Linking Knowledge Application
Linking Knowledge Application
https://doi.org/10.1007/s13132-023-01157-4
Abstract
This study examines the impact of knowledge application and digital marketing
on innovation and sustainable performance of small and medium-sized enterprises
(SMEs) in the manufacturing sector in an emerging market. It also examines the role
of innovation as a mediating factor in the relationship between knowledge applica-
tion and digital marketing on the sustainable performance of manufacturing SMEs.
The Partial Least Squares - Structural Equation Modelling (PLS-SEM) approach
was used to analyse the data from 428 Malaysian manufacturing SMEs. The results
show that knowledge application indirectly affects the sustainable performance of
manufacturing SMEs through innovation in partial mediation. In contrast, digital
marketing indirectly affects the sustainable performance of manufacturing SMEs
through innovation in full mediation. Manufacturing SMEs fulfil their responsibil-
ity to sustainably improve the safety and health of their employees in the course
of their business while focusing on innovation in new product development and
new business creation. They also promote awareness and protection of community
entitlements and rights and reduce environmental impacts and risks to the commu-
nity. This empirical study is unique in that it highlights the significant mediating
role of innovation on the sustainable performance of manufacturing SMEs, which
was examined in the empirical context of Malaysia’s emerging market economy. The
finding complements previous research conducted mainly in developed (Western)
economies. In terms of practical contributions, this study helps SMEs realise the
importance of innovation through frequent experimentation with new ideas to main-
tain consistent innovation and competitive advantage in a challenging business envi-
ronment. Directions for future research are also provided.
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Introduction
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section 5, a discussion of the results is given. The concluding section highlights the
contributions of the study and directions for future research.
Literature Review
The RBV theory states that if a firm’s resources are valuable, scarce, difficult to
replicate, and cannot be replaced by other resources, they can be a source of com-
petition. KBV theory considers knowledge as the most valuable resource to main-
tain a competitive advantage and achieve exceptional results (Martinez-Conesa
et al., 2017; Grant, 1996; Naqshbandi & Jasimuddin, 2018). The TBL framework
enables the implementation of sustainable business practices that can contribute
to sustainable performance (Sousa Jabbour et al., 2020; Rashid et al., 2015). Sus-
tainable performance is a combination of environmental, economic, and social
performance that benefits the natural environment and culture while providing
economic benefits and a competitive advantage for a company (Adebambo et al.,
2015; Gong et al., 2018). These three dimensions, considered the essential pil-
lars of the TBL framework, must be balanced for companies to strengthen their
competitive advantages (Nguyen, 2019). Companies are expected to achieve a
mix of environmental, economic, and social goals through effective sustainable
performance (Abdul-Rashid et al., 2017; Afum et al., 2020; Akanmu et al., 2020;
Meseguer-Sánchez et al., 2021). Accordingly, this study argued that RBV theory
is appropriate for considering the role of digital marketing, digital technologies,
and capabilities in creating a sustainable competitive advantage and growth in a
competitive business climate. The KBV theory reflects the application of knowl-
edge, while the TBL framework reflects the sustainable performance of manufac-
turing SMEs.
A systematic review of the literature using the keywords sustainable perfor-
mance and SMEs in the Scopus database found that green training and green
performance appraisal (Alraja et al., 2022), green manufacturing practices (Al-
Hakimi et al., 2022), innovation capability (Wang & Huang, 2022), organisational
leadership (Chowdhury et al., 2022), and sustainable leadership (Iqbal & Ahmad,
2021) all have a significant impact on sustainable performance (see Table 1).
These scholars have used theories such as technology organisation environment
(TOE), RBV theory, ecological modernisation theory (EMT), social exchange
theory (SET), social identity theory (SIT), natural resource-based view (NRBV),
dynamic capability theory (DCT), and sustainable supply chain management
(SSCM) framework in their research.
