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The Impact of Digital Marketing Adoption on Firm Performance: A Case Study of Small and Medium Enterprises in India

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Abstract

Purpose: The aim of the study was to investigate the impact of digital marketing adoption on firm performance: a case study of small and medium enterprises in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The adoption of digital marketing among small and medium enterprises (SMEs) in India has led to significant improvements in firm performance. Increased online visibility and reach have resulted in greater customer engagement and acquisition for these businesses. Cost-effectiveness and targeted advertising through digital channels have enhanced ROI compared to traditional marketing methods. SMEs embracing digital marketing have experienced heightened brand awareness and recognition in competitive markets. Unique Contribution to Theory, Practice and Policy: Resource-Based View (RBV), Institutional Theory & Innovation Diffusion Theory may be used to anchor future studies on the impact of digital marketing adoption on firm performance: a case study of small and medium enterprises in India. Develop tailored digital marketing training programs and capacity-building initiatives aimed at enhancing the digital literacy and skills of SME owners and employees in India. Policymakers should also prioritize initiatives to improve digital connectivity and access to affordable internet services in rural and underserved areas.
International Journal of Strategic Marketing Practice
ISSN: 3005-4567 (Online)
Vol. 6, Issue 1, No.1, pp 1 - 11, 2024
www.iprjb.org
0
The Impact of Digital Marketing Adoption on Firm Performance: A
Case Study of Small and Medium Enterprises in India
Akash Verma
International Journal of Strategic Marketing Practice
ISSN: 3005-4567 (Online)
Vol. 6, Issue 1, No.1, pp 1 - 11, 2024
www.iprjb.org
1
The Impact of Digital Marketing Adoption on
Firm Performance: A Case Study of Small and
Medium Enterprises in India
Akash Verma
University of Delhi
Article History
Received 15th February 2024
Received in Revised Form 20th February 2024
Accepted 5th March 2024
How to Cite
Verma, A. (2024). The Impact of Digital Marketing
Adoption on Firm Performance: A Case Study of
Small and Medium Enterprises in India. International
Journal of Strategic Marketing Practice, 6(1), 1 11.
https://doi.org/10.47604/ijsmp.2453
Abstract
Purpose: The aim of the study was to investigate the
impact of digital marketing adoption on firm
performance: a case study of small and medium
enterprises in India.
Methodology: This study adopted a desk
methodology. A desk study research design is
commonly known as secondary data collection. This
is basically collecting data from existing resources
preferably because of its low cost advantage as
compared to a field research. Our current study looked
into already published studies and reports as the data
was easily accessed through online journals and
libraries.
Findings: The adoption of digital marketing among
small and medium enterprises (SMEs) in India has led
to significant improvements in firm performance.
Increased online visibility and reach have resulted in
greater customer engagement and acquisition for these
businesses. Cost-effectiveness and targeted
advertising through digital channels have enhanced
ROI compared to traditional marketing methods.
SMEs embracing digital marketing have experienced
heightened brand awareness and recognition in
competitive markets.
Unique Contribution to Theory, Practice and
Policy: Resource-Based View (RBV), Institutional
Theory & Innovation Diffusion Theory may be used
to anchor future studies on the impact of digital
marketing adoption on firm performance: a case study
of small and medium enterprises in India. Develop
tailored digital marketing training programs and
capacity-building initiatives aimed at enhancing the
digital literacy and skills of SME owners and
employees in India. Policymakers should also
prioritize initiatives to improve digital connectivity
and access to affordable internet services in rural and
underserved areas.
