The Effect of Digital Marketing on MSME Competitiveness : The Mediating Role of Sales Improvement

Desak Ayu Sriary Bhegawati; A.A Sagung Istri Pramanaswari; Made Dian Putri Agustina

doi:10.63922/ijbqr.v4i03.6345

Desak Ayu Sriary Bhegawati Universitas Mahasaraswati Denpasar Bali, Indonesia
A.A Sagung Istri Pramanaswari Universitas Mahasaraswati Denpasar Bali, Indonesia
Made Dian Putri Agustina Universitas Hindu Indonesia Denpasar Bali, Indonesia

DOI: https://doi.org/10.63922/ijbqr.v4i03.6345

Keywords: Digital Marketing, Sales Improvement, MSME, Competitiveness

Abstract

Digital transformation has created new opportunities for Micro, Small, and Medium Enterprises (MSMEs) to expand their markets and strengthen their competitive position. Digital marketing enables MSMEs to reach consumers more broadly, interact directly with customers, and promote products through social media and online marketplaces. However, the extent to which digital marketing contributes to MSME competitiveness may depend on its ability to generate tangible improvements in sales. This study aims to examine the effect of digital marketing on sales improvement and MSME competitiveness, as well as the mediating role of sales improvement in the relationship between digital marketing and MSME competitiveness. This study employs a quantitative approach using primary data collected through questionnaires from MSME owners. The data were analyzed using multiple linear regression and mediation analysis with IBM SPSS. The results indicate that digital marketing has a positive and significant effect on sales improvement (β = 0,684; t = 13,352; p < 0.05). Sales improvement also has a positive and significant effect on MSME competitiveness (β = 0,521; t = 8,945; p < 0,05). Furthermore, digital marketing has a positive and significant direct effect on MSME competitiveness (β = 0,321; t = 5,763; p < 0,05). The mediation analysis demonstrates that sales improvement significantly mediates the relationship between digital marketing and MSME competitiveness, with an indirect effect of 0,356 (p < 0,05). The findings indicate that digital marketing contributes to MSME competitiveness both directly and indirectly through improvements in sales. Therefore, strengthening digital marketing capabilities and converting digital promotional activities into actual sales can become important strategies for improving MSME competitiveness.

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