Impact of digital transformation on SME marketing performance: The mediating role of social media capability and the moderating role of market turbulence in the textile industry

Abstract

This study aims at investigating the influence of digital transformation (DT) on the marketing performance of textile small and medium enterprises (SMEs) in South India, which is mediated by the capability of social media and moderated by the market turbulence. Although digital transformation is a key factor in firm competitiveness, the empirical literature on the impact of digital transformation on textile SMEs in emerging economies focuses on cluster-based economies is still limited. This paper aims to fill this void by examining how DT maturity, social media capability and marketing performance are related under different levels of environmental instability. A quantitative, cross-sectional design was used and data collected from the textile SMEs in the major clusters of South India were analysed using Reliability test, Descriptive statistics, One Way ANOVA, Multiple linear regression and Partial Least Square Structural Equation modelling. Results of pilot samples support the strong positive relationship between DT and marketing performance, with a significant mediation effect of social media capability (β = 0.58; β = 0.40, both p < 0.01). Two boundary conditions, market turbulence and being primary market oriented, were found to be significant. The results highlight the need for more than just investing in digital technologies, but for establishing disciplined digital marketing routines like content planning, leveraging digital analytics and being responsive to digital data. Theoretically, this study provides contributions to the DT-performance literature, and practically, it provides guidance and recommendations for textile SME managers and policy makers.