Digital marketing and its relationship with digital orientation and technological innovation for SME performance in an emerging market: The case of Vietnam

Abstract

Based on literature review, the research model is developed with nine hypotheses. Continuously, the quantative method is employed, which the model of OLS is applied to test hypotheses. Database is based on two merged database sources. The final sample after merging and cleaning is 7,708 enterprises. Statistical models are employed to test hypotheses through the pool data. Continuously, the statistical models are employed to test hypotheses through firm levels, in which micro-enterprises (accounting for 40.4% in the total sample), small enterprises (39.1%), and medium enterprises (8.5%) are concerned. The findings of thesis have academic contributions and provide practical information of SMEs in the emerging market. Firstly, approaching digital technology resources, e.g. social media, e-commerce, Chabot AI, and CRM, business opportunities of SMEs are generated, and these make a positive contribution of digital marketing on firm performance. Secondly, once digital orientation is based on digital technology resources, both micro and small enterprises have a successful revolution in the way doing business. However, digital orientation needs a good combination with technological innovation, because the interaction among them strengthens achievements of SMEs. Thirdly, the findings affirm a curial role of digital technology resources to support digital orientation and marketing, which presents a compelling argument within the Resource-Based View (RBV) theory. By embracing digital technology resources, SMEs can streamline their operations, improve customer experiences, and expand their market reach. This transformation towards a more digitally oriented approach empowers SMEs to adapt to changing consumer behavior sand market trends efficiently. Fourthly, the results indicate that employee digital abilities are a more prominent indicator in larger enterprises, such as small and medium enterprises, but not micro-enterprises. The results have provided a clearer understanding of how digital skills are defined in small and medium-sized firms in emerging countries like Vietnam. This contributes academically to the RBV theory by emphasizing the importance of digital resources and skills.