Market knowledge as a driver of SME digital marketing success in enhancing business performance

Authors

  • Sarli Rahman Institut Bisnis dan Teknologi Pelita Indonesia

DOI:

https://doi.org/10.26740/bisma.v18n2.p205-225

Keywords:

market knowledge, digital content marketing, social media marketing, business performance, SMEs

Abstract

This study examines the role of market knowledge in shaping the effectiveness of digital content marketing and social media strategies in Indonesian SMEs. While previous research has linked both market knowledge and digital marketing to business performance, their interaction is still under-researched, especially in emerging markets. Using empirical data from 370 SMEs and utilising PLS-SEM as a data analysis technique, the study shows that market knowledge alone does not directly improve performance and can even have a negative impact if it is not translated into actionable marketing practises. The findings highlight digital content and social media marketing as critical facilitators that convert knowledge into measurable results.

References

Agag, G., Durrani, B. A., Shehawy, Y. M., Alharthi, M., Alamoudi, H., El-Halaby, S., Hassanein, A., & Abdelmoety, Z. H. (2023). Understanding the link between customer feedback metrics and firm performance. Journal of Retailing and Consumer Services, 73, 103301. https://doi.org/10.1016/J.JRETCONSER.2023.103301

Aimran, A. N., Ahmad, S., Afthanorhan, A., & Awang, Z. (2017). The assessment of the performance of covariance-based structural equation modeling and partial least square path modeling. Aip Conference Proceedings, 1842. https://doi.org/10.1063/1.4982839

Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T

Akroush, M. N., & Al‐Mohammad, S. M. (2010). The effect of marketing knowledge management on organizational performance. International Journal of Emerging Markets, 5(1), 38–77. https://doi.org/10.1108/17468801011018266

AlKoliby, I. S. M., Abdullah, H. H., & Suki, N. M. (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

Andreou, A. N., & Bontis, N. (2007). A model for resource allocation using operational knowledge assets. The Learning Organization, 14(4), 345–374. https://doi.org/10.1108/09696470710749272

Anowar, F., & Sadaoui, S. (2020). Detection of Auction Fraud in Commercial Sites. Journal of Theoretical and Applied Electronic Commerce Research, 15(1), 0–0. https://doi.org/10.4067/S0718-18762020000100107

Ashley, C., & Tuten, T. (2015). Creative Strategies in Social Media Marketing: An Exploratory Study of Branded Social Content and Consumer Engagement. Psychology & Marketing, 32(1), 15–27. https://doi.org/10.1002/mar.20761

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Baskerville, R., & Dulipovici, A. (2006). The theoretical foundations of knowledge management. Knowledge Management Research & Practice, 4(2), 83–105. https://doi.org/10.1057/palgrave.kmrp.8500090

Batra, R., & Keller, K. L. (2016). Integrating Marketing Communications: New Findings, New Lessons, and New Ideas. Journal of Marketing, 80(6), 122–145. https://doi.org/10.1509/jm.15.0419

Benn, S., Abratt, R., & Kleyn, N. (2016). Reducing reputational risk. Marketing Intelligence & Planning, 34(6), 828–842. https://doi.org/10.1108/MIP-10-2015-0191

Bu, Y., Parkinson, J., & Thaichon, P. (2021). Digital content marketing as a catalyst for e-WOM in food tourism. Australasian Marketing Journal, 29(2), 142–154. https://doi.org/10.1016/j.ausmj.2020.01.001

Burgers, J. H., Jansen, J. J. P., Van den Bosch, F. A. J., & Volberda, H. W. (2009). Structural differentiation and corporate venturing: The moderating role of formal and informal integration mechanisms. Journal of Business Venturing, 24(3), 206–220. https://doi.org/10.1016/j.jbusvent.2009.01.006

Chan, N. L., & Guillet, B. D. (2003). Consumer Acceptance of Electronic Commerce: Integrating Trust and Risk with the Technology Acceptance Model. International Journal of Electronic Commerce, 7(3), 101–134. https://doi.org/10.1080/10864415.2003.11044275

Chan, N. L., & Guillet, B. D. (2011). Investigation of Social Media Marketing: How Does the Hotel Industry in Hong Kong Perform in Marketing on Social Media Websites? Journal of Travel & Tourism Marketing, 28(4), 345–368. https://doi.org/10.1080/10548408.2011.571571

