A Study on Adoption of Digital Marketing among Small and Medium Enterprises (SMEs) in Malaysia

This study aims to identify the benefits and factors affecting digital marketing adoption within SMEs in Malaysia. The research will describe the current situation and provide a detailed analysis of the research topic. The study will use a survey through a questionnaire to collect data from SMEs in Malaysia. The data will be analyzed using statistical techniques to identify the factors affecting digital marketing adoption within SMEs in Malaysia. The study will also recommend a digital marketing strategy for improving the productivity of SMEs in Malaysia. The research type is descriptive, and the research approach is deductive. The research philosophy is positivism.

Running head: RESEARCH PROJECT
A Study on Adoption of Digital Marketing among Small and Medium Enterprises (SMEs) in
Malaysia

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Table of Contents
Introduction.................................................................................................................................................3
Nature of your research topic...................................................................................................................3
A brief description of the background/context.........................................................................................3
Research justification..............................................................................................................................3
Research aims and objectives, hypotheses, and questions.......................................................................4
Literature reviews........................................................................................................................................5
Research methodology................................................................................................................................8
Selection of an appropriate research philosophy......................................................................................8
Research approach...................................................................................................................................9
Type of study.........................................................................................................................................10
Research strategy...................................................................................................................................10
Nature of the data..................................................................................................................................11
Sampling strategy..................................................................................................................................12
Techniques............................................................................................................................................13
Data analysis..........................................................................................................................................14
Identification and consideration of any ethical issues............................................................................14
Time plan..................................................................................................................................................15
References.................................................................................................................................................17
Appendix: Survey through questionnaire..................................................................................................21

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Introduction
Nature of your research topic
SMEs are considered as the backbone of Malaysian economy because it generates more job and
ensuring economic stability. The SMEs sector could be viewed as an essential element of
modern industrialized culture. In the globalization era, companies need to make transformation
in their business due to technological atmosphere because it can generate complexities to stay in
competitive market. Consequently, SMEs should incorporate information and communication
technologies as an essential technique to get competitive advantageous and improves the
economy (Musa, et. al., 2016).
A brief description of the background/context
In Malaysia, Small and medium enterprises (SMEs) focuses on digital marketing for improving
their business activities. In addition, digital marketing is a platform used by a Malaysian
company in communication and marketing practices. Previous investigation focuses on
Malaysian companies of southern Asian nation that barely invested in digital marketing. This
research illustrated that digital marketing activities is highly used in commercialization of
product and gaining the sales profit of company but, at the same time, it is challenging task for
SMEs vendors to deal with the competitors. It is also assessed that there is a large number of
SMEs in Malaysia that adopts digital marketing because it is more significant as compared to
brick and mortar marketing (Zainuddin, et. al., 2018).
Research justification
This research is beneficial for an academician to gain the conceptual and theoretical
understanding regarding digital marketing and SMEs. It is also effective for SMEs to increase
the knowledge about the adoption of digital marketing within SMEs in Malaysia. This

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investigation is advantageous for practitioners to increase the understanding regarding factors
affecting digital marketing within SMEs. It is also effective for the researcher to do further
research on this topic. It is beneficial for readers to comprehend the digital marketing strategy for
improving the productivity of SMEs in Malaysia.
Research aims and objectives, hypotheses, and questions
Research Aims
The primary aim of this investigation is to address the benefits of adoption of digital marketing
within SMEs in Malaysia. Another aim of this investigation is to identify factors affecting digital
marketing within SMEs in Malaysia.
Research Objectives
 To explore the conceptual and theoretical understanding regarding digital marketing
 To identify the benefits of adoption of digital marketing within SMEs in Malaysia
 To address the factors affecting digital marketing within SMEs in Malaysia
 To recommend the digital marketing strategy for improving the productivity of SMEs in
Malaysia
Research questions
RQ1: What is the conceptual and theoretical understanding of digital marketing?
RQ2: What are the benefits of adoption of digital marketing within SMEs in Malaysia?
RQ3: What are the factors affecting digital marketing within SMEs in Malaysia?
RQ4: Which digital marketing strategy can be used for improving the productivity of SMEs in
Malaysia?
Research hypotheses
Hypothesis 1:

