Effect Of E-Commerce And Product Innovation On Marketing Performance Of Msmes In Lubuk Pakam City In The Middle Of The Covid-19 Pandemic

Abstract

The purpose of the study is to analyze the role of e-commerce through Interface, Navigation, Content, Reliability, and Technical indicators in an effort to increase MSME income during the Covid-19 Pandemic in order to improve the welfare of MSME actors. The analytical method of this research is descriptive quantitative research. This research uses data analysis with Partial Least Square (PLS) approach. Where PLS is a model of Structural Equation Modeling (SEM) equations based on variables or components. PLS is an alternative approach that shifts from a covariance-based SEM approach to a variance-based approach. The population in this study is MSME users of e-commerce. The problem is that more than 53% of MSMEs experience a decline in asset value. Then, two-thirds of MSMEs experienced a decline in income during the pandemic, while more than 80% recorded lower profit margins during covid-19, this of course has an impact on the survival of MSME actors where income has decreased while the needs of family life continue. The results of the E-commerce research have a positive and significant effect on the marketing performance of MSMEs while Product Innovation does not have a significant effect on the marketing performance of MSMEs.