Determinants of Adoption of Digital Marketing among Selected Small and Medium Scale Enterprises in Lagos State, Nigeria

The benefits of the adoption of digital marketing cannot be over-emphasized in the context of developed countries. This is however not the case in developing country context which is characterized with numerous challenges. Such challenges are well stated in the framework of technology, organization and environment (TOE) where understanding these determinants is crucial to the survival, competitiveness and promotion of digital marketing technologies among SMEs in developing countries. Therefore, this study aimed to assess the effect of TOE on the adoption of digital marketing among SMEs in Lagos State, Nigeria. The study collected data from randomly selected 387 SME owners based on a structured questionnaire. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4 software. The findings revealed that the availability of finance had the most substantial influence on the adoption of digital marketing (β= 0.255, t= 4.932, and p>0.05), highlighting the critical role of financial resources. Technological factors, including perceived ease of use (β= 0.156, t= 2.795, and p<0.05) and perceived usefulness (β= 0.153, t= 2.127, and p<0.05), significantly impacted adoption, emphasizing the importance of perceived benefits and ease associated with digital marketing technologies. The study concludes that adequate financial support, technological readiness, and organizational capabilities are crucial for fostering the adoption of digital marketing among SMEs in Lagos State. It recommends that policymakers should prioritize access to financial resources, digital literacy training, and improvement on infrastructure among others to support digital marketing initiatives.