Digital marketing capabilities and SME performance: the influence of market orientation and the complementarity effect on customer relationship management capabilities

Purpose – Although digital marketing capabilities (DMCs) represent an opportunity for small to medium-sized enterprises (SMEs), the drivers and the complementarity effects of these newer marketing capabilities need further investigation. This study examines the development and impact of digital marketing capabilities (DMCs) on SME performance.

Design/methodology/approach – A quantitative survey method was implemented using data provided by 224 managers and directors of SMEs in the United Kingdom (UK). The proposed model was tested using structural equation modelling, hierarchical regression and fuzzy qualitative comparative analysis.

Findings – The results indicate that DMCs contribute to SME performance beyond the influence of customer relationship management (CRM) capabilities, and market orientation (MO) contributes to the development of these capabilities. Further, the findings reveal that three distinct configurations of MO, DMCs and CRM capabilities are sufficient to achieve higher SME performance.

Practical implications – The results suggest that SMEs possessing extensive knowledge of their market and customers current and latent needs are more capable of providing better services using digital marketing capabilities. Also, the finding of the study informs SMEs managers that DMCs contribute to performance beyond the presence of CRM capabilities.

Originality/value – This study contributes to the marketing and entrepreneurship literature by identifying the driver and complementarity benefit of digital marketing capabilities on SME performance.