The Effect of Digital Marketing Adoption on SMEs Sustainable Growth: Empirical Evidence from Ghana

Abstract

Online presence is fast becoming a marketing hub for contemporary businesses. Often known as digital marketing, the phenomenon offers several opportunities to businesses. Small and medium enterprises (SMEs) are using their online presence to launch stern competitive promotions and interact with consumers. Against the backdrop of the stern competition, digital marketing is being utilized to drive sustainable strategies for SMEs. This study leverages the theory of planned behavior to explore the impact of digital marketing adoption on the sustainable growth of SMEs in Ghana. Using a structured questionnaire and SmartPLS version 3.3 for the data analysis, 533 owners/managers of SMEs in Ghana were drawn to administer the questionnaire. Our findings suggest that, while attitudes toward digital marketing did not influence the intention to use digital marketing, perceived behavior control and subjective norms were found to affect individuals’ intentions to use digital marketing. Additionally, the results proved a direct positive link between subjective norms and actual behavioral use of digital marketing. Finally, the relationship between the actual use of digital marketing and SMEs’ sustainable growth was also proven positive, affirming that digital marketing significantly improved the sustainable growth of SMEs in developing countries. This study contributes to the multiplicity of factors that influence the behavioral tendencies of managers of firms in their quest to adopt digital platforms to enhance their sustainable growth. The study’s results serve as guidelines for prospective adopters of digital platforms as they develop their sustainability strategies.