ENHANCING MSME'S MARKETING PERFORMANCE THROUGH INNOVATION CAPABILITY MEDIATED BY TECHNOLOGY CAPABILITY AND VALUE-BASED SELLING

Dewi Sri Woelandari Pantjologiningroem, Resista Vikaliana, Novita Wahyu Setyawati

Abstract


Introduction to The Problem: During the global Covid-19 pandemic, with social restrictions, digital marketing became a demand.  Plenty of MSMEs are unable to adapt to digital marketing quickly. It depends on innovation capabilities and technology capabilities of MSMEs, as well as an understanding of value-based selling.

Purpose: This study examines whether innovation capabilities are able to improve MSME marketing performance mediated by technology capabilities and value-based selling.

Methodology: A quantitative approach is used in this research with Structural Equation Modeling (SEM) modeling.  The questionnaire was distributed to 39 samples of MSMEs in Java, with purposive sampling..

Findings: SEM model testing shows that innovation capabilities have a positive and significant effect on improving the marketing performance of MSMEs, both directly and indirectly. Both technology capabilities and value-based selling are able to mediate the capacity for innovation to improve the marketing performance of MSMEs.   

Paper Type: Research Article


Keywords


SME marketing performance; innovation capabilities, technology capabilities, value-based sales.

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