A STUDY ON DIGITAL MARKETING AND SME PERFORMANCE DURING COVID-19: A CASE SAUDI SMEs

Abstract

Digital marketing has become an integral aspect of business operations. Small and Medium-Sized Enterprises (SMEs) rapidly adopt digital marketing techniques because digital marketing helps firms decrease marketing costs and communicate with their customers more quickly. However, little study has been conducted to determine which digital marketing approach is most suitable for SMEs, what elements influence that strategy, and how that strategy affects the performance of SMEs. To address these concerns, this study aims to investigate which marketing strategy is appropriate for Saudi SMEs, what factors influence that strategy, and what effect that strategy has on the performance of SMEs. For this objective, data from 210 SME actors were collected and analyzed using structural equation modeling. The gathered data were analyzed using the CB-SEM method and AMOS-16. According to the survey findings, most SME actors believe that a social media marketing approach is most relevant for their operations and beneficial for enhancing SME performance. In addition, this study found that e-marketing orientation, perceived utility, and perceived simplicity of use positively influence social media marketing (SMM), which affects SMEs' performance. In other words, social media marketing mediates the association between perceived usability, perceived utility, e-marketing orientation, and SME performance. These insights can serve as a foundation for SME actors and marketing professionals to construct their policies and plans. This is the first study of its sort about Saudi Arabian SMEs.