The Effect of Digital Marketing Transformation on Competitive Performance: Elucidating the Mediating Role of Innovation — A Study of the Mashhad Leather Company

Document Type : Original Article

Author
Hassan Ahmadi Ghajarkheili
Master's Degree, Business Management, Sari Branch, Islamic Azad University, Sari, Iran.
10.22034/jmek.2026.603696.1210
Abstract
The proliferation of digital technologies has fundamentally transformed how firms interact with customers, analyze markets, and execute marketing activities. However, the mechanisms through which digital marketing transformation translates into competitive performance remain underexplored. This study aimed to examine the effect of digital marketing transformation on competitive performance and to elucidate the mediating role of innovation in this relationship within the context of Mashhad Leather Company. The present study was applied in terms of its objectives and adopted a descriptive–survey research design. The statistical population comprised 17,300 managers, administrative staff, and operational employees of Mashhad Leather Company. Based on the Krejcie and Morgan table, a sample of 377 participants was selected through stratified random sampling. Data were collected using a questionnaire comprising standardized scales for digital marketing transformation, innovation, and competitive performance, measured on a five-point Likert scale. The face and content validity of the instrument was confirmed by experts, and its overall reliability was established with a Cronbach's alpha coefficient of 0.789. The research hypotheses were tested using partial least squares structural equation modeling (PLS-SEM) via SmartPLS 4 software. The findings revealed that digital marketing transformation exerted positive and significant effects on both innovation and competitive performance. Innovation also had a positive and significant impact on competitive performance. Furthermore, the analysis of indirect effects demonstrated that innovation played a partial mediating role in the relationship between digital marketing transformation and competitive performance. Digital marketing transformation enhances organizational competitiveness not only through a direct pathway but also indirectly by fostering innovation. Therefore, the simultaneous development of digital infrastructure and innovation capabilities can substantially improve the competitive performance of firms operating in the leather industry.
Keywords
Digital Marketing Transformation
Innovation
Competitive Performance
Structural Equation Modeling
Leather Industry.
Subjects
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  • Receive Date 20 May 2026
  • Revise Date 08 June 2026
  • Accept Date 09 September 2026