Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications

Mushi, Hellena Mohamedy Article Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications Cogent Business & Management Provided in Cooperation with: Taylor & Francis Group Suggested Citation: Mushi, Hellena Mohamedy (2024) : Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications, Cogent Business & Management, ISSN 2331-1975, Taylor & Francis, Abingdon, Vol. 11, Iss. 1, pp. 1-17, https://doi.org/10.1080/23311975.2024.2415533 This Version is available at: https://hdl.handle.net/10419/326624 Standard-Nutzungsbedingungen: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. If the documents have been made available under an Open Content Licence (especially Creative Commons Licences), you may exercise further usage rights as specified in the indicated licence. https://creativecommons.org/licenses/by/4.0/ Cogent Business & Management ISSN: 2331-1975 (Online) Journal homepage: www.tandfonline.com/journals/oabm20 Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications Hellena Mohamedy Mushi To cite this article: Hellena Mohamedy Mushi (2024) Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications, Cogent Business & Management, 11:1, 2415533, DOI: 10.1080/23311975.2024.2415533 To link to this article: https://doi.org/10.1080/23311975.2024.2415533 © 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group View supplementary material Published online: 24 Oct 2024. Submit your article to this journal Article views: 4841 View related articles View Crossmark data Citing articles: 5 View citing articles Full Terms & Conditions of access and use can be found at https://www.tandfonline.com/action/journalInformation?journalCode=oabm20 MARKETING | RESEARCH ARTICLE Cogent Business & ManageMent 2024, VoL. 11, no. 1, 2415533 Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications Hellena Mohamedy Mushi Department of Business studies, Mzumbe university Mbeya Campus College, tanzania ABSTRACT This article examines the interconnected nature of digital marketing strategies, encompassing search engine optimization, content marketing, social media marketing, email marketing, influencer marketing, paid advertising, and data analysis and the performance of small and medium enterprises (SMEs) in Tanzania which encompasses various factors, including sales growth, market share, and market development. A total of 335 small and medium-sized enterprises (SMEs) used a systematic random selection method for data collection. The necessary data was gathered by the researcher using a structured questionnaire. Partial least squares–structural equation modeling (PLS–SEM) was used in the data analysis process. The results of the study demonstrate a notable correlation between the digital marketing strategies dimension and the SMEs Performance dimensions in Mbeya City. Additionally, the article reveals that there were no observed moderation impacts of dynamic environment on digital marketing strategies and SME performance. The article emphasizes the necessity for entrepreneurs to properly utilize digital marketing strategies. This article provides significant insights for scholars and practitioners interested in utilizing digital marketing methods to enhance the performance of SMEs in Tanzania. These insights are derived from a comprehensive synthesis of the most recent research in the field. Research for future studies was recommended. 1. Introduction It is indisputable that small and medium-sized firms (SMEs) are critical to the advancement of socio-economic development, especially in developing nations, where they contribute significantly to job creation and the growth of the gross domestic product (John et al., 2021; Kweka, 2022; Waziri & Nnko, 2023). The affordability, portability, and ease of use of smartphones is driving the growth of e-commerce as technology continues to transform businesses and communities (Kitole et al., 2024; Malipula, 2023; Raghunath et al., 2024). Globally, a significant proportion, ranging from 40% to 70%, of SMEs engage in cross-border operations, thereby making a significant contribution of 55–65% to the overall expansion of the global economy. Additionally, these SMEs play a crucial role in generating employment possibilities, accounting for approximately 79% of the total employment opportunities created (John, 2024). Shifting focus toward Tanzania, small and medium-sized enterprises encounter a formidable rate of failure, as an estimated 90% do not endure past their fifth year of operation (Madila & Ponera, 2024). The aforementioned challenges can be ascribed to factors such as limited financial resources, inadequate proficiency in business administration, a dearth of marketing strategies, and the provision of substandard products or services (Waziri & Nnko, 2023). Because digital marketing is essential to small and medium-sized businesses’ growth, this study has significant contribution to small and medium-sized business owner-managers who can engage directly with their customers through digital marketing and related technology solutions, enhancing the company’s reputation and fostering more customer loyalty (Changalima et al., 2023). Small and medium-sized © 2024 the author(s). Published by informa uK Limited, trading as taylor & Francis group CONTACT Hellena Mohamedy Mushi [email protected].tz Department of Business studies, Mzumbe university Mbeya Campus College, tanzania https://doi.org/10.1080/23311975.2024.2415533 this is an open access article distributed under the terms of the Creative Commons attribution License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. the terms