In-housing and outsourcing of digital marketing communication in small firms: effectual and causal decision-making

Purpose Despite digital marketing communication's (DMC) key role in small firms' survival, there is a dearth of research into how small firms make DMC decisions and particularly what to carry out in-house and what to outsource. With traditional outsourcing theories deemed inadequate, this study applied effectuation and causation to deepen understanding of small firm DMC decision-making and to assess the factors that account for differences across firms and consequential outcomes. Design/methodology/approach A qualitative study was undertaken involving over 30 semi-structured interviews within small firms, across a range of sectors in one region of the United Kingdom. Firms were selected such that all combinations of in-housing and outsourcing DMC practice were represented. Findings The study uncovered three key dimensions that capture DMC decision-making: the DMC pathway, contextual factors and triggers. Triggers effect movement within the pathway, but they can be ignored by firms. While effectual logic dominated, causal-based logic is required to activate a trigger. Furthermore, causal logic is required to develop a competency in connecting business goals to DMC goals that, when enacted, can better fulfil company goals. Originality/value To the best of the authors’ knowledge, this study is one of the few to examine DMC decision-making in small firms. Adopting the lenses of effectuation and causation, it is one of very few effectuation studies to examine the phenomenon of interest at the individual dimension level. The study's insights contribute to both small firm management literature and effectuation scholarship. The study offers practical advice to small firms and their support agencies to enhance DMC management and decision-making.