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H0: There is no significant relationship between digital marketing and SMEs in Malaysia
H1: There is a significant relationship between digital marketing and SMEs in Malaysia
Hypothesis 2:
H0: There is no significant relationship between innovation in technology and SMEs in Malaysia
H2: There is a significant relationship between innovation in technology and SMEs in Malaysia
Literature reviews
General Overview of Digital Marketing and SMEs in Malaysia
According to Ahmad et al. (2015), digital marketing involves all marketing activities that use the
electronic system and the internet. There are different businesses that focus on utilising the
digital modes such as search engines, social media, email and websites for connecting with
existing and potential customers. Digital marketing is defined as the marketing process for
selling the products and services by using digital technologies, mainly through internet. It also
involves the digital advertising, mobile phones, and other digital modes.
In opposed to this, Maduku Mpinganjira and Duh (2016) evaluated that SMEs are independent
and non-subsidiary companies that incorporates not more than the specified amount of
workforces. For manufacturing area, SMEs could be illustrated as a company that has not
exceeding RM50 million of sales turnover and number of permanent workforces who have not
more than 200. In the context of services and other sectors, SMEs could be illustrated as a
company that has not exceeding RM20 million of sales turnover and a number of full-time
workforces are not above of 75.
Theories about Diffusion
According to Shaltoni (2017), there are different phases for technology adoption such as interest,
evaluation, trial, awareness, and adoption. These different stages of technology adoption are key

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investigation to comprehend the adoption stage between nations. It incorporates phases that
permit the SMEs to categories the nation in the adoption of technology.
In opposed to this, Hassan Nadzim and Shiratuddin (2015) illustrated that the situation
motivation scale as a mean to measure the situational intrinsic with extrinsic motivation. It is
stated that the company is currently using digital marketing that served as a feasible scale to
determine motivation. There is also study regarding social media use between practitioners of
public relations for measuring motivation of participants to use Twitter for their jobs.
Digital Marketing Adoption within SMEs
In the view of Musa et al. (2015), there are considerable interest in digital marketing along with
notable research is conducted particularly on adoption procedure with theories of associated
technology adoption. There is a conceptual paper that considers research model such as
Technology Acceptance Model 3 and Hofstede’s cultural dimensions to address the cultural
impact on digital marketing and its effects on purchase behavior.
In contrast to this, Bin Ayob and Ibrahim (2016) stated that unified theory of acceptance along
with, implementation of technology demonstrates the positive relationship between this theory
and credibility. It also shows that there is higher probability to adopt digital marketing in SMEs.
There is also an actor-network theory that could be used by SMEs Malaysia for adopting the
digital marketing network because of its competency to illustrate the acceptance occurrence
within communication procedure of a company as compared to emphasize the individual factors
that can impact on adoption.
Digital marketing adoption factors
As per the view of Teixeira et al. (2017), the end user can major impact on procedure of
technology adoption between SMEs. It is addressed that the training processes in SMEs will

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permit transfer of understanding that is essential for making use of new technique and changing
the behaviour of workers with respect to technological change. Lack and inadequacy of technical
understanding, integration of benefits of e-commerce can create high complexity for SMEs.
In contrast to this, Mazzarol (2015) stated that there is no system that is effective in terms of e-
marketing. There are still certain challenges for SMEs while it comes to language and common
technology concerns such as spamming. Innovation in technology has created complexity in
technology compatibility with other business associated with the environment at the workplace.
As per the view of Olowolayemo et al. (2018), electronic-based marketing and adoption
procedure is highly impacted by higher authority in which, all decision from day to day activity
to future investments are developed by them in small and medium enterprises. In addition, a
small business that adopts IT is more likely to have a CEO who has different competencies with
respect to technology adoption such as knowledge, positive attitude, and innovation.
On the other hand, Kartiwi et al. (2018) stated that SMEs considers the technology as a technique
to beat the competition. While the rivalry initiates to consider technology to stay ahead then
SMEs can make advance changes by using new technology. Along with this, government impact,
policies, as well as initiatives can affect the technology adoption. The fundamental infrastructure
like a high-speed internet link is essential to motivate the technology adoption.
Digital marketing strategy for improving the performance of SMEs in Malaysia
According to Biucky and Harandi (2017), engine marketing should be used by SMEs in
Malaysia as it would aid to improve the productivity of the company. It enables the business to
battle with large corporations by being transparent in search engines. Since, an individual can use
search engines for addressing products at both local and online, hence corporation should use
effective words that are associated with selling the product of SMEs. In addition, top internet