on which this article has been published allow the posting of the accepted Manuscript in a repository by the author(s) or with their consent. ARTICLE HISTORY Received 29 April 2024 Revised 31 July 2024 Accepted 2 October 2024 KEYWORDS Digital marketing strategies; SMEs performance; Tanzania; Dynamic environment; PLS-SEM SUBJECTS Business, Management and Accounting; Finance; Industry & Industrial Studies 2 H. M. MUSHI businesses typically lack the resources and marketing clout of their larger competitors, but customers frequently make decisions about a business based solely on its website (Saleh et al., 2023). SMEs can thrive in a global market where consumers have easy access to a wealth of information by incorporating digital marketing into their current operations (Tresnasari, 2023). Thus, in order to guarantee revenue development and success, owner-managers of SMEs need to know how to sell their offerings to prospective clients. A lot of research have been conducted in developed countries on digital marketing and SMEs performance (Johnson-Deberry, 2023; Herzing, 2024; Harner-Morrill, 2023; Shahbandi, 2023; Zahara et al., 2023) and the result were mixed which call for more research in that area especially in Tanzania. Therefore, it is crucial for SMEs to possess a meticulously designed and measurable digital marketing strategy to proficiently overcome these challenges and achieve the desired results (John, 2024; Kisanga, 2024). Though a few research were done on digital marketing and SMEs performance in Tanzania (John, 2024; John et al., 2021) no study employs the Resource Based View (RBV) theory to assess the performance of SMEs in Tanzania. The evaluation specifically centers on the perspective of digital marketing strategies (DMS), which encompasses search engine optimization (SEO), content marketing (CM), social media marketing (SMM), email marketing (EM), influencer marketing (IM), paid advertising (PA), and data analysis (DA) and SMEs performance which encompasses: sales growth (SG), market share (MS) and market development (MD), with dynamic environment as a moderator. The main objective of this journal article is to examine the relationship between digital marketing strategies (DMS) and dynamic environment (DE) and organization performance within the context of SMEs in Tanzania. The key research question of this study was: ‘what role does dynamic environment play on the relationship between digital marketing strategies and SMEs performance?’ A conceptual framework was developed to demonstrate the proposed relationships and hypotheses were tested. The current paper presented a relevant literature review in section 2, followed by the sunmmary of research hypotheses and conceptual framework in section 3, methodology in section 4, empirical results in section 5, discussions in section 6, and reseach implications and conclusion in section 7. 2. Literature review The business landscape in Tanzania has undergone notable transformations due to the use of digital marketing strategies. This has resulted in a substantial influence on the methods utilized by businesses to handle marketing communications and improve product promotion. 2.1. SMEs performance The scholarly literature inferred from this that SMEs whose owners are involved in a web of entrepreneurial networks stand a good probability of exceeding financial targets in business success also, that business networks and supporting networks are statistically significant and positively associated with internal business (John, 2024). This construct serves as an indicator of a company’s alignment with its intended trajectory (John etal., 2021). In order to maintain competitiveness, it is imperative for small and SMEs to conduct regular evaluations of their performance (Abubakar & Chille, 2023; Nkwabi & Mboya, 2019). Various studies have identified multiple performance indicators based on their specific criteria. According to Magasi and Kimambo (2024), underlining the rising need of mixing technological techniques with conventional approaches to achieve continuous competitiveness and success in the local market. The performance of SMEs can be significantly improved by the implementation of several policies, such as financial services policies, credit facility and management policies, and marketing management policies (Malipula, 2023; Mang’ana et al., 2023). According to Kweka et al. (2021), SMEs can grow through relationships with larger companies through increased productivity, competition, learning, and market expansion, but these relationships are generally rare in Tanzania, but success depends on policy support. Kiyabo and Isaga (2020) added to the body of knowledge by presenting data on the utilization of personal wealth as a performance indicator for SMEs. Over the years, numerous studies have been conducted to identify and examine the performance of SMEs. The predictors or antecedent variables examined in these studies are diverse. The models used to study SME performance are also varied, ranging from complex to simple, and are often inconsistent and COGENT BUSINESS & MANAGEMENT 3 fragmented (Albimani, 2022; Hanoun, 2022; Herzing, 2024; Magasi & Kimambo, 2024; Martins, 2023; Saleh et al., 2023; Zahara et al., 2023). These studies have reported correlations with SMEs performance, with fragmentation arising not only from the number of predictors but also from a lack of consensus on the direct and indirect predictors of SME performance models. Business performance refers to a firm’s ability to meet its objectives and satisfy its primary stakeholders. Evaluating business performance is essential to gauge its effectiveness and efficiency (Magasi & Kimambo, 2024). SMEs should thoroughly understand digital marketing, as it can offer significant performance benefits (Madila & Ponera, 2024). There is a notable correlation between the success of SMEs and the practice of digital marketing (Albimani, 2022; Algumzi, 2022; John, 2024; Martins, 2023). 