The impact of digital marketing and brand articulating capability for enhancing marketing capability

Abstract

Small and Medium Enterprises (SMEs) have a central role in the Indonesian economy. SMEs are a driver of the Indonesian economy and non-oil exports and have a significant role in absorbing labor. The SME sector in Indonesia generally has several obstacles, one of which is marketing constraints. The ability to build and communicate brands to customers tends to be low, so it has not been able to bind customers and affect the marketing performance of SMEs. This ability during the pandemic has worsened, as can be seen from the deteriorating marketing performance of SMEs. This study attempts to fill the research gap between digital marketing and marketing performance. This study offers the concept of Brand Articulating Capability to bridge the gap between Digital Marketing in increasing Marketing Performance. Three hypotheses were developed and tested in a sample frame of 230 SMEs in South Sulawesi, Indonesia. The analysis was carried out using Structural Equation Modelling to test the research. The study's findings support the model using the following variables: Digital Marketing has a significant effect on Marketing Performance, Digital Marketing has a significant impact on Brand Articulating Capability, and the Brand Articulating Capability variable has a mediating and strategic role in improving marketing performance.