This work is licensed under a Creative Commons Attribution 4.0 International License.
Digital Marketing Strategy in Digital Business to Enhance MSME Competitiveness
Corresponding Author(s) : Sipah Audiah
Startupreneur Business Digital (SABDA Journal),
Vol. 5 No. 1 (2026): Startupreneur Business Digital (SABDA)
Abstract
The rapid expansion of digital business presents significant opportunities for Micro, Small, and Medium Enterprises (MSMEs) to enhance their competitiveness. However, many MSMEs still face challenges in effectively implementing digital marketing strategies due to limited capabilities and strategic orientation. This study aims to analyze the role of digital marketing strategies in improving MSME competitiveness within the digital business environment, with a particular focus on the mediating role of digital capabilities. A quantitative approach was employed using survey data collected from MSME actors engaged in digital business activities. The data were analyzed using Structural Equation Modeling (SEM) to examine the relationships between digital marketing strategies, digital capabilities, and competitiveness. The findings reveal that digital marketing strategies have a significant positive effect on MSME competitiveness. Additionally, digital capabilities play a crucial mediating role, strengthening the impact of marketing strategies on competitive performance. The results highlight the importance of adopting integrated, data-driven, and customer-oriented digital marketing practices to achieve sustainable competitiveness. This study contributes to the growing literature on digital business and MSME development by providing empirical evidence on the interplay between strategy and capability. Managerially, the findings suggest that MSMEs should invest in developing digital skills and strategic marketing approaches to remain competitive in an increasingly dynamic digital landscape.
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- N. Rusdana, S. Choirani, and A. Friska, “Digital marketing communication strategy for micro, small and medium enterprises (msmes) in business competition,” International Journal of Research and Applied Technology (INJURATECH), vol. 2, no. 1, pp. 163–168, 2022.
- S. W. Arista and S. Hermawan, “Improving msme performance based on digital marketing, intellectual capital, product innovation and competitive advantage,” Jurnal Manajemen Bisnis, vol. 16, no. 2, pp. 526–557, 2025.
- S. Paputungan, M. M. Mokoagow, A. I. Paputungan, S. S. Mokoagow, and E. Kaligis, “The role of digital marketing for brand awareness to improve marketability in msmes,” Jurnal Ekonomi, vol. 12, no. 3, pp. 1719–1724, 2023.
- O. Pricopoaia, A. Micu, and I. O. Susanu, “The implications of digital marketing on business perfor- mance.” Annals of the University Dunarea de Jos of Galati: Fascicle: I, Economics & Applied Informat- ics, vol. 28, no. 3, 2022.
- F. Sudirjo, “Marketing strategy in improving product competitiveness in the global market,” Journal of Contemporary Administration and Management (ADMAN), vol. 1, no. 2, pp. 63–69, 2023.
- E. Sulistyaningsih, W. Murti, and C. Ratnasih, “Analysis of e-marketing strategy and business innovation in optimizing improvement of service quality and its effect on msme income,” ADI Journal on Recent Innovation, vol. 5, no. 2, pp. 155–167, 2024.
- T. Shtal, O. Ptashchenko, S. Rodionov, and O. Kurtsev, “Implementation of modern marketing tools in entrepreneurial activity,” 2023.
- H. Hermansyah, U. Suhud, and M. Rizan, “Empowering msmes in the digital era: A systematic literature review on the role of digital literacy,” Greenation International Journal of Economics and Accounting, vol. 3, no. 2, pp. 185–196, 2025.
- J. Gao, A. B. Siddik, S. Khawar Abbas, M. Hamayun, M. Masukujjaman, and S. S. Alam, “Impact of e-commerce and digital marketing adoption on the financial and sustainability performance of msmes during the covid-19 pandemic: An empirical study,” Sustainability, vol. 15, no. 2, p. 1594, 2023.
- O. Yevseitseva, Z. Liulchak, O. Semenda, M. J¨arvis, and I. Ponomarenko, “Digital-marketing as a modern tool for promotion of goods and services in social networks,” Financial and credit activity: problems of theory and practice, 2022.
- D. Novitasari, F. S. Goestjahjanti, U. Rahardja, S. Santoso, S. V. Sihotang, N. A. Santoso, and G. P. Cesna, “Optimizing msme performance through marketing capabilities and digital marketing adoption,” in 2025 4th International Conference on Creative Communication and Innovative Technology (ICCIT). IEEE, 2025, pp. 1–7.
