Marketing Infrastructure, Digital Marketing Strategies and Marketing Performance of SMEs in Nigeria: The Mediating Role of Digital Transformation

1. Introduction

The increasing complexity of the business environment, driven by intense competition and rapid digital innovations that change consumer behaviour, makes digital transformation crucial for enhancing performance. Small and medium-sized enterprises (SMEs) are vital to economies, contributing significantly to employment and economic growth, yet they face challenges in adopting digital transformation. SMEs represent at least 60 per cent of employment globally, highlighting their importance for economic development.

To thrive in a competitive market, SMEs must attract and retain customers. Digital marketing enables quicker and broader engagement, allowing businesses to personalize their marketing efforts. However, unlike larger companies that can afford multichannel strategies, SMEs often rely on word-of-mouth and limited marketing avenues due to budget constraints. SMEs typically have restricted resources, underscoring the need for greater support to foster their growth. Although digital marketing presents cost-effective ways for SMEs to connect with customers, they remain at the lower end of the adoption cycle. Larger firms are better positioned to leverage digital channels effectively, prompting SMEs to seek economical ways to harness digital marketing potential. Digital marketing includes strategies like content marketing, email marketing, social networking, SEO, and online advertising, enabling organizations to engage with consumers and track campaign effectiveness in real time [1]. It involves any marketing tactics utilizing electronic devices, necessitating investment in IT infrastructure for improved performance.

For SMEs, embracing digital transformation—integrating digital technologies into all company operations—enhances productivity, innovation, and marketing performance. Key metrics such as customer acquisition, conversion rates, and brand awareness help businesses assess the impact of their marketing efforts and make informed decisions [2,3]. Thus, understanding the interplay between digital marketing strategies, marketing infrastructure, and digital transformation is crucial for SMEs to enhance their marketing performance.

The unit of analysis in this paper is small and medium enterprises (SMEs) in Nigeria. They contribute about 48.47% of the country's GDP and employ approximately 59.7 million people, which accounts for 84.02% of the labour force [4]. SMEs play a crucial role in economic growth, employment creation, and innovation in developing and developed nations. However, they face significant challenges in adopting digital marketing strategies due to limited funding, human resources, and expertise [5]. Despite the importance of digital marketing to businesses, most research has focused on large corporations, leaving a gap in understanding how these strategies impact SMEs [6]. Additionally, previous studies often overlook the mediating role of digital transformation in enhancing marketing performance. The limited research on SMEs predominantly comes from industrialised countries, neglecting the unique challenges facing SMEs in developing nations like Nigeria.

This study addresses these gaps by examining the impact of marketing infrastructure and digital marketing strategies on SMEs’ marketing performance in Nigeria, with a focus on the mediating role of digital transformation. The findings will provide valuable guidance to policymakers, owners, and managers of SMEs, supporting decisions on investments in digital infrastructure and strategies. Furthermore, the study offers insights for policymakers on fostering SME growth through collaboration with the private sector and regulations that encourage digital transformation.

2. Related Literature and Hypothesis Development

2.1. Digital Marketing Strategies

Digital marketing involves promoting and selling goods and services through digital platforms. Digital marketing strategies include pay-per-click advertising, email marketing, social media marketing, mobile marketing, content marketing, and search engine optimization (SEO) [7]. Digital marketing allows businesses to analyze marketing effectiveness more accurately and engage customers in a personalized manner [8]. It also facilitates real-time interactions and the sharing of relevant content [9]. Sathya [10] defines digital marketing as the use of digital technology to promote products, primarily through the internet but also via mobile devices and display ads. The internet serves as a platform for various marketing strategies, including social media marketing (SMM), search engine marketing (SEM), and digital public relations.

The ability to measure results sets digital marketing apart from traditional marketing, providing valuable data for research. Companies must develop digital marketing capabilities, which involve the processes and skills necessary for success in the digital era [11]. Although small and medium-sized enterprises (SMEs) may encounter challenges, they can greatly benefit from adopting digital marketing strategies [12].

