SMES’ Insourcing-Outsourcing Trade-Offs in Influencer Marketing: Combining Transaction Cost Theory and Resource Based View

The exponential growth of influencer marketing, expected to reach $32.55 billion by 2025, has reshaped competitive dynamics for small and medium-sized enterprises (SMEs). Due to SMEs’ constrained resources and the volatility of digital markets, SMEs face a strategic paradox: outsourcing campaigns to external influencers versus cultivating in-house influencers. Existing studies predominantly focus on large enterprises’ influencer marketing strategies focusing on selection and management of influencers, leaving a critical gap in understanding how SMEs navigate influencer marketing. We develop a conceptual understanding of when and how SMEs choose insourcing-outsourcing strategies by combining transaction cost theory (TCT) perspective and resource-based view (RBV). By quantifying how transaction attributes interact with SMEs’ organizational capabilities, the research advances a contingency framework for optimizing influencer marketing strategies in resource-constrained contexts. This research bridges theoretical gaps in TCT and RBV application to influencer ecosystems while offering actionable insights for SMEs navigating the complexities of digital marketing. By aligning transactional efficiencies and resource-based competencies with brand authenticity goals, the study underscores the necessity of context-specific marketing strategies in an era of algorithm-driven consumer engagement.