2.2. Digital marketing strategies The term ‘Digital Marketing Strategy’ pertains to the strategic plans and methodologies employed by firms or organizations to exploit digital media and internet technology for the purpose of promoting their products, services, or brands, as well as engaging with online consumers (Fute & Lyimo, 2019). According to Suluo (2024), the primary goals of a digital marketing strategy encompass the attainment of a specific target audience, enhancement of customer engagement, and generation of lucrative transactions. Abubakar and Chille (2023) posits that a diverse array of digital marketing strategies is available for organizations to employ. Numerous channels facilitate enterprises in efficiently showcasing their products in a digital format to a broader spectrum of potential buyers, so enhancing their competitive advantage Madila and Ponera (2024) asserts that Tanzanian SMEs faced technical difficulties with data volume, diversity, and analytical capabilities. The report suggests that ICT infrastructure be improved and that stakeholders in SMEs offer training. The difficulties in integrating digital marketing strategies into a company’s operations demonstrate the benefits of these strategies, but there are drawbacks to their application in business settings. Among the difficulties businesses encounter when implementing digital marketing strategies on operations are human resources and time commitment (Kimicho, 2020). In general, smallholder farmers thought that mobile phone technologies were a suitable means of communication to stay updated regarding information related to agricultural marketing. (Mushi etal., 2024; Nyagango etal., 2023). Nevertheless, despite the potential financial benefits and increased accessibility, organizations have novel obstacles when it comes to generating online content and overseeing digital engagements with customers, hence requiring the development of fresh proficiencies and capabilities (Pongwe & Churk, 2024). The function of Small and Medium-Sized Enterprises (SMEs) in promoting economic development at a worldwide level is of significant importance (Madila & Ponera, 2024). Nevertheless, it is crucial to emphasize that a substantial part of small and medium-sized firms (SMEs) in Tanzania. Tanzania has implemented many digital marketing strategies, such as search engine optimization, content marketing, social media marketing, email marketing, influencer marketing, paid advertising, and data analysis (Changalima et al., 2023). The proliferation of mobile phone usage and internet connectivity in Tanzania has resulted in a notable prevalence of digital engagement among Tanzanian individuals, hence fostering a favorable environment for conducting online transactions (Haji etal., 2023). Small and medium-sized firms (SMEs) are of utmost importance in the Tanzanian economy and serve as substantial catalysts for economic expansion in any given country (John, 2024; Madila & Ponera, 2024; Shauri et al., 2023). The correlation between the performance of the small and medium-sized firm (SME) sector and the overall economic performance of a nation is significant (Martins, 2023). Within the realm of small and medium-sized companies (SMEs), both scholars and practitioners continually strive to identify opportunities for improving organizational performance. This assertion holds special significance for assessing the impact of digital marketing strategies (DMS) on the performance of small and medium-sized enterprises (SMEs), as well as determining the opportunities that SMEs can pursue and the extent to which they ultimately influence SMEs’ performance (John, 2024; Shauri et al., 2023). 2.3. Moderating variable: dynamic environment The concept of environmental dynamism refers to the extent of unpredictable fluctuations in a corporation’s external environment. Terms like uncertainty, volatility, and high-velocity are used in 4 H. M. MUSHI academic discussions to describe this notion of unpredictable change (Solyukova, 2020). The literature extensively documents how environmental dynamism influences the relationship between SMEs characteristics and performance. For instance, Harner-Morrill (2023) argues that dynamic workplaces require managers who thoroughly understand their surroundings and can adapt accordingly. Additionally, these environments demand adaptable workers who seek compatibility with their surroundings through collaborative teamwork (Siddiqui et al., 2024). The impact of the business environment on the operational outcomes of SMEs is well-acknowledged in scholarly literature (Valdez-Juárez et al., 2024). 3. Summary of research hypotheses and conceptual model To conclude the literature review, the study proposes the following hypotheses for the research objectives: Hypothesis (H1): Digital marketing strategies (such as search engine optimization, content marketing, social media marketing, email marketing, influencer marketing, paid advertising, and data analysis) will significantly predict SMEs performance. Hypothesis (H2): The dynamic environment will moderate the relationship between digital marketing strategies and SMEs performance. Figure 1 shows the conceptual framework of the study. 