Title: Internet of Things Application in Digital Marketing to Improve the Efficacy of a Company
Author: Seror Naji Mohsin Aldouri
Published in: Economic Annals-XXI, Vol. 204, Issue 7-8, 2023, pp. 15–20.
1. Research Problem and Rationale
The study addresses the growing need for companies, particularly in developing contexts, to leverage advanced technologies to remain competitive. It identifies limitations in traditional e-business models—such as fragmented information, lack of real-time data, and poor supply chain transparency—and proposes the Internet of Things (IoT) as a transformative solution for digital marketing and overall firm performance.
2. Objectives
To introduce and conceptualize IoT technology within the scope of digital marketing.
To empirically examine the impact of IoT adoption on multiple dimensions of company performance: financial outcomes, internal processes, customer relations, development, and innovation.
To propose a practical implementation framework for IoT in e-commerce.
3. Theoretical Framework
The paper integrates concepts from digital marketing, information systems, and strategic management. It frames IoT as the third wave of the global information industry (after the Internet and mobile networks), emphasizing its capacity to create an integrated, intelligent network of objects, people, and processes that enhances data-driven decision-making.
4. Methodology
Population and Sample: Managers of 275 small and medium-sized enterprises (SMEs) in Baghdad, Iraq, selected via random sampling based on the Krejcie and Morgan table.
Data Collection: Questionnaire-based survey conducted in 2022.
Data Analysis: Structural equation modeling using Partial Least Squares (PLS) and correlation analysis (Spearman’s matrix) to test relationships between IoT adoption, digital marketing, and performance indicators.
5. Key Findings
IoT adoption has a positive and significant impact on all five performance dimensions: financial performance (β = 0.45), internal processes (β = 0.45), customers (β = 0.129), development, and innovation.
Innovation plays a moderating role in strengthening the relationship between IoT and performance outcomes.
IoT enhances supply chain transparency, order tracking, logistics, production automation, and market analysis, leading to reduced operational costs and improved customer trust.
6. Practical Implications
The study offers a clear implementation framework for managers, highlighting how IoT can be integrated into e-commerce to create a unified database of suppliers, manufacturers, distributors, and customers. It recommends investing in data security and user privacy to maximize IoT benefits.
7. Contribution and Originality
This research contributes to the limited empirical literature on IoT applications in digital marketing within the Iraqi and broader Middle Eastern context. It provides both theoretical insights and practical guidelines for SMEs aiming to enhance competitiveness through technological innovation.
DOI: 10.21003/ea.V204-02
Publication Date: 2023-08-27