Current Issues in Tourism

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Investigating digital marketing readiness among

tourism firms: an emerging economy perspective

Yabibal A. Abate, Dandison C. Ukpabi & Heikki Karjaluoto

To cite this article: Yabibal A. Abate, Dandison C. Ukpabi & Heikki Karjaluoto (29 May 2024):
Investigating digital marketing readiness among tourism firms: an emerging economy
perspective, Current Issues in Tourism, DOI: 10.1080/13683500.2024.2358047

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CURRENT ISSUES IN TOURISM
https://doi.org/10.1080/13683500.2024.2358047

RESEARCH ARTICLE

Investigating digital marketing readiness among tourism firms:

an emerging economy perspective
Yabibal A. Abatea, Dandison C. Ukpabia and Heikki Karjaluotob
a
Department of Marketing, University of Jyväskylä, Jyväskylä, Finland; bFaculty of Information Technology,
University of Jyväskylä, Jyväskylä, Finland

ABSTRACT ARTICLE HISTORY

The study aimed at investigating the readiness of firms in the tourism Received 22 December 2022
industry to adopt digital marketing as a marketing strategy – from Accepted 15 May 2024
an emerging economy perspective. The technology–organisation–
KEYWORDS
environment framework and technology acceptance model were used to Digital marketing; perceived
identify potential determinants of firms’ intention to adopt digital usefulness; perceived ease of
marketing. Data was collected from a sample of 191 tour and travel use; intention to adopt;
agencies using standardised questionnaire. Of the technological, tourism industry; emerging
organisational, and environmental factors, convenience, managerial economies
commitment, government regulation, and customer pressure were found
to be significant determinants of perceived usefulness and perceived
ease of use of digital marketing. Both the mediating variables (perceived
usefulness and perceived ease of use) were found significant in affecting
firms’ intention to adopt digital marketing as a marketing strategy.
Leader digital skill was not found to be a significant moderator on the
effect of perceived usefulness and perceived ease of use on intention to
adopt digital marketing. Devising conducive policies and regulations,
strategic consideration of customer feedback, and creating awareness
about the technology are essential for tourism firms and key stakeholders
of the sector to capitalise on the advantages of digital marketing.

1. Introduction
Digital marketing is one crucial part of marketing that relies on the internet and digital devices
including computers, mobile phones, and platforms, for the promotion of goods/services (Ritz
et al., 2019; Smith, 2012). It has brought a paradigm shift in the marketing strategies and activities
of all types of firms, in every industry (Ali & Xia, 2022; Hofacker et al., 2020). Similarly, it has trans­
formed the marketing activities of the tourism industry worldwide (Alves et al., 2020; Gupta, 2019;
Mathew & Soliman, 2021). It not only enhances the marketing and financial performance of firms
in the tourism industry but also brings increased engagement, customised services, and wellbeing
protection in crisis times (like the COVID – 19 era) for travelers (Akhtar et al., 2021; Ketter &
Avraham, 2021; Taiminen & Karjaluoto, 2015).
Since the tourism sector is information intensive, the performance of any firm engaged in the
industry heavily depends on its ability to gather and communicate this information with its stake­
holders effectively and efficiently and hence the sector is said to be highly receptive of the
benefits of digital technologies (Sharma et al., 2020). On the other hand, tourism firms that lag in

CONTACT Yabibal A. Abate [email protected]

© 2024 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group
This is an Open Access article distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/),
which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. The terms on which this
article has been published allow the posting of the Accepted Manuscript in a repository by the author(s) or with their consent.
2 Y. A. ABATE ET AL.

digitalising their marketing activities harm their reach and visibility, targeting and personalisation,
customer engagement, ability to leverage on data-driven insights, and the opportunities of cost-
minimized marketing activities (Gupta, 2019; Ritz et al., 2019; Sharma et al., 2020), which intern
has a detrimental impact on overall competitiveness.
Digital marketing capabilities are still underutilised, especially in emerging economies (Ali & Xia,
2022; Ansong & Boateng, 2019; Mkwizu, 2019; Sharma et al., 2020). Emerging economies like Ethiopia
fall short of taking advantage of digital marketing to the tourism industry partly because of
inadequate skilled workforce, regulatory pitfalls, and lack of necessary physical resources (Deb
et al., 2022; Pandey et al., 2020; Sharma et al., 2020). Ethiopia’s tourism industry possesses a
strong potential for development. For instance, the country is endowed with nine UNESCO regis­
tered world heritages (more than any other African country and one of the leading in the world).
However, the country has not yet fully utilised the potential of the industry, primarily because of
inadequate marketing of its destination brands (Asmare, 2016; Asmelash & Kumar, 2019).
While some researchers (e.g. Busca & Bertrandias, 2020; Herhausen et al., 2020) have offered evi­
dence on the adoption and use of digital, social media, and mobile marketing at firm level, extant
literature is merely focused on individual-level investigations (Sharma et al., 2020), with a limited
firm level examination of the adoption and use of digital marketing technologies. In addition,
although digital marketing has been a common research agenda in advanced economies, research
dealing with developing economies is scarce (Pham, 2021). Moreover, extant research concentrated
on employing a singular theoretical framework to examine the adoption and use of digital technol­
ogies at the firm level, thereby falling short in establishing a comprehensive understanding of the
underlying factors involved. Following the suggestions of Chatterjee et al. (2021), Chatterjee et al.
(2020), Cho et al. (2022), Katebi et al. (2022), the study combined the technology–organisational–
environmental (TOE) framework and technology acceptance model (TAM), for a comprehensive
understanding of determinants of firms’ intention to adopt digital marketing. While TOE framework
enables to uncover antecedents related to attributes of the technology, organisational capabilities,
and environmental pressure (Abed, 2020; Chatterjee et al., 2021), the variables of TAM, perceived
usefulness (PU) and perceived ease of use (PEOU) explains individual perceptions and attitudes
towards a particular technology (Chatterjee et al., 2020; Chatterjee et al., 2021; Gangwar et al.,
2015). Merging these two theories allows to examine both macro-level (organisational) and micro-
level (individual) factors that shape the adoption of digital marketing at firm level.
The purpose of this study is, therefore, to identify determinants of intention to adopt digital mar­
keting by firms in the tourism industry from an emerging economy perspective, with a special refer­
ence to Ethiopia, by combining the TOE framework and TAM. The study shows the complimentary
role of TOE framework (organisational level theory) and TAM (individual level model) for a compre­
hensive investigation of the antecedents of technology adoption among firms in the tourism indus­
try and beyond. Moreover, the study also brings the perspective of emerging economies while much
of extant literature is concentrated on the case of advanced economies.