- Y. J. Purnomo, “Digital marketing strategy to increase sales conversion on e-commerce platforms,” Jour- nal of Contemporary Administration and Management (ADMAN), vol. 1, no. 2, pp. 54–62, 2023.
- A. Infante and R. Mardikaningsih, “The potential of social media as a means of online business promo- tion,” Journal of Social Science Studies, vol. 2, no. 2, pp. 45–49, 2022.
- N. Sonani, V. Islami, H. Sukayat, S. binti Nadzri, and S. Rusdian, “The role of product innovation and local culture in strengthening marketing strategy and driving economic growth of msmes,” Jurnal Aplikasi Manajemen, vol. 23, no. 2, pp. 391–409, 2025.
- E. D. Jayanti, “A literature review: Competitive strategies of msmes to enter the global market,” in Bengkulu International Conference on Economics, Management, Business and Accounting (BICEMBA), vol. 2, 2024, pp. 875–886.
- D. S. Nazara, “Marketing strategy innovation: Enhancing competitiveness and differentiation of local products in the global market,” Oikonomia: Journal of Management Economics and Accounting, vol. 2, no. 3, pp. 101–112, 2025.
- E. Rahayu, E. Noersasongko, S. D. Astuti, and T. A. Perdana, “Socio-cultural and educational dimensions of msme transformation in the digital era: The role of innovative entrepreneurship learning,” Journal of Cultural Analysis and Social Change, pp. 2337–2348, 2025.
- R. Tresnasari and Z. Zulganef, “Increasing msme performance through institutional strengthening, en- trepreneurship, and digital marketing,” International Journal of Research in Community Services, vol. 4, no. 1, pp. 11–17, 2023.
- A. U. Hasanah, Y. Shino, and S. Kosasih, “The role of information technology in improving the com- petitiveness of small and sme enterprises,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 168–174, 2022.
- X. Ma and X. Gu, “New marketing strategy model of e-commerce enterprises in the era of digital econ- omy,” Heliyon, vol. 10, no. 8, 2024.
- L. Nirmalasari, A. Alwiyah, P. A. Sunarya, and A. S. Panjaitan, “A digital marketing strategy based on applications to rise customer satisfaction,” International Journal of Cyber and IT Service Management, vol. 2, no. 2, pp. 139–145, 2022.
- S. Sutrisno, A. D. Kuraesin, S. Siminto, I. Irawansyah, and A. M. A. Ausat, “The role of information technology in driving innovation and entrepreneurial business growth,” Jurnal Minfo Polgan, vol. 12, no. 1, pp. 586–597, 2023.
- D. Apasrawirote, K. Yawised, and P. Muneesawang, “Digital marketing capability: the mystery of busi- ness capabilities,” Marketing Intelligence & Planning, vol. 40, no. 4, pp. 477–496, 2022.
- A. Fletcher, G. S. Crawford, J. Cr´emer, D. Dinielli, P. Heidhues, M. Luca, T. Salz, M. Schnitzer, F. M. S. Morton, K. Seim et al., “Consumer protection for online markets and large digital platforms,” Yale J. on Reg., vol. 40, p. 875, 2023.
- M. Motamedimoghadam, M. Mira da Silva, and M. Amaral, “Organizational capabilities for digital inno- vation: a systematic literature review,” European Journal of Innovation Management, vol. 28, no. 7, pp. 3024–3048, 2025.
- D. Sudiantini, A. Sefita, P. A. Maharani, S. Maharani, and V. Febianti, “Implementation of digital market- ing strategy to increase competitiveness among msmes,” SENTRI: Jurnal Riset Ilmiah, vol. 3, no. 6, pp. 3021–3027, 2024.
- F. Annas and N. Fitriani, “Digital transformation of woven msmes traditional: Development android application–opencart for online marketing and sales,” BALQIS: Journal of Business Innovation and Digital Marketing, vol. 1, no. 1, pp. 43–55, 2025. [Online]. Available: https://garuda.kemdiktisaintek.go.id/documents/detail/5852003
- D. E. Rose, J. Van Der Merwe, and J. Jones, “Digital marketing strategy in enhancing brand awareness and profitability of e-commerce companies,” APTISI Transactions on Management, vol. 8, no. 2, pp. 160–166, 2024.
