In an increasingly competitive business environment, digital marketing has become more than a communication tool. It is now a strategic driver of growth, resilience, and long term performance. In this study, Dr M Anbalagan Marimuthu from the Graduate School of Business examines how digital marketing shapes corporate performance, particularly when firms are operating under financial pressure.
Using panel data from Chinese A share listed enterprises between 2010 and 2023, the study applies rigorous econometric analysis to explore the direct impact of digital marketing, the mechanisms through which it works, and the differences in effect across ownership structures. The research offers a deeper understanding of how firms can use digital strategies not only to improve visibility and engagement, but also to strengthen business performance in challenging financial conditions.
The findings show that digital marketing significantly improves corporate performance. At the same time, financing constraints continue to weaken operational outcomes, making financial health a critical factor in business success. Importantly, the study finds that financing constraints also serve as a key intermediary between digital marketing and performance. This suggests that digital marketing does more than boost market presence. It can also help firms ease financial pressure and create better conditions for stronger operational results.
Another important insight from the research is that private firms gain more from digital marketing initiatives than state owned enterprises. This highlights how ownership structure can influence the effectiveness of digital strategies and suggests that more agile, market driven organisations may be better positioned to capture the value of digital transformation.
The study ultimately reinforces the urgency for companies in emerging markets to prioritise digital transformation. Despite ongoing financial challenges and still limited engagement in digital marketing, the evidence shows that strategic digital investment can improve performance while also helping firms manage financing constraints. For businesses seeking to remain competitive, the message is clear. Upgrading digital capabilities and strengthening digital strategy are no longer optional, but essential.
Published in: Finance Research Letters (SCOPUS Q1)
Publisher: Elsevier B.V.