2. Literature review
2.1. Digital marketing
Digital marketing is the use of digital technologies to create, integrate, target, and communicate
with actual and potential customers in the process of acquiring and retaining them (Sharma et al.,
2020; Taiminen & Karjaluoto, 2015). Similarly, Ritz et al. (2019) described digital marketing as a
branch of marketing that relies on modern/digital channels for product placement and branding
activities. Digital marketing as a marketing strategy has revolutionised the way firms promote
their products and communicate with their customers (Hofacker et al., 2020; Sharma et al., 2020).
Although digital marketing positively impacts the performance of firms in every industry, its
potential to transform the tourism industry is far important from both marketers and consumers
 CURRENT ISSUES IN TOURISM 3

perspective (Alves et al., 2020; Appel et al., 2020; Gupta, 2019; Mathew & Soliman, 2021). Digital mar­
keting helps marketers in the tourism industry to increase their visibility and reach, improve custo­
mer engagement, enable targeted advertisements, enhance customer experience (through real –
time communication and simplified booking and reservations), and easily measure results, among
other benefits (Alves et al., 2020; Mathew & Soliman, 2021; Sharma et al., 2020). Digital marketing
is relatively more important to the tourism industry of emerging economies such as Ethiopia,
where resources are scarce, as it is more efficient compared with traditional marketing (Ketter &
Avraham, 2021).

2.2. TOE framework

TOE is an organisational level theory elucidating the three (technological, organisational, and
environmental) contextual factors influencing firms’ decision to adopt a given technology (Cho
et al., 2022; Tornatzky & Fleischer, 1990). Technological context explains the characteristics of the
technology itself, such as complexity, security, relative advantage, convenience, trialability and
observability, among others (Hooks et al., 2022). Organisational context defines factors affecting
firms’ intention to/ actually adopt/use a particular technology and are related to factors such as
resource availability, top management support, employees’ knowledge, among others (Pan et al.,
2022; Venkatesh, 2022). Finally, the environmental context is related to the surrounding arena in
which the business operation takes place incorporating determinant factors such as industry struc­
ture and competition, legal and regulatory frameworks, and customer pressure (Cho et al., 2022).
Prior studies used TOE framework to investigate the adoption of different technologies such as
cloud computing adoption (e.g. Gangwar et al., 2015), AI (Cho et al., 2022), and enterprise resource
planning (Awa et al., 2016) among others. Researchers in the field of technology adoption use
various combinations of these factors that suits the context of the case technology and country.

2.3. TAM
TAM postulates that PU and PEOU strongly predict the intention to adopt a given technological inno­
vation (Davis, 1995). PU examines how much an individual perceives that a system contributes to
improving individual and overall company performance by reducing the complexity of specific
tasks (Daragmeh et al., 2021). Whereas PEOU refers to the extent to which an individual believes
that using digital technology will be easy/effortless (Cho et al., 2022).
Variables of TAM (both in the original or its later visions), mainly PU and PEOU, serve as mediators
for the adoption/use of digital technologies (Cho et al., 2022). The findings of Hansen et al. (2018),
Gangwar et al. (2015), and Katebi et al. (2022), show that the two prominent TAM variables mediate
the effect of external variables (antecedents) on intention to adopt a given technology.

2.4. Hypothesis development

2.4.1. Technological factors
Convenience can be defined as any feature of the technology influencing the amount of time and
effort a user spends in availing a service (Kasilingam & Krishna, 2022). It is when a technological inno­
vation becomes relatively simple to operate and creates comfort for its users (Jiang et al., 2013). From
a digital marketing perspective, convenience can be described as characteristic of the technology
that makes it require relatively less cost, effort, and time to its marketers and other users. Infancy
of digital marketing adoption in the tourism industry of emerging economies makes convenience
relatively an important factor because the more consumers are used to a technology the more
they feel convenient, which enhances the adoption rate further and vice versa (Boden et al., 2020).
Shankar and Rishi (2020) discovered that subdimensions of convenience (access, transaction, and
possession convenience) determine intention to adopt mobile banking. Chekembayeva et al. (2023)
4 Y. A. ABATE ET AL.

have found that time convenience influences behavioural intention to adopt AR mobile retailing
applications through the mediation of attitude. Handarkho and Harjoseputro (2020) found that per­
ceived convenience has a positive direct effect on intention to adopt a technology. Digital marketing
capabilities bring convenience to tourism firms in various ways such as, facilitated online booking,
targeted advertising, personalised recommendations, real-time updates on travel alerts, facilitated
feedback and review, and virtual travel experience (Alves et al., 2020; Hu & Olivieri, 2021; Mathew
& Soliman, 2021). Moreover, Chen and Tsai (2019), Al-Adwan (2020), and Sakshi et al. (2020) also dis­
covered that convenience affects adoption intention through the mediation of PU and PUOE. There­
fore, the following hypotheses are drawn.
H1a: Convenience has a positive significant effect on PU.