However, the studies mentioned above focus on developing countries such
as Oman (see Alraja et al., 2022), Saudi Arabia (see Al-Hakimi et al., 2022),
Colombia (see Acosta-Prado & Tafur-Mendoza, 2022), China (see Lin et al.,
2022; Wang & Huang, 2022; Wang et al., 2018), Vietnam (see Chowdhury et al.,
2022), and Pakistan (see Iqbal & Ahmad, 2021). Moreover, none of these stud-
ies examined the linkages between knowledge application, digital marketing,
and sustainable performance of manufacturing SMEs considering the mediating
role of innovation, while simultaneously applying RBV theory, KBV theory, and
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Table 1 Previous studies on sustainable performance and SMEs
Authors Sampling Statistical Technique Theory Key Findings
Alraja et al. (2022) SMEs from different sectors in Oman SEM TOE, RBV Technology organisation environment
(TOE) factors represent crucial inputs for
green practices such as green training,
and green performance appraisal, which,
in turn, mean critical processes lead to
sustainable performance (output).
Al-Hakimi et al. (2022) Manufacturing SMEs in Saudi Arabia Hierarchical Regression Analysis RBV, EMT The effect of green manufacturing practices
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Table 1 (continued)
Authors Sampling Statistical Technique Theory Key Findings
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Chowdhurry et al. (2022) SMEs employees in Vietnam SEM DCT Organisational leadership will facilitate
developing the culture and innovation
capability to adopt circular economy
(CE) practices through a ‘hub and spoke’
strategy for enhancing sustainable perfor-
mance among the SMEs in Vietnam.
Iqbal and Ahmad (2021) SMEs in Pakistan PLS-SEM NRBV, DCT A significant positive effect of sustainable
leadership on organisational learning;
organisational learning significantly
influences sustainable performance, and
organisational learning partially mediates
the relationship between sustainable lead-
ership and sustainable performance.
Wang et al. (2018) Firms in China Hierarchical Regression Analysis SSCM Framework Supply chain management (SSCM) prac-
tices and firm size are positively related
to the firm’s environmental and social
performance. Firm size moderates the
effect of SSCM practices on economic
performance.
Resource-Based View (RBV) Theory; Triple Bottom Line (TBL); Technology Organisation Environment (TOE); Ecological Modernisation Theory (EMT); Social
Exchange Theory (SET); Social Identity Theory (SIT); Natural Resource-Based View (NRBV); Dynamic Capability Theory (DCT); Sustainable Supply Chain Manage-
ment (SSCM) Framework
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the TBL framework in a single conceptual framework. Therefore, this study fills
these gaps and reviews the related literature as described below.
Studies by Abbas and Sagsan (2019) and Albort-Morant et al. (2018) show that
the application of knowledge, training, and learning contributes significantly to an
organisation’s sustainable development, competitive advantage, and ability to meet
customer needs. These findings show that organisations place a high value on the
application of knowledge to achieve sustainability. Abusweilem and Abualous
(2019), Bhatt (2001), and Shujahat et al. (2019) also emphasise that knowledge in
practical, realistic, and applicable forms is critical. Indeed, knowledge is irrelevant if
it is not used. Therefore, the application of knowledge is of greater importance than
the other practices of knowledge creation and sharing. Previous studies have con-
sidered the application of knowledge as a characteristic of innovation performance.
Kun (2022) investigated the relationships between knowledge management pro-
cess and sustainability performance of Chinese SMEs using frugal innovation as a
mediator, and found that knowledge application has a significant impact on sustain-
ability performance of manufacturing enterprises. The results also show that frugal
innovation partially mediates the relationship between knowledge application and
sustainable enterprise performance. Moreover, innovation is necessary for achieving
sustainability in business to improve performance and gain competitive advantage
(Yavarzadeh et al., 2015). Knowledge management involves the acquisition, crea-
tion, and use of data that can lead to innovation (Mafabi et al., 2012; Sindakis et al.,
2019). Indeed, knowledge management has a significant impact on the sustainable
performance of innovative organisations (Costa & Monteiro, 2016). Moreover, pre-
vious scholars such as Aliyu and Ahmad (2019), Li et al. (2022), and Pouresmaeili
et al. (2018) have noted that including innovation as a mediator in a study would
contribute to a better understanding of its impact on organisational performance.
