Model for Evaluating Firm Digital Marketing Adoption: A Content, Context, and Process Framework
Agus Masrianto,
1, a)Hartoyo,
2Aida Vitayala S Hubeis,
3Nur Hasanah
4Author Affiliations
1,2,3,4School of Business, IPB University, Bogor Jawa Barat, Indonesia 16151
Author Emails
a) Corresponding author: [email protected]
Abstract. Using a qualitative systematic review method, we identify the factors for evaluating firm digital marketing adoption under the CCP framework. The Publish or Perish application is used to choose literature, while the Voyant-Tools application is used to search for connections between texts within and between pieces of literature. The CCP framework's knowledge translation reveals that in order to achieve digital marketing capability, customer value, and business performance, the organization must have adequate resources to gain competitive intensity through successful digital transformation, digital servitization, and digital marketing training. Furthermore, knowledge translation concludes that the level of digital marketing adoption is determined by resources-based approach, competition-based approach, and dynamic capability-based approach. Based on the findings of this study, we developed the Firm Digital Marketing Adoption Evaluation Model (F-DMAEM).
I. INTRODUCTION
The advancement and growth of ICT has changed the relationship between customer behavior and producer behavior. The presence and engagement of customers with companies is growing. Details on goods, services, means of purchasing and prices can be made more readily accessible to consumers through new forms of communication;
customers, with a certain incentive and knowledge, can search and watch influencers discuss the product and connect by offering guidance and even retrieving answers during the process of seeking the details1-3. This allows the company to change its strategies to attract new customers, retain customer loyalty and support, and capture new opportunities or markets. Companies must not only exist in the previous arena of competition (traditional marketing) but must also exist in the age of digital marketing (internet marketing), in other words, businesses must change their strategies in order to face extended rivalry4.
Digital marketing (DM) has emerging as a normal answer by businesses to boost and benefit from large concentrations of users on the Internet5. DM is a modern phenomenon that is appealing to many companies today, and it is changing how consumers and business people interact, exchange knowledge, purchase and sell with each other6. The business encourages contact between businesses and consumers or interactions between consumers, with the primary purpose of eliminating the boundaries of psychological and emotional relationships between business and consumers7. Vieira et al.8 claims that successful digital marketing campaigns can be accomplished by paid media (such as Facebook or Google Adwords promoting advertising), own media (such as company-owned websites), digital inbound advertising, earned social media (such as likes, shares, reviews on Facebook and Instagram hubs) and organic search (such as Google Trends search index).
The biggest benefit of DM relative to other marketing methods and platforms is its potential to be accurately calculated. Every internet user's digital footprint includes a vast amount of data that can be used as feedback for marketing research. Certain benefits include speed of contact, evolving consumer behavior, customer acquisition,
knowledge building, better message targeting, enhanced customer support9; cost minimization, time savings, input from instances, business growth, new product launch6; lower costs, customer interaction and efficient use of assets 7; firms performance10-11; business success12; competitive advantage5; build relationship, customer response and company value co-creation1; increased selling volume, creation of relationships with customers, quick contact, value generation for the customer, increase consumer contact, feedback given in real time, overcoming global frontiers, reducing costs of advertising, solving the problems of customers, possibility of obtaining the market very well, increase in brand awareness, promotion and online communication, reaching the objective of business13-14.
The adoption of DM by businesses is one of the keys to growing their capacity and ability to compete with the growth of business competition. Studies to explain the adoption of technical advances by businesses such as ICT adoption can already be seen in some literature. Chaffey and Chadwick15 point out that “digital marketing achieves marketing goals through the use of new technology and media. The concise description serves to remind us that it is the effects of technology that will decide investment in internet marketing, not the acceptance of technology”. This study aims to evaluate the factors that companies consider in the process of adopting digital marketing in order to create a firm digital marketing adoption evaluation model. We apply content, context, and process framework (CCP framework), an information system (IS) evaluation framework that reflects the content, context, process perspective.
Digital marketing is part of IS, because digital marketing uses systems for storing, retrieving and sending information via information technology. Stockdale and Standing16, based on Pettigrew17 and Symons18 stating that information systems have become increasingly complex and interconnected. As an integrated approach to IS evaluation, the CCP framework provides a foundation for responding to all relevant questions relating to the questions described in Fig.1:
• “What” is being evaluated? – Content
• “Why” is the evaluation being done? “Who” affects the evaluation? – Context
• “How” is the evaluation to be carried out? “When” is the evaluation taking place? – Process
FIGURE 1. CCP framework for IS evaluation adapted from Stockdale and Standing.16
II. MATERIAL AND METHODS A. Literature search
A systematic literature review (SLR) applied for defining, reviewing and analyzing all available literature related to the company’s adoption of DM. The objective of a systematic review is to define and classify all materials related to a specific subject. Knowledge on this subject is then used to help compile collaborative performance information.