- U. Rahardja, “Social media analysis as a marketing strategy in online marketing business,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 2, pp. 176–182, 2022.
- J. Artanti, P. M. Agustini, A. Saptono, G. K. Hanum, and D. Regina, “Analysis of virtual product market- ing strategies to increase customer satisfaction (case study on bukalapak partners),” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 86–109, 2022.
- G. A. Pangilinan, S. Audiah, M. R. Shauqy, and O. F. P. Wahyudi, “Entrepreneurial marketing mindset as a determining factor for digital startup success,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 1, pp. 34–46, 2025.
- S. Sutrisno, I. Susanti et al., “Optimising global competitiveness of msmes through innovative strategies for digital business development,” Journal of Contemporary Administration and Management (ADMAN), vol. 2, no. 1, pp. 307–312, 2024.
- M. Ahli, M. F. Hilmi, and A. Abudaqa, “Moderating effect of employee service quality and mediating impact of experiential marketing in uae entrepreneurial sector,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 2, pp. 285–299, 2024.
- P. D. R. Griffiths, A. Mukherjee, and P. N. Sinha, “Determinants of fintech diffusion in emerging markets: a service ecosystem perspective,” International Journal of Emerging Markets, vol. 20, no. 13, pp. 356– 376, 2025.
- R. Maulana, A. Alhidayatullah, S. Setiadi, and R. S. Sunandar, “Analysis of the influence of digital marketing and product innovation on msme business sustainability,” in International Student Conference on Business, Education, Economics, Accounting, and Management (ISC-BEAM), vol. 4, no. 2, 2025.
- S. Bytyc¸i, J. Kelmendi, V. Shala, E. Myftaraj, and E. Hasrama, “The corporate strategy of increasing the visibility of websites by implementing digital marketing,” Edelweiss Applied Science and Technology, vol. 8, no. 6, pp. 2696–2708, 2024.
- R. da Silva Wegner, D. J. C. da Silva, C. P. da Veiga, V. d. F. B. Estivalete, V. P. Rossato, and M. B. Malheiros, “Performance analysis of social media platforms: evidence of digital marketing,” Journal of Marketing Analytics, p. 1, 2023.
- A. R. Pamungkas, A. P. Nugroho, and G. W. Wardhana, “Digital marketing strategy in increasing educa- tion business competitiveness,” Journal of Nonformal Education, vol. 9, no. 2, pp. 329–335, 2023.
- D. N. Armariena, A. Nuryatin, T. Supriyanto, N. H. Setyaningsih, N. Nasib, and A. T. Z. Xuan, “Col- laborative innovation ecosystems strengthening sustainable startup growth in the digital economy,” Star- tupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 184–192, 2025.
References
N. Rusdana, S. Choirani, and A. Friska, “Digital marketing communication strategy for micro, small and medium enterprises (msmes) in business competition,” International Journal of Research and Applied Technology (INJURATECH), vol. 2, no. 1, pp. 163–168, 2022.
S. W. Arista and S. Hermawan, “Improving msme performance based on digital marketing, intellectual capital, product innovation and competitive advantage,” Jurnal Manajemen Bisnis, vol. 16, no. 2, pp. 526–557, 2025.
S. Paputungan, M. M. Mokoagow, A. I. Paputungan, S. S. Mokoagow, and E. Kaligis, “The role of digital marketing for brand awareness to improve marketability in msmes,” Jurnal Ekonomi, vol. 12, no. 3, pp. 1719–1724, 2023.
O. Pricopoaia, A. Micu, and I. O. Susanu, “The implications of digital marketing on business perfor- mance.” Annals of the University Dunarea de Jos of Galati: Fascicle: I, Economics & Applied Informat- ics, vol. 28, no. 3, 2022.
F. Sudirjo, “Marketing strategy in improving product competitiveness in the global market,” Journal of Contemporary Administration and Management (ADMAN), vol. 1, no. 2, pp. 63–69, 2023.
E. Sulistyaningsih, W. Murti, and C. Ratnasih, “Analysis of e-marketing strategy and business innovation in optimizing improvement of service quality and its effect on msme income,” ADI Journal on Recent Innovation, vol. 5, no. 2, pp. 155–167, 2024.
