The Role of Digital Marketing Technology Assimilation by SMEs

Authors

  • Darlin Apasarawirote Faculty of Business, Economics and Communications, Naresuan University
  • Kritcha Yawised Faculty of Business, Economics and Communications, Naresuan University https://orcid.org/0000-0002-3372-6081

Keywords:

Digital marketing technology, social media, SMEs, Assimilation

Abstract

This study investigates factors related to the degree of Digital Marketing Technology (DMT) assimilation by Small and Medium Enterprises (SMEs). This study also proposed a conceptual model to examine at three stages of assimilation: initiation, adoption, and routinization drawing upon theories on contingency settings. The model feature includes five main constructs that was investigated together with its hypotheses. A set of data using 328 participants   from SMEs in service sector, were conducted for analysis using multiple regression technique and related statistical tests. The results show that all proposed factors have significantly influenced the DMT assimilation in each stage. The (i) business resilience is significantly and predominantly critical factor in all assimilation stages which follows by (ii) organizational management (at routinization stage), (iii) technological readiness (at adoption stage), (iv) environmental forces (at initiation stage), and (v) business characteristics (at routinization stage). These findings offer insight into how SMEs business owners-managers—would be engage at each assimilation stage of Social Media (SM) and DMT adoption. The novel contribution of this research was to optimize the adoption of DMT so that SME policymakers can create a strategic plan for such an engagement. This empirical study can also help academics better grasp the effects of internal and external factors affecting the assimilation of DMT.

Author Biography

Kritcha Yawised, Faculty of Business, Economics and Communications, Naresuan University

Kritcha Yawised, Ph.D. Lecturer at Department of Business Administration Faculty of Business, Economics and Communications (BEC) Naresuan University.

References

Abed, S. S. (2020). Social commerce adoption using TOE framework: An empirical investigation of Saudi Arabian SMEs. International Journal of Information Management, 53, 102118.

Al-Maroof, R. S., Salloum, S. A., Hassanien, A. E., & Shaalan, K. F. (2020). Fear from COVID-19 and technology adoption: the impact of Google Meet during Coronavirus pandemic. Interactive Learning Environments, 1-16.

Apasrawirote, D., & Yawised, K. (2021). The factors influencing the adoption of E-payment system by SMEs. International Journal of Innovation, Creativity and Change, 15(8), 471-489.

Bagozzi, R. P., Yi, Y., & Phillips, L. W. (1991). Assessing construct validity in organizational research. Administrative Science Quarterly, 36(3), 421-458.

Bank of Thailand. (2020). Soft loan policy for Entrepreneurs and SMEs. from https://www.bot.or.th/covid19/content/sme/Pages/fin-rehab.aspx

Belanche, D., Casaló, L. V., Flavián, M., & Ibáñez-Sánchez, S. (2021). Understanding influencer marketing: The role of congruence between influencers, products and consumers. Journal of Business Research, 132, 186-195.

Bellalouna, F. (2021). The augmented reality technology as enabler for the digitization of industrial business processes: case studies. Procedia CIRP, 98, 400-405.

Burggräf, P., Dannapfel, M., Adlon, T., & Kasalo, M. (2021). Adaptivity and adaptability as design parameters of cognitive worker assistance for enabling agile assembly systems. Procedia CIRP, 97, 224-229.

Cartwright, S., Davies, I., & Archer-Brown, C. (2021). Managing relationships on social media in business-to-business organisations. Journal of Business Research, 125, 120-134.

CGD. (2021a). Economical Report of Phitsanulok province. PLK CDG Evaluation Phitsanulok Economics in 2021.

CGD. (2021b). Economical Report of Phitsanulok province in June 2021. PLK CDG Evaluation Phitsanulok Economics in 2021.

Chatterjee, S., & Kumar Kar, A. (2020). Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India. International Journal of Information Management, 53, 102103.

Chinakidzwa, M., & Phiri, M. (2020). Impact of digital marketing capabilities on market performance of small to medium enterprise agro-processors in Harare, Zimbabwe. Journal of Business Theory and Practice, 21(2), 746-757.

Conz, E., Denicolai, S., & Zucchella, A. (2017). The resilience strategies of SMEs in mature clusters. Journal of Enterprising Communities: People and Places in the Global Economy, 11(1), 186-210.

Daghfous, A. (2004, 2004 Spring). Absorptive capacity and the implementation of knowledge-intensive best practices. SAM Advanced Management Journal, 69, 21+.

David, F., Bagozzi , R., & Warshaw, P. (1989). User acceptance of computer technology: a comparison of two theoretical models. Journal of Management Science, 35(8), 982-1003.

Delacroix, E., Parguel, B., & Benoit-Moreau, F. (2019). Digital subsistence entrepreneurs on Facebook. Technological Forecasting and Social Change, 146, 887-899.

Dolega, L., Rowe, F., & Branagan, E. (2021). Going digital? The impact of social media marketing on retail website traffic, orders and sales. Journal of Retailing and Consumer Services, 60, 102501.

