Priyanka Singh is an Assistant Professor of Marketing at School of Business and Economics ,State University of New York , Plattsburgh. Her detailed profile can be found HERE.
State University of New York , Plattsburgh
January 23, 2025
Examining the Impact of Digital Marketing Transformation on Firm’s Strategic Outcomes - A Multi-Method Approach
This study thoroughly explores the influence of digital marketing capabilities on a firm's strategic outcomes. Utilizing a multi-method approach, it comprises three parts that begin with a bibliometric analysis of the Digital Marketing Transformation (DMT) field and then delve into how digital marketing capabilities can impact data breach incidents and enhance shareholder value within strategic alliances. We first conduct a bibliometric examination of the DMT domain to map its growth and recognize key contributions. It provides a detailed overview of the DMT landscape, highlighting major publication venues, prominent contributors, and leading research institutions. This analysis identifies emerging themes, uncovers gaps in current research, and suggests a unified research framework. Understanding the DMT landscape lays the groundwork for examining how digital marketing capabilities influence strategic outcomes, the primary focus of the subsequent parts. In the second part, the study investigates the relationship between digital marketing capabilities and the likelihood of data breaches by integrating theories from criminology and marketing strategy. Analyzing a diverse sample of 3,512 unique retail brands, the research identifies a significant link between digital marketing capabilities and the likelihood of data breaches. This relationship is further influenced by factors such as a firm's regulatory focus, digital orientation, industry dynamism, and R&D intensity. The findings emphasize the need for firms to recognize the potential risks and vulnerabilities associated with their digital marketing efforts, highlighting the critical role of leadership in managing these digital initiatives. The final study examines the connection between a firm's digital IQ—a metric for digital marketing capability developed by Gartner—and shareholder reactions to strategic alliance announcements. The study discovers a positive correlation between digital marketing capabilities and shareholder value, although this relationship is moderated by the firm's regulatory focus and level of competitive aggressiveness. These results highlight the importance of digital strategies in today's business environment, suggesting that effectively utilizing digital marketing capabilities can significantly boost shareholder value. Additionally, the research underscores the role of strategic alliances as a growth mechanism and offers insights for firms considering such partnerships to increase their market value and attract investment. Overall, this study provides valuable insights into how strategic alliances and digital capabilities interact to influence a firm's financial performance. Overall, this study deepens our understanding of the multifaceted role that digital marketing capabilities play in shaping strategic firm outcomes. By using DMT as a foundation for developing and applying digital marketing skills, it demonstrates that digital marketing serves not only as a catalyst for innovation and effectiveness but also introduces inherent risks, making it a crucial factor in strategic decision-making.