Chatterjee, S., & Kumar Kar, A. (2020). Why do small and medium enterprises use social media marketing and what is the impact: Empirical insights from India. International Journal of Information Management, 53, 102103. https://doi.org/10.1016/j.ijinfomgt.2020.102103

Chierici, R., Mazzucchelli, A., Garcia-Perez, A., & Vrontis, D. (2019). Transforming big data into knowledge: the role of knowledge management practice. Management Decision, 57(8), 1902–1922. https://doi.org/10.1108/MD-07-2018-0834

Chin, W. W. (1998). The partial least squares approach to structural equation modeling. In Modern methods for business research (G. A. Marcoulides, pp. 295–336). Lawrence Erlbaum Associates.

Chinakidzwa, M., & Phiri, M. (2020). Impact of digital marketing capabilities on market performance of small to medium enterprise agro-processors in Harare, Zimbabwe. Business Theory and Practice, 21(2), 746–757. https://doi.org/10.3846/btp.2020.12149

Chu, S. C., Lien, C. H., & Cao, Y. (2021). Electronic word-of-mouth and social media engagement. Internet Research, 31(2), 488–510.

Cohen, J. (1988). Statistical power analysis for the behavioral sciences (2nd ed.). Lawrence Erlbaum Associates.

Corallo, A., Errico, F., Fortunato, L., Spennato, A., & De Blasi, C. (2024). Effects Influence of Social Media Constructs on Shopping: An Empirical Study on the Prediction of Retail Clothing Sales. Journal of the Knowledge Economy, 15(4), 18257–18285. https://doi.org/10.1007/s13132-024-01827-x

Dabrowski, D. (2019). Market knowledge and new product performance: The mediating effects of new product creativity. Journal of Business Economics and Management, 20(6), 1168–1188. https://doi.org/10.3846/jbem.2019.10788

Daft, R. L., & Lengel, R. H. (1986). Organizational Information Requirements, Media Richness and Structural Design. Management Science, 32(5), 554–571. https://doi.org/10.1287/mnsc.32.5.554

Darroch, J. (2005). Knowledge management, innovation and firm performance. Journal of Knowledge Management, 9(3), 101–115. https://doi.org/10.1108/13673270510602809

Dehkordi, G. J., Rezvani, S., Sabbir Rahman, M., Fouladivanda, F., & Faramarzi Jouya, S. (2012). A Conceptual Study on E-marketing and Its Operation on Firm’s Promotion and Understanding Customer’s Response. International Journal of Business and Management, 7(19), 114–124. https://doi.org/10.5539/ijbm.v7n19p114

Duong, A. N., Phan, A. C., Nakamoto, R., Nguyen, H. T., & Matsui, Y. (2024). Market knowledge impacts on performances through front end process: empirical evidence from manufacturing plants across countries. International Journal of Productivity and Quality Management, 41(4), 461–483. https://doi.org/10.1504/IJPQM.2024.137888

Eisenhardt, K. M., & Martin, J. A. (2000). Dynamic capabilities: what are they? Strategic Management Journal, 21(10–11), 1105–1121. https://doi.org/10.1002/1097-0266(200010/11)21:10/11<1105::AID-SMJ133>3.0.CO;2-E

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

Garson, G. D. (2016). Partial least squares: Regression and structural equation models. Statistical Publishing Associates.

Gefen, D., Straub, D., & Boudreau, M.-C. (2000). Structural Equation Modeling and Regression: Guidelines for Research Practice. Communications of the Association for Information Systems, 4. https://doi.org/10.17705/1CAIS.00407

Gensler, S., Völckner, F., Liu-Thompkins, Y., & Wiertz, C. (2013). Managing Brands in the Social Media Environment. Journal of Interactive Marketing, 27(4), 242–256. https://doi.org/10.1016/j.intmar.2013.09.004

Grant, R. M. (1996). Toward a knowledge‐based theory of the firm. Strategic Management Journal, 17(S2), 109–122. https://doi.org/10.1002/smj.4250171110

Gunawan, G. G., & Sulaeman, M. (2020). Determining Factors in the Use of Digital Marketing and Its Effect on Marketing Performance in the Creative Industries in Tasikmalaya. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 3(3), 2543–2550. https://doi.org/10.33258/birci.v3i3.1239

