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Title: The impact of digital marketing on the business performance of firms in Laos

Authors: Viengsavang Thipphavong; Xayphone Kongmanila

Addresses: Faculty of Economics and Business Management, National University of Laos, Vientiane, Laos ' Faculty of Economics and Business Management, National University of Laos, Vientiane, Laos

Abstract: The study explores the impact of digital marketing on the financial and operational performance of Laos-based firms using the Smart PLS4 structural equation model (SEM). Results show that online advertising significantly impacts both financial and operational performance, but not IT capabilities. Social media marketing affects financial performance, operational efficacy, and IT capabilities, while content marketing primarily focuses on IT capabilities. Mobile marketing affects operational and IT capabilities' efficacy but not financial performance. The study suggests that Laos firms should focus on online advertising and digital marketing tools for improved financial performance and operational efficiency. The government should promote digital IT access, manage digital marketing, and provide IT training for entrepreneurs.

Keywords: digital marketing; financial performance; operational performance; online advertising; social media; content marketing; mobile marketing; IT capabilities.

DOI: 10.1504/IJBPM.2025.144089

International Journal of Business Performance Management, 2025 Vol.26 No.7, pp.1 - 22

Received: 29 Oct 2023
Accepted: 08 Jan 2024
Published online: 27 Jan 2025 *