2.2. Marketing Infrastructure

Marketing infrastructure refers to the human, technological, and physical resources required to implement effective marketing strategies. It encompasses IT systems, communication networks, distribution channels, and skilled personnel (Kotler & Armstrong, 2018) [13]. This infrastructure facilitates the exchange of information, goods, and services, relying heavily on physical assets such as warehouses and transportation systems to ensure timely delivery and customer satisfaction. Technological infrastructure, particularly information and communication technologies (ICTs), plays a pivotal role in modern marketing. ICTs enable businesses to collect and analyze customer data, refine strategies, and engage target audiences through digital platforms. The IT infrastructure—comprising hardware, software, and data storage—supports operational efficiency and enhances service delivery [14,15].

For small and medium-sized enterprises (SMEs), investment in digital technologies such as cloud computing, big data analytics, and artificial intelligence (AI) is essential. These tools not only improve operational flexibility but also provide deeper market insights and support data-driven decision-making [16,17]. In addition, a qualified marketing workforce is critical for designing and executing effective digital marketing strategies.

Overall, leveraging digital transformation strengthens SMEs’ competitiveness, fosters innovation, and positions them to adapt successfully in dynamic market environments [18].

2.3. Digital Transformation

Digital transformation (DT) has emerged as a central theme in contemporary management research, emphasizing the integration of digital technologies into all aspects of organizational activity. Verhoef et al. [19] conceptualize DT as a three-stage process: digitization, the conversion of analog information into digital formats; digitalization, the application of digital technologies to improve existing processes; and finally, digital transformation, which entails the creation of new business models grounded in digital technologies.

Current scholarship suggests that most firms, particularly small and medium-sized enterprises (SMEs), remain in the digitalization stage, while DT represents the most complex and demanding phase [20]. Studies highlight that each stage imposes distinct requirements in terms of resources, organizational structures, growth strategies, and performance metrics. Importantly, DT is recognized as a dynamic and context-dependent process, with maturity levels varying across organizations. Consequently, scholars argue that there is no universal approach to implementation; instead, firms must develop tailored strategies aligned with their unique circumstances [21].

Beyond technological adoption, the literature underscores the necessity of a cultural shift within organizations to foster innovation, agility, and customer-centricity [22]. In highly competitive, technology-driven markets, DT is increasingly viewed as essential for organizational survival and growth, particularly for SMEs, as it enhances productivity, reduces operational costs, and improves efficiency.

2.4. Marketing Performance

Marketing performance encompasses various key performance indicators, including sales revenue, profitability, customer acquisition, customer lifetime value, conversion rates, website traffic, customer engagement, customer satisfaction, brand recognition, and brand trust, among others [2]. By assessing marketing performance, businesses can evaluate the impact of their marketing efforts on overall business outcomes and make data-driven decisions to enhance their marketing strategies and techniques [3]. When considered together, these metrics provide a comprehensive view of a business's effectiveness and efficiency.

2.5. Theoretical Framework and Hypothesis Development

The integration of Resource-Based View ((RBV) and Institutional Theory provides a dual lens for understanding SME performance in the digital era. The RBV, a strategic management theory by Barney [23] asserts that a firm's internal resources and capabilities are the main sources of competitive advantage and superior performance. Resources deemed valuable, rare, inimitable, and non-substitutable (VRIN) provide a sustained competitive edge. Digital marketing tools and technologies serve as valuable resources that can enhance SMEs’ performance through skills like targeted advertising, data analytics, and online consumer engagement. Institutional theory, stemming from Meyer and Rowan [24], examines how organizations respond to external forces. For SMEs in Nigeria, this theory suggests that the adoption of digital marketing practices is driven by both the desire for competitive advantage and the need to conform to institutional norms. As digitalization becomes widespread, SMEs may feel pressured to implement digital marketing strategies to maintain legitimacy with stakeholders, including customers and investors. Those that effectively combine digital marketing with digital transformation are likely to see improved performance outcomes [25].

Thus, this study proposes that in the digital marketplace, Nigerian SME marketing infrastructure and digital marketing strategies cannot enhance marketing performance without digital transformation, at least digitization, the conversion of analog information into digital formats. Marketing infrastructure facilitates the implementation of digital marketing strategies and digital transformation, digital marketing strategies facilitate the adoption of digital transformation, which enhances marketing performance, as illustrated in Figure 1.

