Digital Marketing Capabilities and SME Performance in Oman's Logistics Industry: The Mediating Role of Crowdsourcing and Open Innovation

Abstract

This study examines the impact of digital marketing capabilities on the business performance of small and medium-sized enterprises (SMEs) in Oman’s logistics industry, with a specific focus on the mediating roles of crowdsourcing and open innovation. A quantitative research approach was used, involving data collection from 400 top management personnel through structured questionnaires. The responses were analyzed using Smart-PLS and structural equation modelling techniques. The results reveal that online community engagement has a significant positive impact on business performance while crowdsourcing and open innovation also contribute meaningfully to performance enhancement. Although digital marketing capability alone does not directly influence performance, it plays an enabling role by strengthening online community engagement. Mediation analysis confirms that online community engagement indirectly improves business performance through the mediating effects of crowdsourcing and open innovation. The study concludes that active online engagement and collaborative innovation are critical drivers of SME success in Oman’s logistics sector. Practically, SMEs should prioritize building online communities and leveraging crowdsourcing over relying solely on digital marketing tools. Policymakers are encouraged to support these efforts by fostering digital infrastructure and innovation ecosystems.