Digital marketing adoption by small travel agencies: a comprehensive PLS-SEM model using reflective and higher-order formative constructs

Purpose - This study examines the vital factors that influence digital marketing adoption among small travel agencies (brick-and-mortar) and the impact of digital marketing adoption on organizational performance modeled as a formative-formative HOC. Design/methodology/approach - This empirical study builds on diffusion of innovation (DOI) theory and technology-organization-environment (TOE) framework to identify the factors of digital marketing adoption by small travel agencies. Data were collected from 226 small travel agents in India using purposive and snowball sampling. Partial least square-structural equation modelling (PLS-SEM) is used to analyze the reflectively and formatively measured constructs. Findings - The findings reveal significant constructs of digital marketing adoption by small travel agencies. The study also establishes the positive impact of digital marketing adoption on organizational performance. Trust partially mediates the impact of technological factors (relative advantage, security concerns) and organizational factor (knowledge) on digital marketing adoption. Research limitations/implications - The study provides methodological contribution to the literature by applying confirmatory composite analysis (CCA) approach in PLS-SEM. The study contributes to the literature by integrating DOI theory and TOE framework. The study enriches the literature on trust as it recognizes the crucial role of trust as a mediating construct. Practical implications - The study provides useful implications to marketing practitioners of small travel agencies. The study shows strong predictive capacity and can be generalized throughout diverse samples. Originality/value - The study adds value to the literature as it explores the digital marketing adoption among the under researched small travel agencies by integrating DOI-TOE theory. The study uniquely proposes and validates organizational performance as a formative-formative higher-order construct.