Keywords: Digital Marketing Adoption, Firm
Performance
©2024 by the Authors. This Article is an open access
article distributed under the terms and conditions of
the Creative Commons Attribution (CC BY) license
(http://creativecommons.org/licenses/by/4.0)
International Journal of Strategic Marketing Practice
ISSN: 3005-4567 (Online)
Vol. 6, Issue 1, No.1, pp 1 - 11, 2024
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INTRODUCTION
In developed economies such as the USA, firm performance indicators like revenue growth,
market share, and profitability are often reflective of the overall economic conditions and market
dynamics. For instance, in the technology sector, companies like Apple Inc. have demonstrated
remarkable revenue growth over the years, driven by the popularity of its products like the iPhone
and strong consumer demand for innovation (Bingham & Davis, 2012). Similarly, in the
automotive industry, companies like Tesla Inc. have shown significant revenue growth fueled by
the increasing demand for electric vehicles and sustainable transportation solutions (Block &
Shapira, 2017). These examples highlight how firm performance in developed economies is
influenced by factors such as technological innovation, consumer preferences, and market
competition, ultimately shaping revenue growth, market share, and profitability.
In contrast, in developing economies like India, firm performance often reflects the challenges and
opportunities inherent in emerging markets. For instance, companies like Infosys have experienced
substantial revenue growth driven by the outsourcing trend and the increasing demand for IT
services globally (Chittoor, 2015). Similarly, in the consumer goods sector, companies like
Hindustan Unilever Limited have demonstrated consistent market share expansion through
strategic product innovation and distribution network expansion (Kacker, 2018). These examples
illustrate how firm performance in developing economies is influenced by factors such as
demographic shifts, regulatory environments, and infrastructure development, impacting revenue
growth, market share, and profitability.
Moving to sub-Saharan economies like Nigeria, firm performance is often shaped by unique
challenges such as political instability, infrastructure deficiencies, and economic volatility. Despite
these challenges, some companies have managed to achieve notable performance metrics. For
instance, in the banking sector, companies like Guaranty Trust Bank Plc have shown consistent
revenue growth and profitability through effective risk management strategies and diversified
product offerings (Afolabi & Olokoyo, 2013). Similarly, in the telecommunications industry,
companies like MTN Group Limited have expanded market share through extensive network
infrastructure investments and innovative service offerings tailored to local market needs
(Akinyemi, 2019). These examples underscore how firm performance in sub-Saharan economies
is influenced by factors such as regulatory frameworks, access to capital, and socio-political
stability, impacting revenue growth, market share, and profitability.
In Brazil, firm performance is influenced by factors such as economic volatility, regulatory
frameworks, and market competition. Companies like Petrobras, a multinational petroleum
corporation, have experienced fluctuations in revenue growth and profitability due to changes in
global oil prices and domestic economic conditions (Bodnaruk, 2016). Similarly, in the food and
beverage sector, companies like Ambev have demonstrated resilience by adapting their product
portfolios to consumer preferences and investing in distribution networks to maintain market share
despite challenging economic conditions (Ferris, 2017).
In China, firm performance is shaped by rapid economic growth, market liberalization, and
technological advancements. Companies like Alibaba Group have shown remarkable revenue
growth and market share expansion by leveraging e-commerce platforms to reach a vast consumer
base both domestically and globally (Lu, 2016). Additionally, in the manufacturing sector,
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companies like Huawei Technologies Co., Ltd. have achieved significant profitability through
innovation in telecommunications equipment and strategic expansion into international markets
(Qin, 2018).
In South Africa, firm performance is influenced by factors such as political stability, regulatory
environments, and socio-economic disparities. Companies like Naspers Limited have
demonstrated significant revenue growth and market dominance through investments in
technology, media, and e-commerce ventures, both domestically and internationally (Mayer,
2019). Additionally, in the mining sector, companies like Anglo American have shown resilience
amidst fluctuating commodity prices by implementing cost-saving measures and diversifying their
operations (Lashley, 2018).
In Mexico, firm performance is impacted by factors such as trade agreements, government
policies, and market competition. Companies like Grupo Bimbo, a multinational bakery product
manufacturing company, have experienced steady revenue growth and profitability by expanding
their product lines and distribution channels both domestically and globally (Gómez, 2017).
Moreover, in the automotive industry, companies like Grupo Kuo have demonstrated innovation
and adaptability by diversifying into new markets and product segments, contributing to their
overall performance and competitiveness (García, 2018).