T. Shtal, O. Ptashchenko, S. Rodionov, and O. Kurtsev, “Implementation of modern marketing tools in entrepreneurial activity,” 2023.
H. Hermansyah, U. Suhud, and M. Rizan, “Empowering msmes in the digital era: A systematic literature review on the role of digital literacy,” Greenation International Journal of Economics and Accounting, vol. 3, no. 2, pp. 185–196, 2025.
J. Gao, A. B. Siddik, S. Khawar Abbas, M. Hamayun, M. Masukujjaman, and S. S. Alam, “Impact of e-commerce and digital marketing adoption on the financial and sustainability performance of msmes during the covid-19 pandemic: An empirical study,” Sustainability, vol. 15, no. 2, p. 1594, 2023.
O. Yevseitseva, Z. Liulchak, O. Semenda, M. J¨arvis, and I. Ponomarenko, “Digital-marketing as a modern tool for promotion of goods and services in social networks,” Financial and credit activity: problems of theory and practice, 2022.
D. Novitasari, F. S. Goestjahjanti, U. Rahardja, S. Santoso, S. V. Sihotang, N. A. Santoso, and G. P. Cesna, “Optimizing msme performance through marketing capabilities and digital marketing adoption,” in 2025 4th International Conference on Creative Communication and Innovative Technology (ICCIT). IEEE, 2025, pp. 1–7.
Y. J. Purnomo, “Digital marketing strategy to increase sales conversion on e-commerce platforms,” Jour- nal of Contemporary Administration and Management (ADMAN), vol. 1, no. 2, pp. 54–62, 2023.
A. Infante and R. Mardikaningsih, “The potential of social media as a means of online business promo- tion,” Journal of Social Science Studies, vol. 2, no. 2, pp. 45–49, 2022.
N. Sonani, V. Islami, H. Sukayat, S. binti Nadzri, and S. Rusdian, “The role of product innovation and local culture in strengthening marketing strategy and driving economic growth of msmes,” Jurnal Aplikasi Manajemen, vol. 23, no. 2, pp. 391–409, 2025.
E. D. Jayanti, “A literature review: Competitive strategies of msmes to enter the global market,” in Bengkulu International Conference on Economics, Management, Business and Accounting (BICEMBA), vol. 2, 2024, pp. 875–886.
D. S. Nazara, “Marketing strategy innovation: Enhancing competitiveness and differentiation of local products in the global market,” Oikonomia: Journal of Management Economics and Accounting, vol. 2, no. 3, pp. 101–112, 2025.
E. Rahayu, E. Noersasongko, S. D. Astuti, and T. A. Perdana, “Socio-cultural and educational dimensions of msme transformation in the digital era: The role of innovative entrepreneurship learning,” Journal of Cultural Analysis and Social Change, pp. 2337–2348, 2025.
R. Tresnasari and Z. Zulganef, “Increasing msme performance through institutional strengthening, en- trepreneurship, and digital marketing,” International Journal of Research in Community Services, vol. 4, no. 1, pp. 11–17, 2023.
A. U. Hasanah, Y. Shino, and S. Kosasih, “The role of information technology in improving the com- petitiveness of small and sme enterprises,” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 168–174, 2022.
X. Ma and X. Gu, “New marketing strategy model of e-commerce enterprises in the era of digital econ- omy,” Heliyon, vol. 10, no. 8, 2024.
L. Nirmalasari, A. Alwiyah, P. A. Sunarya, and A. S. Panjaitan, “A digital marketing strategy based on applications to rise customer satisfaction,” International Journal of Cyber and IT Service Management, vol. 2, no. 2, pp. 139–145, 2022.
S. Sutrisno, A. D. Kuraesin, S. Siminto, I. Irawansyah, and A. M. A. Ausat, “The role of information technology in driving innovation and entrepreneurial business growth,” Jurnal Minfo Polgan, vol. 12, no. 1, pp. 586–597, 2023.
D. Apasrawirote, K. Yawised, and P. Muneesawang, “Digital marketing capability: the mystery of busi- ness capabilities,” Marketing Intelligence & Planning, vol. 40, no. 4, pp. 477–496, 2022.
