Digital Marketing, Product Quality, and Product Innovation as Drivers of MSME Performance in the Digital Economy: Evidence from Ponorogo Regency

Bayu Rohmani Saputro; La Ode Sugianto; Tegoeh Hari Abrianto

doi:10.55681/armada.v4i9.3648

Authors

Bayu Rohmani Saputro Universitas Muhammadiyah Ponorogo, Indonesia
La Ode Sugianto Universitas Muhammadiyah Ponorogo, Indonesia
Tegoeh Hari Abrianto Universitas Muhammadiyah Ponorogo, Indonesia

DOI:

https://doi.org/10.55681/armada.v4i9.3648

Keywords:

Digital Marketing, Product Quality, Product Innovation, MSMEs Performance

Abstract

This study aims to analyze the effect of digital marketing, product quality, and product innovation on Micro, Small, and Medium Enterprises (MSMEs) performance in the digital era within Ponorogo Subdistrict. Grounded in the Resource-Based View (RBV) perspective, firm performance depends on integrating digital marketing capabilities with unique internal product resources. Using a quantitative causal design, the study targets a population of 2,935 registered MSMEs in Ponorogo Subdistrict. Primary data were collected via structured Likert-scale questionnaires administered to MSME owners adopting digital platforms. Data analysis was performed using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) through SmartPLS. The results indicate that digital marketing, product quality, and product innovation each exert a positive and significant effect on MSME performance. Furthermore, all three variables simultaneously contribute to enhancing enterprise performance. The findings emphasize that combining digital promotional reach with continuous product quality control and innovation is essential for sustaining regional competitive advantage.

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