Linking digital marketing capabilities, innovation and firm performance in emerging B2B markets: evidence from Togo
Yatoute Djagba, Mecharla Uma Devi, Kodjo Nonou, Harika KanchamPurpose
This study aims to investigate the relationships among digital marketing capabilities (DMCs), innovation, firm performance and environmental dynamism in business-to-business (B2B) small and medium-sized enterprises (SMEs) operating in Togo. Drawing on Dynamic Capabilities Theory, it examines whether innovation mediates the relationship between DMCs and firm performance and whether environmental dynamism moderates the innovation–performance relationship. By focusing on an underexplored African emerging economy characterized by institutional constraints and limited digital maturity, the study seeks to extend understanding of how DMCs create value and improve competitiveness in structurally constrained B2B environments.
Design/methodology/approach
A quantitative cross-sectional survey design was adopted to examine the relationships among DMCs, innovation, firm performance and environmental dynamism in Togolese B2B SMEs. Data were collected from 220 legally registered SMEs operating across Togo. The data were analyzed using exploratory factor analysis, confirmatory factor analysis, and structural equation modelling. Hayes’ PROCESS macro was used to test the proposed mediation and moderation effects. Given the cross-sectional design, potential reverse causality and unobserved firm-level factors cannot be fully excluded, and the findings are therefore interpreted as supporting the hypothesized relationships rather than establishing definitive causal effects.
Findings
The findings show that DMCs positively influence firm performance and innovation. Innovation also positively influences firm performance and significantly mediates the relationship between DMCs and firm performance. However, environmental dynamism does not significantly moderate the relationship between innovation and firm performance. These findings support the proposed relationships among DMCs, innovation and firm performance and highlight innovation as an important mechanism through which DMCs contribute to performance. Given the cross-sectional design, the findings should be interpreted with caution regarding causal inference.
Originality/value
This study extends the digital marketing and Dynamic Capabilities literature by providing evidence from an underexplored African B2B context. Rather than offering only a contextual contribution, it demonstrates how DMCs create value through innovation under conditions of institutional fragility and resource constraints. The study also clarifies the mediating role of innovation while showing that environmental dynamism does not significantly alter the innovation–performance relationship. By examining these relationships in Togolese SMEs, the research broadens understanding of digital transformation in emerging markets and identifies important boundary conditions for applying Dynamic Capabilities Theory in structurally constrained environments.