Dupuis, M., Khadeer, S., & Huang, J. (2017). I Got the Job!’: an exploratory study examining the psychological factors related to status updates on Facebook. Computers in Human Behavior, 73, 132-140.

Elghany, M. A., Khalia, N., & Elsalam, E. A. (2012). Adaptability of e-CRM Solution in Multi-Organizational Context. Paper presented at the International Conference on Business, Economics, and Behavioral Sciences.

Fiedler, F. E. (1964). A Contingency Model of Leadership Effectiveness. In L. Berkowitz (Ed.), Advances in Experimental Social Psychology (Vol. 1, pp. 149-190): Academic Press.

Garikipati, S., & Kambhampati, U. (2021). Leading the Fight Against the Pandemic: Does Gender Really Matter? Feminist Economics, 27(1-2), 401-418.

Glabiszewski, W., & Zastempowski, M. (2016). The ability to assimilate technology as a source of competitive advantage of financial companies in Poland. Journal of Competitiveness, 8(4), 61-71.

Haarhaus, T., & Liening, A. (2020). Building dynamic capabilities to cope with environmental uncertainty: The role of strategic foresight. Technological Forecasting and Social Change, 155, 120033.

Hendriks, E., & Stokmans, M. (2020). Drivers and barriers for the adoption of hazard-resistant construction knowledge in Nepal: Applying the motivation, ability, opportunity (MAO) theory. International Journal of Disaster Risk Reduction, 51, 101778.

Herbane, B. (2019). Rethinking organizational resilience and strategic renewal in SMEs. Entrepreneurship & Regional Development, 31(5-6), 476-495.

Herhausen, D., Miočević, D., Morgan, R. E., & Kleijnen, M. H. P. (2020). The digital marketing capabilities gap. Industrial Marketing Management, 90, 276-290.

Hershanty, D., & Jafrizal. (2021). The Effect of Dynamic Capabilities and IT Capability on Firm Performance Perspective Mediating by Digital Transformation in Small Medium Enterprise. International Journal of Scientific Research and Management, 9(03).

Hossain, M. A., Akter, S., & Yanamandram, V. (2021). Why doesn't our value creation payoff: Unpacking customer analytics-driven value creation capability to sustain competitive advantage. Journal of Business Research, 131, 287-296.

Juntunen, M., Ismagilova, E., & Oikarinen, E.-L. (2020). B2B brands on Twitter: Engaging users with a varying combination of social media content objectives, strategies, and tactics. Industrial Marketing Management, 89, 630-641.

Kane, G. C. (2017). The evolutionary implications of social media for organizational knowledge management. Information and Organization, 27(1), 37-46.

Katsikeas, C., Leonidou, L., & Zeriti, A. (2020). Revisiting international marketing strategy in a digital era. International Marketing Review, 37(3), 405-424.

Krings, W., Palmer, R., & Inversini, A. (2021). Industrial marketing management digital media optimization for B2B marketing. Industrial Marketing Management, 93, 174-186.

Leahy, D., & Neary, J. P. (2007). Absorptive capacity, R&D spillovers, and public policy. International Journal of Industrial Organization, 25(5), 1089-1108.

Martin, N., Rice, J., & Arthur, D. (2020). Advancing social media derived information messaging and management: A multi-mode development perspective. International Journal of Information Management, 51, 102021.

Matarazzo, M., Penco, L., Profumo, G., & Quaglia, R. (2021). Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective. Journal of Business Research, 123, 642-656.

Mulier, L., Slabbinck, H., & Vermeir, I. (2021). This way up: the effectiveness of mobile vertical video marketing. Journal of Interactive Marketing, 55, 1-15.

Naeem, M. (2020). Using social networking applications to facilitate change implementation processes: insights from organizational change stakeholders. Business Process Management Journal, 26(7), 1979-1998.

Nugroho, M. A., Susilo, A. Z., Fajar, M. A., & Rahmawati, D. (2017). Exploratory study of SMEs technology adoption readiness factors. Procedia Computer Science, 124, 329-336.

Olson, E. M., Olson, K. M., Czaplewski, A. J., & Key, T. M. (2021). Business strategy and the management of digital marketing. Business Horizons, 64(2), 285-293.

Omenugha, N. O. (2018). The Assimilation of Social Media in Marketing Management: A Case Review of Taliah’s Strategy. 2018, 4(3), 10.

OSMP. (2021). Phitsanulok Master Plan: B.E. 2563 – 2582 (2020 - 2039). from https://www.opsmoac.go.th/phitsanulok-strategic-files-421191791803

Pappas, N., Caputo, A., Pellegrini, M. M., Marzi, G., & Michopoulou, E. (2021). The complexity of decision-making processes and IoT adoption in accommodation SMEs. Journal of Business Research, 131, 573-583.

Patil, P., Tamilmani, K., Rana, N. P., & Raghavan, V. (2020). Understanding consumer adoption of mobile payment in India: Extending Meta-UTAUT model with personal innovativeness, anxiety, trust, and grievance redressal. International Journal of Information Management, 54, 102144.

