THE EFFECT OF USING DIGITAL MARKETING ON INCREASING BUSINESS PERFORMANCE MSMES IN JAMBI CITY
Main Article Content
This article aims to investigate the impact of digital marketing utilization on the performance enhancement of Micro, Small, and Medium Enterprises (MSMEs) in Jambi City. The study focuses on the government's programs aimed at improving the quality of MSMEs in Jambi City through training, mentoring, and coaching. To approach this issue, marketing management theory serves as a framework to enhance business performance in MSMEs in Jambi City. Data collection was conducted by distributing questionnaires to 106 respondents, namely business owners in Jambi City who have been using digital marketing for at least 1 year, and analyzed quantitatively using multiple regression analysis. The research findings reveal a simultaneous influence between digital marketing and business performance with a strong correlation level. Moreover, the hypothesis partially indicates that the benefit dimension has the highest influence, while the incentive program has the lowest influence. Collectively, the five dimensions of digital marketing contribute to influencing the business performance of MSMEs in Jambi City by 56.5%, with the remaining being influenced by other factors. This study offers a novel measurement concerning the utilization of digital marketing in MSMEs based on relevant literature review.
Abbas, J., Balsalobre-Lorente, D., Amjid, M.A., Al-Sulaiti, K., Al-Sulaiti, I., & Aldereai, O. (2024). Financial innovation and digitalization promote business growth: The interplay of green technology innovation, product market competition and firm performance. Innovation and Green Development, 3(1), 100111.
Barus, CS, & Silalahi, D. (2021). The Influence of Social Media Promotion and Service Quality on Consumer Purchasing Decisions at Sosmed Cafe Abdullah Lubis Medan. Journal of Management and Business, 21(2013), 1–15. https://doi.org/10.54367/jmb.v21i1.1182
Hachimi, I. El, Lhassan, I.A., & Belamhitou, M. (2021). The Contribution of Digital Marketing to Business Performance: The Case of Companies in the Northern Region of Morocco. European Scientific Journal ESJ, 17(8), 82–105. https://doi.org/10.19044/esj.2021.v17n8p82
Huda, N., & Munandar, A. (2021). The Influence of Digital Marketing and Networks in Improving MSME Performance During the Covid-19 Pandemic. SCIENTIFIC JOURNAL OF MANDALIKA (JSM) e-ISSN 2745-5955 | p-ISSN 2809-0543, 2(9), 470–480. https://doi.org/10.36312/10.36312/vol2iss9pp470-480
Jung, J., Bapna, R., Gupta, A., & Sen, S. (2021). Impact of Incentive Mechanism in Online Referral Programs: Evidence from Randomized Field Experiments. Journal of Management Information Systems, 38(1), 59–81. https://doi.org/10.1080/07421222.2021.1870384
Kawira, K. D., & Mukulu, E. (2019). Effect of Digital Marketing on the Performance of MSMES in Kenya. Journal of Marketing, 2(1).
Mehralian, M. M., & Khazaee, P. (2022). Effect of Digital Marketing on the Business Performance of MSMEs during the COVID-19 Pandemic: The Mediating Role of Customer Relationship Management. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4195985
Nuseir, M.T., & Aljumah, A. (2020). The Role of Digital Marketing in Business Performance with the Moderating Effect of Environmental Factors among SMEs of the UAE. International Journal of Innovation, 11(3).
Omar, FI, Zan, UMSM, Hassan, NA, & Ibrahim, I. (2020). Digital Marketing: An Influence towards Business Performance among Entrepreneurs of Small and Medium Enterprises. International Journal of Academic Research in Business and Social Sciences, 10(9), 126–141. https://doi.org/10.6007/ijarbss/v10-i9/7709
Purnama, R., & Pralina, AR (2016). The Influence of Direct Marketing on Purchasing Decisions at the Centrum Bandung Restaurant. THE Journal : Tourism and Hospitality Essentials Journal, 6(1), 973. https://doi.org/10.17509/thej.v6i1.2008
Purwana, D., Rahmi, R., & Aditya, S. (2017). Utilization of digital marketing for micro, small and medium enterprises (MSMEs) in Malaka Sari Village, Duren Sawit. Journal of Civil Society Empowerment (JPMM), 1(1), 1-17.
Sugiyono, D. (2018). Quantitative, qualitative and R & D/Sugiyono research methods. Bandung: Alfabeta, 15(2010).
Tungka, D., Lionardo, MM, Thio, S., & Iskandar, V. (2020). The Influence of Social Media Marketing on Instagram on Buying Interest in Chatime Indonesia. Journal of Hospital and Service Management, 8(2), 77–87.
Yasri, Y. (2020). DIGITAL MARKETING AND SMES'S PERFORMANCE IN WEST SUMATRA. Economica, 9(1), 95–106. https://doi.org/10.22202/economica.2020.v9.i1.4413