Digital transformation and firm performance: Mediating influence of digital marketing capabilities in the textile sector

Abstract

Digital transformation is becoming increasingly important in the textile sector, especially for micro and small businesses that wish to grow sustainably. This paper explores the contribution of digital marketing capabilities to the relationship between organisational dynamic capabilities and firm performance. Essentially, the paper examines how firms use their dynamic capabilities and digital marketing skills to enhance their performance in a digital environment. The analysis was quantitative and was conducted using PLS-SEM. It was found that firms competent in reconfiguration possessed digital marketing skills that enhanced their performance, and that digital marketing capabilities play an important mediating role between dynamic capabilities and performance. Organisations that are flexible, adaptable, perceptive to changes in the environment, and able to change direction quickly are also the ones capable of creating efficient digital marketing strategies and outperforming other organisations. This emphasises the critical role of digital transformation in coping with customer demands, reacting faster to market changes, and ensuring the sustained growth and survival of organisations in the textile industry. The findings complement the body of literature on dynamic capabilities and digital technologies and are particularly valuable for MSMEs, underscoring that a focus on digital marketing and organisational flexibility is crucial for both management and policymakers.