Perelygina, M., Kucukusta, D., & Law, R. (2022). Digital business model configurations in the travel industry. Tourism Management, 88, 104408.

Petrocchi, S., Iannello, P., Ongaro, G., Antonietti, A., & Pravettoni, G. (2021). The interplay between risk and protective factors during the initial height of the COVID-19 crisis in Italy: The role of risk aversion and intolerance of ambiguity on distress. Current Psychology.

Pisicchio, A. C., & Toaldo, A. M. (2020). Integrated marketing communication in hospitality SMEs: analyzing the antecedent role of innovation orientation and the effect on market performance. Journal of Marketing Communications, 1-20.

Podsakoff, P. M., & Organ, D. W. (1986). Self reports in organizational research: Problems and prospects. Journal of Management, 12(4), 531-544.

Ritz, W., Wolf, M., & McQuitty, S. (2019). Digital marketing adoption and success for small businesses. Journal of Research in Interactive Marketing, 13(2), 179-203.

Rodrigues Graziela, P., Takahashi Adriana Roseli, W., & Prado Paulo Henrique Muller, H. (2020). The use of social media in the B2B sales process: a meta synthesis. RAUSP Management Journal, ahead-of-print(ahead-of-print).

S. Kim, Connerton, T. P., & Park, C. (2022). Transforming the automotive retail: Drivers for customers' omnichannel BOPS (Buy Online & Pick up in Store) behavior. Journal of Business Research, 139, 411-425.

Saheb, T., Amini, B., & Kiaei Alamdari, F. (2021). Quantitative analysis of the development of digital marketing field: Bibliometric analysis and network mapping. International Journal of Information Management Data Insights, 1(2), 1-12.

Schiavone, F., Mancini, D., Leone, D., & Lavorato, D. (2021). Digital business models and ridesharing for value co-creation in healthcare: A multi-stakeholder ecosystem analysis. Technological Forecasting and Social Change, 166, 120647.

Sousa, R., & Voss, C. A. (2008). Contingency research in operations management practices. Journal of Operations Management, 26(6), 697-713.

Streiner, D. L. (2003). Starting at the beginning: an introduction to coefficient alpha and internal consistency. Journal of Personality Assessment, 80(1), 99-103.

Sugandini, D., Effendi, M. I., Istanto, Y., Arundati, R., & Rahmawati, E. D. (2019). Technology organization environment model and technology acceptance model in adoption of social media marketing on SMEs tourism. Journal of Environmental Management and Tourism(4), 878-885%V 810.

Taiminen Heini, M., & Karjaluoto, H. (2015). The usage of digital marketing channels in SMEs. Journal of Small Business and Enterprise Development, 22(4), 633-651.

Tasic, J., Amir, S., Tan, J., & Khader, M. (2020). A multilevel framework to enhance organizational resilience. Journal of Risk Research, 23(6), 713-738.

Teo, T. S. H., Tan, M., & Buk, W. K. (1997). A Contingency Model of Internet Adoption in Singapore. International Journal of Electronic Commerce, 2(2), 95-118.

van der Vegt, G. S., Essens, P., Wahlström, M., & George, G. (2015). From the editors—Managing risk and resilience. Academy of Management Journal, 58(4), 971-980.

Vidal, G. G., Campdesuñer, R. P., Rodríguez, A. S., & Vivar, R. M. (2017). Contingency theory to study leadership styles of small businesses owner-managers at Santo Domingo, Ecuador. International Journal of Engineering Business Management, 9, 1847979017743172.

Wielgos, D. M., Homburg, C., & Kuehnl, C. (2021). Digital business capability: its impact on firm and customer performance. Journal of the Academy of Marketing Science, 49(4), 762-789.

Yang, H., Song, H., Cheung, C., & Guan, J. (2021). How to enhance hotel guests’ acceptance and experience of smart hotel technology: An examination of visiting intentions. International Journal of Hospitality Management, 97, 103000.

Yawised, K., & Apasarawirote, D. (2021). Social media overcoming impediments for successful strategy formulation by small and medium enterprises (SMEs). The 8th Business Economics and Communications International Conferences, 126-135.

Yawised, K., Leonie, E., & Wong, C. (2018). A framework for the adoption of social customer relationship management (scrm) by private sector. Asian Journal of Science and Technology, 9(4), 7844-7851.

Zhu, K., Kraemer, K. L., & Xu, S. X. (2006). The Process of Innovation Assimilation by Firms in Different Countries: A Technology Diffusion Perspective on E-Business. Manag. Sci., 52, 1557-1576.

Downloads

Published

2022-06-27

How to Cite

Apasarawirote, D., & Yawised, K. (2022). The Role of Digital Marketing Technology Assimilation by SMEs. Economics and Business Administration Journal Thaksin University, 14(3), 193–212. Retrieved from https://so01.tci-thaijo.org/index.php/ecbatsu/article/view/251372

Issue

Section

Research Article