Influence of product quality and digital marketing on the performance of SMEs

Abstract

This research explores the intricate dynamics between product quality, digital marketing strategies, and Small and Medium Enterprises (SMEs) performance. The study focuses on the entire population of 43 SMEs affiliated with the Representative Office of Bank Indonesia in South Sumatra Province in 2022. These SMEs benefit from comprehensive guidance provided by Bank Indonesia consultants and actively participate in mentoring programs spanning both conventional and Sharia SME schemes, reflecting a census-based sample selection. The findings derived from multiple linear regression analysis underscore a noteworthy positive and significant impact of product quality and digital marketing on SME performance. In a marketplace saturated with similar products in South Sumatra Province, SMEs must cultivate distinctive attributes that resonate with the local community, thus enhancing their competitive edge. Additionally, the geographical remoteness of SMEs from the city center emerges as a pivotal factor influencing their performance. This remoteness not only affects production logistics but also poses challenges to sales, thereby shaping the overall performance landscape of these enterprises. In essence, this research contributes valuable insights into the multifaceted relationship between product quality, digital marketing strategies, and the performance of SMEs, particularly those aligned with Bank Indonesia in South Sumatra Province.