The Effect of Digital Marketing Strategy and Product Innovation on Business Performance with Human Resource Management as a Mediating Variable (A Study on Traditional Restaurants and Eateries in Jakarta)

This study aims to examine the effect of digital marketing strategy and product innovation on business performance, with human resource management as a mediating variable, in the context of traditional restaurants and eateries in Jakarta. The research adopts a quantitative approach with explanatory research design. Data were collected from 160 respondents using purposive sampling, and analyzed using Structural Equation Modeling with Partial Least Squares (SEM-PLS). The findings indicate that both digital marketing strategy and product innovation have a significant positive effect on human resource management. Furthermore, all three variables digital marketing strategy, product innovation, and human resource management positively and significantly affect business performance. The results also confirm that human resource management significantly mediates the relationship between the two strategic variables and business performance. This study highlights the importance of integrating digital strategies and continuous product innovation, supported by effective HRM practices, to enhance business performance in a competitive and digitally driven culinary industry. The implications suggest that traditional culinary businesses must not only adopt digital tools but also invest in human capital to stay competitive and sustainable.