The Role of Digital Marketing Innovation Mediation to Improve MSMEs Performance in Culinary Industry in Bandung City

Abstract

This study examines the pivotal role of digital marketing innovation as a mediating mechanism that amplifies the effect of customer orientation on the performance of culinary micro, small, and medium enterprises (MSMEs) in Bandung City. An explanatory research design was employed using a partial least squares structural equation modeling (PLS-SEM) approach, drawing on data from 100 culinary MSMEs. The empirical findings demonstrate that customer orientation exerts a positive and statistically significant influence on MSME performance. In addition, digital marketing innovation is shown to have a significant positive effect on performance outcomes. The analysis further reveals a significant relationship between customer orientation and digital marketing innovation, indicating that a strong customer-oriented mindset stimulates the development of innovative digital marketing practices. Importantly, digital marketing innovation serves as a mediating variable that strengthens the relationship between customer orientation and MSME performance. From a practical standpoint, these results underscore the importance for MSMEs to systematically enhance their understanding of customer needs while accelerating the adoption of digital technologies in marketing and service delivery. Moreover, the findings suggest that local governments and MSME support institutions should implement integrated digital marketing training programs combined with market intelligence initiatives to improve competitiveness and foster sustainable growth in the culinary MSME sector.