Department of Business Management
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Item Embargo Determinants of digital marketing adoption among SME's in the Tshwane Metropolitan Municipality: a structural equation modeling approach(2025-09-05) Chiliya, William; Munyoka, W.; Nkondo, L. G.Small and Medium Enterprises (SMEs) are continuously gaining recognition as a vital tool for the socio-economic development of South Africa and most countries, throughout the world. SMEs play a pivotal role in job creation and wealth distribution in previously disadvantaged communities, however, several studies conducted in South Africa have shown that SMEs experience high failure rates. It is estimated that South Africa has the highest failure rate of SMEs, however, they can significantly moderate their high failure rate by leveraging digital marketing strategies. Digital marketing is promoting products and services through digital channels, such as social media, share of experience (SOE), email, and mobile apps using the internet. Digital marketing adoption is an essential tool to curb the high failure rate of SMEs, however, several studies that have been conducted in South Africa show that there is a low level of adoption of digital marketing. This study sought to identify the key determinants for digital marketing adoption among SMEs in the Tshwane Metropolitan Municipality in South Africa and to develop a conceptual framework to guide its adoption by SMEs in South Africa and other developing nations with similar socio-economic conditions. A positivistic paradigm was adopted to conduct the empirical component of the study and following the requirements of the positivistic paradigm, a quantitative research design was employed to conduct the study. SME owners or managers operating in the City of Tshwane Metropolitan Municipality were selected using the multi-stage stratified random sampling technique. The research employed a survey method through a self-administered questionnaire to gather data from research participants; the questionnaire was developed using literature from previous studies. The descriptive statistics data analysis was performed using the Statistical Package for Social Sciences (SPSS), Version 30. From the results, the researcher developed and tested a conceptual model using confirmatory factor analysis and structural equation modeling, using the AMOS software package (version 26). Exploratory factor analysis, confirmatory factor analysis, and structural equation modeling were performed to test the hypotheses variables under study, to confirm a causal relationship and make inferences between observed and latent variables. The results obtained in this study reveal a concerningly low level of digital marketing adoption among the SME owners and managers who participated in this study. In addition - perceived ease of use, perceived usefulness, firm size, behavioral control, top management support, perceived cost, and perceived availability of financial resources - were identified as the most significant factors influencing behavioral intention to use digital marketing. Compatibility and competitive pressure, however, were found to be insignificant factors influencing the behavioral intention to use digital marketing and the actual adoption of digital marketing. The findings of this study, it is anticipated, will contribute immensely towards the effective adoption of digital marketing by SMEs, using current digital marketing tools and providing guidelines to potential digital-marketing adopters as they develop their growth and sustainability strategies.