Factors Affecting Digital Marketing Adoption in Pakistani Small and Medium Enterprises

Abstract

Background: A substantial portion of the world’s population owns and utilizes computers and mobile devices, contributing to the rapid expansion of digital advertising. Marketers swiftly recognized the communicative benefits of social media platforms like Facebook, YouTube, Twitter, Instagram, Snapchat, Pinterest, and LinkedIn. Considering the importance of social media platforms and digital modes of marketing, it is considered especially significant for small firms to integrate these platforms into their business strategies in order to improve performance. Methods: Based on this aim, this study collected data from 363 owners/managers of SMEs in Pakistan. Structural equation modeling is used to check the hypothesized model of the study. Results: The results show that compatibility, owner/manager support, employee IT skills, financial cost, government policies, and social influence significantly affect adoption of digital marketing by SMEs in Pakistan. Conclusions: Furthermore, digital marketing also positively affects SME performance. This paper discusses the study’s findings as well as managerial and academic implications, including its limitations and future research avenues.