However, little research has been conducted on the role of innovation as a mediator
in the relationship between knowledge management and firm performance (Alru-
baiee et al., 2015; Nawab et al., 2015). Similar considerations have also been made
by Cardoni et al. (2020), Delshab et al. (2020), and Mohamad et al. (2020). As a
result, there is a lack of understanding about the application of knowledge and sus-
tainable performance, with innovation acting as a mediator (Abbas & Sağsan, 2019;
Jia-Qi & Chelliah, 2020; Shahzad et al., 2020).
In addition, digital marketing and the ability to leverage technology online have
a major impact on a company’s sustainability and success (Budi & Maksum, 2020;
Centobelli et al., 2016; Chursin et al., 2022; Purba et al., 2021; Rêgo et al., 2022;
Yahya & Sugiyanto, 2020). However, SMEs have limited resources and are vulner-
able to the current dynamic climate (Awan et al., 2019; Javed et al., 2018). They also
struggle to develop and lag far behind in sustainability and e-marketing (Amornkit-
vikai & Lee, 2020; Sheikh et al., 2018).
Considering these facts, it is necessary to pay more attention to the poten-
tial of digital marketing in developing and maintaining a company’s competitive-
ness (Aggarwal & Aakash, 2020; Melović et al., 2020) and focus more on devel-
oping innovative capabilities and strengthening its competitive dominance to meet
the challenges of other competing organisations and environmental uncertainty
(Maughan, 2012; Mitrega et al., 2017). Indeed, Carayannis et al. (2022) and Ejaz
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Innovation
H6; H7 H5
Knowledge Economic
Application H 1; H 3
Sustainable Environment
H 2; H 4 Performance of
Digital Manufacturing
Marketing SMEs Social
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Method
This study is based on the positivist research philosophy that uses quantitative and
deductive research approaches. This is because this study tests multiple hypotheses and
finds logical evidence derived from statistical analysis (Collis & Hussey, 2014, p. 44). Of
the 1,538 manufacturing SMEs in Malaysia, an emerging economy, 428 top managers
of manufacturing SMEs responded to a self-administered questionnaire. The data were
based on the list of manufacturing SMEs registered with SME Corporation Malaysia
(2018) and Federation of Malaysian Manufacturers (2019, 2020). They were selected
based on the criteria of having less than 200 full-time employees and a turnover of
less than RM50 million, which meets the requirements of SME Corporation Malaysia
(2018). The data collection took place in September 2021 using disproportionate strati-
fied random sampling, where each unit in the population has an equal chance of being
selected (Sekaran & Bougie, 2016). The respondents included owners, directors, senior
managers, and managers, all of whom were well-versed in the business and its business
modalities. Indeed, Durst and Runar Edvardsson (2012) highlighted the importance of
studying SMEs, which differ from larger, resource-rich firms due to resource constraints
and SME heterogeneity. Of the 428 questionnaires distributed, a total of 122 were usa-
ble, representing a valid response rate of 29%. Considering that SMEs typically have a
response rate of about 10% according to Ho et al. (2016), this is more than adequate.
In addition, the response rate for social science studies, which ranges from 5% to 35%
(Sekaran et al., 2016), was also considered when selecting the sample size.
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Statistical Technique
Data were analysed using the Partial Least Squares-Structural Equation Modelling
(PLS-SEM) approach via Smart-PLS 3.0 software. The PLS-SEM approach is an
appropriate analysis technique for this study because it promotes analytical rigour
and more consistent estimates (Henseler & Schuberth, 2020; Sarstedt et al., 2016).
