The Relationship between the Technology- Organization- Environment (TOE) Framework and Start-up’s Performance: The Mediating Role of Digital Marketing Adoption

Abstract

Purpose- Drawing upon the Technology, Organization, and Environment (TOE) framework, this study aims to explore the different factors that impact Digital Marketing Adoption (DMA) among start-ups in developing countries.Design/Methodology/Approach- Using a quantitative method, an exploratory research design in the form of a questionnaire was adopted, targeting 205 start-up companies in Egypt. To evaluate the proposed model, the study deployed the Structural Equation Modelling (SEM).Findings- This study's findings indicate that the TOE factors have a significant impact on the rate at which new businesses adopt Digital Marketing (DM). Moreover, the results provide credence to the theory that DMA has a mediating role between the TOE factors and start-ups performance.Originality- This paper is considered the first to assess the influence of the TOE factors on start-ups performance in Egypt. In addition to that, most of the studies conducted to date either focused on the influence of the TOE factors on Small Medium Enterprises (SMEs) or focused on social media solely as a DM channel. This study offers foundations for future research and provides several implications for practitioners and scholars interested in DMA among start-ups.