The Impact of Digital Marketing and Innovation on Marketing Performance is Influenced through the Development of a Competitive Advantage

Objective: The aim of this research is to explain how Micro Small Medium Enterprises (MSMEs) implement digital marketing and innovation, achieve competitive advantage, and improve marketing performance. The study also examines how digital marketing and innovation influence marketing performance through competitive advantage. This study centers on detailing and examining these aspects, involving an investigation carried out on small-scale food and beverage entrepreneurs in Bekasi, Indonesia. Theoretical Framework: Este estudo está fundamentado na Teoria da Visão Baseada em Recursos. Ele enfatiza a importância das capacidades dinâmicas, que são a habilidade de uma empresa ajustar seus recursos e capacidades para se manter competitiva em condições de mercado em constante mudança. As organizações podem manter sua vantagem competitiva e alcançar sucesso a longo prazo ao adaptar-se continuamente e introduzir novas ideias. Method: This study utilizes quantitative methodologies. 100 food and beverage micro business owners were surveyed using the simple random sampling method. The PLS technique is utilized in the data analysis process. Results and Discussion: The findings indicate that competitive advantage is positively impacted by digital marketing and innovation. Digital marketing also has a beneficial impact on marketing effectiveness. Competitive advantage plays a role in connecting digital marketing with marketing performance, as well as linking innovation with competitive advantage. Innovation does not impact marketing performance. Research Implications: Entrepreneurs must integrate digital marketing to enhance marketing effectiveness and incorporate digital marketing and innovation to boost competitive edge. It is necessary to engage in constant communication with customers using online platforms, ensure fast and efficient access to information, keep product content up-to-date and in line with current trends, deliver products as scheduled, and provide frequent updates on product availability in the market. They must also implement modifications in their business operations to effectively and efficiently meet the demands and desires of their customers. Originality/Value: This research adds to the existing body of research by validating that digital marketing can enhance marketing effectiveness both directly and through competitive advantage. Innovation does not have a direct impact on marketing performance. In order to enhance the marketing performance of food and beverage MSMEs, innovation must serve as a competitive edge. The MSME owners can be motivated by the research results to adopt digital marketing and innovation, leading to a competitive edge for their products. This will help enhance their marketing performance and ensure long-term sustainability.