Hair, J., & 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). https://doi.org/10.1016/j.rmal.2022.100027

Hasani, V. V., Zeqiri, J., Todorovik, T., Jaziri, D., & Toska, A. (2023). Digital Content Marketing and EWOM: A Mediational Serial Approach. Business Systems Research, 14(2), 24–43. https://doi.org/10.2478/bsrj-2023-0010

Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8

Herhausen, D., Miočević, D., Morgan, R. E., & Kleijnen, M. H. P. (2020). The digital marketing capabilities gap. Industrial Marketing Management, 90, 276–290. https://doi.org/10.1016/j.indmarman.2020.07.022

Holliman, G., & Rowley, J. (2014). Business to business digital content marketing: marketers’ perceptions of best practice. Journal of Research in Interactive Marketing, 8(4), 269–293. https://doi.org/10.1108/JRIM-02-2014-0013

Hudson, S., Huang, L., Roth, M. S., & Madden, T. J. (2016). The influence of social media interactions on consumer–brand relationships: A three-country study of brand perceptions and marketing behaviors. International Journal of Research in Marketing, 33(1), 27–41. https://doi.org/10.1016/j.ijresmar.2015.06.004

Hunt, S. D., & Morgan, R. M. (1995). The Comparative Advantage Theory of Competition. Journal of Marketing, 59(2), 1–15. https://doi.org/10.1177/002224299505900201

Kim, A. J., & Ko, E. (2012). Do social media marketing activities enhance customer equity? An empirical study of luxury fashion brand. Journal of Business Research, 65(10), 1480–1486. https://doi.org/10.1016/j.jbusres.2011.10.014

Kim, W. G., Li, J. (Justin), & Brymer, R. A. (2016). The impact of social media reviews on restaurant performance: The moderating role of excellence certificate. International Journal of Hospitality Management, 55, 41–51. https://doi.org/10.1016/j.ijhm.2016.03.001

Kumar, V., Bhaskaran, V., Mirchandani, R., & Shah, M. (2013). Practice Prize Winner-Creating a Measurable Social Media Marketing Strategy: Increasing the Value and ROI of Intangibles and Tangibles for Hokey Pokey. Marketing Science, 32(2), 194–212. https://doi.org/10.1287/mksc.1120.0768

Larson, E. W., & Gobeli, D. H. (1989). Significance of project management structure on development success. IEEE Transactions on Engineering Management, 36(2), 119–125. https://doi.org/10.1109/17.18828

Lee Endres, M., Endres, S. P., Chowdhury, S. K., & Alam, I. (2007). Tacit knowledge sharing, self‐efficacy theory, and application to the Open Source community. Journal of Knowledge Management, 11(3), 92–103. https://doi.org/10.1108/13673270710752135

Li, T., & Calantone, R. J. (1998). The Impact of Market Knowledge Competence on New Product Advantage: Conceptualization and Empirical Examination. Journal of Marketing, 62(4), 13–29. https://doi.org/10.1177/002224299806200402

Likert, R. (1932). A technique for the measurement of attitudes. Archives of Psychology, 22 140, 55.

Liozu, S. M. (2015). Pricing superheroes: How a confident sales team can influence firm performance. Industrial Marketing Management, 47, 26–38. https://doi.org/10.1016/j.indmarman.2015.02.003

Mañosca, M. K., Poyaoan, A. K., & Vitug, J. (2022). Impact of Content Marketing on the Brand Image of Selected Unilever’s Personal Care Brands through the Social Media. Journal of Business and Management Studies, 4(1), 107–114. https://doi.org/10.32996/jbms.2022.4.1.13

Matsuno, K., Mentzer, J. T., & Özsomer, A. (2002). The Effects of Entrepreneurial Proclivity and Market Orientation on Business Performance. Journal of Marketing, 66(3), 18–32. https://doi.org/10.1509/jmkg.66.3.18.18507

Mehmood, K., Nisar, Q. A., Albishri, N., Agarwal, S., & Tamás, V. (2026). The psychology of online shopping success: Insights on social media analytics and customer feedback. Acta Psychologica, 264, 1–13. https://doi.org/10.1108/MD-07-2018-0834

