Moderating Effect of Digital Marketing Capability on the Causal Relationship Between Innovative Competency, Strategic Competency and SMEs’ Performance in the Northeast, Nigeria

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Authors: BABA, Musa, Ibrahim Mohammed Awwal, Mansur Bello

Abstract

The study investigated the moderating effect of digital marketing capability on the causal relationship between innovative competency, strategic competency and SMEs’ performance in the northeast, Nigeria. The study adopted a survey design under a positivist framework, sampling 393 SME owner-managers in Northeast Nigeria and achieving an 89.57% response rate. Hypotheses were tested using PLS-SEM to provide a robust analysis of relationships among the constructs. The study found that innovative [E1.1][AU1.2] competency, positively and significantly impacts SMEs’ performance, while strategic competency plays a crucial role in further enhancing performance in Northeast Nigeria. Additionally, digital marketing capability significantly strengthens the effects of both innovative and strategic competencies, highlighting its key role in boosting SMEs’ overall performance in the region. The study concluded that innovative competency strengthens SMEs’ decision-making, enhances outcomes, and improves their ability to navigate business challenges in Northeast Nigeria. It further concludes that strategic competency enables SMEs to make informed decisions, achieve superior results, and sustain a competitive advantage. In addition, digital marketing capability amplifies innovative competency, allowing SMEs to maximize innovation, boost performance, and integrate marketing strategies effectively, while combining digital marketing with strategic competency further enhances performance, expands market reach, delivers greater value, and supports sustainable growth in the region. The study recommended that SMEs in Northeast Nigeria should develop innovation skills to improve decision-making and overall performance, and entrepreneurs should strengthen strategic planning to boost outcomes and maintain a competitive edge. Again, SMEs should combine digital marketing with innovation to maximize impact and enhance performance.

Keywords: digital marketing capability, innovative, strategic competency, and SMEs’ performance