Marketing infrastructure

Marketing infrastructure includes IT systems, communication networks, distribution channels, and skilled personnel (Kotler & Armstrong, 2018) [13]. Technological infrastructure, such as IT infrastructure, plays a crucial role in digital marketing as it enables businesses to gather and analyze customer data, refine strategies, engage target audiences through digital channels, and broaden customer base and acquisition. The IT infrastructure, which includes hardware, software, and data storage, supports operations and enhances service delivery [14,15]. For small and medium-sized enterprises (SMEs) to thrive, investing in digital technologies like cloud computing, big data analytics, and AI is essential. These technologies improve operational flexibility and also facilitate better market insights and decision-making [16,17]. Investment in digital technologies also drive performance in SMEs: Cloud computing, big-data analytics, ecumenical AI, and the Internet of Things (IoT) are some of the popular digital technologies developed over the past decade that provide manifold advantages. They reduce capital expenditures: cloud services provide a means of lowering the need for your IT infrastructure, as well as giving you a way to scale up your resources and increase your operational flexibility [26]. Moreover, a qualified marketing workforce is vital for developing effective digital marketing strategies. Thus, this research posits that:

H1: Digital marketing strategies are significantly and positively influenced by marketing infrastructure.

H2: Marketing infrastructure has a positive and significant impact on digital transformation.

Digital marketing strategies

Digital marketing strategies—such as pay-per-click advertising, email marketing, social media marketing, content marketing, mobile marketing, and search engine optimization (SEO)—have emerged as critical drivers of small and medium-sized enterprise (SME) performance. Prior studies consistently demonstrate that these strategies enhance sales growth, profitability, customer acquisition, retention, engagement, and brand trust [7,10]. Empirical evidence highlights improvements in ROI, audience reach, and loyalty (Raji et al. [27]); consumer engagement, recognition, and sales (Rahman et al. [28]); revenue, market share, and profit margins (Onyango [29]); and the positive impact of social media marketing on acquisition, retention, and trust (Srinivasan et al. [30]). Further research links email marketing and online advertising to increased sales and profitability (Yasmin et al. [31]; Lee [32]), while regression analyses confirm that digital marketing adoption accelerates SME growth in the UK (Chaffey & Ellis-Chadwick [33]). Social media marketing has been identified as a cost-effective tool for competitiveness (Awa [34]), with email, content, and SEO strategies shown to be vital in the US (Strauss & Frost [35]) and Vietnam (Nguyen [36]), though adoption gaps remain in Finland (Taiminen & Heikki [37]).

Online advertising makes wide use of pay-per-click (PPC) ads and display advertising and allows SMEs to focus on certain demographic areas and monitor campaign efficacy in real-time [38]. Such targeted advertising leads to better conversion rates and a deeper level of return on investment [39]. Collectively, these findings suggest that digital marketing strategies not only improve marketing performance but also act as catalysts for digital transformation, supporting the hypothesis that such strategies positively influence SMEs’ digital evolution.

While much research has focused on the relationship between SME performance and digital marketing strategies, there remains a lack of understanding of this dynamic in the context of digital transformation. Based on the above discussion, this research posits that:

H3: Digital marketing strategies positively influence digital transformation.

Digital Transformation and Marketing Performance

Digital transformation integrates digital technologies into all aspects of business operations, reshaping value delivery and strengthening market presence [40]. Success depends not only on technology adoption but also on organizational adaptability and the integration of external digital services with internal IT systems [41]. For SMEs, effective transformation requires planning, alignment of interests, consistent communication, provision of resources, mobilization of people, and accountability with clear timelines [42], supported by a unified strategic objective [43]. 

