Influence of Digital Marketing on Sustainable Supply Chain Innovation and Market Performance: Evidence from Saudi Arabia

Abstract

This study investigates the strategic role of digital marketing in fostering sustainable supply chain innovation and improving market performance within the context of Saudi Arabia. Drawing on the Resource-Based View and dynamic capabilities theory, the research conceptualizes digital marketing not solely as a communication mechanism but as a strategic organizational resource capable of reshaping sustainability practices and strengthening competitive advantage. Using survey data collected from 100 respondents and analyzed through Partial Least Squares Structural Equation Modeling, the findings reveal that digital marketing has a positive and significant impact on both sustainable supply chain innovation and market performance. Specifically, digital marketing acts as a catalyst for sustainability-oriented innovation across supply chains while simultaneously contributing to enhanced performance outcomes, including higher sales, greater market share, and successful entry into new markets. These results highlight the dual contribution of digital marketing: aligning firms with environmental and social priorities while supporting superior competitive positioning. The study underscores the importance for managers to view digital marketing as a critical enabler of sustainable competitiveness. It also encourages future research to examine potential boundary conditions, including industry characteristics and levels of technological maturity.