The Effect of Digital Marketing Capability Against Marketing Performance with Innovation as mediation (Study on Batik SMEs during the Covid-19 Pandemic)

Humam Santosa Utomo, Susanta Susanta

Abstract


There The Covid-19 pandemic has an impact on SMEs in Bantul, Yogyakarta. During a pandemic, SMEs rely on digital marketing to access consumers. This study aims to examine the effect of digital marketing capabilities on innovation capabilities, the influence of digital marketing capabilities on marketing performance, and innovation capabilities on marketing performance. The research was conducted on SMEs that produce batik at the Giriloyo batik center and the Wijirejo batik center, Bantul, Yogyakarta. Respondents of this study believe 81 SMEs were selected by cluster sampling. The research instrument used a questionnaire and the data were processed using SPSS and WarpPLS. The results of this study found that digital marketing capabilities have a significant effect on innovation capabilities, digital marketing capabilities have a significant effect on marketing performance, and innovation capabilities have a significant effect on marketing performance. The results of this study are useful for SMEs to improve their digital marketing capabilities and the government to participate in providing technical training related to online sales.


Keywords


Digital Marketing Capability, Innovation, Marketing Performance, Pandemic Covid-19

Full Text:

PDF

References


Adler, P. S., & Shenbar, A. 1990. Adapting your technological base: The organizational challenge. Sloan Management Review, 25, 25-37.

Baldwin, J. 1995. Innovation: The key to success in small firms. Statistics Canada Working Paper, 76. Retrieved on December 22nd, 2014.

Barney, J. B. 1991. Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120.

Battor, M., & Battor, M. 2010. The impact of customer relationship management capability on innovation and performance. Journal of Marketing Management, 26(9-10), 842-857.

Binder, U. 2019. Influence of Online Marketing Strategies on the Sales Success of B2B Companies. Thesis. Vienna University

Bieler, L. 2005. The Moderating Effect of Environmental Uncertainty on New Product Development and Time Efficiency. Journal of Product Innovation Management (22:3), pp 267-284.

Conner, K. 1991. Historical comparison of resource-based theory and five schools of thought within industrial organization economics: Do we have a new theory of the firm?. Journal of Management, 17(1), pp.121-154

Day, G. S. 1994. The capabilities of market-driven organizations, Journal of Marketing, 58(4), pp. 37-52.

Engage, C., and Hoffmann, V. H. 2009. Effects of regulatory uncertainty on corporate strategy—an analysis of firms' responses to uncertainty about post-Kyoto policy, Environmental Science & Policy (12:7), pp 766-777.

Fredrickson, J. W., and Mitchell, T. R. 1984. Strategic decision processes: comprehensiveness and performance in an industry with an unstable environment, Academy of Management Journal (27:2), pp 399-423.

Hamel, G., and Prahalad, C. 1996. Competing for the Future, Harvard Business School Press, Paperback edition, Boston (Massachusetts).

Hult, G. T., Hurley, R., & Knight, G. 2004. Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management, 33(5),429e438.

Johnson, A. M., and Lederer, A. L. 2005. The effect of communication frequency and channel richness on the convergence between chief executive and chief information officers, Journal of Management Information Systems (22:2), pp 227-252.

Johnston, M., Gilmore, A., and Carson, D. 2008. Dealing with environmental uncertainty: The value of scenario planning for small to medium-sized enterprises (SMEs), European Journal of Marketing (42:11/12), pp 1170-1178.

Kerlinger, F.N. 2003. Asas-asas Penelitian Behavioral (3th ed). Yogyakarta: Gadjah Mada University Press

Kock, N. 2015. WarpPLS 5.0 User Manual, 45. https://doi.org/10.1007/ SpringerReference_28001.

Lee, J. S., & Hsieh, C. J. 2010. A research in relating entrepreneurship, marketing capability, innovative capability, and sustained competitive advantage. Journal of Business & Economics Research, 8(9), 109e119.

Lin, S. F., Miao, Q., & Nie, K. 2012. A case study on entrepreneurship for sustained innovation. African Journal of Business Management, 6(2), 493-500.