4. Methodology 4.1. Sample data The research adopted a quantitative methodology, using a questionnaire to collect data from small and medium-sized enterprise participants in Mbeya City, Tanzania. The research population consisted of small and medium-sized service-oriented businesses located in Mbeya City, Tanzania. The entrance to SADC, which encompasses a wide range of entrepreneurial pursuits, including both small and major firms, is one of the factors that influenced the choice of Mbeya City (Mbegu et al., 2024). Moreover, the city is home to a sizable number of service-oriented SMEs, which are the subject of this study (Mwidege, 2024). The Directorate of Research and Postgraduates Studies (MZUMBE -DRPS), the University of Mzumbe’s ethical and research committee, provided ethical approval for this study prior to starting the data gathering process. Additionally, the respondents’ agreement to participate in the survey was requested in written and provided at the start of the survey. The study appropriately recognized all data sources and maintained the anonymity of the respondents. Data were gathered from individuals serving as owners or managers of SMEs. The study involved a sample size of 500 participants, utilizing a drop and pick approach for data collection. A total of 450 questionnaires were distributed to small and medium-sized service-oriented business owner-managers in Mbeya City Tanzania and 335 fully completed questionnaires were retrieved, resulting in a 74% response rate. Analysis was conducted using SMART-PLS 4, including a factor analysis to assess the instrument’s reliability and validity. Hypotheses were tested using multiple regression and hierarchical regression. The sampling methodology employed was multi-stage cluster/proportionate sampling technique (Rea & Parker, 1992). Sampling Size determination was proportionate sampling technique (Krejcie & Morgan, 1970). The study employed the Resource Based View (RBV) framework to support the variables under investigation, RBV provides a comprehensive theoretical basis for understanding how small and medium enterprises can gain a competitive advantage by effectively using digital marketing strategies (Changalima etal., 2023; Johnson-Deberry, 2023; Saleh etal., 2023; Zahara etal., 2023). The resourcebased concept suggests that digital marketing strategies, such as search engine optimization, content marketing, social media marketing, email marketing, influencer marketing, pay-per-click advertising and display advertising, serve as internal resources that can create competitive advantages COGENT BUSINESS & MANAGEMENT 5 (Zahara et al., 2023). This journal article aimed to examine the impact of digital marketing strategies on SMEs’ organizational performance, in line with the RBV theory, while addressing a gap in the literature by including the dynamic environment as a moderating variable within the RBV framework. Existing literature explores various factors that significantly influence the relationship between different digital marketing strategies, such as Firm Size Jung and Shegai (2023) and performance. However, aligning crucial organizational components with the dynamic environment has been shown to yield more favorable outcomes (Wahab, 2016). 4.2. Data analysis technique The study utilized Partial Least Square Structural Equation Modeling (PLS-SEM), specifically SMART PLS 4, to test the research model. The researchers chose PLS-SEM over Covariance-Based Structural Equation Modeling (CB-SEM) because PLS-SEM does not assume normal distribution of data, making it suitable for non-normal data (Goodhue et al., 2012). This approach was adopted to explain the variance in the detailed variables effectively (Hair & Alamer, 2022). Al-Emran et al. (2019) noted that PLS is appropriate for exploratory studies, which further justified its use in this research. Smart PLS 4 was employed to test the research hypotheses. Figure 1. Conceptual framework. 6 H. M. MUSHI 4.3. Measurement of the constructs Existing literature was used to measure the research constructs, with minor modifications to both the measurements and scales. The dependent variable, SMEs performance was evaluated using three items for sales growth three items for market share, and two items for market development, adapted from (Farida, 2016; Gunday et al., 2011; Mutanu, 2017; Zahara et al., 2023). The independent variable, digital marketing strategies, included dimensions such as search engine optimization with six items, content marketing with six items, social media marketing with seven items, email marketing with seven items, influencer marketing with seven items, paid advertising with six items, and data analysis with seven items, adapted from Mutanu (2017). The dynamic environment was measured using five items adapted from Wahab (2016). The study employed a seven-point Likert scale (1 = Strongly Disagree, 2 = Disagree, 3 = Slightly Disagree, 4 = Neutral, 5 = Slightly Agree, 6 = Agree, 7 = Strongly Agree) to gauge respondents’ agreement or disagreement with the constructs. The measurement approach received positive feedback. Table 1 illustrates these details. Table 1 shows the summary of the construct’s indicators questionnaire and the various literature sourced and scale measurement. Table 1. Variable, variables definitions. Variables Variables Definition indicators authors 1. Digital Marketing Digital Marketing a marketing activity including: 1. search engine optimization (seo) refers to the deliberate actions taken by a corporation to enhance the positioning and prominence of its website inside the unpaid, organic search engine results. search engine optimization (seo) encompasses the strategic use of pertinent keywords, the creation of high-quality content, and the utilization of various techniques with the objective of enhancing the likelihood of attaining a prominent position on the first page of search engine results. 