INFLUENCE OF ARTIFICIAL INTELLIGENCE ADOPTION, BIG DATA ANALYTICS, AND MOBILE MARKETING ON MARKETING PERFORMANCE: THE MODERATING ROLE OF DIGITAL TRANSFORMATION READINESS

Abstract

Purpose - Organizations in fast-moving markets are increasingly stressed to reconsider their approach to attracting, engaging and retaining customers. The paper will consider the impact of three discrete digital capabilities, on marketing performance, that are Artificial Intelligence (AI) adoption, Big Data Analytics (BDA) and Mobile Marketing (MM), and whether the intensity of the effects depends on whether an organization is prepared to undergo a digital transformation.  

Design/methodology/approach- The study was based on the Technology Acceptance Model (TAM) and the Resource-Based View (RBV), a cross-sectional quantitative survey was conducted (n=350) among marketing practitioners working in six sectors in Pakistan including fast-moving consumer goods, retail, financial services, healthcare, telecommunications, and e-commerce. The main effects and the moderated interactions of Digital Transformation Readiness (DTR) were tested with the help of the Partial Least Squares Structural Equation Modelling (PLS-SEM).

Results - The three digital capabilities have great positive impacts on marketing performance. The most significant individual predictor (β) is AI adoption (0.412), then BDA (0.387), and MM (0.356). All of these relationships are amplified by DTR, but the most significant incremental gain is in the interaction of AI and DTR (0.219). Cross-industry analysis indicates that digital marketing abilities are most advantageous to e-commerce and financial services companies, but healthcare organizations demonstrate a less significant, yet significant, performance increase.

Limitations/ implications of research - The single country sample and cross-sectional design restrict the generalizability in time and geography. The model should be replicated longitudinally and in various emerging-market environments in future studies to test the boundary conditions.

Practical implications - The results indicate that it is not possible to invest in digital tools only. Companies that simultaneously enhance their organizational preparedness, in the terms of infrastructure, talent and culture, get much more out of AI, analytics and mobile marketing programs.

Originality/value - The research is one of the first to establish DTR as a moderator, not a mediator in the digital marketing-performance chain, providing a more detailed description of when and to whom digital capabilities pay off. The six-industry design of comparison provides the contextual richness so uncommon to single-sector-based studies.