Entrepreneurial Orientation and Customer Orientation MSMES in The Digital Age: The Mediating Role of Digital Marketing Innovation

Abstract

This study aims to analyze the effect of customer orientation and entrepreneurial orientation on the performance of culinary MSMEs in the City of Bandung, West Java Province, with digital marketing innovation serving as an intervening variable. The research employed an explanatory research approach using both primary and secondary data. Primary data were collected through questionnaires distributed to 100 Culinary MSMEs owners in Bandung, selected using a purposive sampling technique. Secondary data was obtained from journals and relevant literature related to the research topic. The data analysis technique used was Structural Equation Modeling (SEM) with Partial Least Squares (PLS). The results indicate that customer orientation has a positive and significant effect on MSME performance. Entrepreneurial orientation also has a positive and significant effect on MSME performance. In addition, digital marketing innovation has a positive and significant effect on MSME performance. Customer orientation and entrepreneurial orientation are both found to have a positive and significant influence on digital marketing innovation. Furthermore, the mediation analysis shows that digital marketing innovation significantly mediates the relationship between customer orientation and MSME performance, as well as between entrepreneurial orientation and MSME performance. This study concludes that customer orientation, entrepreneurial orientation, and digital marketing innovation play an important role in improving the performance of culinary MSMEs in Bandung City, both through direct and indirect mechanisms. Overall, customer orientation, entrepreneurial orientation, and digital marketing innovation can be key factors in improving the performance of culinary MSMEs in the City of Bandung, West Java Province.