2. Content Marketing: information marketing refers to the strategic practice of producing and disseminating valuable information, encompassing many forms such as blog articles, films, infographics, and other mediums. its primary objective is to attract and maintain audience attention, while concurrently establishing and enhancing brand credibility 3. social media marketing refers to the strategic utilization of various social media platforms, including but not limited to Facebook, instagram, twitter, Linkedin, and others, with the aim of actively engaging with target audiences, promoting products or services, and fostering the development of a dedicated community of followers. 4. email marketing refers to the utilization of electronic mail as a means of communication to engage with both prospective and current clients. this may encompass the dissemination of newsletters, provision of exclusive promotions, communication of product enhancements, and other related activities. 5. influencer marketing is collaborating with individuals of influence or celebrities on social media platforms to endorse and advertise a specific company or product. 6. Paid advertising refers to the practice of utilizing digital platforms, such as google ads, Facebook ads, or banner ads on external websites, to enhance visibility and attract clicks from pertinent target audiences 7. the process of data analysis involves the systematic gathering and examination of data pertaining to customer behavior, online interactions, and the effectiveness of digital marketing initiatives. the primary objective is to gain insights into the efficacy of current strategies and identify areas that require enhancement. 1. search engine optimisation (seo) 2. Content Marketing (CM) 3. social Media Marketing (sMM) 4. email Marketing (eM) 5. influencer Marketing (iM) 6. Paid advertising (Pa) 7. Data analysis (Da) (Farida, 2016; gunday et al., 2011; Mutanu, 2017; Zahara et al., 2023) 2. sMes Performance the performance of small and medium-sized enterprises (sMes) aims to generate value that contributes to the improvement of profit levels, profit percentages, sales growth, and customer expansion 1. sales growth (sg) 2. Market share (Ms) 3. Market Development (MD) (Munir et al., 2023; Mutanu, 2017) 3. Dynamic environment environmental dynamism is a concept that pertains to the degree of unpredictable fluctuations within a firm’s external environment. 4. Dynamic environment (Wahab, 2016) Source: adopted from different authors. COGENT BUSINESS & MANAGEMENT 7 5. Empirical results 5.1. Model measurement Following the recommendations of scholars like Sarstedt et al.,(2019), the authors drew inspiration from the PLS-SEM literature to rigorously assess the Higher Order Constructs (HOC) and Lower Order Constructs (LOC). The software SMART PLS 4 (Hair & Alamer, 2022) was utilized to evaluate the psychometric properties of the constructs and their underlying items. 5.1.1. Measurements model: lower order constructs (LOC) analysis The quality of the constructs in the journal article is assessed through the evaluation of the measurement model. This begins with evaluating the factor loadings, followed by establishing construct reliability and validity (Sarstedt et al., 2019). Table 2. Factor loadings. CM Da De eM iM MD Ms Pa seo sg sMM De x Da CM.1 0.880 CM.4 0.847 CM.6 0.745 Da.1 0.691 Da.3 0.662 Da.5 0.754 Da.6 0.677 Da.7 0.816 De.1 0.840 De.2 0.875 De.4 0.743 De.5 0.734 eM.1 0.920 eM.7 0.927 iM.3 0.850 iM.4 0.884 iM.5 0.863 iM.6 0.903 iM.7 0.871 MD.1 0.939 MD.2 0.937 Ms.1 0.920 Ms.2 0.921 Pa.1 0.943 Pa.3 0.632 seo.1 0.644 seo.2 0.846 seo.3 0.866 seo.4 0.869 seo.6 0.833 sg.1 0.906 sg.2 0.938 sg.3 0.943 sMM.1 1.000 De x Da 1.000 seo: search engine optimization; CM: content marketing ; sMM: social media marketing; eM: email marketing; iM: influencer marketing, Paid advertising =; Da: data analysis =; sg: sales growth Ms: Market share ; MD: market development; De: dynamic environment . in table 2, the factor loadings of the indicator variables for the latent constructs were evaluated, and they appropriately align with their respective constructs. according to Bagozzi and Yi (1988), factor loadings above 0.6 are considered optimal for demonstrating strong relationships between indicators and their underlying constructs. the results show that the indicator variables in table 2 have loads ranging from 0.632 to 0.943, meeting this criterion. in table 2: Factor Loadings, the shaded values highlight the highest factor loadings for each item across the constructs. Factor loadings represent the correlation or degree of association between an observed variable (e.g., CM.1, Da.1) and its underlying latent construct (e.g., CM, Da). indication of strong association. the shaded values emphasize the factor loadings that demonstrate the strongest relationships between the observed variables and their respective latent constructs. these are typically the highest loadings in each row, showing which construct the item most strongly represents. For example, in row CM.1, the shaded value of 0.880 indicates that this item strongly loads onto the CM (Content Marketing) construct. High factor loadings (commonly above 0.7) suggest that the observed variable is a good indicator of the latent construct. the shaded values likely exceed the threshold of acceptable loadings, meaning these items adequately reflect their intended construct. For instance, iM.6 has a shaded