Malhotra, N.K. 2010. Marketing Research. An Applied Orientation. Sixth Edition. Person Education.

Miller, K.D. 1993. Industry and country effects on managers' perceptions of environmental uncertainties, Journal of International Business Studies, pp 693-714.

Morgan, N.A., Rebecca, J.S., and Vorhies, D.W. 2009. Linking Marketing Capabilities with Profit Growth, International Journal of Research in Marketing, 26 (4), 284-93

O’Cass, A., and Ngo, L.V. 2011. Winning Through Innovation and Marketing: Lessons from Australia and Vietnam, Industrial Marketing Management, 40 (8), 1319-29.

Onyango, K. 2016. Influence of Digital Marketing Strategies on Performance of Cut flowers Exporting Firms In Kenya. Thesis. School Of Business, University of Nairobi

Padukkage, A., Hooper, V., and Toland, J. 2015. Implications of Environmental Uncertainty for Business-IT Alignment: A Comparative Study of SMEs and Large Organizations. Australasian Conference on Information Systems 2015, Adelaide, Australia

Shane, S. 2003. A general theory of entrepreneurship. The individual opportunity nexus. Cheltenham: Edward Elgar.

Singarimbun, M. dan Effendi, S. 2011. Metode Penelitian Survei. Pustaka LPES

Sivadas, E., & Dwyer, F. R. 2000. An Examination of organizational factors influencing new product success in internal and alliance-based processes. Journal of Marketing, 64(1), 31-49.

Sulistyo, H. dan Siyamtinah 2016. Innovation capability of SMEs through entrepreneurship, marketing capability, relational capital, and empowerment. Asia Pacific Management Review. 2016. http://dx.doi.org/10.1016/j.apmrv.2016.02.002

Thornhill, S. 2006. Knowledge, Innovation, and firm performance in high and low technology regimes. Journal of Business Venturing, 21(5), 687-703.

Tsai, M.T., and Tsai, C. L. 2010. Innovation capability and performance in Taiwanese science Parks: Exploring the moderating effects of industrial clusters fabric. The International Journal of Organizational Innovation, 2(4).

Wardaya, A., Sasmoko, So, I.G., Bandur, A. 2019. Mediating Effects of Digital Marketing on Dynamic Capability and Firm Performance: Evidence from Small and Medium-sized Enterprises (SMEs) in Indonesia. International Journal of Recent Technology and Engineering (IJRTE) ISSN: 2277-3878, Volume-8, Issue- 1C2, May 2019

Weerawardena, J. 2003. The role of marketing capability in innovation-based competitive strategy. Journal of Strategic Marketing, 11(1), 15e35.

Wisdom, E. 2015. The impact of e-marketing on business performance: A case study of the Midlands Meander Association members. Thesis. Durban University of Technology

Xu, H., and Koronios, A. 2005. Understanding Information Quality in E-Business, The Journal of Computer Information Systems (45:2), pp 73-82.

Zahra, S. A., & Shaker, A. 1991. Predictors and financial outcomes of corporate entrepreneurship: An explorative study. Journal of Business Venturing, 6,259-285




DOI: https://doi.org/10.31098/pss.v1i1.193

Article Metrics

Abstract view : 2880 times
PDF - 168 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2020 Humam Santosa Utomo, Susanta Susanta

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

PUBLISHED BY:

LPPM UPN “Veteran” Yogyakarta, RSF PRESS & RESEARCH SYNERGY FOUNDATION

Proceeding of LPPM UPN “Veteran” Yogyakarta Conference Series 2020 – Political and Social Science (PSS). 

Mailing Address: 
Research Synergy Foundation
Jalan Nyaman no 31 
Komplek Sinergi Antapani 
Bandung 40291 - Indonesia. 

Gedung Rektorat Lt. 3 
Universitas Pembangunan Nasional "VETERAN" Yogyakarta 
Jl. SWK 104 (Lingkar Utara)
Condong Catur
Yogyakarta 55283 - Indonesia. 

Email:info@upnconfeseries.com

 
The Proceeding of LPPM UPN “Veteran” Yogyakarta Conference Series 2020 – Political and Social Science (PSS) is indexed by:
 
  
 
 
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.