H1b: Convenience has a positive significant effect on PEOU.

Security concern refers to the cyber safety of data and information in digital marketing platforms
regarding authentication, confidentiality, non-refusal, and data integrity during transactions made
in the system (Türker et al., 2022). Digital marketing capabilities include online reservation and
payment systems posing significant cyber risk. Moreover, when it comes to the security issues of
a technology, advanced economies like EU countries possess stricter regulations for data protection
and privacy including the European Union General Data Protection Regulation (GDPR) (Dwivedi
et al., 2021). In developing economies, however, there is a huge regulatory loophole to insure the
protection and safety of users’ data (Mishra et al., 2022).
Utilising the TOE framework, Abed (2020) found that security concern negativity affects behav­
ioural intention to adopt social commerce. Similarly, Chau et al. (2020) also unveiled the significant
role of security concern on intention to adopt mobile commerce. Mangiò et al. (2020) further con­
sidered security concern as a facilitating condition in their investigation of the adoption of
privacy-enhancing technologies, using UTAUT2. Studies including Park and Jones-Jang (2022),
Türker et al. (2022), Chatterjee et al. (2020), and Chawla and Joshi (2019) have found strong negative
effect of security concern on PU, and PEOU intention to adopt a technology.
H2a: Security concern has a negative effect on PU.

H2b: Security concern has a negative effect on PEOU.

2.4.2. Organisational factors on PU and PEOU

In the context of our study, managerial commitment (top management support) is defined as the
degree to which high level management of tourism firms is involved, serves as a change agent,
and determined to the adoption and full implementation of digital marketing (Lorente-Martínez
et al., 2020; Wang et al., 2010). Support and commitment of people at the top of the organisational
chain of command is vital for a realisation of any technological change. Top management plays an
invaluable role in backing employees, assisting them, proactively solving associated problems, creat­
ing a collaborative environment during the implementation process, and establishing a clear line of
coordination to effectively implement and sustain the technology (Hsu et al., 2018; Wang et al.,
2019).
Studies that are based on the TOE framework, such as, Deng et al. (2020), Khayer et al. (2020), Lu
et al. (2021), and Pizam et al. (2022), have found that top management commitment has a positive
significant effect on the adoption of a technology. Hancerliogullari Koksalmis and Damar (2022),
Kamble et al. (2021), and Tasnim et al. (2023), have also discovered that managerial commitment sig­
nificantly affects PU and PEOU. Based on this notion, we hypothesise as follows:
H3a: Managerial commitment has a positive effect on PU.

H3b: Managerial commitment has a positive effect on PEOU.

 CURRENT ISSUES IN TOURISM 5

Resource availability, also known as organisational readiness or infrastructure availability, is operatio­

nalised as the availability of adequate resources for the firm to adopt and implement a technology
(Clohessy & Acton, 2019; Wang et al., 2010). These resources are sub categorised as human resource
(which indicates the availability of equipped staff with the necessary skills and ability to understand
and work with digital marketing tools) (Wang et al., 2010), financial resources which indicates the
accessibility of sufficient financial capital to be allotted for the acquisition of digital marketing
devices and tools (Clohessy & Acton, 2019), and finally the availability of physical infrastructure
which measures whether the existing infrastructure is suitable to adopt and implement digital mar­
keting (Wang et al., 2019). When an organisation possesses those resources the likelihood of adopt­
ing a new technology is presumably high. Although resource scarcity is a universal phenomenon, it is
more acute when it comes to firms from emerging economies. Prior studies including Dubey and
Sahu (2022), Hsu et al. (2018), and Wang et al. (2010) have found a strong positive relationship
between resource availability and intention to adopt a technological innovation. Wang et al.
(2022) found that resource availability influences adoption intention through behavioural control
variables.
H4a: Resource availability has a positive effect on PU.

H4b: Resource availability has a positive effect on PEOU.

2.4.3. Environmental factors on PU and PEOU

Government regulations include policies, rules, and standards that facilitate or hinder the adoption
of a given technology (Alfaro-Serrano et al., 2021). The role of the policies and regulations that local
governments make in terms of adopting a new technology is crucial (Lian et al., 2014). Regulatory
frameworks have the power to encourage or discourage organisations to adopt a new technological
innovation (Ali & Osmanaj, 2020). In the context of digital marketing, the more regulated digital and
social media platforms, the more adopters will feel safe and will be ready to adopt the technology.
The absence of favourable regulatory framework for technological innovations has been identified as
a key determinant of the widespread adoption of these technologies in emerging economies (Erol
et al., 2022). Recent studies have confirmed the positive significant impact of government regu­
lations on adoption of a technology include Bag et al. (2022), Maroufkhani et al. (2020), and
Mujahed et al. (2022).
H5a: Government regulation has a positive effect on PU.

H5b: Government regulation has a positive effect on PEOU.

Customers’, and competitors’ pressure, collectively known as stakeholder pressure, refers to the
degree to which a company feels pressurised by its competitors in the industry and customers to
use a particular technology (Alam et al., 2022). Alternatively, it can also be defined as the external
influence to adopt a given technological innovation for the sake of gaining competitive advantage
over competitors (Katebi et al., 2022). Pressure from customers and competitors is expected to be
strong in affecting firms’ decision to adopt digital marketing since the sub-tools of digital marketing
such as e-payment system and web analytics are only operational when such stakeholders are inte­
grated with (Ponzoa & Erdmann, 2021). Rodríguez-Espíndola et al. (2022) argue that firms observe
and imitate the benchmarked competitors and partners to take advantage of the potential
benefits of a new technological innovation. Another reason is that companies tend to accept a
new technology because they believe that their competitors and clients expect them to do so
(Abed, 2020). Prior studies (Abed, 2020; Katebi et al., 2022; Rodríguez-Espíndola et al., 2022) found
a positive relationship between competitive pressure and PU and PEOU.
H6a: Customer pressure has a positive effect on PU.