Mishrif, A., & Khan, A. (2023). Technology adoption as survival strategy for small and medium enterprises during COVID-19. Journal of Innovation and Entrepreneurship, 12(1), 53. https://doi.org/10.1186/s13731-023-00317-9

Moustaghfir, K. (2009). How knowledge assets lead to a sustainable competitive advantage: Are organizational capabilities a missing link. Knowledge Management Research and Practice, 7(4), 339–355. https://doi.org/10.1057/kmrp.2009.26

Mushi, H. M. (2024). Digital marketing strategies and SMEs performance in Tanzania: insights, impact, and implications. Cogent Business and Management, 11(1). https://doi.org/10.1080/23311975.2024.2415533

Musteen, M., Datta, D. K., & Butts, M. M. (2014). Do International Networks and Foreign Market Knowledge Facilitate SME Internationalization? Evidence from the Czech Republic. Entrepreneurship Theory and Practice, 38(4), 749–774. https://doi.org/10.1111/etap.12025

Nair, M., & Sharma, N. (2026). Role of Social Media Engagement in Building Customer Trust and Brand Loyalty in Telecom Services. Msw Management, 36(1 s), 701–703. https://doi.org/10.7492/ek1jr979

Narver, J. C., & Slater, S. F. (1990). The Effect of a Market Orientation on Business Profitability. Journal of Marketing, 54(4), 20–35. https://doi.org/10.1177/002224299005400403

Nieves, J., Quintana, A., & Osorio, J. (2014). Knowledge-based resources and innovation in the hotel industry. International Journal of Hospitality Management, 38, 65–73. https://doi.org/10.1016/j.ijhm.2014.01.001

Nisar, T. M., & Whitehead, C. (2016). Brand interactions and social media: Enhancing user loyalty through social networking sites. Computers in Human Behavior, 62, 743–753. https://doi.org/10.1016/j.chb.2016.04.042

Odoom, R. (2025). Digital content marketing and consumer brand engagement on social media-do influencers’ brand content moderate the relationship?. Journal of Marketing Communications, 31(4), 491–514. https://doi.org/10.1080/13527266.2023.2249013

Olavarrieta, S., & Friedmann, R. (2008). Market orientation, knowledge-related resources and firm performance. Journal of Business Research, 61(6), 623–630. https://doi.org/10.1016/j.jbusres.2007.06.037

Ozkaya, H. E., Droge, C., Hult, G. T. M., Calantone, R., & Ozkaya, E. (2015). Market orientation, knowledge competence, and innovation. International Journal of Research in Marketing, 32(3), 309–318. https://doi.org/10.1016/j.ijresmar.2014.10.004

Pascucci, F., Savelli, E., & Gistri, G. (2023). How digital technologies reshape marketing: evidence from a qualitative investigation. Italian Journal of Marketing. https://doi.org/10.1007/s43039-023-00063-6

Penrose, E. T. (1959). The Theory of the Growth of the Firm. Oxford University Press.

Piñeiro-Otero, T., & Martínez-Rolán, X. (2016). Understanding Digital Marketing—Basics and Actions (pp. 37–74). https://doi.org/10.1007/978-3-319-28281-7_2

Porter, M. E. (1981). The Contributions of Industrial Organization To Strategic Management. Academy of Management Review, 6(4), 609–620. https://doi.org/10.5465/amr.1981.4285706

Pulizzi, J. (2012). The Rise of Storytelling as the New Marketing. Publishing Research Quarterly, 28(2), 116–123. https://doi.org/10.1007/s12109-012-9264-5

Sarkar, M., Aulakh, P. S., & Madhok, A. (2009). Process Capabilities and Value Generation in Alliance Portfolios. Organization Science, 20(3), 583–600. https://doi.org/10.1287/orsc.1080.0390

Schultz, D. E., & Peltier, J. (Jimmy). (2013). Social media’s slippery slope: challenges, opportunities and future research directions. Journal of Research in Interactive Marketing, 7(2), 86–99. https://doi.org/10.1108/JRIM-12-2012-0054

Sharabati, A.-A. A., Ali, A. A. A., Allahham, M. I., Hussein, A. A., Alheet, A. F., & Mohammad, A. S. (2024). The Impact of Digital Marketing on the Performance of SMEs: An Analytical Study in Light of Modern Digital Transformations. Sustainability Switzerland, 16(19). https://doi.org/10.3390/su16198667

