ABSTRACT
The leap in communication and information technology has changed the interaction of consumers with producers to become even stronger. The Covid-19 pandemic, besides having an impact on increasing consumer habits in consuming media, also has an impact on increasing the number of internet users, the use of digital devices, and also increasing online activities. Digital marketing emerged as a logical response for companies to improve their performance by taking advantage of the significant growth concentration of consumers on the internet.

There has been a lot of research done on the adoption of digital marketing, the factors that drive the adoption of digital marketing, digital transformation, and digital marketing capabilities. However, research that investigates the relationship between these four concepts simultaneously and integrated in one research model is still very rare. This study was conducted with that purpose in mind.

Following a review of the literature, a proposed model with independent, moderator, and dependent variables was developed. The adoption ecosystem’s readiness as an independent latent variable, digital marketing transformation as a mediator latent variable, and digital marketing capabilities as the dependent latent variable are the three categories of latent variables, and one manifest variable is the digital marketing usage. The findings of this study reveal a conceptual model that can be used to improve a company’s digital marketing capabilities.

Keywords: Adoption Eco-system Readiness, Digital Marketing Adoption, Digital Marketing Capabilities, Digital Marketing Usage, Digital Transformation