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marketing companies provide such services through search engine optimization. They can ensure
that the site is observable to an individual who is seeking a product when implementing the
search engine.
On the other hand, AlSharji Ahmad and Abu Bakar (2018) stated that location-based marketing
entails the website optimization for search results but also combines the search engine function
of maps. It is specifically true with Google in which, business could be considered into mapping
and identifying the data by enabling the prospective customers what they need to visit the
establishment. Customer services would be available for supporting the individual for deciding if
they are interested in product or services.
As per the view of Shaltoni et al. (2018), social media marketing could be tricky. Each individual
uses social media, but the adoption of social media into business could be difficult for small and
medium size company. In such a way, the company can face difficulty in terms of identifying the
kinds of media implemented and how it is applied. This is relied on type of business. For some
SMEs in Malaysia, being connect with the customers and providing them new offers can be
effective for increasing the sale.
Research methodology
Selection of an appropriate research philosophy
Research philosophy would aid the investigator to enhance their knowledge with respect to
current research concern. An appropriate type of research philosophy would support the
researcher to accumulate valid and reliable data related to research issue. Various types of
research philosophy would be practiced by the research scholar such as interpretivism research
philosophy, realism, and positivism research philosophy (Ahmad, Abu Bakar, and Ahmad,
2019).

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Trustworthy data would be gathered by using realism research philosophy. Furthermore, research
scholar would accumulate reliable data, views, and opinions of research candidates by implying
statistical techniques and tools with respect to research matter. Further, research scholar would
practice positivism philosophy to gather accurate data towards the research dilemma. Positivism
philosophy relies on the development of a hypothesis. Apart from this, non-numerical data about
current research concern would be attained by using interpretivism philosophy (Jaganathan, et al.
2018).
In this research study, the research scholar would execute positivism research philosophy to
achieve theoretical data regarding research matter. It is also found that this research philosophy
would support the research scholar to attain a realistic result of a research study. Due to the
objective nature of the investigation, the researcher would practice positivism research
philosophy. Apart from this, interpretivism and realism research philosophy would not be
practiced by the investigator because this research study has a subjective nature. Moreover, it is
also analyzed that there is need to evaluate collected data as per real-phenomenon hence realism
and interpretivism philosophy would not be appropriate for this research (Kawira, Mukulu, and
Odhiambo, 2019).
Research approach
The research approach is a vital aspect in the research methodology section because it facilitates
the researcher to make a valid conclusion regarding research tools and designs. This section
would support the research scholar to attain trustworthy data with respect to current research
concern. In the context of this, two research approaches are used by the investigator such as
deductive and inductive research approach (Quinton, et. al., 2018).

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In this research study, the deductive approach will be suitable for research scholar as this
research approach would have relevancy with positivism philosophy. This research approach will
be used to develop the hypotheses related to research matter and also, there is no need for
making the concepts. This research approach would facilitate the investigator to perform
investigation efficiently and would also support for achieving valid and reliable research result.
A feasible conclusion with respect to research concern would be pooled by executing this
research approach. In contrast to this, inductive research would not be suitable for this research
dilemma due to the objective nature of this investigation (Saif-Ur-Rehman, 2016).
Type of study
Research type would enable the research scholar to achieve the favorable and valid research
outcome. Research type can be exploratory, descriptive and explanatory research which would
be used by the researcher. The exploratory research method relies on realistic data where
research scholar would make a hypothesis that supports to resolve the issues of research.
Furthermore, explanatory research would facilitate the research scholar to gain depth knowledge
with respect to research concern. Along with this, descriptive research would aid the researcher
to define the causal association between two variables (Valaei, and Rezaei, 2017).
Descriptive research would be chosen by the investigator because this research type would help
to analyze the link between Digital Marketing and Small and Medium Enterprises in Malaysia.
Consequently, this research study would be useful for developing the causes and effects
association between various variables. In addition to this, research scholar would not execute the
exploratory and explanatory research method due to no need to accumulate depth information
towards research concern (Sharifonnasabia, Raj, and Marsukia, 2018).
Research strategy