In addition, the approach was chosen for its model specification, simplicity, and lack
of complex distributional assumptions (Sarstedt et al., 2016).
Results
Table 2 shows that 62.3% of all respondents were male and 37.7% female. In terms
of job titles in manufacturing SMEs, 39.3% were managers, 29% owners, 16% senior
managers, and 15% CEOs. More than half (60%) of the manufacturing SMEs were
private limited companies, 25% were sole proprietorships and 15% were partnerships.
They were mainly from the food industry, followed by electrical products and compo-
nents. 72% employ less than 75 employees and 28% between 76 and 200 employees.
Half of the manufacturing SMEs (50.1%) have been in operation for 16 to 25 years.
Harman’s single-factor test (Harman, 1976) was used to test for common method
bias (CMB) using principal component analysis. In this study, the total variance
explained by the first component was 34.21%, well below the 50% threshold recom-
mended by Podsakoff et al. (2003). In addition, the variance inflation factors (VIF)
were also examined. In this study, the VIF values ranged from 1.638 to 2.257, which
is below the threshold of 3.3 (Kock, 2015). Consequently, there is no multicollinear-
ity problem or CMB threat in this study.
The PLS-SEM approach was executed to predict the relationships between vari-
ables and was performed through a two-stage evaluation: the measurement model
and the structural model. In this study, knowledge application and digital marketing
are treated as independent variables, and sustainable performance of manufacturing
SMEs is treated as the dependent variable. In addition, innovation is considered a
mediating variable for the sustainable performance of manufacturing SMEs.
The measurement model was tested using several tests: internal reliability, consist-
ency, convergent validity, and discriminant validity. Internal consistency reliability
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was measured using composite reliability. Table 3 shows that the tests yielded a sat-
isfactory result. The composite reliability values were above 0.700 (range between
0.889 and 0.931), meeting the requirements set by Hair et al. (2019). Convergent
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validity was assessed using three criteria: (i) factor loading greater than 0.700, (ii)
composite reliability greater than 0.700, and (iii) average variance extracted (AVE)
greater than 0.500 (Hair et al., 2019). The standardised factor loadings for this study
range from 0.7641 to 0.911, and the AVE ranges from 0.668 to 0.772. Thus, the
model has acceptable convergent validity.
Discriminant validity was assessed to measure the uniqueness of each con-
struct (Hair et al., 2019). The heterotrait-monotrait ratio of correlations (HTMT)
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parameters of 0.85 were used to assess discriminant validity, and the coefficient val-
ues should be less than 0.85 for this to be satisfactory (Henseler et al., 2015). This
criterion was met, as shown in Tables 4 and 5.
The structural model was evaluated using bootstrapping to test the relationship
between the constructs. The results of the PLS-SEM approach presented in Table 6
show that the application of knowledge has a positive effect on the innovation of
manufacturing SMEs in an emerging market (β1 = 0.300, t-value = 3.691, p<0.05).
Therefore, H1 is supported. In addition, the sustainable performance of manufac-
turing SMEs in an emerging market is significantly and positively influenced by
the application of knowledge (β2 = 0.298, t-value = 4.007, p<0.05), maintaining
H2. Moreover, innovation of manufacturing SMEs in an emerging market is signifi-
cantly influenced by digital marketing (β3 = 0.468, t-value = 5.004, p<0.05). Con-
sequently, H3 is confirmed. Furthermore, H4 shows that digital marketing does not
have a significant impact on the sustainable performance of manufacturing SMEs in
an emerging market, as p>0.05 with β4 = 0.089, thus contrary to expectations, H4
is not upheld. Finally, examining the impact of innovation on the sustainable perfor-
mance of manufacturing SMEs in an emerging market, as presented in H5, yields
results of β5 = 0.433 with a t-value = 4.306 at p<0.05, indicating that the relation-
ship is positive and significant, inferring that H5 is accepted.
