Abstract
This study aims to explain the role of digital marketing adoption in mediating the effect of the COVID-19 pandemic and the intensity of competition on business performance, which is seen from the perspective of financial performance and non-financial performance. This research was conducted on the culinary sector SMEs in Bali. The size of the sample used is 210 culinary sector SMEs with a purposive sampling approach, namely the culinary sector SMEs that have adopted digital marketing. The analytical tool used is SEM-PLS. The results of the study show that the effect of the COVID-19 pandemic and the intensity of competition has a negative and significant effect on business performance, both financial and non-financial performance. The adoption of digital marketing was unable to mediate the effect of the COVID-19 pandemic and the intensity of competition on financial performance, but the adoption of digital marketing was capable in mediating the effect of the COVID-19 pandemic and the intensity of competition on non-financial performance. Therefore, the adoption of digital marketing needs to be re-optimized to improve business performance, both financial and non-financial performance.
Highlights
The existence of the COVID-19 pandemic has had a significant impact on the business performance achievements of Micro, Small and Medium Enterprises (MSMEs) in Bali
Based on the results of the study, it can be concluded that the perception of the COVID-19 pandemic and the intensity of industry competition has a negative and significant effect on business performance, both financial performance and nonfinancial performance
The perception of the COVID-19 pandemic and the intensity of industrial competition have a positive and significant impact on the adoption of digital marketing, this means that the COVID-19 pandemic and the increasing intensity of industrial competition have led to higher adoption of digital marketing in the culinary sector MSMEs in Bali
Summary
The existence of the COVID-19 pandemic has had a significant impact on the business performance achievements of Micro, Small and Medium Enterprises (MSMEs) in Bali. The culinary business in general experienced a decline in performance. This is because the market's purchasing power has decreased, as many people have been affected by the COVID-19 pandemic. The performance of the culinary business in Bali has decreased (based on the results of preliminary research on 10 MSMEs in the culinary sector). The achievement of the business performance of SMEs in the culinary sector is strongly influenced by increasingly fierce competition. The adoption of comprehensive digital marketing is suitable for the culinary business with the consideration that all these digital marketing tools can be implemented in MSMEs in the culinary sector
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