H6b: Customer pressure has a positive effect on PEOU.

6 Y. A. ABATE ET AL.

H7a: Competitors’ pressure has a positive effect on PU.

H7b: Competitors’ pressure has a positive effect on PEOU.

2.4.4. PU and PEOU as mediators

The mediating role of PU and PEOU on the relationship between external variables and technology
adoption is long established in the original TAM and its later versions (e.g. TMA2 and TAM3) (Ven­
katesh & Bala, 2008). Lai (2016) also proposed the Stimulus Theoretical Framework where PU and
PEOU serve as mediators on the relationship between design and security stimulus (technology
characteristics) and intention to adopt the technology. Recent studies that discovered the significant
positive mediating role of PU and PEOU on the relationship between extraneous variables and adop­
tion of a technology include Huarng et al. (2022), Park and Jones-Jang (2022), and Rafdinal
and Senalasari (2021).
In addition, PEOU also incorporates concepts such as perception on external control, self-efficacy,
enjoyment, anxiety, and playfulness (Chatterjee et al., 2021). Therefore, besides the synergistic effect
of both variables on firms’ decision to adopt a technological innovation, PEOU also affects PU (Chat­
terjee et al., 2021; Daragmeh et al., 2021), hence, we hypothesise as follows.
H8: PEOU has a positive effect on PU.

H9: PU has a positive effect on intention to adopt digital marketing.

H10: PEOU has a positive effect on intention to adopt digital marketing.

2.4.5. Leader digital skill as a moderator

Lack of adequate digital skill hinders the ability to adopt and harness the benefits of digital technol­
ogies (Yu et al., 2017; Van Laar et al., 2017). We conceptualise digital skill as set of abilities on how to
use digital marketing tools and systems in daily business activities. Digital skill, especially possessed
by those assuming higher organisational positions (Brock & Von Wangenheim, 2019; Royle & Laing,
2014), has been found a significant determinant of decision to use/adopt a given innovation.
Consideration of LDS becomes more relevant to our context as the divide between developed
and emerging economies in terms of digital skill is wider than the divide in physical access to tech­
nology (Yu et al., 2017). With a significant digital skill gap, it is always difficult to be a digital leader
and build a firm that is digitally enabled as Magesa and Jonathan (2022) stated. In our context, fol­
lowing the findings of Van Laar et al. (2017), LDS is hypothesised to moderate the effect of PU and
PEOU on intention to adopt digital marketing. Following similar approach, Borah et al. (2022) have
discovered that LDS (digital leadership) significantly moderates the effect of social media usage on
innovation capability and sustainable performance.
H11a: LDS positively moderates the relationship between PU and intention to adopt digital marketing.

H11b: LDS positively moderates the relationship between PEOU and intention to adopt digital marketing.

As depicted in Figure 1, we controlled the model for gender, age, and positional role of the
respondents.

3. Methodology
3.1. Measurement
A questionnaire-based survey was used to collect the data. All the items were adopted from prior
studies (Table 2) and validated by digital marketing experts. Of the technological factors, conven­
ience was measured using three items adopted from Shankar and Rishi (2020) and Jiang et al.
(2013), whereas security concern was measured using five items derived from Molla and Licker
 CURRENT ISSUES IN TOURISM 7

Figure 1. Proposed conceptual framework.

(2005) and Abed (2020). Likewise, organisational factors i.e. managerial commitment and resource
availability were measured using four and five items, respectively, taken from Khayer et al. (2020),
Wang et al. (2019). The remaining three environmental variables i.e. government regulation, custo­
mer pressure and competitive pressure were measured using three, four and three items respectively
(Ali & Xia, 2022; Lin & Lin, 2008).
PU and PEOU were measured using three and four items respectively and all adopted from Dar­
agmeh et al. (2021). Finally, intention to adopt digital marketing was measured using three items
obtained from Mathew and Soliman (2021). Items were developed using a five-point Likert scale,
1 representing strongly disagree and 5 representing strongly agree. LDS was measured by request­
ing tour and travel managers and marketing officers to evaluate their skills in terms of their abilities
to fully understand, operate, and teach to their staff members about the digital marketing activities
and solutions (Royle & Laing, 2014).

3.2. Data collection strategy

Data was collected from 191 tour and travel agencies licensed by ministry of tourism of Ethiopia and
are members of the Ethiopian Tour Operators Associations (ETOA) cross sectionally. Either top and
middle level managers or alternatively marketing officers were purposefully targeted in our
survey. This was done to assure that the respondents have a better understanding on the
concept of digital marketing and are aware of the firm’s existing and future marketing strategies.
Data was collected using both online and paper and pencil approaches. Email address was obtained
from the ETOA for the 378 tour and travel member agencies to which the questionnaire was later
distributed electronically. For the remaining 168 agencies, the questionnaire was handed later col­
lected face to face. From the 464 Tour and Travel operators targeted, 191 usable questionnaires were
returned yielding a 41% response rate. Respondents were asked to return the questionnaire within
twenty days.
Since the study depended on data obtained from respondents using a structured questionnaire,
we suspect of chances of biased responses. To avoid common method bias, respondents were
8 Y. A. ABATE ET AL.

provided with an assurance that confidentiality of responses will be strictly followed. Common
method bias can also be statistically assured using variance inflation factor (VIF) values. Kock
(2015) suggested that the occurrence of VIF greater than 3.3 is indication of multicollinearity and
common method bias problems in the model. Since the VIF values of our latent variables are
below the 3.3 threshold, inexistence of both common method bias and multicollinearity issues
were confirmed.

