Digital marketing adoption in early-stage SMEs

Abstract

The importance of digital marketing is indisputable both in the academic and managerial worlds, yet the academic research on digital marketing adoption and its usage in early-stage SMEs is still in its infancy. More in-depth knowledge on how early-stage SMEs adopt digital marketing is necessary. Previous research focused on SMEs has studied their adoption of similar technologies, research on digital marketing usage also exists, but it is focused on large corporations. The main objective of this study is to increase the current knowledge that specifically concerns digital marketing and its adoption by early-stage SMEs. This contribution is made by diving deep into the digital marketing adoption process of early-stage SMEs, the challenges faced by the CEOs during this process, and what they anticipate for the future.

This qualitative research was carried out through a multiple-case study approach, involving seven early-stage SMEs located in Finland. The data were collected via semi-structured interviews with the CEOs of the case companies, the data were later analyzed through thematic analysis with an abductive approach. The findings indicate that early-stage SMEs tend to have an informal and ad hoc adoption of digital marketing. The lack of strategic objectives makes it difficult for these companies to take full advantage of digital marketing and reap its benefits.

The study also found that despite the challenges posed by limited resources and financial constraints, early-stage SMEs can still utilize both inbound and outbound marketing strategies to support the organization’s goals and growth, but to do so, CEOs must first be willing to adopt digital marketing, recognize its importance, and prioritize it as a crucial part of the company's operations. CEOs must also gain a clear understanding of what marketing entails and differentiate its role from that of sales. By shifting their perspective from a sales-oriented approach towards a value-based approach, CEOs will be able to set strategic marketing objectives that align with the company’s goals and supports its growth. Furthermore, it is necessary for these early-stage companies to deeply understand their target audience before implementing digital marketing.