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Table 6 Hypothesis testing
Relationships Standardised Beta Standard error t-value Confidence interval f2 Results
BCI LL BCI UL
H1 Knowledge application ---> Innovation 0.300 * 0.081 3.691 0.149 0.423 0.123 Supported
H2 Knowledge application ---> Sustainable performance 0.298 * 0.074 4.007 0.179 0.425 0.119 Supported
H3 Digital marketing ---> Innovation 0.468 * 0.094 5.004 0.327 0.630 0.299 Supported
H4 Digital marketing---> Sustainable performance 0.089 0.102 0.876 -0.074 0.265 0.008 Not supported
H5 Innovation ---> Sustainable Performance 0.433 * 0.101 4.306 0.241 0.578 0.208 Supported
* Significant at p<0.05
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* Significant at p<0.05
Discussion
This study examined the impact of knowledge application and digital marketing on inno-
vation and sustainable performance of manufacturing SMEs in an emerging market. The
role of innovation as a mediating factor in the relationship between knowledge applica-
tion and digital marketing on the sustainable performance of manufacturing SMEs was
also investigated. Seven hypotheses were tested in this research. The PLS-SEM approach
showed that knowledge application had a positive impact on the innovation of manu-
facturing SMEs. Similarly, knowledge application had a significant impact on the sus-
tainable performance of manufacturing SMEs in an emerging market. An additional test
of PLS-SEM bootstrapping indirect effects regarding the mediating role of innovation
in the link between knowledge application and the sustainable performance of manu-
facturing SMEs in an emerging market found significant results with partially mediated
effects. These compelling results suggest that manufacturing SMEs are able to quickly
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apply knowledge to critical competitive needs and leverage knowledge gained from
experience. They are also able to leverage new knowledge and match knowledge sources
to problems and challenges. Advanced knowledge is critical to a holistic understanding
of all issues, including financial issues, personal skill development, and customer pref-
erences. Bhatt (2001) affirmed that the application of knowledge in business is critical
because it helps to increase business engagement and create better market-driven value.
Moreover, the accumulated knowledge can be applied in the organisation to solve prob-
lems (Abusweilem & Abualous, 2019; Jia-Qi & Chelliah, 2020). These positive results
are consistent with previous studies (see Abbas & Sagsan, 2019; Jia-Qi & Chelliah,
2020; Mohamad et al., 2020; Shahzad et al., 2020).
Further examination of the quantitative results confirmed that the direct effect
between digital marketing and manufacturing SME innovation in an emerging market
was significant. The results indicate that manufacturing SMEs effectively use digital
marketing tools to manage customer relationships, acquire leads, and discover new mar-
keting opportunities that can then be used to improve product and process innovation.
For these reasons, they use digital marketing tools such as social media marketing tools,
SEO (search engine optimisation), email marketing tools, etc. In this way, they can meet
critical competitive needs and match knowledge sources to address new problems and
challenges. Chursin et al. (2022) and Rêgo et al. (2022) found that technology platforms,
including analytics, databases, data management, and digital marketing tools, drive inno-
vation in organisations to build stronger relationships with customers, increase revenue,
and improve customer experience and engagement. The findings are consistent with
academic work by Budi and Maksum (2020) and Purba et al. (2021). In addition, this
research found that innovation has a significant impact on the sustainable performance of
manufacturing SMEs. The significant result states that manufacturing SMEs that support
innovation in their business operations, sustainably experiment with new ideas, and ful-
fill their environmental, economic, and social responsibilities benefit from higher profits
and return on investment, as well as a better position in the market. Innovation often
allows SMEs to try out new ideas and look for new ways of doing things. They are also
creative in their business methods, which benefits them because they are often the first
to market new products and services. They also continually improve environmental com-
pliance by reducing energy consumption, CO2 emissions, and hazardous materials. The
results of the current study are comparable to those identified by previous researchers
(see Schiederig et al., 2012; Varadarajan, 2017; Wang & Huang (2022).