4. Analysis results and interpretations

4.1. Demographic information
More than 68% of the respondents had either a bachelor’s or master’s degree which assures that the
participants are educated enough to understand digital marketing and other concepts of the study.
Most of the participants (83%) have also worked within the industry for more than a year which
makes them relevant to the study as they are likely to have a better understanding about the indus­
try. Majority (76%) of the respondents were less than 40 years old. As stated earlier, we included only
managers and marketing officers of tour and travel agencies in Ethiopia. Table 1 presents a summary
of demographic characteristics of our respondents.

4.2. Measurement model

Partial least square structural equation modelling (PLS-SEM) was applied for testing the hypotheses
using smartPLS-3. In assessing the reliability of the constructs, Cronbach’s alpha composite reliability
(Hair et al., 2017) were used and all the values were well above the 0.70 threshold with values
ranging from 0.8271 to 0.9714 (Table 2).
Validity can be maintained through several techniques. In our case, all the items were adopted
from prior research. Once modified to fit with the concept of digital marketing in the tourism
sector, developed questionnaire was submitted for marketing experts (working in the tourism
sector) to check our questionnaire for face validity. Moreover, statistical techniques were also
used to assure convergence and discriminant validities. Items under a given latent variable must
truly converge (come together) to explain the variable that they represent. This can be assured
using two test statistics i.e. using factor loading or the Average Variance Extracted (AVE).
Minimum criteria for both statistical approaches (>0.7 and >0.6 respectively) was met (Hair et al.,
2017) as shown in Tables 2 and 3, respectively.
Discriminant validity was checked using Fornell & Larcker’s criterion which states that the square
root of the AVE value of each latent variable must be above the correlation coefficient of the variable

Table 1. Description of demographic data (n = 191).

Variable Category N %
Gender Male 137 72%
Female 54 28%
Level of education Diploma holder 61 32%
Bachelor’s degree holder 105 55%
> Bachelor’s holder 25 13%
Age < 21 years old 21 11%
21–30 years old 47 25%
31–40 years old 76 40%
> 40 years old 47 25%
Year of experience in the tourism industry < a year 7 17%
Between 1 and 3 years 34 46%
> 3 years 150 37%
Position Manager 102 53%
Marketing officer 89 47%
 CURRENT ISSUES IN TOURISM 9

Table 2. Summary of items, descriptive statistics, and reliability test results (n = 191).
Item Rho- Cronbach’s
Factor (Item Source) code Item Mean S.d Loading CR A Alpha
Convenience (Jiang CON1 Digital marketing helps us to 4.031 0.870 0.886 0.940 0.905 0.904
et al., 2013; Shankar provide our travel and tourism
& Rishi, 2020) services at any time.
CON2 I can offer travel and tourism 4.136 0.913 0.943
services at any place via
digital marketing.
CON3 Using digital marketing will 4.037 0.861 0.919
improve the convenience of
our tour and travel services.
Security concern SEC1 Use of digital marketing is 3.304 1.219 0.94 0.970 0.978 0.963
(Abed, 2020; Molla & trustworthy.
Licker, 2005) SEC2 Use of digital marketing 3.330 1.170 0.965
provides enough security
during information exchange.
SEC3 Digital marketing maintains the 3.440 1.267 0.927
privacy of the organisation.
SEC4 Digital marketing provides 3.419 1.211 0.946
enough data confidentiality.
SEC5 Security concerns are not issues 3.314 1.221 0.85
in using digital marketing.
Managerial MGC1 Management is willing to take 3.921 0.814 0.874 0.930 0.899 0.899
commitment the risks associated with
(Khayer et al., 2020) adopting digital marketing.
MGC2 Management is seriously 4.079 0.911 0.902
considering the adoption of
digital marketing.
MGC3 The management understands 3.984 0.837 0.875
the benefits of using digital
marketing.
MGC4 Management is willing to 4.079 0.787 0.854
provide the necessary
resources in using digital
marketing.
Resource availability RES1 Our organisation has the 3.775 0.898 0.822 0.924 0.901 0.898
(Wang et al., 2019) financial resources to adopt
digital marketing.
RES2 Our organisation has the 4.047 0.823 0.814
technical readiness to adopt
digital marketing.
RES3 We have high connectivity to 3.937 1.009 0.822
the internet.
RES4 Most of our employees have 4.068 0.929 0.869
unrestricted access to
computer.
RES5 Most of our employees are 4.005 0.954 0.884
computer literate.
Government GOV1 Government effectively 3.864 0.803 0.89 0.930 0.888 0.887
regulations (Ali & promotes the use of digital
Xia, 2022) marketing.
GOV2 Data protection is well 3.942 0.872 0.904
regulated by the government.
GOV3 Government regulations create 3.885 0.922 0.916
a conducive environment to
adopt digital marketing.
Customer pressure CUS1 Most of our customers and 3.880 0.877 0.87 0.929 0.886 0.885
(Lin & Lin, 2008) clients use digital marketing
platforms.
CUS2 Most of our trading partners 3.906 0.859 0.917
recommended us to use
digital marketing.
CUS3 3.895 0.820 0.918

(Continued )
10 Y. A. ABATE ET AL.

