INFLUENCE OF DIGITAL MARKETING TOWARDS ONLINE BUSINESS PERFORMANCE: SMALL AND MEDIUM ENTERPRISE (SMEs)

Abstract

Small and Medium Sized Enterprises (SMEs) in Malaysia face significant challenges competing in the rapidly evolving digital environment, largely due to limited resources, expertise and capability constraints. At the same time, shifting consumer preferences caused intense competition in the SMEs industry, underscoring the importance of digital marketing strategies as critical tool contributing to both financial and non-financial performance of SMEs. This paper develops a conceptual framework to examine the impacts of digital marketing strategies towards both SMEs financial and non-financial performance. In accordance to the Resource-Based View (RBV) theory, digital marketing is positioned as a strategic intangible resource that is valuable, rare, inimitable and well organized for the business to achieve a sustainable competitive advantage.  This paper addresses a gap in existing literature for financial and non-financial performance outcomes, within a single multidimensional framework comprising three core strategies (social media marketing, online affiliate marketing and content marketing). Not only that, but this paper also offers more understanding of SMEs performance in the digital context. The proposed frameworks outline key dimensions of digital marketing strategies and their expected relationships with business performance indicators, providing a foundation for future empirical validation. The implications of this paper are expected to offer practical insights for SMEs practitioners in utilizing digital marketing efforts despite resource constraints, at the same time informing policymakers in designing targeted initiatives to strengthen SMES competitiveness and resilience in the digital economy. Overall, this research contributes to the broader agenda of enhancing national economic well-being through the sustainable development of SMEs.