MEDIATING ROLE OF CUSTOMER ENGAGEMENT ON THE RELATIONSHIP BETWEEN DIGITAL MARKETING ADOPTION AND SMEs PERFORMANCE IN NIGERIA

Abstract

This study investigated the mediating role of customer engagement in the relationship between digital marketing adoption and the performance of small and medium-sized enterprises (SMEs) in Nigeria. The study was guided by three research questions and three null hypotheses tested at 0.05 level of significance. The population comprised 450 SMEs registered in Kano State, Nigeria, from which a sample of 349 was obtained using systematic random sampling. A structured questionnaire measured on a five-point Likert scale was used as the instrument for data collection. Content validity was maintained by anchoring all items in prior empirical studies, while reliability was confirmed through Cronbach's alpha values ranging from 0.859 to 0.909, all exceeding the 0.70 threshold. Data analysis was conducted using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS4. The findings reveal that the three dimensions of digital marketing adoption, search engine optimization (SEO), social media marketing (SMM), and mobile phone marketing (MOB), significantly predicted customer engagement (R²=.459), and customer engagement significantly predicted SME performance (R²= 501). All structural paths were positive and statistically significant (p<.001). Customer engagement was confirmed as a significant mediating mechanism between digital marketing adoption and SME performance. SMEs are recommended to invest strategically in engagement-oriented digital marketing and to adopt capacity-building programs to maximize the performance benefits of digital adoption