In contrast, digital marketing had no significant impact on the sustainable perfor-
mance of manufacturing SMEs in an emerging market. A plausible explanation for this
insignificant result is that SMEs typically do not have the resources to focus on expand-
ing digital markets and have difficulty keeping up with the fast-moving technological
environment (Centobelli et al., 2016). Previous studies avowed that marketing strategies
and digital marketing implementation often do not exist due to lack of resources, skills,
and other barriers specific to SMEs (Darga, 2018; Mokhtar, 2015; Stankovska et al.,
2016). They respond to rapid technological changes due to lack of skills, low aware-
ness, and organisational readiness (Centobelli et al., 2016). Despite this non-significant
result, the PLS-SEM bootstrapping indirect effects related to the mediating role of inno-
vation in the relationship between digital marketing and the sustainable performance
of manufacturing SMEs in an emerging market yielded significant results with fully
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mediated effects. The results conjecture that digital marketing combined with innova-
tion is critical to the sustainable performance of manufacturing SMEs. Digital market-
ing enables them to provide useful information about their product innovations and
business offerings, and to track online discussions about the company, products, and
services with existing and potential customers, vendors, and suppliers. Chursin et al.
(2022) and Rêgo et al. (2022) recognised that technology platforms and digital mar-
keting tools drive business innovation by fostering stronger customer relationships,
increasing sales, and improving customer experience and retention. Manufacturing
SMEs are focused on new product development and business creation, and stand by
their responsibility to continuously improve employee health and safety in their opera-
tions. They also pay attention to the demands and rights of the community they serve
and reduce environmental impacts and risks to the community at large. Li et al. (2022)
found that employees’ green initiatives ensure the sustainable performance of the com-
pany by using environmentally friendly products.
Overall, this quantitative study supports the applicability of the RBV theory,
KBV theory, and TBL framework as guiding principles by examining the direct
impact of knowledge application and digital marketing on innovation and sustain-
able performance of manufacturing SMEs, as well as highlighting the significant
mediating role of innovation in the relationship between knowledge application and
digital marketing on the sustainable performance of manufacturing SMEs simulta-
neously in a parsimony framework.
Conclusions
Theoretical Implications
The contribution to theory comes from linking knowledge application, digital market-
ing, and sustainable performance of manufacturing SMEs, considering the mediating
role of innovation in this relationship by using RBV theory, KBV theory, and the TBL
framework in a single conceptual framework. The RBV theory is reflected in the role of
digital marketing, the KBV theory is reflected in knowledge application, and the TBL
framework is reflected in the sustainable performance of manufacturing SMEs. This
empirical study extended existing research by confirming a significant direct effect of
factors such as knowledge application and digital marketing on the innovation perfor-
mance of manufacturing SMEs in an emerging market. The latter, in particular, was
more pronounced than the other hypotheses. Moreover, knowledge application has a
significant impact on the sustainable performance of manufacturing SMEs, while digital
marketing has an insignificant impact. In addition, innovation plays a significant medi-
ating role in the sustainable performance of manufacturing SMEs. More specifically,
knowledge application indirectly affects the sustainable performance of manufactur-
ing SMEs through innovation in the form of partial mediation. In contrast, digital mar-
keting indirectly affects the sustainable performance of manufacturing SMEs through
innovation in the form of full mediation. These significant findings were examined in
the empirical context of Malaysia’s emerging market economy, thus complementing
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RQ1. What is the impact of knowledge application and digital marketing on inno-
vation and the sustainable performance of manufacturing SMEs in an emerging
market?
RQ2. To what extent does innovation mediate the relationship between knowl-
edge application and digital marketing on manufacturing SMEs’ sustainable per-
formance?
Managerial Implications
This study makes several important contributions to information, economics, and man-
agement practices. Regarding information and management practices, the sustainable
performance of manufacturing SMEs should be strengthened by incorporating aspects of
knowledge application, digital marketing, and innovation into their business operations
and strategies, as well as new business creation, while protecting the environment and
increasing social welfare. Manufacturing SMEs should prioritise these aspects to foster
creativity among their employees and generate new ideas for research and development
(R&D) of new products and improvement of existing products.
