Improving Business Performance: The Influence of Entrepreneurial Characteristics and Digital Literacy through Marketing Capability

Desva Novianti; Marwan Marwan

doi:10.26737/jetl.v10i1.6713

Improving Business Performance: The Influence of Entrepreneurial Characteristics and Digital Literacy through Marketing Capability

Desva Novianti, Marwan Marwan

Abstract

This study aims to analyze the effect of entrepreneurial characteristics and digital literacy on the performance of culinary small businesses through marketing capabilities as mediation in Padang City. The existence of MSMEs is very important in creating economic stability, especially in the culinary sector, which is one of the main pillars of the regional economy. The method used in this research is quantitative with a survey approach, where the population studied includes all culinary MSME players in Padang City. The sample taken amounted to 170 culinary small business owners registered in various associations and entrepreneurial communities. The results show that entrepreneurial characteristics have a positive and significant influence on marketability. These entrepreneurial characteristics include innovative attitude, risk-taking courage, and skills in managing the business, which increase marketing effectiveness. Marketing capability is proven to have a positive and significant effect on business performance, because the right marketing strategy can increase sales and business competitiveness. Meanwhile, digital literacy has a positive influence on marketing ability and business performance, but the effect is not significant. This suggests that although digital literacy is important, the implementation of technology in marketing and business performance has not been fully optimized. This study also confirms that entrepreneurial characteristics have a positive influence on business performance through marketing ability as a mediator, while digital literacy does not have a significant influence on business performance through marketing ability as a mediator

Keywords

Business Performance, Entrepreneurial Characteristics,Digital Literacy,Marketing Capability

Full Text:

PDF

References

AL Kayid, W., Jin, Z., Priporas, C.-V., & Ramakrishnan, S. (2022). Defining family business efficacy: An exploratory study. Journal of Business Research, 141, 713–725. https://doi.org/10.1016/j.jbusres.2021.11.081

Andriani, M., Samadhi, T. M. A. A., Siswanto, J., & Suryadi, K. (2018). Aligning business process maturity level with SMEs growth in Indonesian fashion industry. International Journal of Organizational Analysis, 26(4), 709–727. https://doi.org/10.1108/IJOA-08-2017-1215

Anwar, M. (2018). Business model innovation and SMEs performance—does competitive advantage mediate? International Journal of Innovation Management. https://doi.org/10.1142/S1363919618500573

Cosa, M., Pedro, E., & Urban, B. (2024). How to assess the intellectual capital of firms in uncertain times: a systematic literature review and a proposed model for practical adoption. Journal of Intellectual Capital, 25(7), 1–22. https://doi.org/10.1108/JIC-05-2023-0096

de la Cruz, M. E., Verdú Jover, A. J., & Gómez Gras, J. M. (2018). Influence of the entrepreneur’s social identity on business performance through effectuation. European Research on Management and Business Economics, 24(2), 90–96. https://doi.org/10.1016/j.iedeen.2017.11.003

Ejrami, M., Salehi, N., & Ahmadian, S. (2016). The Effect of Marketing Capabilities on Competitive Advantage and Performance with Moderating Role of Risk Management in Importation Companies. Procedia Economics and Finance, 36, 22–28. https://doi.org/10.1016/S2212-5671(16)30012-0

Eniola, A. A., & Entebang, H. (2015). SME firm performance-financial innovation and challenges. Procedia-Social and Behavioral Sciences, 195, 334–342. https://doi.org/10.1016/j.sbspro.2015.06.361

Ernawati, W. (2021). Optimization of digital-based MSME e-commerce: challenges and opportunities in the new normal era of the COVID-19 pandemic. Social Science Journal for Advanced Research.

Falola, H. O., Salau, O. P., Olokundun, M. A., Oyafunke-omoniyi, C. O., Ibidunni, A. S., & Oludayo, O. A. (2018). Employees ’ Intrapreneurial Engagement Initiatives and Its. VERSLAS: Teorija Ir Praktika/Theory and Practice, 19, 9–16. doi:10.3846/btp.2018.02

Fisabilillah, L., Seno Aji, T., & Setiawan Prabowo, P. (2021). Literasi Keuangan Digital Sebagai Upaya Pembekalan UMKM Kampung Binaan Go Digital. DINAMIS: Jurnal Pengabdian Kepada Masyarakat, 1(2), 62–69. https://doi.org/10.33752/dinamis.v1i2.501

Hanaysha, J. R., Al-Shaikh, M. E., Joghee, S., & Alzoubi, H. M. (2022). Impact of Innovation Capabilities on Business Sustainability in Small and Medium Enterprises. FIIB Business Review, 11(1), 67–78. https://doi.org/10.1177/23197145211042232

Hartini, H., Wardhana, A., Normiyati, N., & Sulaiman, S. (2022). Peran self-efficacy dalam meningkatkan minat berwirausaha women entrepreneur yang dimediasi oleh pengetahuan kewirausahaan. Jurnal Ekonomi Modernisasi, 18(2), 132–148. https://doi.org/10.21067/jem.v18i2.7036

Hultman, M., Iveson, A., & Oghazi, P. (2023). Talk less and listen more? The effectiveness of social media talking and listening tactics on export performance. Journal of Business Research, 159(February), 113751. https://doi.org/10.1016/j.jbusres.2023.113751

Indrawati, S. (2012). SME’s Product Investment Priority and Selection Based on Local Competencies. Procedia Economics and Finance, 4, 59–67. https://doi.org/10.1016/S2212-5671(12)00321-8

