Drivers of metaverse adoption for enhancing marketing capabilities of retail SMEs

Abstract

Small and medium-sized enterprises (SMEs) rely on a thriving distribution network and digital technologies, including the metaverse, to remain competitive. The retail industry is perceived as a portfolio-based and granular business. Hence, retail SMEs can be a key source of innovation and a major source of growth that need technical flexibility to react quickly to changing customer needs. Therefore, grounded in the TOE framework, this study is undertaken to explore the drivers of metaverse adoption for enhancing the marketing capabilities of retail SMEs. Online surveys were used to gather primary data from 300 marketing practitioners employed in retail SMEs. Subsequently, the data were analysed using quantitative research methodology. The finding reveals that the metaverse is gaining attention from retail SMEs due to its technological, organisational, and environmental drivers, as well as its ability to provide immersive experiences to customers. Thereafter, metaverse adoption enhances the marketing capabilities of SMEs with new sales channels, tailored marketing, and increased customer reach with an understanding of the marketplace focused on customer relations, market research, and cross-management capabilities.