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The Impact of Digital Marketing on the Performance of SMEs: An Analytical Study in Light of Modern Digital Transformations

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  • Abdel-Aziz Ahmad Sharabati

    (Business Faculty, Middle East University, Amman 11831, Jordan)

  • Ahmad Ali Atieh Ali

    (Business Faculty, Middle East University, Amman 11831, Jordan)

  • Mahmoud Izzat Allahham

    (Business Faculty, Amman Arab University, Amman 11831, Jordan)

  • Alhareth Abu Hussein

    (Business Faculty, Middle East University, Amman 11831, Jordan)

  • Ahmad Fathi Alheet

    (Business Administration Department, Al-Ahliyya Amman University, Amman 19111, Jordan)

  • Abdelaziz Saleh Mohammad

    (Business Faculty, Middle East University, Amman 11831, Jordan)

Abstract

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.

Suggested Citation

  • Abdel-Aziz Ahmad Sharabati & Ahmad Ali Atieh Ali & Mahmoud Izzat Allahham & Alhareth Abu Hussein & Ahmad Fathi Alheet & Abdelaziz Saleh Mohammad, 2024. "The Impact of Digital Marketing on the Performance of SMEs: An Analytical Study in Light of Modern Digital Transformations," Sustainability, MDPI, vol. 16(19), pages 1-25, October.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:19:p:8667-:d:1493873
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    References listed on IDEAS

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    3. Luo, Xi & Cheah, Jun-Hwa & Hollebeek, Linda D. & Lim, Xin-Jean, 2024. "Boosting customers’ impulsive buying tendency in live-streaming commerce: The role of customer engagement and deal proneness," Journal of Retailing and Consumer Services, Elsevier, vol. 77(C).
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