Marketing Performance Improvement Model Through Digital Marketing, Marketing Capability and Marketing Innovation

Abstract

Currently, Indonesia is trying to achieve national economic development and economic growth as part of its development process. National income is one of the main indicators to measure the progress and economic growth of a country. MSMEs have a significant impact, both directly and indirectly, on regional economic growth, as well as on the overall economy at the national level. Therefore, this study aims to investigate the effect of digital marketing and marketing capabilities on the marketing performance of Micro, Small, and Medium Enterprises (MSMEs) in Blora Regency with marketing innovation as a mediating variable. Digital technology has become an important factor in changing the business landscape, especially for MSMEs in an effort to increase their competitiveness and growth. Through a quantitative approach, data will be collected from MSME owners or managers who use digital technology in their marketing activities. This study involved MSME actors in Blora Regency as respondents with a total of 103 MSMEs. The data analysis technique for this study used Partial Least Square (PLS) as an alternative method to Structural Equation Modeling (SEM). The results of this study explain the relationship between digital marketing and marketing performance, marketing capabilities and marketing performance and marketing innovation as well as marketing innovation and marketing performance which have a significant influence, except for the relationship between digital marketing and marketing performance.