Analysis of the Influence of Digital Marketing and Product Innovation on MSME Business Sustainability
Keywords:
digital marketing, product innovation, business sustainability, SMEsAbstract
This study aims to analyze the influence of digital marketing and product innovation on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in the food sector in Sukabumi City. The low utilization of digital technology and lack of product innovation are major obstacles in maintaining the competitiveness of MSMEs in the digital era. A quantitative approach was used with the Structural Equation Modeling (SEM) method based on Partial Least Square (PLS) through the SmartPLS 4.0 application. The research sample consisted of 100 food MSME players who met certain criteria, such as a minimum business duration of five years and having a role as a business owner. The analysis results show that digital marketing has a positive and significant effect on business sustainability with a t-statistic value of 4.451 and a p-value of 0.000. In addition, product innovation also has a significant effect with a t-statistic value of 6.557 and a p-value of 0.000, indicating that innovation contributes more than digital marketing to business sustainability. The R-square value of 0.989 indicates that the two independent variables are able to explain 98.9% of the variation in business sustainability. These findings emphasize the importance of synergy between digital marketing strategies and product innovation as key factors in strengthening the competitiveness and sustainability of MSMEs in the era of digital transformation.
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