A systematic literature review: digital marketing and its impact

on SMEs
Literature Review

Introduction
In recent years, digital marketing has become a critical component for small and medium-sized enterprises
(SMEs) seeking to remain competitive in an increasingly digital economy. SMEs are essential to economic
development, especially in emerging markets like India. Despite the clear benefits of digital marketing, the
extent of its adoption and impact among SMEs varies significantly. This paper presents a systematic review
conducted by Jadhav, Gaikwad, and Bapat (2023), examining how digital marketing practices are being
implemented by SMEs and assessing their resulting outcomes.

Literature Review Table

S.No Year Authors Country Sector Findings

1 2009 Chaffey et al. N/A Digital Internet marketing achieves
Marketing marketing objectives through digital
technology.
2 2011 Smith, K.T. N/A Digital Adoption of digital technologies is crucial
Marketing due to globalized competition.
3 2017 Kaur, G. N/A Tourism Traditional marketing strategies are insufficient; digital marke

4 2019 Yoga et al. N/A Marketing Marketing communication via digital

technologies strengthens customer
relationships.
5 2017 Aggarwal N/A Business Firms adopt digital technologies to stay
competitive.
6 2015 Lekhanya, L.M. South Africa SMEs Digital marketing adoption is slow in rural
areas due to ICT limitations.
7 2020 James, L. South Asia SMEs Strong correlation between digital marketing
and SME growth.
8 2020 Segarwati et al. Indonesia SMEs Many SMEs use digital marketing without
proper training or understanding.
9 2020 Sandberg et al. USA SMEs 51% of small businesses increased
online interactions; digital payments rose.
10 2020 SEBRAE Brazil SMEs Social media and bank apps helped SMEs survive post-pande

11 2021 Rashid et al. Malaysia SMEs Digital marketing supported small rural entrepreneurs during

12 2011 Hanafizadeh et al. N/A Internet Systematic review approach to digital marketing analysis.
Banking
13 2002 Webster & Watson N/A Informatio Literature reviews help build strong research
n Systems foundations.
14 2015 Taiminen N/A SMEs Digital marketing usage among SMEs varies widely.
& Karjaluoto
15 2021 Malesev & Cherry N/A Digital and social media marketing boosts
Construction SMEs
SME market share.

Methodology Table and Explanation

 Criteria Description

Review Type Systematic Literature Review (SLR)

Databases Used ScienceDirect, Scopus, Springer, IEEE Explorer, ACM Digital Library, Engineering
Village, ISI Web of Knowledge

Time Period 2011–2021

Covered

Selection Criteria ABDC journal list inclusion, relevance to digital marketing and SMEs

Screening Process Abstract and conclusion review; duplicates removed using Mendeley

Total Papers 489

Screened

Final Papers 100

Reviewed

Quality Assessment Based on 4 criteria: relevance, methodology, data collection, and analysis clarity

Data Analysis Tool Microsoft Excel; mind mapping framework

Explanation
The authors adopted a systematic literature review methodology to ensure objectivity and comprehensive
coverage (Kitchenham & Charters, 2007). The study used reputable databases like Scopus and Springer to
collect literature relevant to digital marketing and its impact on SMEs. An initial set of 489 articles was
narrowed down to 100 through rigorous inclusion/exclusion criteria. Studies were evaluated for quality based on
whether they explained their topic relevance, methodology, data collection process, and data analysis. A three-
level scoring system (high, medium, low) was used for quality assessment. Data was then extracted into
spreadsheets and analyzed using thematic mind mapping based on a research framework by Liang and Turban
(2011).

Findings
The review highlights that the adoption of digital marketing by SMEs is uneven. While some SMEs effectively
utilize digital tools to expand customer reach and improve operational efficiency, others lag due to barriers like
lack of training, infrastructure, and awareness (Jadhav et al., 2023).

Urban SMEs are more likely to adopt digital strategies compared to rural counterparts due to better ICT
infrastructure. The pandemic significantly accelerated digital marketing adoption as businesses turned to digital
channels for survival. Social media, search engine marketing, and digital payments emerged as critical tools.