Existing research highlights positive impacts of digital transformation on corporate financial performance [44] and overall enterprise performance [45]. Benefits include optimizing traditional businesses, scaling production and trade, and achieving efficiency, cost reduction, and quality improvements (Teng, Wu & Yang, 2022 [46]). SMEs also experience positive business outcomes [47], though some studies find limited effects on supply chain integration and enterprise performance in smaller firms [48]. These inconsistencies reveal a research gap regarding marketing outcomes. Thus, this study posits that:

H4: Digital transformation positively and significantly influences marketing performance

Mediating role of digital transformation

Digital transformation plays a mediating role in how SMEs improve marketing performance. Research highlights that marketing infrastructure and digital marketing strategies are the core enablers of transformation [41]. Beyond technology adoption, success depends on organizational adaptability and the ability to integrate external digital services with internal IT systems [41]. Studies confirm that digital transformation positively influences both short- and long-term financial outcomes [49], while advanced technologies such as big data, IoT, and blockchain are significantly correlated with firm performance [50]. SME performance is further shaped by management, technology, marketing, and innovation capabilities [51].

Evidence shows that SMEs combining digital marketing strategies with digital transformation achieve superior organizational results [52]. However, Teng, Wu & Yang (2022 [46]) found that digital transformation did not significantly mediate the relationship between digital technology, employee digital skills, and performance, even after multiple tests. This inconsistency highlights a research gap requiring further investigation. To address this gap, the present study posits that:

H5: Digital transformation mediates the relationship between marketing infrastructure and marketing performance.

H6: Digital transformation mediates the relationship between digital marketing strategies and marketing performance.

Micro, Small and Medium-sized Enterprises (MSMEs)

The classification of Micro, Small, and Medium-sized Enterprises (MSMEs) varies between global and national frameworks, reflecting different policy priorities. The World Bank Group defines micro-enterprises as firms with up to 10 employees and assets/turnover not exceeding $100,000; small enterprises as those with 11–50 employees and $100,000–$3 million in assets/turnover; and medium enterprises as 51–300 employees with $3–$15 million in assets/turnover, offering a standardized basis for international comparison. Nigeria, however, employs a dual-criteria system based on employment and assets (excluding land/buildings), with employment taking precedence in cases of conflict to mitigate inflationary distortions. Under this framework, micro-enterprises employ fewer than 10 people with assets up to ₦5 million, small enterprises employ 10–49 with ₦5–₦50 million in assets, and medium enterprises employ 50–<500 with ₦50–<₦500 million in assets [53] ($1 = ₦1437 on 11/7/2025). The Nigerian definition thus extends the upper limit of medium enterprises to nearly 500 employees, underscoring the balance between global standardization and local adaptation, with implications for financing, policy planning, and MSME support.

3. Research Methodology

This study investigates the mediating role of digital transformation in the relationship between marketing infrastructure, digital marketing strategies, and marketing performance of small and medium enterprises (SMEs) in Nigeria. The research targeted 39.7 million micro, small and medium enterprises (MSMEs) in various sectors registered with the Small and Medium Enterprises Development Agency of Nigeria [4]. Using Yamane’s formular, n = N/[1+N(e)²], a sample size of 400 was determined. The sample was selected through probability sampling using stratified random sampling. A survey research design was adopted, and data was collected from 400 owners or managers of the SMEs through online surveys. Measurement scales were adapted from previous studies, covering digital marketing strategies (Sharabati, et al., 2024 [40]), marketing infrastructure (Teng, et al., 2022 [46]; Jia &Li, 2024 [54]), digital transformation (Bley, et al., 2016 [55]), and marketing performance (Verma, 2024 [56]). A confirmatory factor analysis using structural equation modelling (Hair & Alamer, 2022) [57] confirmed strong instrument validity and reliability.

4. Data Analysis

4.1. Demographic Profile of Respondents

The online survey received 421 responses, with 400 examined. Of these, 196 (49%) were male and 204 (51%) were female. Age distribution showed that 186 (47%) were 16-35 years old, 122 (30%) were 36-55, and 92 (23%) were over 55. Educationally, 112 (28%) had an ordinary diploma or less, 214 (53%) held a higher diploma or first degree, and 74 (18.5%) had postgraduate degrees. In terms of experience, 186 (47%) had been in their SMEs for less than five years, 125 (31%) for five to ten years, and 89 (22%) for over ten years. By company type, 214 (53%) were sole proprietors, 112 (28%) were partnerships, and 74 (18.5%) were limited companies. Most respondents (309, or 77%) operated with working capital of N5–10 million, while 91 (23%) had more than N10 million. Notably, all respondents faced challenges, including poor internet connectivity and electrical supply 400 (100%), lack of skilled workers 204 951%), and inadequate digital marketing infrastructure 310 978%).

