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The Role of Marketing Artificial Intelligence in Enhancing Sustainable Financial Performance of Medium-Sized Enterprises Through Customer Engagement and Data-Driven Decision-Making

Author

Listed:
  • Ihab K. Magableh

    (Small and Medium Enterprises Center, Arab Planning Institute, Safat 13059, Kuwait)

  • Maher H. Mahrouq

    (Association of Jordan Banks Jordan, Amman 11190, Jordan)

  • Mohammad A. Ta’Amnha

    (Human Resource Management Department College of Business Administration, American University of the Middle East, Kuwait City 15453, Kuwait)

  • Hosam Alden Riyadh

    (Accounting Department, School of Economics and Business, Telkom University, Bandung 40257, Indonesia)

Abstract

This study aims to examine the impact of marketing artificial intelligence (AI) and the specific channels it uses to influence the performance of Jordanian SMEs. In contrast to prior research that focused solely on the direct effects of marketing AI on organizational performance, our study introduces innovative pathways involving customer engagement, customer satisfaction, and data-driven decision-making. These channels serve as indirect mechanisms through which the impact of marketing AI extends to influence the Sustainable Financial Performance of SMEs. Using a framework for structural equation modeling, we looked at the answers of 250 small and medium-sized enterprises (SMEs) chosen through cluster sampling from industrially active areas in Jordan. Our findings reveal that the adoption of AI technologies leads to a notable 42.5% enhancement in Sustainable Financial Performance among SMEs, driven by a 50% increase in customer engagement and a 76% improvement through data-driven decision-making processes. While our study did not establish a direct correlation between marketing AI and long-term financial performance, it demonstrated the connection between technology adoption, customer-focused strategies, and data-driven practices. The findings offer actionable insights and recommendations for Jordanian SMEs leveraging marketing AI to achieve competitive advantage and sustainable growth. The study offers significant contributions to how marketing AI improves the Sustainable Financial Performance of Jordanian SMEs by identifying crucial indirect pathways. Unlike previous studies, it focuses on the roles of customer engagement, satisfaction, and data-driven decision-making as mediators rather than emphasizing direct impacts. The findings highlight the importance of integrating technology with customer-centric and data-oriented strategies to drive sustainable growth and competitiveness in SMEs.

Suggested Citation

  • Ihab K. Magableh & Maher H. Mahrouq & Mohammad A. Ta’Amnha & Hosam Alden Riyadh, 2024. "The Role of Marketing Artificial Intelligence in Enhancing Sustainable Financial Performance of Medium-Sized Enterprises Through Customer Engagement and Data-Driven Decision-Making," Sustainability, MDPI, vol. 16(24), pages 1-16, December.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:24:p:11279-:d:1550476
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    References listed on IDEAS

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    1. Samson, Kelly & Bhanugopan, Ramudu, 2022. "Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making," Journal of Business Research, Elsevier, vol. 144(C), pages 637-649.
    2. Mir Satar & Sager Alharthi & Muzaffar Asad & Amer Alenazy & Muhammad Uzair Asif, 2024. "The Moderating Role of Entrepreneurial Networking between Entrepreneurial Alertness and the Success of Entrepreneurial Firms," Sustainability, MDPI, vol. 16(11), pages 1-19, May.
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    Cited by:

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    2. Bahaa Awwad & Mohammad A. A. Zaid & Adel Sarea, 2026. "Does generative artificial intelligence reinforce financial performance? The mediating role of governance quality," Future Business Journal, Springer, vol. 12(1), pages 1-11, December.
    3. Doste Khoshnaw & Georgiana Karadas, 2025. "Enhancing Knowledge Sharing Through Transactional Leadership in an Emerging Economy: The Strategic Role of Human Capital," Sustainability, MDPI, vol. 17(12), pages 1-19, June.

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