In Indonesia, firm performance is influenced by factors such as government policies, infrastructure
development, and market competition. Companies like Astra International have demonstrated
strong revenue growth and market leadership in various sectors such as automotive, agribusiness,
and financial services, driven by robust domestic demand and strategic investments (Chen &
Handoko, 2015). Additionally, in the consumer goods industry, companies like Indofood CBP
Sukses Makmur Tbk have maintained profitability through product innovation and effective
marketing strategies tailored to diverse consumer preferences (Yuliani & Ma’arif, 2018).
In Nigeria, firm performance is shaped by factors such as regulatory environments, infrastructure
challenges, and market dynamics. Companies like Dangote Cement Plc have shown remarkable
revenue growth and profitability by capitalizing on the country's infrastructure development
initiatives and the demand for construction materials (Fadare, 2019). Similarly, in the financial
services sector, companies like Guaranty Trust Bank Plc have demonstrated resilience and
profitability through efficient risk management practices and innovative banking solutions
(Olokoyo & Afolabi, 2012).
In Brazil, firm performance is influenced by various factors such as economic stability, market
competition, and government policies. Companies like Vale S.A., one of the largest mining
companies in the world, have experienced fluctuations in revenue and profitability due to changes
in commodity prices and global demand for minerals (da Silva & Barros, 2016). Similarly, in the
banking sector, institutions like Banco do Brasil have shown resilience by adapting to market
changes, expanding their service offerings, and leveraging technology to maintain competitiveness
and profitability (de Oliveira, 2016).
In Turkey, firm performance is shaped by factors such as geopolitical tensions, economic reforms,
and market dynamics. Companies like Turkcell, a leading telecommunications provider, have
demonstrated steady revenue growth and profitability through innovation in mobile services and
strategic partnerships (Demir, 2019). Additionally, in the automotive industry, companies like
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Tofaş Türk Otomobil Fabrikası A.Ş. have maintained market share and profitability by focusing
on product quality, cost efficiency, and export strategies (Kutlu, 2015).
Problem Statement
Despite the increasing prevalence of digital marketing practices globally, there remains a gap in
understanding the specific impact of digital marketing adoption on the performance of Small and
Medium Enterprises (SMEs) in India. While digital marketing offers various opportunities for
SMEs to reach and engage with their target audience more effectively, the extent to which such
adoption influences firm performance metrics such as revenue growth, market share, and
profitability among SMEs in the Indian context requires further investigation. Moreover, the
unique challenges and opportunities faced by SMEs in India, including limited resources,
infrastructure constraints, and diverse market dynamics, necessitate a focused examination of the
implications of digital marketing adoption on firm performance. Recent studies have highlighted
the importance of digital marketing in driving business growth and competitiveness, particularly
in emerging economies like India (Sharma, 2021). However, there is a dearth of empirical research
specifically examining the causal relationship between digital marketing adoption and firm
performance outcomes among SMEs in India. Understanding how SMEs in India strategize,
implement, and leverage digital marketing initiatives to enhance their performance is crucial for
informing policy interventions, managerial practices, and resource allocation aimed at fostering
SME development and economic growth in the digital era (Singh & Pandey, 2020).
Theoretical Framework
Resource-Based View (RBV)
Originated by Wernerfelt (1984) and expanded upon by Barney (1991), the RBV focuses on
internal firm resources and capabilities as sources of sustainable competitive advantage. In the
context of the impact of digital marketing adoption on firm performance, RBV suggests that the
utilization of digital marketing tools and technologies can be considered as valuable resources that
contribute to firm performance. Digital marketing capabilities such as online customer
engagement, data analytics, and targeted advertising can enhance a firm's ability to reach and serve
its target market effectively, thereby positively impacting its performance.