Inferential Statistics

Data analysis utilized Smart PLS 3.0 software for the two-stage Partial Least Square Structural Equation Modeling (PLS-SEM) method [58]. The first step focused on measuring model validity and reliability, while the second assessed proposed relationships within the structural model, leveraging PLS-SEM for its effectiveness in testing prediction models and exploring connections between constructs [59].

4.2. Validity and Reliability

The two-step method established by Hair et al. [59] was employed to assess the validity and reliability of the reflective indicators. Before determining the validity of the constructs, factor analysis was conducted to evaluate the instrument's reliability. Two types of assessments—Cronbach's alpha and composite reliability—were utilized to measure the dependability of the instrument. Consequently, as shown in Table 1, the 16 scale items of the latent constructs were concurrently factor-analyzed using SEM-Smart PLS software.

With a significant level of P < 0.05, the factor loadings ranged from 0.516 to 0.865, exceeding the 0.5 cut-off [59]. As per Table 1, composite reliability scores surpassed the minimum of 0.7 [60], and Cronbach's alpha values indicated moderate reliability. This confirms the internal consistency of the latent constructs' indicators.

Constructs Validity Test

Construct validity is confirmed when both convergent and discriminant validity are satisfied [57]. Convergent validity is achieved if reflective indicators load strongly and the average variance extracted (AVE) is over 50% [61]. All constructs displayed loadings above 50%, with AVE values between 0.552 and 0.613, validating convergent validity [62].

For discriminant validity, each construct must have more variance with its indicators than with other constructs [62]. The square roots of the AVEs should exceed the correlations with other constructs [59]. Table 1 displays AVE values of 0.552 to 0.613, and Table 2 shows that the MAIN value (0.758) is greater than the correlations for the DMAS, DTRA, and MPERF constructs. All values are significant at P < 0.05, indicating that discriminant validity is met. Overall, the measurement model provides a solid basis for exploring structural linkages and demonstrates evidence of convergent and discriminant validity.

4.3. Structural Model

The PLS-SEM approach was employed to evaluate the hypothesized correlations within the proposed study model. At a significance level of 0.05, all alternate hypothesized associations were confirmed. In other words, the study found that marketing infrastructure has a significant and positive influence on digital marketing strategies, and both have a notable positive effect on digital transformation. Additionally, digital transformation has been shown to have a significant positive relationship with marketing performance. The strongest predictive power within the model lies in the path from marketing infrastructure → digital marketing strategies, as revealed in the following impacts: the influence of marketing infrastructure on digital marketing strategies (b = 0.285, t = 3.541, p < 0.001), the effect of marketing infrastructure on digital transformation (b = 0.239, t = 8.396; p < 0.001), and the impact of digital marketing strategies on digital transformation (b = 0.220, t = 3.199; p < 0.001). The relationship between digital transformation and marketing performance was examined, yielding (b = 0.195, t = 4.149, p < 0.001). Lastly, the results of the bootstrapping test with Smart-PLS 3.0 show significant positive indirect effects: the indirect effect of marketing infrastructure on marketing performance, mediated by digital transformation, has a positive effect (b = 0.186, t = 3.586, P-value < 0.001). Also, the indirect effect of digital marketing strategies on marketing performance, mediated by digital transformation, has a positive effect (b = 0.198, t = 4.632, P-value < 0.001). These imply that digital transformation can enhance the positive effects of marketing infrastructure and digital marketing strategies on marketing performance. Therefore, through effective digital transformation, SMEs can improve marketing performance.

Table 3. Estimated results of the structural model and hypotheses test outputs. 

Hypothesised Relationships	Path coefficient	Standard Error	t-value	Result
Direct effects
H1+ MAIN → DMAS	0.285	0.022	3.457***	Supported
H2+ MAIN → DTRA	0.239	0.041	4.149***	Supported
H3+ DMAS → DTRA	0.220	0.012	3.199***	Supported
H4+ DTRA → MPERF	0.195	0.033	5.396***	Supported
H5+ MAIN → DTRA → MPERF	0.186	0.042	3.586***	Supported
H6+ DMAS → DTRA → MPERF	0.198	0.036	4.632***	Supported
Note: Significant level is denoted as *** p<0.001

Source: PLS-SEM Algorithm Output, 2025.