value of 0.903, meaning it is strongly associated with the iM (influencer Marketing) construct. the shading serves to visually confirm that each item is loading primarily on its intended construct, helping validate the measurement model. this means the items grouped under each latent construct (like CM, Da, De, etc.) are accurate indicators of that construct. For the construct Da (Data analysis), items like Da.1 (0.691), Da.3 (0.662), Da.5 (0.754), and others have their highest loadings shaded, confirming that these items are good indicators of the Da construct. similarly, the items under iM all have strong loadings, such as iM.6 (0.903), which confirms their contribution to that construct. the shaded values highlight where each observed variable most strongly correlates with its respective construct, helping to verify the accuracy and reliability of the factor structure in the measurement model. 14 H. M. MUSHI using these strategies. Practitioners will find the research constructs such as search engine optimization, content marketing, social media marketing, email marketing, influencer marketing, paid advertising, and data analysis particularly useful for their marketing and communication efforts. Additionally, the findings will assist industry players and practitioners in making strategic decisions, applying these insights to achieve their goals, and understanding the importance of digital marketing. 7.4. Limitations and future directions However, this study focuses only on small and medium enterprises in Tanzania, so the findings may not be applicable to other developing countries. Additionally, the study utilized only quantitative research methods. Including qualitative methods, such as conducting interviews with SMEs managers and owners, could enhance the results and provide deeper insights. Acknowledgement I acknowledged individuals of a study’s data and conclusions by Hellena Mohamedy Mushi and agree to be accountable for all aspects of the work. SMART PLS 4 This article used SMART PLS 4 to analyze data and the tool has a Copyright. Disclosure statement No potential conflict of interest was reported by the author(s). About the author Hellena Mohamedy Mushi is a Tanzanian Senior Lecturer in Marketing at Mzumbe University. She holds a post-doctoral in Investments from COMSAT University Pakistan in 2023. She holds also a PhD in Marketing with a focus on Consumer Behavior and Market Analysis from Universiti Utara Malaysia (UUM), completed in 2017. Her doctoral research explored factors influencing consumer behavior in purchasing pirated music CDs in Tanzania. With research interests spanning marketing theory, consumer behavior, quantitative impact assessment, and market-based research, Dr. Mushi has published extensively in both local and international journals. She has held various academic and managerial roles at Mzumbe University, showcasing a rich blend of teaching, research, and community engagement experience. As of January 2023, Dr. Mushi serves as the Head of the Department of Research, Consultancy, Short Courses, and Outreach Activities at Mzumbe University Mbeya Campus College. She excels in teaching a range of business and marketing courses and actively supervises Master’s students in their research endeavors. Fluent in English and Kiswahili, Dr. Mushi remains dedicated to advancing marketing knowledge and contributing to Tanzania’s higher education landscape. Her certifications and extensive research portfolio underscore her commitment and expertise in the academic sphere. Funding I declare this work has no sponsor or fund received. ORCID Hellena Mohamedy Mushi http://orcid.org/0000-0003-3377-1197 Data availability statement Data available on request from the author Hellena Mohamedy Mushi COGENT BUSINESS & MANAGEMENT 15 References Abubakar, L., & Chille, F. J. (2023). The effect of mobile marketing adoption on the growth of food processing SMEs in Zanzibar City. International Journal of Social Science Research and Review, 5(1), 159–165. Albimani, N. M. (2022). The impact of dynamic capabilities on small and medium-sized enterprises (SMEs) performance in Oman [Doctoral dissertation]. University of South Alabama. Al-Emran, M., Mezhuyev, V., & Kamaludin, A. (2019). PLS-SEM in information systems research: A comprehensive methodological reference. In Proceedings of the International Conference on Advanced Intelligent Systems and Informatics 2018 4 (Vol. 845). (pp. 644–653). Springer International Publishing. https://doi.org/10.1007/978-3-319-99010-1_59 Algumzi, A. (2022). Impact of digital marketing on SMEs performance in Saudi Arabia: Implications on building NEOM. Transnational Marketing Journal, 10(1), 27–38. https://doi.org/10.33182/tmj.v10i1.1414 Amoah, J., & Jibril, A. B. (2021). Social media as a promotional tool towards SME’s development: Evidence from the financial industry in a developing economy. Cogent Business & Management, 8(1), 1923357. https://doi.org/10.1080 /23311975.2021.1923357 Bagozzi, R. P., & Yi, Y. (1988). On the evaluation of structural equation models. Journal of the Academy of Marketing Science, 16(1), 74–94. https://doi.org/10.1007/BF02723327 Changalima, I. A., Israel, B., Amani, D., Panga, F. P., Mwaiseje, S. S., Mchopa, A. D., Kazungu, I., & Ismail, I. J. (2023). Do internet marketing capabilities interact with the e ff ect of procedural capabilities for public procurement participation on SMEs ‘ sales performance ? Journal of Public Procurement, 23(3/4), 416–433. https://doi.org/10.1108/ JOPP-01-2023-0001 Crocetta, C., Antonucci, L., Cataldo, R., Galasso, R., Grassia, M., Lauro, C. N., & Marino, M. (2021). Higher-order PLS-PM Approach for different types of constructs, social indicators research. Social Indicators Research, 154(2), 725–754. https://doi.org/10.1007/s11205-020-02563-w Farida, N. (2016). Determinants of marketing performance: Innovation. Jurnal Dinamika Manajemen, 7(1), 59. https:// doi.org/10.15294/jdm.v7i1.5759 Fornell, C., & Cha, J. (1994). Partial least squares. Advanced Methods of Marketing Research, 407, 52–78. Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.1177/002224378101800104 Fute, W., & Lyimo, B. J. (2019). Influence of digital marketing on performance of banking industry: A case of Barclays bank, Tanzania. Olva Academy—School of Researchers, 2(3), 2. Goodhue, D. L., Lewis, W., & Thompson, R. (2012). ‘Does PLS have advantages for small sample size or non-normal data?’ MIS Quarterly, 36(3), 981–100. https://doi.org/10.2307/41703490 Gunday, G., Ulusoy, G., Kilic, K., & Alpkan, L. (2011). Effects of innovation types on firm performance. International Journal of Production Economics, 133(2), 662–676. https://doi.org/10.1016/j.ijpe.2011.05.014 Hair, J. F., & Alamer, A. (2022). Partial least squares structural equation modeling (PLS-SEM) in second language and education research: Guidelines using an applied example. Research Methods in Applied Linguistics, 1(3), 100027. (https://doi.org/10.1016/j.rmal.2022.100027 Hair, J. F., Babin, B. J, Anderson, R. E., & Black, W. C. (2019). Multivariate data analysis. Cengage Learning E M E A. Haji, N. M., Salum, N. K., & Mohammed, S. (2023). International Journal of Social Science Research and Review, 5(1), 159–165. Hanoun, D. (2022). The Impact of Entrepreneurial Marketing on SMEs’ Performance: Technological Turbulence as a Moderating Variable (Issue June). https://search.proquest.com/openview/0307e9eb629b731c29ca92265ec62e2e/ 1?pq-origsite=gscholar&cbl=2026366&diss=y Harner-Morrill, H. M. (2023). Factors affecting digital marketing adoption in small service-oriented Businesses [Doctoral dissertation]. Northcentral University. Herzing, I. (2024). Investigating the perceived effectiveness of project management tools and techniques: A case study of digital marketing projects at the office of experience [PhD thesis]. Trident University International. John, E. (2024). Show me your networks and i’ll tell you your future: entrepreneurial networks and SME performance. Cogent Business & Management, 11(1), 2363433. https://doi.org/10.1080/23311975.2024.2363433 John, E., Mwakalobo, A. B. S., & Bengesi, K. M. K. (2021). Influence of social competence on performance of small and medium enterprises (Smes): Empirical evidence from Tanzania’S manufacturing Smes. Journal of Co-Operative and Business Studies, 6(1), 856–9037. www.mocu.ac.tz Johnson-Deberry, D. (2023). Understanding the impact of digital marketing capabilities and female-owner behaviors on the performance of entrepreneurially oriented firms in the digital economy [Doctoral dissertation]. The University of North Carolina at Charlotte. Jung, S., & Shegai, V. (2023). The impact of digital marketing innovation on firm performance : mediation by marketing capability and moderation by firm size. Sustainability, 15(7), 5711. https://doi.org/10.3390/su15075711 Kasimu, G. M. (2017). Digital marketing strategies and marketing performance of top 100 small and medium enterprises (SMEs) in Kenya [Doctoral dissertation]. University of Nairobi. Kimicho, I. (2020). Digital marketing and performance of firms in Tanzania [Doctoral dissertation]. Mzumbe University. Kisanga, H. E. (2024). Outcomes of e-commerce adoption on enhancing small and medium enterprises performance in Tanzania : A case of Ilala Municipal council abstract. European Journal of Theoretical and Applied Sciences, 2(3), 721–734. https://doi.org/10.59324/ejtas.2024.2(3).56 16 H. M. MUSHI Kitole, F. A., Mkuna, E., & Sesabo, J. K. (2024). Digitalization and agricultural transformation in developing countries: empirical evidence from the Tanzanian agriculture sector. Smart Agricultural Technology, 7, 100379. https://doi. org/10.1016/j.atech.2023.100379 Kiyabo, K., & Isaga, N. (2020). Entrepreneurial orientation, competitive advantage, and SMEs’ performance: application of firm growth and personal wealth measures. Journal of Innovation and Entrepreneurship, 9(1), 12. https://doi. org/10.1186/s13731-020-00123-7 Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and Psychological Measurement, 30(3), 607–610. https://doi.org/10.1177/001316447003000308 Kweka, A. (2022). Capabilities of business development service providers in service delivery to small and medium enterprises in Arusha City and Moshi Municipality [Doctoral dissertation]. Sokoine University of Agriculture. Kweka, J., Boys, J., & Saha, A. (2021). Firm performance, trade linkages, and the growth of SMEs in Tanzania. Madila, S. S., & Ponera, J. M. (2024). Social media analytics tool usage among tourism SMEs in Tanzania. Journal of Tourism Quarterly, 6(1-2), 24–31. Magasi, C., & Kimambo, G. (2024). Enhancing competitive advantage : A blend of marketing strategies for micro and small-scale fishery businesses in Mwanza City. International Journal of Management, Accounting and Economics, 11(2), 162–182. https://doi.org/10.5281/zenodo.10892472 Malipula, M. M. (2023). SMEs sustainability through entrepreneurship training in. Journal of Enterprise and Development, 5(3), 384–397. https://doi.org/10.20414/jed.v5i3.7168 Mang’ana, K. M., Ndyetabula, D. W., & Hokororo, S. J. (2023). Financial management practices and performance of agricultural small and medium enterprises in Tanzania. Social Sciences & Humanities Open, 7(1), 100494. https://doi. org/10.1016/j.ssaho.2023.100494 