Table 2. Continued.
Item Rho- Cronbach’s
Factor (Item Source) code Item Mean S.d Loading CR A Alpha
Our customers are generally
knowledgeable about digital
marketing.
Competitors pressure COM1 Most of our competitors have 3.990 0.775 0.9 0.910 0.856 0.852
(Lin & Lin, 2008) already adopted or at least
seriously considering
adopting digital marketing.
COM2 Most of our competitors use 3.958 0.813 0.882
digital marketing as a
competitive dimension.
COM3 I fear that unless we adopt 3.958 0.839 0.853
digital marketing, our sales
and market share will
decrease.
PU (Daragmeh et al., PU1 I believe using digital marketing 4.000 0.754 0.937 0.965 0.952 0.951
2021) increases the performance of
our organisation.
PU2 I can achieve things in a quicker 4.058 0.789 0.918
way using digital marketing
practices.
PU3 Digital marketing helps achieve 4.031 0.787 0.889
our tasks in a cheaper way.
PEOU (Daragmeh PEOU1 The process of using digital 4.031 0.787 0.912 0.939 0.905 0.903
et al., 2021) marketing is easy to
understand.
PEOU2 It is easy for an organisation to 4.031 0.794 0.926
adopt and use digital
marketing practices.
PEOU3 I will be able to understand and 4.031 0.774 0.959
perform digital marketing
activities easily.
PEOU4 I am sure that all the responsible 4.037 0.757 0.949
employees can easily
understand and perform
digital marketing activities.
Intention to adopt DMA1 We intend to use digital 4.026 0.721 0.925 0.944 0.914 0.911
digital marketing marketing in the future.
(Mathew & Soliman, DMA2 We predict that our business 4.094 0.762 0.937
2021) will adopt digital marketing in
the future.
DMA3 Our organisation is ready to 4.010 0.775 0.901
adopt digital marketing in the
near future.

Table 3. Discriminant validity using AVE2 Versus Correlation (F&L criterion) (n = 191).
Factor AVE 1 2 3 4 5 6 7 8 9 10
(1) CON 0.839 0.916
(2) SEC 0.865 0.026 0.93
(3) MGC 0.768 0.684 −0.03 0.876
(4) RES 0.710 0.497 −0.098 0.57 0.843
(5) GOV 0.816 0.548 −0.075 0.639 0.756 0.903
(6) CUS 0.814 0.539 0.002 0.595 0.696 0.558 0.902
(7) COM 0.771 0.496 −0.024 0.617 0.505 0.59 0.584 0.878
(8) PU 0.873 0.69 −0.031 0.771 0.594 0.585 0.638 0.696 0.915
(9) PEOU 0.837 0.625 −0.084 0.7 0.545 0.71 0.671 0.586 0.762 0.934
(10) DMA 0.849 0.514 −0.1 0.637 0.52 0.679 0.574 0.45 0.719 0.777 0.921
 CURRENT ISSUES IN TOURISM 11

with other variables in the model (Table 3). The other statistical method of insuring discriminant val­
idity is the use of hetrotrait-monotrait (HTMT) ratio. Discriminant validity was established as the cor­
relational values fall below the 0.85 maximum threshold.

4.3. Model goodness of fit tests

The coefficient of determination (R2) values specifies the amount of variation of a dependent variable
predicted by its antecedents in the model (Hair et al., 2017). Following Chin’s (1998) recommen­
dation, we regard the values of 0.670, 0.333 and 0.190 as substantial, moderate and week powers
of explanations. In this study, all the R2 values were between moderate and substantial (Table 4).
Another measure of the quality for the structural model is the Q2 which is calculated by using the
blindfold option (Chin, 1998). As shown in Table 6, all Q2 values were well above 0.35 which shows
that the ability of the model in predicting the endogenous variables was overwhelmingly strong. The
thresholds are 0.02 = weak; 0.15 = moderate, and 0.35 = strong (Henseler et al., 2009).

4.4. Structural model

Following the recommendations of Henseler et al. (2009), bootstrapping method with 5000 resam­
pling was used with 191 cases. Among the technological variables, convenience was found to be a
significant determinant of PU (p < 0.05) and PEOU (p < 0.1) with coefficients of 0.143 and 0.119, and p
– values of 0.013 and 0.083 respectively. Hypotheses H2a and H2b, developed in relation to the effect
of security concern on PU and PEOU respectively were not supported. The effect of managerial com­
mitment on PU and PEOU of digital marketing was also found to be significant with coefficients with
β = 0.223 and 0.179, and p – values of 0.008 and 0.019 respectively, supporting H3a and H3b. Hover,
the hypotheses with respect to resource availability (H4a and H4b) are not supported. Among, the
environmental factors, government regulation and customer pressure showed strong effect on PU
and PEOU of digital marketing supporting our hypotheses. While the effect of competitors pressure
on PEOU (H7b) is significant, its effect on PU (H7a) was not supported with β = 0.064 (p = 0.291).
To investigate the mediation effect of PU PEOU in the relationships between the constructs con­
sidered in the TOE framework and intention to adopt digital marketing, the direct and direct effects
were compared. Hair et al. (2017) stated that it can be concluded that from PLS-SEM results, if the
direct and indirect (through mediator) relationships of the exogeneous and endogenous variables
are significant, there is partial mediation. Full mediation occurs when the direct effect becomes
insignificant when the mediator is included in the model, whereas mediation effect is rejected if
the indirect effect is negligible (Table 5).
There is a partial mediation on convenience, managerial commitment, government regulation,
competitor pressure and PEOU as both the direct and indirect effects of these constructs on inten­
tion to adopt digital marketing are significant. There was no mediation on security concern and
resource availability since there is neither direct nor indirect significant relationship was observed
(Hair et al., 2017). A summary of the indirect effects is presented in Table 6.
Results showed that LDS does not significantly alter the relationship between PU and intention to
adopt digital marketing. More unexpectedly, LDS had a negative significant moderation effect on the
relationship between PEOU and intention to adopt digital marketing (β = −0.246, p-value = 0.008).
This finding is further depicted in Figure 2(a and b).

Table 4. R 2 and
Q 2 indices (n = 191).
Endogenous variable R2 R2 Adjusted Q2
PU 0.791 0.782 0.598
PEOU 0.674 0.661 0.496
DMA 0.721 0.713 0.566
12 Y. A. ABATE ET AL.

