Mediating Effects of Digital Marketing on Dynamic Capability and Firm Performance: Evidence from Small and Medium-sized Enterprises (SMEs) in Indonesia
Abstract
Small and Medium sized enterprises (SMEs) have proven to be the backbone of Indonesia’s economy. It gives contribution to 60.34% to Indonesia GDP, 99.9% of national economic and 97% employment. Indonesia is known to be one of the most social media users. There is gap of studies to understand the role of digital marketing (DM) and dyanamic capability (DC) on influencing the performance of SMEs in Indonesia (SP). This study aims to give empirical evidence about three hypothesis. First is dynamic capability has a positive direct influence on SMEs performance. Second one is dynamic capability has a positive direct influence on digital marketing capability. The last one is digital marketing capabilys has a positive direct influence on SMEs performance. © BEIESP.