Martins, A. (2023). Dynamic capabilities and SME performance in the COVID-19 era: The moderating effect of digitalization. Asia-Pacific Journal of Business Administration, 15(2), 188–202. https://doi.org/10.1108/APJBA-08-2021-0370 Mbegu, S., Magali, P. J., & Kara, N. (2024). The Influence of Innovations on SACCOs Financial Performance in Mbeya Region, Tanzania. African Development Finance Journa, 7(1), 165–184. Munir, A. R., Kadir, N., Umar, F., & Bata, G. (2023). The impact of digital marketing and brand articulating capability for enhancing marketing capability. International Journal of Data and Network Science, 7(1), 65–72. https://doi. org/10.5267/j.ijdns.2022.12.005 Mushi, G. E., Burgi, P. Y., & Di Marzo Serugendo, G. (2024). State of agricultural E-government services to farmers in Tanzania: Toward the participatory design of a farmers digital information System (FDIS). Agriculture, 14(3), 475. https://doi.org/10.3390/agriculture14030475 Mwidege, A. M.(2024). Capital structure and its determinants of external financing of small businesses in Mbeya City, Tanzania. Economics, Finance and Management Review, 2(2(18), 4–13. https://doi.org/10.36690/2674-5208-20242-4-13 Nkwabi, J., & Mboya, L. B. (2019). A review of factors affecting the growth of small and medium enterprises A review of factors affecting the growth of small and medium enterprises (SMEs) in Tanzania. European Journal of Business and Management, 11(33), 1–8. https://doi.org/10.7176/EJBM/11-33-01 Nyagango, A. I., Sife, A. S., & Kazungu, I. (2023). Factors influencing the use of mobile phones for accessing agricultural marketing information by grape smallholder farmers in Tanzania. Cogent Business & Management, 10(3), 2257865. https://doi.org/10.1080/23311975.2023.2257865 Pongwe, L. J., & Churk, J. P. (2024). Social media marketing platforms and sales revenue in Tanzania telecommunication company limited. International Review of Management and Marketing, 14(1), 31–38. https://doi.org/10.32479/ irmm.15294 Raghunath, A., Ndubuisi-Obi, I., Mpogole, H., & Anderson, R. (2024). Beyond digital financial services: exploring mobile money agents in Tanzania as general ICT intermediaries. ACM Journal on Computing and Sustainable Societies, 2(1), 1–26. https://doi.org/10.1145/3616386 Rea, L. M., & Parker, R. A. (1992). Designing and conducting survey research: A comprehensive guide. Jossey-Bass. Saleh, I., Alkoliby, M., & Abdullah, H. H. (2023). Linking knowledge application, digital marketing, and manufacturing SMEs sustainable performance : The mediating role of innovation. Journal of the Knowledge Economy, 15(2), 6151– 6177. https://doi.org/10.1007/s13132-023-01157-4 Sarstedt, M., Adler, S. J., Ringle, C., Cho, G., Diamantopoulos, A., Hwang, H., & Liengaard, B. D. (2024). Same model, same data, but different outcomes: Evaluating the impact of method choices in structural equation modeling. Journal of Product Innovation Management, 41(6), 1100–1117. https://doi.org/10.1111/jpim.12738 Sarstedt, M., Hair, J. F., Jr, Cheah, J. H., Becker, J. M., & Ringle, C. M. (2019). How to specify, estimate, and validate higher-order constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197–211. https://doi.org/10.1016/j.ausmj.2019.05.003 Shahbandi, M. (2023). Analysis of the digital marketing functions’ role in the competitiveness of manufacturing companies in the USA food industry [Doctoral dissertation]. Keiser University. Shauri, N. E., Magaria, B. R., & Masanyiwa, Z. S. (2023). Utilization of social media and its implications on the performance of SMEs in Dodoma City, Tanzania. Open Journal of Business and Management, 11(02), 660–672. https://doi. org/10.4236/ojbm.2023.112035 COGENT BUSINESS & MANAGEMENT 17 Siddiqui, F., Yusheng, K., Ravina-Ripoll, R., & Aden, A. S. (2024). Dynamic firm performance : entrepreneurship, knowledge, social media, customer relationship management, environment. South African Journal of Business Management, 55(1), 4346. Solyukova, N. (2020). Firm-specific factors influencing the performance of young SMEs located in Algarve (Portugal) and Nordland (Norway) [Master’s thesis]. Universidade do Algarve, Portugal. Suluo, S. J. (2024). Corporate social responsibility communication on the websites of Tourism firms in Tanzania. Business Management Review, 27(1), 18–38. https://doi.org/10.56279/bmrj.v27i1.2 Tresnasari, R.(2023). Increasing MSME performance through institutional strengthening, entrepreneurship, and digital marketing. International Journal of Research in Community Service, 4(1), 11–17. Valdez-Juárez, L. E., Ramos-Escobar, E. A., Ernesto, O., Ruiz-Zamora, J. A., Enrique, L., Ramos-Escobar, E. A., Valdez-Juárez, L. E., Ramos-Escobar, E. A., & Ruiz-Zamora, J. A. (2024). Digital transformation and innovation, dynamic capabilities to strengthen the financial performance of Mexican SMEs : a sustainable approach. Cogent Business & Management, 11(1), 2318635. https://doi.org/10.1080/23311975.2024.2318635 Wahab, A. B. D. U. L. (2016). Factors determining perceived job performance of university leaders in Pakistan. Universiti Utara Malaysia. Waziri, A., & Nnko, E. (2023). The influence of financial monitoring on performance of small and medium enterprises in Tanzania : A case of Arusha city council. International Journal of Small Business and Entrepreneurship Research, 11(2), 1–11. https://doi.org/10.37745/ijsber.2013/vol11n2111 Zahara, Z., Ikhsan, Santi, I. N., & Farid. (2023). Entrepreneurial marketing and marketing performance through digital marketing capabilities of SMEs in post-pandemic recovery. Cogent Business & Management, 10(2), 2204592. https:// doi.org/10.1080/23311975.2023.2204592