Influencing digital marketing and marketing performance on the business sustainability of small and medium enterprises

Abstract

The motivation and significance of this research are designed to extend the Resource-based view theory to examine factors in the relationship between digital marketing, brand awareness, marketing performance, and the business sustainability of local small and medium enterprises. Ho Chi Minh City, from which the research will propose management implications that can improve the business sustainability of small and medium enterprises (SMEs) in the city. Therefore, the study aims to determine the impact of digital marketing and marketing performance on the business sustainability of SMEs in Ho Chi Minh City in the era of a digitized economy; understanding how digital marketing strategies influence business sustainability is increasingly crucial. Small and Medium Enterprises (SMEs) are a vital component of the economic ecosystem in Vietnam. The authors chose Covariance-Based Structural Equation Modeling (CB-SEM) to analyze data and achieve the proposed research goals. With a sample size of 413 observations, the author used the supportive software SPSS20 and SmartPLS 4 tools to analyze the data. The results indicate that digital marketing positively impacts brand awareness, marketing performance, and business sustainability (BS). The study also highlights the mediating role of brand awareness and marketing performance. New insights into the relationship between digital marketing and business sustainability, brand awareness, and business sustainability have also been identified. The author proposes management implications for SMEs to enhance their competitive advantage and long-term viability in the dynamic business landscape of Ho Chi Minh City.