Digital marketing and small and medium-sized enterprises’ business performance in emerging markets

Abstract

Purpose This study aims to investigate the comprehensive conceptualization how digital marketing and its adoption increase the productivity of small and medium-sized enterprises (SMEs), as well as the impact of technological orientation, customer relationship management and digital marketing on SMEs’ business performance in emerging markets (EMs). Design/methodology/approach Anchored by social network theory, 178 SMEs were conveniently drawn from the National Board for Small Scale Industries now Ghana enterprise agencies in Ghana. The hypotheses were analysed using the SPSS package tool, and structural equation modelling was used, as well. Findings This study reveals that the conceptualization and adoption of digital marketing positively affect the performance of SMEs’ business management in EMs. In addition, a positive moderating effect of dynamism is observed in the relationship between digital marketing and SMEs’ business performance. Research limitations/implications This study focuses only on SMEs from the Greater Accra and Ashanti regions of Ghana as an EM, and it proposes priorities for future research streams in both developed and emerging countries. Practical implications The findings encourage SMEs to develop quality digital marketing technologies, good customer relationships and technological orientation and customer relationship management competencies in EMs to maximise profit. Originality/value This paper fills considerable knowledge, evidence and contextual gaps in the literature on SMEs, entrepreneurship and marketing in EMs by presenting a comprehensive overview of how SMEs can use digital marketing in an EM context to achieve the following: customer acquisitions, satisfaction and retention; increased profitability; quality service delivery; value creation; and cost reductions.