Institutional Theory
Originating from Meyer and Rowan (1977) and DiMaggio and Powell (1983), institutional theory
examines how organizations conform to institutional pressures in their environment. In the context
of digital marketing adoption by SMEs in India, this theory suggests that firms may adopt digital
marketing practices not only to gain competitive advantage but also to conform to institutional
norms and expectations. As digitalization becomes increasingly pervasive in the business
landscape, SMEs may feel pressure to adopt digital marketing strategies to stay relevant and
legitimate in the eyes of stakeholders, including customers, investors, and regulatory bodies.
Innovation Diffusion Theory
Originated by Rogers (1962), innovation diffusion theory explores how new ideas, products, or
technologies spread within a social system. In the context of digital marketing adoption by SMEs
in India, this theory suggests that the decision to adopt digital marketing practices is influenced by
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factors such as perceived relative advantage, compatibility, complexity, trialability, and
observability. Understanding how these factors influence the adoption process can provide insights
into the impact of digital marketing adoption on firm performance among SMEs in India (Rogers,
2003).
Empirical Review
Chaffey and Ellis-Chadwick (2012) aimed to delve into the relationship between digital marketing
activities and the growth of SMEs. Utilizing survey data from a sample of UK-based SMEs, the
researchers employed regression analysis to analyze the data. Their findings indicated a significant
positive association between digital marketing adoption and firm growth, suggesting that SMEs
embracing digital marketing strategies tend to experience higher levels of growth. The study
highlighted the importance of various digital marketing channels such as social media, email
marketing, and search engine optimization (SEO) in driving business expansion for SMEs.
Moreover, it underscored the need for SMEs to integrate digital marketing into their overall
business strategies to remain competitive in the digital age. Recommendations drawn from the
study emphasized the importance of investing in digital marketing training and resources to
enhance SME performance and sustainability.
Awa (2017) explored the impact of social media marketing on SME performance. The research
methodology involved a combination of surveys and interviews with SME owners and managers.
Through qualitative analysis of the data, the researchers uncovered significant insights into how
social media platforms contribute to SME success. Their findings revealed that SMEs leveraging
social media marketing experienced enhanced brand awareness, increased customer engagement,
and improved sales revenue. The study emphasized the role of social media as a cost-effective
marketing tool for SMEs, enabling them to reach a wider audience and compete with larger firms.
Recommendations from the study highlighted the importance of developing targeted social media
marketing strategies tailored to the specific needs and preferences of SMEs in emerging markets
like Nigeria.
Strauss and Frost (2019) conducted research focusing on the effects of digital marketing strategies
on SME competitiveness in the United States. Employing qualitative interviews with SME owners
and managers, the study aimed to identify key digital marketing techniques that influence firm
performance. Their analysis revealed that strategies such as search engine optimization (SEO),
content marketing, and email marketing were instrumental in enhancing SME visibility, customer
reach, and market share. The findings underscored the importance of SMEs embracing digital
marketing as a means of leveling the playing field and competing with larger corporations. The
study emphasized the need for SMEs to adopt an integrated approach to digital marketing,
incorporating various channels and tactics to maximize effectiveness and ROI. Recommendations
derived from the study stressed the importance of ongoing digital marketing training and education
for SME owners and staff to keep pace with evolving digital trends and technologies.
Alam (2016) investigated the impact of e-commerce adoption on SME growth and profitability.
The study employed a longitudinal analysis of financial data from a sample of Malaysian SMEs to
assess the effects of e-commerce integration. Their findings indicated that SMEs embracing e-
commerce platforms experienced higher levels of revenue growth and profitability compared to
those relying solely on traditional offline channels. The study highlighted the transformative
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potential of e-commerce for SMEs, enabling them to access new markets, reduce operational costs,
and enhance customer engagement. Recommendations from the study emphasized the need for
SMEs to invest in robust e-commerce infrastructure and digital capabilities to fully capitalize on
the opportunities offered by online channels. Additionally, the study underscored the importance
of regulatory support and government initiatives to facilitate e-commerce adoption among SMEs
and promote sustainable economic growth.