A. Fletcher, G. S. Crawford, J. Cr´emer, D. Dinielli, P. Heidhues, M. Luca, T. Salz, M. Schnitzer, F. M. S. Morton, K. Seim et al., “Consumer protection for online markets and large digital platforms,” Yale J. on Reg., vol. 40, p. 875, 2023.
M. Motamedimoghadam, M. Mira da Silva, and M. Amaral, “Organizational capabilities for digital inno- vation: a systematic literature review,” European Journal of Innovation Management, vol. 28, no. 7, pp. 3024–3048, 2025.
D. Sudiantini, A. Sefita, P. A. Maharani, S. Maharani, and V. Febianti, “Implementation of digital market- ing strategy to increase competitiveness among msmes,” SENTRI: Jurnal Riset Ilmiah, vol. 3, no. 6, pp. 3021–3027, 2024.
F. Annas and N. Fitriani, “Digital transformation of woven msmes traditional: Development android application–opencart for online marketing and sales,” BALQIS: Journal of Business Innovation and Digital Marketing, vol. 1, no. 1, pp. 43–55, 2025. [Online]. Available: https://garuda.kemdiktisaintek.go.id/documents/detail/5852003
D. E. Rose, J. Van Der Merwe, and J. Jones, “Digital marketing strategy in enhancing brand awareness and profitability of e-commerce companies,” APTISI Transactions on Management, vol. 8, no. 2, pp. 160–166, 2024.
U. Rahardja, “Social media analysis as a marketing strategy in online marketing business,” Startupreneur Business Digital (SABDA Journal), vol. 1, no. 2, pp. 176–182, 2022.
J. Artanti, P. M. Agustini, A. Saptono, G. K. Hanum, and D. Regina, “Analysis of virtual product market- ing strategies to increase customer satisfaction (case study on bukalapak partners),” IAIC Transactions on Sustainable Digital Innovation (ITSDI), vol. 3, no. 2, pp. 86–109, 2022.
G. A. Pangilinan, S. Audiah, M. R. Shauqy, and O. F. P. Wahyudi, “Entrepreneurial marketing mindset as a determining factor for digital startup success,” Startupreneur Business Digital (SABDA Journal), vol. 4, no. 1, pp. 34–46, 2025.
S. Sutrisno, I. Susanti et al., “Optimising global competitiveness of msmes through innovative strategies for digital business development,” Journal of Contemporary Administration and Management (ADMAN), vol. 2, no. 1, pp. 307–312, 2024.
M. Ahli, M. F. Hilmi, and A. Abudaqa, “Moderating effect of employee service quality and mediating impact of experiential marketing in uae entrepreneurial sector,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 2, pp. 285–299, 2024.
P. D. R. Griffiths, A. Mukherjee, and P. N. Sinha, “Determinants of fintech diffusion in emerging markets: a service ecosystem perspective,” International Journal of Emerging Markets, vol. 20, no. 13, pp. 356– 376, 2025.
R. Maulana, A. Alhidayatullah, S. Setiadi, and R. S. Sunandar, “Analysis of the influence of digital marketing and product innovation on msme business sustainability,” in International Student Conference on Business, Education, Economics, Accounting, and Management (ISC-BEAM), vol. 4, no. 2, 2025.
S. Bytyc¸i, J. Kelmendi, V. Shala, E. Myftaraj, and E. Hasrama, “The corporate strategy of increasing the visibility of websites by implementing digital marketing,” Edelweiss Applied Science and Technology, vol. 8, no. 6, pp. 2696–2708, 2024.
R. da Silva Wegner, D. J. C. da Silva, C. P. da Veiga, V. d. F. B. Estivalete, V. P. Rossato, and M. B. Malheiros, “Performance analysis of social media platforms: evidence of digital marketing,” Journal of Marketing Analytics, p. 1, 2023.
A. R. Pamungkas, A. P. Nugroho, and G. W. Wardhana, “Digital marketing strategy in increasing educa- tion business competitiveness,” Journal of Nonformal Education, vol. 9, no. 2, pp. 329–335, 2023.
D. N. Armariena, A. Nuryatin, T. Supriyanto, N. H. Setyaningsih, N. Nasib, and A. T. Z. Xuan, “Col- laborative innovation ecosystems strengthening sustainable startup growth in the digital economy,” Star- tupreneur Business Digital (SABDA Journal), vol. 4, no. 2, pp. 184–192, 2025.