The goal is to make the procedures followed in performing the analysis more objective, empirical and, if replicated by other researchers as many times as possible, the same conclusion will be drawn19. Fig. 2 shows the SLR mechanism adapted by Kitchenham et al.19
FIGURE 2.SLR mechanism adapted from Kitchenham.19
B. Selection criteria and method
The search for scientific articles in journals uses the "Publish Or Perish" application to access Scopus, Google Scholar, and the Crossref digital libraries databases. The following search string were used for search and find relevant leading journals in step 1: “digital marketing” AND (“adoption” OR “assimilation” OR “diffusion” OR “integration”) AND (“marketer” OR “advertiser” OR “company” OR “firm”). In step (2), we went through all the studies title, keywords, and abstract to select relevant articles in the ranked journals. Inclusion/ exclusion criteria then applied in step (3) to select and filter out papers that are more in line with this study. Repeating articles were identified in step (4), we still more chance to select more relevant articles from other sources in step (5) before presented final selected article for review in step (6). Studies to explore DM, DM strategy, underlying theory and factors affecting DM adoption at firm level were inclusion criteria that we use in step 3. We have omitted any articles that are not in line with study objective. 1114 papers were created by the implementation of the search string in the digital library in a
‘publish or perish’ application method. After filtering all articles is achieved by searching for names, keywords and abstracts to find more relevant articles and deleting articles that do not follow the requirements, 220 articles are taken out of this process. The inclusion / exclusion requirements shall be divided into 27 final articles in the literature review of data extractions in this report. The phases of the collection and sorting of literature review papers can be seen in Table 1.
TABLE 1. Data sources and search strategy
Step Search and find protocol Digital Libraries Selected
Google Scholar Scopus Crossref
1 Search string 999 39 76 1114
2 Search through all studies by title, keywords, and abstract
203 11 66 220
3 Search based on inclusion/exclusion criteria
7 7 13 27
4 Identify repeating articles
3 5 Selecting more relevant
articles from other sources
3
6 Final selected articles for review
27
C. Data extraction and presentation
SLR in this study using thematic analysis. Thematic analysis is synthesis method for qualitative analysis.19-20 Theme is classified by the CCP framework, which uses the Voyant-Tools application to identify factors related to the content, contexts and processes of the final selected article. This application reads and evokes relationships or links between words in and between literature. CCP framework provide a better picture of the interrelationships between the variables that affect the digital marketing adoption evaluation.
III. RESULTS
The CCP framework for evaluating DM adoption is depicted in Fig.3 based on the 27 literatures chosen for this review. The factors that influence DM adoption evaluation are investigated in order to develop interactions between them.
FIGURE 3. CCP framework for evaluating firm digital marketing adoption
A. Content
An important factor in this research is the understanding of what is transforming or what is to be transformed with regard to the digital marketing adoption by companies. This understanding can be formed by recognizing the needs, roles and contributions of various stakeholders in the digital marketing adoption process. The stakeholders can come from the internal and external environments of the organization. Interpretation of the results obtained from the content framework should consider the rationale of the stakeholders to make changes to the content framework. The results of the Voyant-Tools analysis for the content framework are closely related to the words sales, acquisition, better, influence, business, advantage and pressure. Further searches for the association of these words with other words lead to statements in the literature as explained by Chaffey21; Coreynen et al.22; Gillpatrick7; Hasanat et al.23; Ritz24; Setiowati et al.11; Sridhar and Fang25; Taiminen and Karjaluoto9; Teixeira et al.3; Vaitheeswaran26; and Vieira et al.8. These leads us to draw conclusions that business performance, customer value, and digital marketing capability are the effect from DM adoption.
B. Context
The results of the Voyant-Tools analysis for the ‘context’ framework are closely related to the words knowledge, innovativeness, decision, perceived, advantage, customers, skills, and using. Further searches for the association of these words with other words lead to statements in the literature as explained by Abi and Arief10; Afifah et al.12; Al- Qirim27; Bakhtieva1; Bala and Verma28; Busca and Bertrandias29; Chaffey21; Chaffey and Patron30; Coreynen22; Daj31; Davis et al.32; Dawson et al.33; El-Gohary and Eid14; Ghobakhloo et al.34; Gillpatrick7; Hasanat et al.23; Miklosik5; Neufeld et al.35; Noyola-Medina2; Ritz24; Royle36; Safanta37; Setiowati et al.38; Sridhar and Fang25; Taiminen and Karjaluoto9; Teixeira et al.39, and Yaseen et al.6. These leads us to draw conclusions that are customer power, supplier behaviour, competitor movements, social influence, market structure, industry sector, economic situation, government policies, association roles, globalization, digitisation and technology characteristics, C-level innovativeness, employee acceptance and digital marketing skill are internal and external factors that will affect for DM adoption.
