1*Mohammed Dauda, Ph.D.
&
2Musa Garba Gulani, Ph.D.
1Department of Marketing, University of Maiduguri
2Department of Accounting, University of Maiduguri
*For correspondence, email: mduda@unimaid.edu.ng
Abstract
This study examines the impact of digital marketing and artificial intelligence (AI) on the performance of small and medium-sized enterprises (SMEs) in Nigeria. Using data from 379 SMEs, the study employs crosstab analysis, descriptive statistics, and multiple regression modelling to assess the influence of digital marketing and AI on key performance indicators such as customer satisfaction, market effectiveness, and profitability. Findings reveal that 70% of SMEs actively use digital marketing, and its adoption is strongly linked to higher customer satisfaction and improved market effectiveness. Additionally, 52% of SMEs that employ digital marketing also integrate AI, reinforcing its role in enhancing competitive advantage. Regression analysis demonstrates that digital marketing and AI explain 68% of the variation in SME performance (R² = 0.68), underscoring their significant impact on business growth and sustainability. Despite these benefits, SMEs face challenges such as limited financial resources, lack of technical expertise, and concerns over data privacy. The study recommends capacity building, financial incentives, affordable AI solutions, and strategic partnerships to facilitate digital transformation.
Keywords: Digital Marketing, Artificial Intelligence, SME Performance, Customer Satisfaction, Business Growth.