Table 5. Hypothesis testing (n = 191).

Relationship Coefficient p – values Decision
H1a: CON → PU 0.143 0.031 Supported
H1b: CON → PEOU 0.119 0.083 Supported
H2a: SEC → PU 0.02 0.598 Not Supported
H2b: SEC → PEOU −0.042 0.313 Not Supported
H3a: MGC → PU 0.223 0.008 Supported
H3b: MGC → PEOU 0.179 0.019 Supported
H4a: RES → PU 0.048 0.359 Not Supported
H4b: RES → PEOU −0.009 0.877 Not Supported
H5a: GOV → PU 0.21 0.003 Supported
H5b: GOV → PEOU 0.319 0.000 Supported
H6a: CUS → PU 0.113 0.074 Supported
H6b: CUS → PEOU 0.237 0.002 Supported
H7a: COM → PU 0.064 0.291 Not Supported
H7b: COM → PEOU 0.141 0.026 Supported
H8: PEOU →PU 0.269 0.001 Supported
H9: PU → DMA 0.264 0.004 Supported
H10: PEOU → DMA 0.342 0.000 Supported
H11a: Moderation on PU→DMA 0.070 0.431 Not Supported
H11b: Moderation on PEOU → DMA −0.246 0.008 Not supported *

Gender, age, and positional role of respondents were treated as control variables in our model. All
the three demographic variables were found to be insignificant influencers of intention to adopt
digital marketing.

4.5. Importance – performance map analysis (IPMA)

While PLS – SEM results provide information on the relative importance of constructs in the structural
model, importance performance map analysis (IPMA) by offering information about the performance
of each construct in predicting a target variable (intention to adopt digital marketing in our case)
(Hair et al., 2023). Figure 3 shows the result of IPMA for the path model including both indirect
(TOE variables) and indirect (TAM variables). The performance of PEU was superior among all the pre­
dictors of intention to adopt digital marketing, followed by PU. On the other hand, security concern
was found to be the least critical variable. In aggregate terms, while the performance of TAM vari­
ables dominates TOE variables considered in this model, managerial commitment and government
regulation were the most performing constructs among TOE variables. Technological variables
including convenience and security concern were found to be least critical.

5. Discussion of results
The aim of this study was to investigate factors that influence tourism firms’ intention to adopt
digital marketing from the perspective of an emerging economy. We deployed TOE framework

Table 6. Direct and indirect /mediation effects (n = 191).

Direct effect Indirect effects
Linkage Coefficient p – value Coefficient p – value
CON → DMA 0.027 0.736 0.087 0.006
SEC → DMA −0.059 0.273 −0.012 0.522
MGC → DMA 0.260 0.000 0.133 0.003
RES → DMA 0.070 0.434 0.009 0.774
GOV → DMA 0.392 0.000 0.187 0.001
CUS → DMA 0.173 0.048 0.128 0.002
COM → DMA −0.072 0.325 0.075 0.027
PEOU →DMA 0.470 0.000 0.071 0.000
 CURRENT ISSUES IN TOURISM 13

5 5

4 4

DMA
DMA

3 3
Low LDS
Low LDS High LDS
2 2
High LDS

1 1
Low PU High PU Low PEOU High PEOU

Figure 2. (a) Moderation effect of LDS on the relationship between PU and intention to adopt digital marketing. (b) Moderation
effect of LDS on the relationship between PEOU and intention to adopt digital marketing.

and TAM model to explain the most important determinants of intention to adopt digital marketing
with special reference to Ethiopian tourism industry. TOE framework variables were used as antece­
dents whereas TAM variables (PU and PEOU) were employed as mediators.
Among the technological factors, we have found a significant relationship between convenience
and PU, consistent with the findings of prior studies (e.g. Jiang et al., 2013; Kasilingam & Krishna,
2022). Similarly, convenience was also found to be a significant influencer of PEOU of digital market­
ing, confirming the findings of Kasilingam and Krishna (2022). Tourism firms in emerging economies
need digital marketing tools to improve their communication and engagement with travellers and
lower their transaction costs. On the other hand, there was no significant relationship between
security concern and both PU and PEOU. Although this contradicts with prior findings of firm
level investigations (e.g. Abed, 2020; Lee, 2019), the plausible explanation is due to two reasons;
(1) although data security and privacy are the primary risks of digital marketing usage, finding miti­
gation mechanism is always better than not adopting it because the technology is the future of mar­
keting and advantages outweigh such security issues and other drawbacks of digital marketing; (2)
unlike pre-adoption factors such as convenience and top management support, security concern is
more of a post-adoption issue. Therefore, with the existing low adoption rate of digital marketing in
Ethiopian context, it may be difficult for firms to foresee such post-adoption concerns.
Among the organisational factors proposed by the TOE framework, managerial commitment and
resource availability were identified as potential determinants of firms’ decision to adopt digital

Figure 3. Importance – performance map analysis result.