Shehu, A. M. (2014). Market Orientation and Firm Performance among Nigerian SMEs: The Moderating Role of Business Environment. Mediterranean Journal of Social Sciences. https://doi.org/10.5901/mjss.2014.v5n23p158

Slater, S. F., Hult, G. T. M., & Olson, E. M. (2010). Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness. Industrial Marketing Management, 39(4), 551–559. https://doi.org/10.1016/J.INDMARMAN.2008.03.007

Stein, C. M., Morris, N. J., Hall, N. B., & Nock, N. L. (2017). Structural equation modeling. In Methods in Molecular Biology (Vol. 1666). https://doi.org/10.1007/978-1-4939-7274-6_28

Tajvidi, R., & Karami, A. (2021). The effect of social media on firm performance. Computers in Human Behavior, 115, 105174. https://doi.org/10.1016/j.chb.2017.09.026

Takata, H. (2016). Effects of industry forces, market orientation, and marketing capabilities on business performance: An empirical analysis of Japanese manufacturers from 2009 to 2011. Journal of Business Research, 69(12), 5611–5619. https://doi.org/10.1016/j.jbusres.2016.03.068

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 509–533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7<509::AID-SMJ882>3.0.CO;2-Z

Terho, H., Mero, J., Siutla, L., & Jaakkola, E. (2022). Digital content marketing in business markets: Activities, consequences, and contingencies along the customer journey. Industrial Marketing Management, 105, 294–310. https://doi.org/10.1016/j.indmarman.2022.06.006

Trainor, K. J., Andzulis, J. (Mick), Rapp, A., & Agnihotri, R. (2014). Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), 1201–1208. https://doi.org/10.1016/j.jbusres.2013.05.002

Wardati, N. K., & ER, M. (2019). The Impact of Social Media Usage on the Sales Process in Small and Medium Enterprises (SMEs): A Systematic Literature Review. Procedia Computer Science, 161, 976–983. https://doi.org/10.1016/j.procs.2019.11.207

Wernerfelt, B. (1984). A resource‐based view of the firm. Strategic Management Journal, 5(2), 171–180. https://doi.org/10.1002/smj.4250050207

Wibowo, A., Chen, S.-C., Wiangin, U., Ma, Y., & Ruangkanjanases, A. (2020). Customer Behavior as an Outcome of Social Media Marketing: The Role of Social Media Marketing Activity and Customer Experience. Sustainability, 13(1), 189. https://doi.org/10.3390/su13010189

Xie, K. L., Zhang, Z., & Zhang, Z. (2014). The business value of online consumer reviews and management response to hotel performance. International Journal of Hospitality Management, 43, 1–12. https://doi.org/10.1016/j.ijhm.2014.07.007

Yang, S. B., & Kankanhalli, A. (2014). The impact of social media marketing on firm performance. Information & Management, 52(2), 155–165.

Yen, C-L., Tang. (2015). Hotel attribute performance, eWOM motivations, and media choice. International Journal of Hospitality Management, 46(1), 79-88. https://doi.org/10.1016/j.ijhm.2015.01.003

Yazgan Pektaş, Ş., & Tunç Hassan, A. (2020). The Effect of Digital Content Marketing on Tourists’ Purchase Intention. Journal of Tourismology, 6(1), 79–98. https://doi.org/10.26650/jot.2020.6.1.0011

Zeng, N., Liu, Y., Gong, P., Hertogh, M., & König, M. (2021). Do right PLS and do PLS right: A critical review of the application of PLS-SEM in construction management research. Frontiers of Engineering Management, 8(3), 356–369. https://doi.org/10.1007/s42524-021-0153-5

Zhou, K. Z., & Li, C. B. (2012). How knowledge affects radical innovation: Knowledge base, market knowledge acquisition, and internal knowledge sharing. Strategic Management Journal, 33(9), 1090–1102. https://doi.org/10.1002/smj.1959

Downloads

Published

2026-04-30

How to Cite

Rahman, S. (2026). Market knowledge as a driver of SME digital marketing success in enhancing business performance. BISMA (Bisnis Dan Manajemen), 18(2), 205–225. https://doi.org/10.26740/bisma.v18n2.p205-225

Issue

Section

Articles
Abstract views: 0 , PDF Downloads: 0