills that gap by developing a conceptual model of “Marketing-Driven Wage Competitiveness (MDWC)”, advancing theory and practice in MSME labour markets.
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