In addition, manufacturing SMEs should motivate their employees to leverage their
knowledge to promote the company’s ability to manage multiple sources of knowledge
and turn knowledge into a competitive advantage. In the knowledge economy, knowl-
edge is a valuable resource that helps companies reduce costs, launch innovative new
ventures, secure sustainable competitive advantages, elaborate on their unique strengths,
and increase productivity. With excellent knowledge applications, managers and owners
can elevate their innovation and productivity to the level they need. Improved productiv-
ity and efficiency make work more meaningful as less time is spent on low-value tasks.
Moraes et al. (2022, p. 28) noted that "investments in information and new technologies
enable profits and better planning, while issues related to privacy, security, and ethical
aspects were considered fundamental to minimise user resistance”.
Furthermore, digital marketing should be widely used by manufacturing SMEs as it
is timely and considered necessary to help them effectively market and promote their
products and services to improve business performance and sustainability. The use of
digital marketing and knowledge applications could help manufacturing SMEs innovate
products and processes, develop new business opportunities, and reach new markets.
By using these elements effectively, small and medium-sized manufacturing companies
can address environmental challenges that affect their operations. They will outperform
their competitors and be more profitable if they prioritise innovative strategies, digital
marketing, and knowledge applications. At the same time, they are not ignoring the
principles of sustainability in their strategic plans and business operations, not only to
improve financial performance. Innovation and technological progress are thus crucial
to reduce production costs and enable higher production.
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Appendix
Ideas for Future Research
Knowledge Application
KA1 “My firm has the capability to apply knowledge learned
from experiences”.
KA2 “My firm has the capability to match sources of knowledge
to problems and challenges.”
KA3 “My firm has the capability to take advantage of new
knowledge”.
KA4 “My firm has the capability to quickly apply knowledge to
critical competitive needs”.
Digital Marketing
DG1 “My firm has the capability to receive useful information
from our website”.
DG2 “My firm has the capability to utilise websites to acquire
new customers”.
DG3 “My firm has the capability to follow online discussions
about our firm, our products, and services”.
DG4 “My firm has the capability to use digital tools to retain
customers”.
DG5 “Our customer can buy our products through the websites”.
DG6 “My firm has the capability to update our customer on our
website regularly”.
DG7 “My firm has the capability to be active on at least one
social media platform”.
Innovation
IN1 “My firm perceives to be able to frequently try out new
ideas.”
IN2 “My firm perceives to be able to seek out new ways to do
things.”
IN3 “My firm perceives to be able to creative in its methods of
operation.”
IN4 “My firm perceives to be able to often the first to market
with new products and services.”
IN5 “Innovation in our firm is perceived as too risky and is
resisted.”
IN6 “Our new product introduction has increased over the last
5 years.”
Sustainable Performance - Economically
SE1 “My firm has improved its market share.”
SE2 “My firm has improved its position in the marketplace.”
SE3 “My firm has increased its profits.”
SE4 “My firm has increased its return on investment.”
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Appendix 1 (continued)
Label Statements
Sustainable Performance - Environmentally
E1 “My firm has improved compliance with environmental
standards.”
E2 “My firm has reduced energy consumption.”
E3 “My firm has reduced CO2 emissions.”
E4 “My firm has reduced the consumption of hazardous
materials.”
E5 “My firm has designed products and packaging to be
reused, repaired or recycled.”
Sustainable Performance - Socially
S1 “My firm has improved/ enhanced the overall stakeholder
welfare.”
S2 “My firm has reduced environmental impacts and risks to
the general public.”
S3 “My firm has improved occupational safety and health of
employees.”
S4 “My firm has improved the awareness and protection of the
claims and rights of the community served.”
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