Keywords
Abstract
This study investigates the relationship between digital marketing capabilities and innovation performance among small and medium-sized e-commerce platforms operating in competitive European markets. As digital transformation reshapes business landscapes, understanding how marketing digitalization drives innovation becomes crucial for platform sustainability. The research employs a resource-based view framework to examine 238 e-commerce platforms across Germany, France, and the Netherlands, utilizing a structured survey instrument measuring digital marketing sophistication, innovation outputs, and organizational characteristics. Data collection occurred between January 2023 and March 2024, targeting platforms with 50-500 employees and annual revenues between €1-50 million. Structural equation modeling reveals that advanced digital marketing capabilities significantly enhance innovation success rates by 41%, with data analytics competency demonstrating the strongest direct effect (β=0.52, p<0.001). Customer engagement metrics, measured through interaction frequency and user-generated content volume, mediate 35% of the marketing-innovation relationship. The analysis identifies three digital marketing capability clusters—analytical, engagement-oriented, and automation-focused—each contributing differentially to innovation outcomes. Platforms investing over 15% of revenue in digital marketing technologies show 2.4 times higher product innovation rates and 58% faster feature development cycles. Control variables including platform age, market competition intensity, and prior innovation experience explain additional variance. These findings extend digital innovation theory by establishing marketing capabilities as critical innovation antecedents and provide practical guidance for resource allocation decisions in resource-constrained SME platforms.
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