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

Author

Listed:
  • 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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    1. Bandar Khalaf Alharthey, 2023. "Impact of E-marketing Capabilities and E-marketing Orientation on Sustainable Firm Performance of SME in KSA Through E-relationship Management," International Journal of Marketing Studies, Canadian Center of Science and Education, vol. 15(2), pages 1-71, December.
    2. David R. Bell & Santiago Gallino & Antonio Moreno, 2018. "Offline Showrooms in Omnichannel Retail: Demand and Operational Benefits," Management Science, INFORMS, vol. 64(4), pages 1629-1651, April.
    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).
    4. Sinan Aral & Peter Weill, 2007. "IT Assets, Organizational Capabilities, and Firm Performance: How Resource Allocations and Organizational Differences Explain Performance Variation," Organization Science, INFORMS, vol. 18(5), pages 763-780, October.
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    Citations

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    Cited by:

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    2. Carmen Cagiza & Massochi Faustino & Ilidio Cagiza & Aristoteles Cajiza, 2025. "AI-Powered Advisory Platforms for Sustainable Marketing Innovation in SMEs: Empirical Evidence from Underserved U.S. Markets," Sustainability, MDPI, vol. 17(20), pages 1-27, October.
    3. Shafig Al-Haddad & Abdel-Aziz Ahmad Sharabati & Ahmad Yacoub Nasereddin & Ahmad El-Hafez & Rashid Al-Rawashdeh, 2025. "The Impact of Logistical Competences on Organizational Performance in Small and Medium Enterprises Moderated by Competitive Advantages in Social Media Campaigns," Sustainability, MDPI, vol. 17(13), pages 1-18, June.
    4. Liu, Xiaonan & Li, Jie, 2025. "Digital marketing and corporate market performance: The mechanism of fintech development," Finance Research Letters, Elsevier, vol. 85(PD).
    5. Danuta Szwajca & Alina Rydzewska, 2025. "Effects and Determinants of Implementing Digital Customer Service Tools in Polish SMEs," Sustainability, MDPI, vol. 17(3), pages 1-27, January.
    6. Nelisiwe Mchunu & Jabhisile Roxetta Maphumulo & Celani John Nyide, 2025. "Achieving competitive advantage through business innovation and digitalization by South African small and medium-sized enterprises: A systematic literature review," International Journal of Business Ecosystem & Strategy (2687-2293), Bussecon International Academy, vol. 7(3), pages 222-232, June.
    7. Yuksektepe, Meltem & Hasiloglu, Selcuk Burak, 2025. "The role of sales magnet products in the sustainability of local grocery stores: An example of a grocery store focusing on local delicatessen products in Turkiye," Journal of Retailing and Consumer Services, Elsevier, vol. 86(C).
    8. Mioara Chirita & Daniela-Ancuta Sarpe, 2025. "Rethinking Economic Risk in the Age of Digital Transformation and Sustainable Entrepreneurship," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 128-133.
    9. repec:zib:zbcsmj:v:3:y:2025:i:2:p:38-44 is not listed on IDEAS
    10. Ali F. Dalain & Abdulrahman Al-Karabsheh & Mahmoud Izzat Allahham & Wasef Ibrahim Almajali & Mohammad Ali Yousef Yamin & Thair M. Habboush, 2025. "Business Resilience as a Mediator in the Link Between Digital Logistics Strategies and Competitive Advantage: Insights from Emerging Markets," Logistics, MDPI, vol. 9(3), pages 1-19, June.

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