The Role of Digital Marketing in Improving SME Performance: A Systematic Literature Review

Abstract

This study is a Systematic Literature Review (SLR) study that aims to identify, examine, and synthesize the latest findings related to the adoption of digital marketing and e-commerce in Micro, Small, and Medium Enterprises (MSMEs). By analyzing 20 selected international journals, this study explores various determinants, challenges, and impacts of digital technology implementation on MSME business performance. The results of the study reveal that technological, organizational, and environmental factors (TOE framework), digital marketing capabilities, innovation capacity, and customer connectivity through digital platforms are key elements in the adoption process. In addition, external factors such as the COVID-19 pandemic, market globalization, and competitive pressures also drive the acceleration of MSME digitalization. Other findings show that the adoption of e-commerce and digital marketing not only improves financial performance and market competitiveness, but also contributes to business sustainability, supply chain efficiency, and export market expansion, especially in the context of cross-border e-commerce. The study analysis suggests approaches for policymakers and researchers to create an MSME digital transformation strategy concerning technology and collaboration within a digital ecosystem.