14 Y. A. ABATE ET AL.

marketing. Managerial commitment significantly affects both PU and PEOU consistent with prior
findings (e.g. Khayer et al., 2020; Wang et al., 2019). In contrast, there was no significant relationship
between resource availability and both PU and PEOU. This contradicts with (e.g. Hsu et al., 2018; Jiao
et al., 2020; Wang et al., 2010). Such finding is highly attributed to the fact that the adoption of digital
marketing does not require sophisticated resources (Melović et al., 2020). Basic devices and internet
connection are sufficient infrastructures to use digital marketing. These resources are readily avail­
able at most tourism firms in developing economies. The third group of influencers of technology
adoption according to TOE framework, is external factors.
As hypothesised, government regulation significantly affects both PU and PEOU of digital market­
ing. Regulations in developing economies have been consistently found as key determinants of tech­
nology adoption (Bhimani et al., 2022). Similarly, pressure from customers was found as important
predictor of PU and PEOU of digital marketing. This is largely because international tourists, often
from more advanced economies, heavily rely on digital tools for booking their travels. Tour operators
in emerging markets are in a constant pressure to utilise these tools to satisfy the needs of their
customers.
In addition, there is strong empirical evidence on the link between PEOU and PU. Consistent with
the findings of Mouakket and Aboelmaged (2021), Wali et al. (2016) and in support of our hypothesis,
PEOU has also a significant positive influence on PU. Finally, PU and PEOU are also significant influen­
cers of intention to adopt digital marketing, supporting prior empirical evidence (e.g. Chatterjee
et al., 2021; Daragmeh et al., 2021; Lai, 2016).
LDS was not found to be a significant moderator on the relationships of both PU and PEOU on
intention to adopt digital marketing. Although these results contradict with prior findings (e.g.
Borah et al., 2022; Liu et al., 2018; Royle & Laing, 2014), this may be due to two reasons. First,
leaders with a clear understanding of the technology itself are more likely to have knowledge
about the internal and external challenges being faced by the industry as well as the existing prac­
ticability to adopt digital marketing. Second, in a different model, we treated LDS as an independent
variable and discovered a significant relationship with intention to adopt digital marketing. There­
fore, although it is not one of the constructs proposed by either TOE framework or TAM (one of
the reasons to treat the variable as a moderator in this study), it may be important in the future
to deeply investigate other theories and frameworks in which digital skill can be seen as one of
the constructs affecting technology adoption decisions rather than a moderating variable. Yu
et al. (2017) have also found similar results in their quest for the determinants of ICT adoption
behaviour.

6. Implications
6.1. Theoretical implications
The study has examined what determines tourism firms’ intention to adopt digital marketing as a
marketing strategy from an emerging economy perspective. The researchers have combined the
TOE framework and TAM for a comprehensive investigation of potential determinants. The TOE
framework helps to enlist both the internal and external influencing factors whereas the TAM
explains the mediating behavioural factors (PU and PEOU) which determine the intention to
adopt digital marketing. Although TOE framework and TAM are used for firm-level and individual
investigations of technology adoption respectively, we have shown the complementary role of vari­
ables of these prominent theories for a broader understanding of potential determinants of digital
marketing adoption in the tourism sector (Chatterjee et al., 2020; Chatterjee et al., 2021; Katebi et al.,
2022).
Our findings also revealed that firms’ intention to adopt digital marketing in the tourism industry
of emerging economies is attributed to external factors such as national regulatory framework,
 CURRENT ISSUES IN TOURISM 15

industry pressure, and customer influence rather than organisational and technological related vari­
ables such as resource availability and security concern.
TOE and TAM based research have heavily relied on the use of gender, age, firm size, and other
demographic variables as moderators and there is ample empirical evidence on the moderating role
of those variables (Chawla & Joshi, 2018). In this study, we have introduced LDS as a moderating vari­
able on the effect of PU and PEOU on intention to adopt digital marketing responding to the calls of
Yu et al. (2017) and Van Laar et al. (2017).

6.2. Managerial implications

Based on the findings of this study, the following practical implications can be forewarned to
enhance future adoption of digital marketing among firms in the tourism industry of emerging econ­
omies. Managerial commitment is a vital organisational factor influencing PU and PEOU of digital
marketing. Since adopting digital marketing is a change implementation process for organisations,
strong initiation and lasting commitment from top management (change agents) is necessary for
firms to adopt digital marketing tools. On the other hand, resource availability has little contribution
indicating that it does not require expensive resources and sophisticated digital infrastructure to
adopt digital marketing (Melović et al., 2020). Therefore, firms can consider the implementation of
digital marketing with minimum investment in infrastructure and digital resources. Devising condu­
cive cyber regulation is also worth considering for policy makers. Currently, it is legally banned to
make international transactions in Ethiopia and banks do not issue credit cards and hard currency
accounts. Such regulatory pitfalls create additional constraints to tourism firms from adopting and
using digital marketing tools. This necessitates short and long-term policy and regulatory interven­
tions. Moreover, managers need to prioritise customer feedback and build strategic collaboration
with other players of the industry in order to fully capitalise on the advantages of digital marketing
technology. Finally, both PU and PEOU play a vital role in affecting firms’ intention to adopt digital
marketing hence managers of tourism firms need to be sincere in clarifying the utilities of the tech­
nology to their employees and the rest of stakeholders.

7. Limitations and future research

The following limitations are to be noted and can be addressed in future studies. In testing our
hypotheses, we relied on a cross-sectional survey data obtained from 191 respondents. For a
better understanding of the determinants of firms’ intention to adopt digital marketing, survey
data can be complemented with interview data or experimental designs and with a larger sample
size. In addition, this study examined the tourism industry’s readiness for digital marketing in devel­
oping economies, with a specific focus on the Ethiopian tourism sector. To enhance the generaliz­
ability of the findings and mitigate potential biases, we suggest future research to explore this
topic in a multi-country context. Moreover, although digital marketing is considered as one of the
technological innovations (Dwivedi et al., 2020; Ritz et al., 2019), the study of its adoption may be
broad in scope as it encompasses a range of other subdomains such as social media marketing,
influencer marketing, email marketing, etc. Therefore, investigating the adoption of a specific sub-
components of digital marking in the tourism industry at a time will be insightful. Finally, a compara­
tive study between developed and emerging markets could help see the underlining differences in
digital marketing readiness of the tourism industry among different economies.

Disclosure statement
No potential conflict of interest was reported by the author(s).
16 Y. A. ABATE ET AL.

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