How E-Commerce and Digital Marketing Adoption Affect Marketing Performance in Moderation of Dynamic Marketing Capabilities on the Sustainability of Batik?

Abstract

Introduction: In today's era of globalization and technological advancement, Batik MSMEs face significant challenges to remain relevant and competitive. Digital transformation is one of the main strategies that must be adopted, with e-commerce and digital marketing as the main elements

Objectives: This paper seeks to investigate the effects of e-commerce adoption and digital marketing on the marketing effectiveness and sustainability of batik MSMEs mediated by dynamic marketing capabilities in Indonesia.

Methods: The design of this study is to distribute a Google Form that covers the adoption of e-commerce and digital marketing in Batik MSMEs in Indonesia. Of the 424 Batik MSMEs in Indonesia, only 326 have adopted digital marketing and e-commerce as a sample. Used a 5-point Likert scale to quantify exogenous factors. This paper uses SmartPLS Version 3 as its analysis method.

Results: E-commerce adaptation affects sustainability, marketing performance, and digital marketing adaption. Dynamic marketing capacities help control the link between marketing performance and MSME sustainability.

Conclusions: MSMEs who use e-commerce systems for delivery and sales of products have better financial performance. MSMEs should thus be advised to move from traditional physical stores to e-commerce platforms. By means of e-commerce in their regular operations, MSMEs must provide their staff with technological training programs supporting organizational success and sustainability