Digital Marketing and Innovation Effects on Marketing Performance: A Competitive Advantage as A Mediator
Indra Muis, Triyogo Mulyo Adhi, Rahmadienna Fachrunnisa Kamalia

Bina Insani University

Abstract

Effects of Digital Marketing (DM) and Innovation (Inn) on Marketing Performance (MP), mediated by Competitive Advantage (CA) in the context of food and beverage micro businesses are not widely discussed and not well understood. This study aims to examine the effects of DM and Inn on MP mediated by CA. The unit analysis is food and beverage micro business owners in Bekasi Municipality, West Java Province, Indonesia. The respondents were 100 owners of food and beverage micro businesses and the sampling technique was the simple random sampling. The data analysis uses the PLS technique. The results show that DM and Inn had a positive effect on CA. DM had also a positive direct effect on MP. CA, however, did not mediate the DM and MP relationship. CA had less effect on MP (<0.3). Inn had no effect on MP. For the operational implications, food and beverage micro business owners need to implement DM to improve MP. They also need to implement DM and Inn to improve CA. As a conclusion, business owners need to maintain communication with customers through internet- based media, make customers experience speed and efficiency in information access about the products, make products content popular and relevant to current trends, deliver the products as promised and update information about the products on the market places. Besides, business owners also need to make some changes in the way they do business in more efficient and productive way to meet the customers^ needs and wants.

Keywords: Digital Marketing, Innovation, Competitive Advantage, Marketing Performance, Micro Businesses

Topic: Economic