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Research strategy would assist the research scholar to evaluate research concern by gathering
views and opinions of research participants towards research questions in an appropriate manner.
Research scholar would achieve reliable and valid conclusion by using relevant research
strategy. There are various methods entailed in research strategy such as literature review,
interview method, and survey through questionnaire observation, focused group and case study
(Molinillo and Japutra, 2017).
Survey through questionnaire method would be suitable research strategies for this investigation
as this strategy would support the investigator for addressing the adoption of digital marketing
among Small and Medium Enterprises (SMEs) in Malaysia. Relevant and trustworthy
information about research matter would be pooled by research scholar by utilizing interview
method (Oyebiyi, et. al., 2017). Selection of appropriate research strategy would aid the
investigator to obtain favorable research outcome. It would also allow the researcher to pool data
in the least time and cost. Both research strategies would enable the research scholar to enhance
the research quality. Research scholar can efficiently build an association with research
participants by using these research strategies. It would assist the researcher to get the aim and
objectives of investigation (Lim, Baharudin, and Low, 2016).
Nature of the data
Data collection method would facilitate the researcher to pool appropriate information related to
the research dilemma by using several sources such as primary and secondary sources. In
addition, it is also analyzed that selection of appropriate data gathering method would aid the
research scholar to get trustworthy information related to the research matter (Ramayah, et. al.,
2016).

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Factual data with respect to current research concern is obtained by primary data collection
method. There are several sources that are entailed in primary data gathering method like survey
through questionnaire method, interview method, experimental and focus group. In contrast to
this, secondary data gathering method facilitates the research scholar to capture already
published data towards research concern. Hence, this method would also help to get authentic
information in less time. Several sources are considered in secondary data gathering method that
are authentic articles and journals, newspaper, textbooks, government report, magazines and
various online and offline sources (Hussain, and Raghavan, 2017).
This research study has relied on the adoption of digital marketing among Small and Medium
Enterprises (SMEs) in Malaysia, therefore, both primary and secondary data collection method
would be used by the research scholar. Under this, the primary data gathering method would
enable the researcher to obtain the beliefs and opinions of participants with respect to research
matter. Survey through questionnaire would be used to capture the primary information (Ghani,
et. al., 2018).
Apart from this, theoretical data related to this research study would be achieved by the research
scholar through secondary data collection method. Further, it is also addressed that the researcher
would gather secondary data by various sources such as articles, journals, and various online and
offline resources. Research scholar would utilize the interview method to conduct this
investigation and it would be supported by secondary data. These methods would also assist the
research scholar to meet appropriate research outcome with respect to the adoption of digital
marketing among Small and Medium Enterprises (SMEs) in Malaysia (Hussain, and Raghavan,
2017).
Sampling strategy

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Sampling method would be executed to determine appropriate research participants for
performing the investigation. Two types of sampling methods are used in research that is non-
probability and probability sampling method. It would support the research scholar to choose a
suitable sample size from targeted people (Ramayah, et. al., 2016).
In this research, probability sampling method would be selected by research scholar to perform
their investigation as it would support the researcher to remove the partialities from the
investigation. Under this, the random method would be selected by the investigator to choose
research candidates on a random basis. 50 employees would be chosen from different SMEs in
Malaysia such as Dahmakan food delivery Malaysia and Poladrone aerial company. Under this,
research scholar would utilize email method for informing the employees before conduct survey
because it would make more familiar to the employees with respect to current research concern.
A researcher would also provide necessary guidelines to conduct the survey method more
efficiently (Musa, et. al., 2016).
Techniques
In the research methodology section, research design would support to gather accurate data with
respect to research matter. Different types of research design are used in the research study such
as quantitative, qualitative and mixed research design (Zainuddin, et. al., 2018).
Mixed research design would be utilized by the research scholar for this investigation to gather
reliable data towards the research dilemma. Mix research design would be chosen as it
incorporates the features of both research design i.e. qualitative and quantitative research designs
(Ahmad, et. al., 2015). Investigator would enhance their conceptual and theoretical knowledge
related to the research issue by using qualitative research design such as literature review. Apart