C. Process
The process can be understood as the actions, reactions and interactions of the stakeholders. Recommendations for the process of adopting digital marketing require an explanation of how this can be achieved. The results of the Voyant-Tools analysis for the process framework are closely related to the words initiate, training, provide, digital, social, value and adoption. Further searches for the association of these words with other words lead to statements in the literature as explained by Bakhtieva1; Bala and Verma28; Busca and Bertrandias29; El-Gohary and Eid14; Gillpatrick7; Royle36; Kaplan and Haenlein40; McAfee and Brynjolfsson41; Noyola-Medina2; Vieira et al.26; Setiowati et al.11; Sridhar and Fang25, and Yaseen et al.6. These leads us to draw conclusions that digital transformation, digital servitization, and digital marketing training are company’s dynamic capability that will affect for DM adoption.
D. Review Conclusions: Integration of CCP framework for evaluating firm digital marketing adoption
Factors identified from each element of CCP framework require interpretive approaches to help determine the appropriateness of the relationship between these factors. “The concept of the external context encompasses the whole framework as the factors provide for organization and its environment”.16 The framework of the CCP divided these factors into what, why, who, how and when that would make it easier to reflect the relationship between factors. C- Level, manager and employee are the central relationship for DM adoption evaluation. They will influence how the company faces both an internal and an external environment. The relationship between elements in the perspective of the internal environment can be simplified as follows:
• When digital marketing is adopted, the C-level (‘who’) must have adequate innovation (‘why’) to achieve business performance (‘what’) through digital transformation (‘how’).
• When digital marketing is adopted, employees and managers (‘who’) must have the skills and a strong corporate culture (‘why’) to achieve customer value (‘what’) through digital servitization and digital marketing training (‘how’).
The broader relationship between elements in the context of internal and external environment perspective can be simplified as follows: In order to achieve ‘content’ (business performance, customer value and digital marketing capability), the company must have adequate ‘internal context’ (C-level innovativeness, employee acceptance, and digital marketing skill) to face ‘external context’ (customer power, supplier behavior, etc.) through effective ‘process’
(digital transformation, digital servitization, and digital marketing training).
IV. DISCUSSION
The goal of this study is to describe the factors that companies recognize in the process of adopting DM under the CCP framework in order to establish a DM adoption evaluation model for the firms. The propose framework in Fig.3 is sufficiently comprehensive to provide effective insight for describing inseparable relationship between CCP framework in the company's internal and external environment. We can explore the relationship between factors if we can first understand the meaning of the factors and the meanings that arise from the relationship.
The indicator on the ‘content’ element indicates the company objective, because the content element on the CCP framework does lead us to get a factor that will be evaluated as the impact of the DM adoption. The indicators on the
‘context’ element are divided into internal and external context element. Indicators on internal context elements indicates the internal resources which company must have, whereas indicators on external context element represent external competitions which the company should face. Indicators on the ‘process’ element indicates the strategy or response of the company to achieve its objective by paying attention to internal resource factors and also external competition factors. Wójcik’s research42 concluded that in addition to the two approaches that have been commonly used in analyzing business strategies, namely:
• An external perspective represented by a competition-based approach,
• An internal perspective represented by a resource-based approach, there is a third that is developing:
• A dynamic capability-based approach that combines the two perspectives above.
Interpreting the relationship between elements in CCP framework and perspectives in business strategies above, we translate new insights to propose digital marketing adoption evaluation model on the basis of CCP framework and that strategic perspectives, which we refer to as Firm Digital Marketing Adoption Evaluation Model (F-DMAEM).
The F-DMAEM model in Fig. 4 describes the factors that companies recognize in the process of digital marketing adoption and its influence on the objectives of the business. These include firm resource-based approach, competition- based approach and A dynamic capability approach. We can state this relationship into a simple statement as follows:
In order to accomplish the objectives of the business, the organization must have adequate resource-based approach, competition-based approach, and dynamic capability approach by adopting DM that will affect the level of adoption of DM.
FIGURE 4. Firm digital marketing adoption evaluation model (F-DMAEM)
V. CONCLUSION
This research successfully presented factors for evaluating firm digital marketing adoption under the CCP framework. The CCP framework makes it easy to interpret the relationships between factors. The translation of knowledge about the relationship between these factors was successfully interpreted into a digital marketing adoption evaluation model which we called the Firm Digital Marketing Adoption Evaluation Model (F-DMAEM). It also concludes that the level of digital marketing adoption is determined by resources-based approach, competition-based approach, and dynamic capability-based approach; The level of digital marketing adoption has a direct effect on achieving firm objectives (digital marketing capability, customer value, and business performance).
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https://doi.org/10.1515/ijme-2015-0017
