The Impact of Digital Marketing and Mobile Applications on Service Innovation in German Companies

Samariddin Makhmudov; Dinora Otakhonova; Toshmurod Kulmanov; Nargizaxon Shamshiyeva; Umidjon Juraev; Ganisher Ruziev; Ullibibi Sabirova

doi:10.32479/irmm.22052

Authors

Samariddin Makhmudov Department of Finance and Tourism, Termez University of Economics and Service, Termez, Uzbekistan; & Department of Economics, Mamun University, Khiva, Uzbekistan; & Center of the Engagement of International Ranking Agencies, Tashkent State University of Economics, Tashkent, Uzbekistan
Dinora Otakhonova Department of Economics, Urgench State University named after Abu Rayhan Biruni, Urgench Uzbekistan
Toshmurod Kulmanov Department of World Economy and International Economic Relations, Tashkent State University of Economics, Tashkent, Uzbekistan
Nargizaxon Shamshiyeva ashkent State University of Economics, Tashkent, Uzbekistan
Umidjon Juraev Department of International Tourism and Economics, Kokand University, Kokand, Uzbekistan
Ganisher Ruziev Department of Tax and Taxation, Tashkent State University of Economics, Tashkent, Uzbekistan
Ullibibi Sabirova Department of Electronics, Tashkent University of Information Technology, Tashkent, Uzbekistan

DOI:

https://doi.org/10.32479/irmm.22052

Keywords:

Digital Transformation, Service Innovation, Social Media Advertising, Mobile Application Features, Digital Education Campaigns, Customer Engagement

Abstract

This research examines how digital marketing and mobile app development enable service innovation in German companies during the period of 2005- 2024. Using firm-level panel data from the Moody’s Orbis database, firm-level panel data examines the relationships between social media advertising expenses, mobile app features, educational campaigns, total customers, and the rate of active digital users (used to approximate service innovation). By applying a Random Effects panel regression model, findings indicate that social media advertising, mobile app functionality, educational campaigns, and total customers have a significant and positive influence on firms’ rate of digital innovation performance. Findings show that consistently investing in digital engagement strategies and technological capabilities increases firms’ ability to innovate services, acquire customers, and build competitiveness within the changing digital economy in Germany. The present study provides new firm-level evidence for the digital transformation literature, as it illustrates that marketing and mobile technology work together to drive service innovation in advanced economies.