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from this, numeric data related to the research concern would be gathered by using quantitative
research design such as survey through a questionnaire (Ramayah, et. al., 2016).
Data analysis
Data analysis is a prominent method in the research methodology as it would facilitate the
research scholar to assess the information by using techniques of data analysis. The researcher
would analyze collected information through several methods of data analysis that are
conversational assessment, statistical and content evaluation. These data analysis tool supports
the investigator to evaluate facts and figures towards research matter the hence valid result of
research is obtained (Bin, Ayob, and Ibrahim, 2016).
The researcher would execute statistical data analysis method for assessing the gathered
information. Statistical data analysis tool such as correlation, regression, and descriptive statistics
would be used by the investigator to attain the valid result of a research study. Along with this,
research scholar would utilize MS-excel to convert the coding information into comprehensive
manner. It would aid the researcher to gain understanding with respect to current research
concern due to the presentation of data through different charts and tables such as bar charts, pie
charts and column diagram (Biucky and Harandi, 2017).
Identification and consideration of any ethical issues
Research scholar would practice university rules and regulation for performing the investigation
ethically. It would also assist to attain the valid and trustworthy outcome of research. Research
scholar would offer citation in the research study to conduct the investigation in an efficient
manner. Apart from this, it is also evaluated that investigator would use their own words to
define the analyzed data of the research dilemma (Mazzarol, 2015).

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In addition to this, it is also found that grant permission from research participants before
conducting the survey is necessary because it would help to attain feasible research result. It
would also be useful for achieving an appropriate and trustworthy conclusion. Ethical act 2000
would be utilized by the research scholar because it will support to obtain personal information
of research participant with respect to the current research concern (Teixeira, et. al., 2017).
Research scholar would make a positive relationship with research participants for a long
duration by securing their personal information. In the context of this, it is also evaluated that
various factors are considered in the research which are plagiarism, copyright act violation, and
data manipulation. Along with this, it is also examined that research scholar would provide
relevant sources of information for modifying the ethical problems from research study
(Shaltoni, 2017).
Time plan
An effective investigation can take more time for accomplishing all tasks in a feasible manner. It
also helps in accomplishing a reliable outcome. Under this investigation, the following time
schedule will be used to complete the specified activities:
Area of Work/Weeks 1 2 3 4 5 6 7 8 9
Identification of research issues
Feedback of manager
Research Background
Literature review
Data collection through primary and
secondary methods
Report writing

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Proof-reading the report
Final submission of report
This time plan would be advantageous for researcher to complete the research in targeted time
period. By utilizing the time plan, researcher would competent for accomplishing each activity in
a specified duration. The above chart demonstrated that gather data via primary and secondary
sources will take more time as compared to other activities that will be performed during this
investigation (Musa, et. al., 2015).

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Appendix: Survey through questionnaire
Demographic-based question
Please specify your gender
Male
Female
Please mention your age-group
21-25 years
26-30 years
31-35 years
35 years and above
Please specify your experience in this industry
Less than 1 year
1-5
6-10
More than 10 years
Objective based questions
Do you agree that digital marketing involves all marketing activities that use electronic
system and internet?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree

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Do you agree that small and medium-sized enterprises (SMEs) are non-subsidiary and
independent companies that employ less than a given amount of employees?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Do you believe that end user has a major impact on technology adoption procedure
between SMEs?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Do you agree that SMEs considers the technology as a technique to stay in the competition?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Digital marketing strategy for improving the performance of SMEs in Malaysia
Do you agree that engine marketing should be used by SMEs in Malaysia as it would aid to
improve the productivity of the company?

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Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Do you believe that location-based marketing entails the website optimization for search
results?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
Do you agree that social media marketing could be used to improve the performance of
SMEs in Malaysia?
Strongly agree
Agree
Neutral
Disagree
Strongly disagree