DIGITAL MARKETING ADOPTION AND SMES' GROWTH IN PAKISTAN: A STRATEGIC MANAGEMENT PERSPECTIVE

Abstract

The digital revolution has transformed the global business landscape, compelling small and medium enterprises (SMEs) to embrace digital marketing for sustainable growth. This study investigates the adoption of digital marketing by SMEs in Pakistan through the lens of strategic management, aiming to assess its impact on business performance. A mixed-methods approach was employed, comprising qualitative interviews with SME owners and quantitative survey data from 380 respondents across various sectors. Thematic analysis of interviews revealed critical factors influencing adoption, including strategic intent, resource constraints, digital skill gaps, and dependence on social media platforms. Quantitative results showed a strong positive relationship between digital marketing adoption and SME growth (r = .58, p < .01), with strategic orientation emerging as a significant mediator (β = .45, p < .001). Regression analysis confirmed that firms with a defined digital strategy experienced higher growth compared to those with ad-hoc or informal approaches. The study highlights that while digital tools are increasingly accessible, their effective use depends on managerial vision, planning, and capability. Findings offer theoretical contributions by integrating strategic management into the digital marketing adoption discourse and practical implications for policymakers and SME stakeholders to support structured digital transformation. The study concludes that a strategy-driven digital marketing approach is critical for unlocking the growth potential of Pakistani SMEs in the digital economy.

Keywords: Digital Marketing; SME’s; Management Practices; Pakistan