Key benefits include:

 Enhanced customer interaction and trust

 Better market penetration through targeted advertising

 Increased sales via e-commerce and digital platforms

However, digital adoption is often limited to basic use-cases like social media posting, with a lack of deeper
understanding of analytics, segmentation, and strategic planning. Moreover, SMEs often do not measure the
cost-effectiveness of their digital campaigns, leading to unclear ROI (Jadhav et al., 2023).
The review also reveals disparities in digital marketing impacts. Large SMEs see relatively larger returns due to
structured implementation, while smaller ones show minimal impact due to ad hoc efforts. There is also a noted
lack of formal training for SME managers, contributing to ineffective digital marketing efforts.

Conclusion
This systematic review by Jadhav et al. (2023) offers valuable insight into the evolving role of digital marketing
in SME development. While digital marketing provides significant opportunities for growth and expansion, its
effectiveness is highly dependent on firm size, location, digital literacy, and strategic implementation. Future
efforts must address the gaps in training and awareness, especially in rural and underdeveloped regions.
Policymakers and industry bodies should collaborate to support SMEs with infrastructure and knowledge
needed to harness the full potential of digital marketing.
Works Cited
1. Aggarwal, S. (2017). Technological development and business competitiveness. [Journal/Source not
specified].
2. Chaffey, D., Ellis-Chadwick, F., Mayer, R., & Johnston, K. (2009). Internet marketing: Strategy,
implementation and practice (4th ed.). Pearson Education.
3. Hanafizadeh, P., Keating, B. W., & Khedmatgozar, H. R. (2014). A systematic review of Internet
banking adoption. Telematics and Informatics, 31(3), 492–510.
https://doi.org/10.1016/j.tele.2013.04.003
4. James, L. (2020). Identifying the effect of digital marketing channels on the growth of SME in South
Asia: A case study on Faheem Haydar Dealzmag. Journal of SA Business, 1(3), 23–32.
5. Kaur, G. (2017). The importance of digital marketing in the tourism industry. International Journal of
Research - Granthaalayah, 5(6), 72–77.
6. Lekhanya, L. M. (2015). An exploration of the impact of digital marketing on SMEs growth and brand
popularity in rural South Africa. Journal of Economics and Behavioral Studies, 7(5), 37–42.
7. Malesev, S., & Cherry, M. (2021). Digital and social media marketing – Growing market share for
construction SMEs. Construction Economics and Building, 21(1), 65–82.
8. Rashid, S., Hassan, F., Sharif, N. M., Abd Rahman, A., & Mahamud, M. A. (2021). The role of digital
marketing in assisting small rural entrepreneurs amidst Covid-19 movement control order (MCO): A
case study in Peninsular Malaysia. Academic Journal of Interdisciplinary Studies, 10(4), 70.
9. Sandberg, J., et al. (2020). Digital adaptation in small businesses during COVID-19 in the USA.
[Journal/Source not specified].
10. SEBRAE. (2020). Digital transformation in Brazilian SMEs. [Report].
11. Segarwati, Y., Fatimah, S., & Purwanti, Y. (2020). Digital marketing competence of middle-medium
business players (UKM) in Kecamatan Lembang West Bandung district. JEES: Journal of Economic
Empowerment Strategy, 3(2), 77–87.
12. Smith, K. T. (2011). Digital marketing strategies that millennials find appealing, motivating, or just
annoying. Journal of Strategic Marketing, 19(6), 489–499.
13. Taiminen, H. M., & Karjaluoto, H. (2015). The usage of digital marketing channels in SMEs. Journal
of Small Business and Enterprise Development, 22(4), 633–651. https://doi.org/10.1108/JSBED-05-
2013-0073
14. Webster, J., & Watson, R. T. (2002). Analyzing the past to prepare for the future: Writing a literature
review. MIS Quarterly, 26(2), xiii–xxiii.
15. Yoga, B. M., Wibowo, S. A., & Suharyono, S. (2019). Marketing communication and its impact
through digital technologies. [Journal/Source not specified].