Table 3. Estimated results of the structural model and hypotheses test outputs. 

Hypothesised Relationships	Path coefficient	Standard Error	t-value	Result
Direct effects
H1+ MAIN → DMAS	0.285	0.022	3.457***	Supported
H2+ MAIN → DTRA	0.239	0.041	4.149***	Supported
H3+ DMAS → DTRA	0.220	0.012	3.199***	Supported
H4+ DTRA → MPERF	0.195	0.033	5.396***	Supported
H5+ MAIN → DTRA → MPERF	0.186	0.042	3.586***	Supported
H6+ DMAS → DTRA → MPERF	0.198	0.036	4.632***	Supported
Note: Significant level is denoted as *** p<0.001

Source: PLS-SEM Algorithm Output, 2025.

Figure 2 shows the amount of variance explained. The R-Square value measures the variance explained in each endogenous construct. The numbers in the inside circles within the model figure 2 represent the amount of variance explained (R²). R-square (R²), also called the coefficient of determination, is the overall effect size measure for the structural model as in regression. Thus, the (R²) shown in the inner circles, DMAS = 0.349, DTRA = 0.257, and MPERF = 0.364 indicate that 34.9% of the variance in digital marketing strategies is explained by marketing infrastructure, 25.7% of the variance in digital transformation is explained by both marketing infrastructure and digital marketing strategies, while 36.4% of the variance in marketing performance is explained by digital transformation. This literally means that 36.4% of the change in marketing performance is as a result of digital transformation. No number is shown in the inner circle MAIN because it is an exogenous latent factor. R-Square values of 0.75 are considered substantial, 0.50 moderate, and 0.25 weak [63]. The model highlights gaps in explanatory power—meaning future research should consider adding more constructs or refining measurement indicators. The R² in this model would be interpreted to be of weak strength or effect. These results indicate that marketing infrastructure, digital marketing strategies, and digital transformation have weak effects, and result in poor marketing performance. Weak effects do not mean these constructs are irrelevant, they may be necessary but not sufficient for strong marketing outcomes.

5. Discussions, Conclusion and Recommendations

5.1. Discussions of Findings

This study examined how marketing infrastructure, digital marketing strategies, and the marketing performance of SMEs in Nigeria are mediated by digital transformation. It provides valuable insights into the mediating role of digital transformation in the application of digital marketing strategies within Nigerian SMEs. By contextualizing theory within an underrepresented empirical setting, the study contributes to academic, practical, and policy-oriented discussions on digital transformation in the SME sector.

The first hypothesis tested whether marketing infrastructure positively influences digital marketing strategies. Results revealed a significant positive impact, indicating that investments in ICT tools—such as cloud computing, artificial intelligence, data analytics, digital marketing platforms, reliable internet, and marketing training—enhance the effectiveness of digital marketing strategies. This finding aligns with Sharabati et al. [40], who reported a positive correlation between IT infrastructure and digital marketing strategies.

The second hypothesis explored whether marketing infrastructure positively affects digital transformation. Results confirmed a significant positive relationship, suggesting that ICT investments in areas such as cloud computing, AI, data analytics, distribution channels, internet connectivity, and staff training strengthen digital transformation. This finding corroborates Mthwazi (2022) [64], who emphasized the essential role of IT infrastructure in enabling business operations, customer service, and the deployment of applications and systems across stakeholders. Similarly, Sharabati et al. [40] found that IT infrastructure significantly impacts digital transformation, supporting the present study’s results.

The third hypothesis assessed the impact of digital marketing strategies on digital transformation. Results indicated a significant positive effect, implying that effective use of digital tools fosters transformation. Specifically, the adoption of email marketing, social media, SEO, and content marketing accelerates digital transformation. This finding is consistent with Oubrahim, Sefiani, and Happonen [65], who highlighted customer engagement as a critical driver of digital transformation, facilitated by social media, mobile apps, and online stores. Sharabati et al. [40] also concluded that digital marketing strategies significantly enhance digital transformation, reinforcing the present study’s findings.

