Digital marketing capabilities as drivers of SME innovation and performance: a systematic literature review and research agenda for emerging economies

Why this matters for small businesses

For many small and medium-sized businesses, going digital can feel like a confusing buzzword rather than a clear path to growth. This article looks at how using tools such as social media, customer data, and online relationship systems can help smaller firms, especially in emerging economies like Oman, become more innovative, more competitive, and better prepared for a fast-changing world.

How digital tools give small firms a lift

The authors focus on what they call digital marketing capabilities, which include using social media, customer relationship software, and data analysis to understand and serve customers better. Drawing on 38 studies published between 2015 and 2025, they find that these capabilities help small firms spot new opportunities, improve products and services, and respond quickly to market changes. In places where national plans promote technology and entrepreneurship, such as Oman’s Vision 2040, these skills become especially important for business survival and growth.

What the research community has studied so far

To map existing knowledge, the authors follow strict review rules known as PRISMA, and organize findings with a structure called TCCM, which looks at theory, context, study focus, and methods. Most of the past work has been carried out in East Asia and Europe, with far fewer studies from Oman and the wider Gulf region. Researchers have mainly relied on surveys and statistical models that capture a snapshot in time, which helps link digital tools to performance but says less about how capabilities grow and change within firms and business ecosystems.

The ideas behind digital strength

The article shows that most studies treat digital marketing capabilities as valuable business resources that are hard for rivals to copy, or as flexible skills that help firms sense and seize new opportunities. Newer work adds views from entrepreneurship and innovation, stressing that owner attitudes, willingness to take risks, and local rules all shape how digital tools are used. In emerging economies, digital strength depends not only on buying software, but also on training people, building confidence in technology, and fitting digital moves with cultural values and national goals.

The role of the wider environment

The review highlights that small firms do not act alone. Their digital success is tied to the quality of internet infrastructure, availability of finance, training systems, and cooperation with universities and incubators. In Oman and similar economies, public programs that support data skills, open digital platforms, and shared learning spaces can help small firms turn online activity into real innovation. The authors argue that digital marketing should be seen as part of the broader innovation system, connecting business efforts with national strategies for diversification and sustainability.

What this means in simple terms

In plain language, the article concludes that when small businesses learn to use online channels, customer data, and digital tools in a thoughtful way, they become more creative and competitive. These capabilities are not just about posting on social media; they are about understanding customers, improving offerings, and working within a supportive environment of skills, policies, and partnerships. For emerging economies, helping small firms build these digital strengths can speed up progress toward more diverse, innovative, and resilient economies.

Citation: Elkhoudary, A., Yadav, J.K. & Alam, M.M.D. Digital marketing capabilities as drivers of SME innovation and performance: a systematic literature review and research agenda for emerging economies. Humanit Soc Sci Commun 13, 605 (2026). https://doi.org/10.1057/s41599-026-07126-x

Keywords: digital marketing, SME innovation, emerging economies, Oman Vision 2040, social media analytics