Demirbag (2015) explored the relationship between digital marketing capabilities and SME
internationalization. Utilizing surveys and case studies, the researchers sought to understand how
advanced digital marketing competencies influence SMEs' engagement in international business
activities. Their findings revealed a strong positive correlation between digital marketing
capabilities and SME internationalization, with digitally adept SMEs more likely to expand their
market presence globally. The study highlighted the role of digital marketing in overcoming
traditional barriers to internationalization, such as limited resources and geographical constraints.
Recommendations drawn from the study emphasized the importance of SMEs investing in digital
marketing training and skills development to enhance their competitiveness in global markets.
Additionally, the study underscored the need for policymakers to create an enabling environment
for SME digitalization, including access to digital infrastructure, funding support, and regulatory
incentives.
Nguyen and Nguyen (2018) examined the impact of digital marketing adoption on the performance
of SMEs in Vietnam. Through a mixed-methods approach involving surveys and in-depth
interviews, the researchers explored the relationship between various digital marketing activities
and SME growth. Their findings revealed that SMEs actively engaging in digital marketing
strategies such as social media marketing, search engine optimization (SEO), and email marketing
experienced higher levels of customer acquisition, retention, and revenue generation. The study
highlighted the importance of digital marketing literacy and skills among SME owners and
employees in effectively implementing and managing digital marketing campaigns.
Recommendations from the study emphasized the need for SMEs in Vietnam to invest in digital
marketing training and resources to leverage the full potential of online channels for business
growth and competitiveness.
Lee (2017) investigated the impact of digital marketing adoption on the performance of SMEs in
South Korea. Utilizing a quantitative survey approach, the researchers examined the relationship
between digital marketing expenditures, online presence, and firm performance indicators such as
sales growth and profitability. Their analysis revealed a positive association between digital
marketing investment and SME performance, with firms allocating more resources to digital
marketing activities experiencing higher levels of revenue growth and profitability. The study
underscored the role of digital marketing as a strategic tool for SMEs to enhance market reach,
customer engagement, and competitive advantage in the digital era. Recommendations from the
study emphasized the importance of SMEs aligning digital marketing efforts with overall business
objectives and continuously evaluating and adjusting digital marketing strategies to optimize
performance outcomes.
METHODOLOGY
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This study adopted a desk methodology. A desk study research design is commonly known as
secondary data collection. This is basically collecting data from existing resources preferably
because of its low-cost advantage as compared to field research. Our current study looked into
already published studies and reports as the data was easily accessed through online journals and
libraries.
FINDINGS
The results were analyzed into various research gap categories that is conceptual, contextual and
methodological gaps
Conceptual Gap: While existing studies have examined the relationship between digital
marketing adoption and SME performance, there is a lack of consensus on the specific digital
marketing channels and strategies that have the most significant impact on firm performance.
Chaffey and Ellis-Chadwick (2012) and Strauss and Frost (2019) focused on overall digital
marketing adoption without delving into the effectiveness of specific tactics, while Awa (2017)
and Nguyen and Nguyen (2018) emphasized the role of social media marketing without
comprehensive coverage of other digital channels. Therefore, a conceptual gap exists in
understanding the relative importance and effectiveness of various digital marketing strategies in
driving SME performance in different contexts.
Contextual Gap: The majority of the studies reviewed have focused on SMEs in developed
economies such as the UK, the US, and South Korea, neglecting the unique contextual factors and
challenges faced by SMEs in emerging markets like India, Nigeria, and Vietnam. Alam (2016) and
Lee (2017) provided valuable insights into the impact of e-commerce adoption and digital
marketing expenditure on SME performance in Malaysia and South Korea, respectively. However,
there is a need for research specifically tailored to the context of Indian SMEs, considering factors
such as digital infrastructure, regulatory environment, and market dynamics.
Geographical Gap: While there is a growing body of research on digital marketing adoption and
SME performance in various countries, there is limited comparative analysis across different
geographical regions. Demirbag (2015) explored the relationship between digital marketing
capabilities and SME internationalization using case studies and surveys but focused primarily on
European SMEs. Therefore, there is a geographical gap in understanding how digital marketing
adoption influences SME performance across diverse regions and economies, hindering the
generalizability of findings and insights.
