Causal relationship model of marketing innovation and competitiveness of small and medium enterprises (SMEs) with digital technologies in Thailand

Background: This study investigates the causal model of marketing innovation and competitiveness of small and medium enterprises (SMEs) with digital technologies in Thailand. This study aimed to investigate market orientation, digital marketing strategies, competitiveness, innovative marketing behavior, and digital marketing efficiency of SMEs. Methods: We validated the causal model of digital marketing efficiency using empirical evidence to investigate the direct and indirect effects of market orientation, digital marketing strategies, and innovative marketing behavior on digital marketing efficiency. The study was conducted using a questionnaire. Results: A total of 361 samples were collected using purposive sampling. A Structural Equation Model was developed and tested using LISREL software. The study found that the causal relationship model was consistent with the empirical evidence. Conclusions: Digital marketing strategy and competitiveness directly positively affected innovative marketing behavior and explained 89% of the variance in innovative marketing behavior. Innovative marketing behavior directly positively affects digital marketing efficiency, and competitiveness indirectly positively affects digital marketing efficiency through innovative marketing behavior and explains the variance in digital marketing efficiency by 18%.