The fourth hypothesis examined the effect of digital transformation on marketing performance. Results showed a significant positive impact, suggesting that SMEs improve marketing performance as they embrace digital technologies, digitize information, and develop new business models. Enhanced customer engagement, brand awareness, acquisition, satisfaction, loyalty, and retention were observed as outcomes of digital transformation. These findings are consistent with Sharabati et al. [40] and Oubrahim, Sefiani, and Happonen [65], who demonstrated that digital transformation acts as a catalyst linking digital marketing strategies to improved business performance. The study’s results also corroborate Dos Santos Barbosa and de Moraes (2021) [18], who found that SMEs’ competitiveness and performance improve when digital technologies are integrated into daily operations.

The fifth hypothesis examined whether digital transformation mediates the relationship between marketing infrastructure and marketing performance. Results revealed a significant positive indirect effect, indicating that investments in digital transformation can enhance the positive effects of marketing infrastructure on marketing performance. This finding contrasts Teng, Wu & Yang (2022) [46] finding that digital transformation did not significantly mediate the relationship between digital technology, employee digital skills, and performance.

The sixth hypothesis ascertained whether digital transformation mediates the relationship between digital marketing strategies and marketing performance. Results revealed a significant positive indirect effect, indicating that investments in digital transformation can enhance the positive effects of digital marketing strategies on marketing performance.

The test results of the fifth and sixth hypotheses imply that digital transformation can enhance the positive effects of marketing infrastructure and digital marketing strategies on marketing performance, although weak indirect effects were found due to SMEs’ challenges in investments in digital transformation which affirms Zhang [66] finding that SMEs face many difficulties in digital transformation. Therefore, through effective digital transformation, SMEs can improve marketing performance.

Implications

The results of this study carry several implications for both theory and practice. From a theoretical standpoint, the weak explanatory power of marketing infrastructure, digital marketing strategies, and digital transformation underscores the need to broaden the research model.

However, the weak effects on marketing performance may be attributed to challenges such as high infrastructure costs, limited internet access, unreliable power supply, lack of digital marketing expertise, and the relatively low degree of digital transformation among Nigerian SMEs. These findings echo Taiminen and Heikki [37], who observed that many SMEs in Finland had not fully leveraged digital tools, thereby missing potential opportunities. From a managerial perspective, the findings suggest that investments in infrastructure and digital marketing strategies alone are insufficient to generate substantial improvements in performance. Managers should complement these initiatives with organizational change programs. By adopting a more holistic approach, firms can enhance the impact of digital transformation and achieve stronger, more sustainable marketing outcomes. Thus, this research offers useful practical and theoretical contributions to managers, scholars, and policy-makers to enhance the comprehension of the relationships among marketing infrastructure expenditure, digital marketing strategies, digital transformation, and SME marketing performance.

5.2. Conclusion

The study concludes that small and medium enterprises (SMEs) can substantially improve marketing outcomes—including customer acquisition, engagement, brand recognition, trust, satisfaction, and retention—through the integration of marketing infrastructure and digital marketing strategies within digital transformation initiatives. While the positive relationships are clear, the weak effects on performance highlight the need for supportive policies, capacity-building initiatives, and infrastructural improvements to enable SMEs to fully capitalize on digital transformation.

5.3. Recommendations

To address these constraints, the study recommends investment in marketing infrastructure, such as staff training, ICT tools, and distribution channels. It further highlights the importance of public–private collaboration to strengthen electricity supply and internet connectivity, as well as partnerships with government agencies, digital marketing experts, and ICT providers to maximize digital transformation benefits. The adoption of cloud services and Software-as-a-Service (SaaS) is emphasized as a cost-effective means of enhancing operational flexibility.

5.4. Limitations of the Study

The research is limited by its focus on Nigeria, a developing economy with infrastructural challenges, which restricts the generalizability of findings. Future studies should incorporate data from developed economies and larger enterprises to provide broader comparative insights.

Moreover, the model highlights gaps in explanatory power. Future research should incorporate additional constructs such as organizational culture, leadership orientation, and customer engagement to capture the multidimensional drivers of marketing performance more effectively.