CONCLUSION AND RECOMMENDATIONS
Conclusions
In conclusion, the impact of digital marketing adoption on the performance of Small and Medium
Enterprises (SMEs) in India is significant and multifaceted. Through a review of existing literature,
it is evident that SMEs leveraging digital marketing strategies experience various positive
outcomes, including enhanced brand visibility, increased customer engagement, and improved
sales revenue. Digital marketing channels such as social media, email marketing, search engine
optimization (SEO), and e-commerce platforms play crucial roles in driving business expansion
and competitiveness for SMEs in India.
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However, despite the evident benefits, several challenges remain for SMEs in effectively adopting
and implementing digital marketing strategies. These challenges include limited resources, lack of
digital literacy and skills, infrastructural constraints, and evolving market dynamics. Addressing
these challenges requires concerted efforts from SMEs, policymakers, industry associations, and
other stakeholders to provide necessary support, resources, and training initiatives to facilitate
digital transformation.
Moving forward, it is imperative for SMEs in India to recognize the strategic importance of digital
marketing and integrate it into their overall business strategies. Investing in digital marketing
training, technology infrastructure, and talent acquisition will be crucial for SMEs to capitalize on
the opportunities presented by the digital age and remain competitive in an increasingly digitalized
marketplace. Moreover, policymakers should focus on creating an enabling environment for SME
digitalization, including initiatives to improve digital infrastructure, provide financial incentives,
and facilitate knowledge sharing and collaboration among SMEs.
Overall, while challenges persist, the potential benefits of digital marketing adoption for SMEs in
India are substantial. By embracing digital marketing strategies and leveraging the power of digital
channels, SMEs can enhance their market reach, customer engagement, and ultimately, their
overall firm performance, contributing to sustainable economic growth and development in India.
Recommendations
Theory
Conduct further research to develop a comprehensive theoretical framework that delineates the
specific mechanisms through which digital marketing adoption influences firm performance
among SMEs in India. This framework should integrate insights from existing theories such as
Resource-Based View, Institutional Theory, and Innovation Diffusion Theory, while also
accounting for contextual factors unique to the Indian SME landscape. Explore the moderating
effects of variables such as firm size, industry sector, and geographic location on the relationship
between digital marketing adoption and firm performance, to provide a nuanced understanding of
the dynamics at play within different segments of the SME sector in India.
Practice
Develop tailored digital marketing training programs and capacity-building initiatives aimed at
enhancing the digital literacy and skills of SME owners and employees in India. These programs
should cover a range of digital marketing channels and tactics, emphasizing practical
implementation strategies and performance measurement techniques. Encourage collaboration and
knowledge sharing among SMEs through industry associations, business networks, and digital
marketing forums, to facilitate peer learning and best practice dissemination. This collaborative
approach can help SMEs overcome common challenges and unlock synergies in their digital
marketing efforts.
Policy
Advocate for government policies and incentives that support SME digitalization efforts, including
grants, subsidies, and tax incentives for investing in digital infrastructure, technology adoption,
and training initiatives. Policymakers should also prioritize initiatives to improve digital
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connectivity and access to affordable internet services in rural and underserved areas. Foster
partnerships between government agencies, industry associations, academia, and private sector
organizations to develop comprehensive policy frameworks that address the regulatory, financial,
and capacity-building needs of SMEs in India. This collaborative approach can ensure that policy
interventions are holistic, responsive to market dynamics, and conducive to long-term SME growth
and sustainability.
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ISSN: 3005-4567 (Online)
Vol. 6, Issue 1, No.1, pp 1 - 11, 2024
www.iprjb.org
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Yuliani, S., & Ma’arif, M. S. (2018). Strategy and Performance of Indofood CBP Sukses Makmur
Tbk. Review of Integrative Business and Economics Research, 7(1), 255-265.
... SMEs might not have the in-house expertise required for digitization. The author of [40] argued that employee training and development programs should be designed to have the ability to be related digitally. ...
