Digital Transformation and Administration Innovation 2 Serial Number 3 2024 03 20 Investigating the Impact of Digital Marketing on the Performance of Chain Stores with Emphasis on the Mediating Role of Marketing Capabilities Investigating the Impact of Digital Marketing on the Performance of Chain Stores with Emphasis on the Mediating Role of Marketing Capabilities 66 75 10.61838/dtai.1.1.8 EN Journal Article 2024 01 13 <p class="Abstract"><span style="font-family: 'Palatino Linotype',serif;">Digital marketing is recognized as one of the most critical competitive tools in the realm of commerce. The aim of this study was to investigate the effect of digital marketing on the performance of chain stores, with a particular emphasis on the mediating role of marketing capabilities. This research was conducted using a quantitative and applied approach, examining the impact of digital marketing on the performance of chain stores while considering the mediating effect of marketing capabilities. Data were collected through a closed-ended questionnaire using a Likert scale. The validity of the instrument was confirmed by expert opinion, and its reliability was verified using Cronbach’s alpha test. The statistical population consisted of marketing experts in chain stores located in Tehran, with a sample size determined at 150 participants. Data were analyzed using descriptive statistics, Pearson correlation, hierarchical regression, and the Sobel test via SPSS version 26. The findings revealed that among the dimensions of digital marketing, social media had the highest level of application (mean = 4.2), while search engine optimization had the lowest (mean = 3.8). In the domain of marketing capabilities, the innovation dimension was most prominent (mean = 4.2). Regarding store performance, sales growth reported the highest mean (4.1), and customer satisfaction the lowest (3.8). Hierarchical regression analysis showed that digital marketing had a significant and direct impact on store performance (β = 0.52), which decreased to 0.28 after the inclusion of the mediating variable. Simultaneously, the impact of marketing capabilities on performance was also significant and strong (β = 0.45). The mediation test confirmed the significant role of marketing capabilities in transmitting the effect of digital marketing on store performance (Z = 6.70, p &lt; 0.001). The results of this study clearly demonstrate that digital marketing, not merely as a technological tool but as a strategic approach, can play an influential role in enhancing the performance of chain stores.</span></p> https://journaldtai.com/index.php/jdtai/article/download/152/134