The Impact of AI Adoption, Digital Marketing, and Customer Engagement on the Perceived Business Growth of Small and Medium Enterprises in Manado

Immanuel Bryan Liando; Lawren Julio Rumokoy; Ferdinand J Tumewu

doi:10.55927/ajabm.v4i4.603

Authors

Immanuel Bryan Liando Sam Ratulangi University
Lawren Julio Rumokoy Sam Ratulangi University
Ferdinand J Tumewu Sam Ratulangi University

DOI:

https://doi.org/10.55927/ajabm.v4i4.603

Keywords:

AI Adoption, Digital Marketing, Customer Engagement, Business Growth, SMEs, Manado

Abstract

This study examines the impact of AI adoption, digital marketing, and customer engagement on the perceived business growth of Small and Medium Enterprises (SMEs) in Manado. As digital transformation continues to shape business environments, many SMEs still face challenges in utilizing technological advancements to enhance competitiveness. This research applies a quantitative approach using multiple linear regression analysis, with data collected through questionnaires distributed to owners and managers of SMEs in Manado. The findings show that AI adoption, digital marketing, and customer engagement each have a positive and significant effect on perceived business growth. Furthermore, the three variables collectively demonstrate a strong simultaneous influence, indicating that SMEs that integrate AI technology, implement structured digital marketing strategies, and maintain active customer engagement are more likely to achieve sustained growth. The results of this study highlight the importance of technological readiness and relationship-building strategies in supporting SME development within emerging regional markets, particularly in the context of Manado’s evolving digital economy.

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