... To ensure validity and reliability, the questionnaire items were derived from established measures in previous studies. In the context of digital marketing strategies, the items were modified from [12]; questions concerning investment in digital technology were drawn from [18]; and the items under customer engagement were adapted from [23], while those under performance were from [40]. The survey was supported with a selection of detailed questions aiming at solidifying the analysis between the study variables (Table 1) based on the digital-transformation context in SMEs in Jordan. ...
Article
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This research intends to evaluate the effect on the performance of small and medium enterprises (SMEs) of technological developments, including digital marketing, and to determine the variables that affect the relationship. Because these businesses are essential to driving local economies, boosting local economic growth, and creating job opportunities, this is a very important question, and figuring out how to best help them succeed through digital marketing is critical. The data were generated from a sample of 190 marketing companies, and each of the managers of these companies was surveyed for the information needed. This research focuses on the impact of SMEs’ performance through digital marketing strategies, including online advertising, social media marketing, search engine optimization (SEO), and customer engagement through digital channels. A further analysis was performed looking at the mediating effect of digital transformation on the relationship between digital marketing and firm performance. The theoretical lens in the current study is the Technology Acceptance Model (TAM), which argues that technology use depends on perceived use and perceived usefulness. The results revealed that digital marketing is essential for SME effectiveness, as a driver of digital transformation, leading to stronger economic results and an enlarged market presence. Engagement with customers on digital channels to understand their behavior and preferences helps organizations create better experiences and products, and sell smarter as well. This offers application insights to the practitioners and proves the empirical data telling the SMEs how to plan the adoption of digital marketing. It also offers policy recommendations to authorities on how to promote digital innovation and provide financial and technical assistance to SMEs in this vital area.
... Although digital marketing methods are becoming more common worldwide, there is still a lack of comprehensive knowledge regarding the precise effect of adopting digital marketing on the performance of banks in the MENA area. Further research is needed to determine the extent to which the adoption of digital marketing by banks in the MENA context influences performance metrics such as market share and profitability [6]. Digital marketing provides chances for banks to successfully connect and communicate with their target audience. ...
... Increased capital adequacy improves financial stability, boosts investor confidence, ensures regulatory compliance, and improves lending capacity, among other things which lead to better performance. Increased capital adequacy improves lending capacity, competitiveness, strategic expansion opportunities, and customer trust, all of which help to gain a greater market share [6]. ...
Article
Full-text available
One new factor driving the banking industry towards long-term, high-quality growth is digital marketing, which has arisen within the framework of the digital economy. The purpose of this research is to examine the effect of digital marketing on the financial results of MENA banks from 2010 to 2023. The research examines the impact of digital marketing techniques on the effectiveness of financial institutions through Tobit regression analysis, taking into account and controlling for sustainable practices (ESG), bank-specific characteristics (capital adequacy, bank size, liquidity, and cost efficiency), and macroeconomic variables (GDP and inflation). This empirical paper managed to collect the data for eleven countries in the MENA from the Refinitiv Eikon platform, world bank database, and the annual reports of relevant banks in the different stock markets. The final sample included 78 banks out of 120 listed banks. The results show that there is a clear association between the presence of digital marketing campaigns and improved profitability and market share growth for banks. Aligning digital initiatives with ESG principles is crucial for long-term value development, and sustainable practices increase these beneficial benefits even more. The research also shows that macroeconomic factors and bank-specific characteristics affect how effective digital marketing campaigns are. The significance of digital transformation and ESG integration in promoting competitive advantages and long-term growth in the MENA banking sector is highlighted by these findings, which have important implications for policy, investors, and bank executives.
Article
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
Article
The article reflects on the diffusion of the ‘resource-based view of the firm’ into academic and practitioner thought. The contributions of many people are noted. In closing, I offer some speculations about the future use of these ideas.
Firm-Specific Determinants of Financial Performance in Nigeria
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The Evolution of Performance Measurement in the Global Context: Opportunities and Challenges
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