Knowledge and Utilization of Digital Marketing and Business Performance of Micro, Small, and Medium Enterprises (MSMEs)

Abstract

This study examined the significant relationship between knowledge and utilization of digital marketing and the business performance of micro, small, and medium enterprises (MSMEs) in Bacolod City, Negros Occidental. A total of 387 MSME owners and managers participated in the research. Employing a descriptive-correlational research design, data were collected through a structured questionnaire that assessed participants’ knowledge and utilization of email marketing, social media marketing, and website marketing, as well as their business performance in both financial and non-financial aspects. Findings revealed that MSMEs generally demonstrated a moderate level of knowledge and utilization of digital marketing, with social media marketing being the most commonly used platform. Significant differences in knowledge and utilization were observed when grouped by age, educational attainment, and business size. The results also indicated a positive and significant relationship between the extent of digital marketing utilization and business performance, suggesting that increased use of digital marketing contributes to improved financial and non-financial outcomes. However, barriers such as knowledge gaps and limited resources were identified as challenges to effective digital marketing adoption among MSMEs. The study concludes that targeted interventions and training programs are necessary to address these gaps, enhance MSMEs’ digital marketing capabilities, and ultimately improve their business performance and competitiveness in the digital economy.