The impact of artificial intelligence in marketing on the performance of business organizations: evidence from SMEs in an emerging economy

Abstract

Purpose This study aims to empirically investigate the relationship between artificial intelligence (AI) in marketing (AIM) and business performance from the resource-based view (RBV) perspective. Design/methodology/approach A survey strategy was used in this study to collect data from 225 small and medium enterprises (SMEs) respondents who were on the registered list of the Ghana Enterprise Agency in the Eastern Region of Ghana. Structural equation modeling – path analysis was used to estimate the impact of AIM on the performance of SMEs. Findings The analyzed data shows that AIM has significant impact on the financial performance, customer performance, internal business process performance and learning and growth performance in the case of SMEs in Ghana. This study establishes the significance of AIM approach in achieving financial performance, customer performance, internal business process performance and learning and growth performance through the application of AIM determinants including, Internet of Things (IoT), collaborative decision-making systems (CDMS), virtual and augmented reality (VAR) and personalization. Research limitations/implications Aside the aforementioned significance of this research study, this study has limitations. The sample size of this research study can be expanded to include SME respondents in other geographical areas that were not considered in this study. Future research studies should concentrate on how AIM can analyze customer communications and information such as posts on social media to develop future communications that may enhance customer engagement. Practical implications The practical implications comprise of two key items. First, this research study encourages SME owners and managers to develop an AIM method as a fundamental strategic goal in their pursuit to improve SME performance. Second, SME owners and managers should increasingly implement the four determinants of AIM indicated in this research study (i.e., IOT, CDMS, VAR and personalization) to develop essential resources for effective application of AIM to improve their performance. Originality/value The results of this study provide a strong support to RBV theory and the proposition that AIM and its determinants (i.e., IOT, CDMS, VAR and personalization) should be recognized as an essential strategic resource for improving the performance (i.e., financial performance, customer performance, internal business process performance and learning and growth performance) of SMEs. This study also contributes to the current body of knowledge on AIM and management, particularly in the context of an emerging economy.

Transforming metaverse marketing into strategic agility in SMEs through mediating roles of IMT and CI: theoretical framework and research propositions

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“…Given the disruption brought about by technology improvements, small and medium enterprises (SMEs) must use innovations to improve customer experience and lower operating costs (Rather et al ., 2023). In light of the numerous researchers that have predicted the acceptance of new technological concepts by SMEs, such as the use of artificial intelligence in marketing by SMEs (Abrokwah-Larbi and Awuku-Larbi, 2023) and the adoption of blockchain technology by SMEs (Polas et al ., 2022), scholars have been debating yet another upsurge of the Internet era that has initiated the “metaverse” (MV) in addition to the increasing importance of understanding many paradigms of technological revolution in the context of SMEs (Shahadat et al ., 2023; Khan et al ., 2023; Kostyk and Sheng, 2023).…”

The impact of marketing modification on the performance of food processing SMEs in Ghana

“…Businesses can grow their market share and performance capacity by modifying their marketing strategies (Cuevas-Vargas et al, 2021;Abrokwah-Larbi, 2020). As a result, marketing innovation gives businesses the capacity to remain competitive over time by improving a variety of characteristics, including their target market readiness, their ability to respond quickly to client needs and changes to product development (Gallegos and Miralles, 2020).…”

The impact of customer-focus on the performance of business organizations: evidence from SMEs in an emerging West African economy

“…For instance, research studies such as Han et al (2021) and Setiyaji et al (2022) have established a positive relationship between customer-focus and business organization performance, while other studies including Husain et al (2022) and Manishimwe et al (2022) have established a significant negative relationship between customer-focus and business organization performance. As a result, there has been several recommendations from researchers emphasizing the need to conduct further studies to understand the type or nature of relationship between customer-focus and firm performance in diverse backgrounds (Abrokwah-Larbi, 2020).…”

“…(2022) have established a significant negative relationship between customer-focus and business organization performance. As a result, there has been several recommendations from researchers emphasizing the need to conduct further studies to understand the type or nature of relationship between customer-focus and firm performance in diverse backgrounds (Abrokwah-Larbi, 2020).…”