Abstract

The proliferation of digital technologies has transformed the marketing landscape, offering new avenues for Small and Medium Enterprises (SMEs) to reach customers and drive growth. This study examines the factors influencing the adoption of digital marketing by SMEs in Nigeria and its subsequent impact on their sales performance. A cross-sectional survey was conducted with 400 SME owners and managers across various industries. The data were analyzed using multiple regression analysis to test the hypotheses derived from the Technology-Organization-Environment (TOE) framework. The findings reveal that technological factors (perceived benefits and compatibility), organizational factors (top management support and firm size), and environmental factors (competitive pressure) are significant determinants of digital marketing adoption. Importantly, the study confirms a strong positive relationship between the extent of digital marketing adoption and sales performance. This research provides valuable insights for SME owner-managers on leveraging digital marketing to enhance their competitive position and for policymakers on creating a supportive ecosystem for digital transformation.

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