The Mediating Role of Competitive Advantage in the Effects of Digital Marketing and Product Innovation on the Marketing Performance of MSMEs in Kotawaringin Timur

Doni Aprianto; Vivy Kristinae; Peridawaty; Kembara Sopather

doi:10.55681/economina.v5i9.4419

Authors

Doni Aprianto Universitas Palangka Raya, Indonesia
Vivy Kristinae Universitas Palangka Raya, Indonesia
Peridawaty Universitas Palangka Raya, Indonesia
Kembara Sopather Universitas Palangka Raya, Indonesia

DOI:

https://doi.org/10.55681/economina.v5i9.4419

Keywords:

Digital Marketing, Product Innovation, Competitive Advantage, Marketing Performance, MSMEs

Abstract

This study examines the effects of digital marketing and product innovation on the marketing performance of kerupuk and amplang MSMEs in Kotawaringin Timur Regency, with competitive advantage as a mediating variable. A quantitative cross-sectional survey design was employed, involving 120 MSME owners or managers selected through purposive sampling. The instrument comprised 20 indicators measured on a five-point Likert scale, and the data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4. The simulated structural model indicates that all direct effects are positive and statistically significant: digital marketing and product innovation on competitive advantage; digital marketing and product innovation on marketing performance; and competitive advantage on marketing performance. The indirect-effect analysis shows that competitive advantage significantly mediates the effect of digital marketing on marketing performance, whereas its mediating role in the relationship between product innovation and marketing performance is not statistically significant. These findings suggest that digital marketing should be managed as a strategic capability that creates visible differentiation and superior customer value, while product innovation may enhance marketing performance directly without necessarily operating through competitive advantage

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