Abstract

The purpose of this study is to analyze the effects of digital marketing (DM), e-commerce (EC), business sustainability (BS) and financial performance (FP) of Micro, Small and Medium Enterprises (MSMEs) during Pandemic Covid19 in Indonesia. The relationships between digital marketing and business sustainability, e-commerce and business sustainability, digital marketing and financial performance, e-commerce and financial performance, financial performance and business sustainability are investigated. This research is quantitative research with a questionnaire approach. Data processing tools use the SmartPLS 3.3.3 software. The primary data collection method was accomplished by distributing online questionnaires to 120 MSMEs in Banten Indonesia who had experienced the pandemic. The results show that digital marketing had significant effect on business sustainability, e-commerce had significant effect on business sustainability, digital marketing had significant effect on financial performance. However, e-commerce had no significant effect on financial performance, financial performance had no significant effect on business sustainability, digital marketing had no significant effect on business sustainability through financial performance, e-commerce had no significant effect on business sustainability through financial performance. The use of digital marketing has been carried out to increase customer awareness. Marketplace as a manifestation of e-commerce is used as an innovation or change in sales methods.

Highlights

  • MSMEs is a form of micro and medium scale business and growing rapidly in Indonesia with an absorption rate of 97.2% of the workforce in Indonesia

  • The results show that digital marketing had significant effect on business sustainability, e-commerce had significant effect on business sustainability, digital marketing had significant effect on financial performance

  • The data analysis has shown that digital marketing has significant effect on business sustainability, e-commerce has significant effect on business sustainability, digital marketing has significant effect on financial performance, e-commerce has no significant effect on financial performance, financial performance has no significant effect on business sustainability, digital marketing has no significant effect on business sustainability

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Summary

Introduction

MSMEs is a form of micro and medium scale business and growing rapidly in Indonesia with an absorption rate of 97.2% of the workforce in Indonesia. Aggarwal et al (2021) reveal that MSMEs Indonesia still suffers from a low productivity domain and revealed that the most important factor of MSME performance is the human resources itself. According to Amri et al (2021), businesspeople are forced to change completely. The business has undergone a complete reset. The business experiences a new normal phase, where everything that is done by businesspeople and consumers is completely new. This is none other than responding to the new normal period during the post-

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