Islami, N. N., Wahyuni, S., & Puji, R. P. N. (2021). Digital literation of micro, small and medium enterprises (MSMEs) in Jember district. IOP Conference Series: Earth …. https://iopscience.iop.org/article/10.1088/1755-1315/747/1/012097/meta. https://doi.org/ 10.1088/1755-1315/747/1/012097

Kaleka, A., & Morgan, N. A. (2019). How marketing capabilities and current performance drive strategic intentions in international markets. Industrial Marketing Management, 78, 108–121. https://doi.org/10.1016/j.indmarman.2017.02.001

Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The Influence of E-Payment and E-Commerce Services on Supply Chain Performance: Implications of Open Innovation and Solutions for the Digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 119. https://doi.org/10.3390/joitmc8030119

Köhr, C. K., Camanzi, L., & Malorgio, G. (2018). Exploring structural and strategic correlates of difficulties in the internationalisation process of Italian wine SMEs. Wine Economics and Policy, 7(1), 13–23. https://doi.org/10.1016/j.wep.2018.01.004

Kusrini, E., Caneca, V. I., Helia, V. N., & ... (2019). Supply Chain Performance Measurement Usng Supply Chain Operation Reference (SCOR) 12.0 Model: A Case Study in AA Leather SME in Indonesia. IOP Conference Series. https://doi.org/ 10.1088/1757-899X/697/1/012023

Lakoro, F. S. (2021). Literasi Dan Model Manajemen Keuangan Umkm Berbasis Digital Pada Umkm-Umkm Di Kabupaten Boalemo Provinsi Gorontalo. Journal of Applied Managerial Accounting, 5(2), 45–55.

Lee, C.-C., & Lin, C.-K. (2019). The major determinants of influencing the operating performance from the perspective of intellectual capital: Evidence on CPA industry. Asia Pacific Management Review, 24(2), 124–139. https://doi.org/10.1016/j.apmrv.2018.01.006

Lindayani, Nabila, H., Hamdani, N. A., & Supriatna, A. (2024). The Effect of Entrepreneurial Knowledge on the Performance of MSME Employees in Garut (Vol. 1). Atlantis Press International BV. https://doi.org/10.2991/978-94-6463-234-7_193

Macedo, K. B. de M., Hahn, I. S., Bianchi, J., & Ogoshi, R. C. S. (2020). Entrepreneurial Skills and Its Relationship With Msmes Performance Competências Empreendedoras E Sua Relação. Revista De Administração Da UFSM, 13, 1408–1422. https://doi.org/ 10.5902/1983465945216

Marsedia, & Safitri, K. A. (2023). Performance of culinary SMEs and literacy digitalizations: An evidence from culinary SMEs in Indonesia. Journal Of Management Info, 9(4). https://orcid.org/0000-0002-7491-2374

Martin, S. L., Javalgi, R. G., & Cavusgil, E. (2017). Marketing capabilities, positional advantage, and performance of born global firms: Contingent effect of ambidextrous innovation. International Business Review, 26(3), 527–543. https://doi.org/10.1016/j.ibusrev.2016.11.006

Mata, M. N., Martins, J. M., & Inácio, P. L. (2023). Impact of absorptive capacity on project success through mediating role of strategic agility: Project complexity as a moderator. Journal of Innovation & Knowledge, 8(1), 100327. https://doi.org/10.1016/j.jik.2023.100327

Mathews, S., Bianchi, C., Perks, K. J., Healy, M., & Wickramasekera, R. (2016). Internet marketing capabilities and international market growth. International Business Review, 25(4), 820–830. https://doi.org/10.1016/j.ibusrev.2015.10.007

Mikalef, P., Krogstie, J., Pappas, I. O., & Pavlou, P. (2020). Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information & Management, 57(2), 103169. https://doi.org/10.1016/j.im.2019.05.004

Ngwenya, L., & Aigbavboa, C. (2017). Improvement of productivity and employee performance through an efficient human resource management practices. Advances in Human Factors, Business

Nursini, N. (2020). Micro, small, and medium enterprises (MSMEs) and poverty reduction: empirical evidence from Indonesia. Development Studies Research, 7(1), 153–166. h https://doi.org/10.1080/21665095.2020.1823238

Oduro, S., & Mensah-Williams, E. (2023). Marketing Capabilities and Competitive Performance in the SMEs Context: A Bi-Theoretical Perspective. Journal of Small Business Strategy, 33(2), 17–35. https://doi.org/10.53703/001c.77458

Ohene Afriyie, E., Owusu-Acheampong, E., Opare Darko, L., & Oduro-Nyarko, C. (2024). Job Design and Employee Involvement on SMEs Performance: The Moderating Role of Employee Motivation. Journal of Small Business Strategy, 34(1), 45–79. https://doi.org/10.53703/001c.94165

Omar, R., & Ruslan, N. A. (2019). Study The Relationship Between Learning Performance And Facilities In The Vocational Special Education Secondary School Malaysia. Journal of Technology Management and Business, 6(1). https://doi.org/10.30880/jtmb.2019.06.01.007

Pfajfar, G., Mitręga, M., & Shoham, A. (2024). International dynamic marketing capabilities: developments and a research agenda. International Marketing Review, 41(1), 1–41. https://doi.org/10.1108/IMR-10-2023-0283

Purwanti, I., Lailyningsih, D. R. N., & Suyanto, U. Y. (2022). Digital Marketing Capability and MSMEs Performance: Understanding the Moderating Role of Environmental Dynamism. e-journal.unair.ac.id. https://doi.org/10.20473/jmtt.v15i3.39238

Putra, F., Subagyo, H., Budiantoro, R. A., & ... (2022). Digital-Based Economic Recovery Program For MSMEs in Indonesia. Jurnal Organisasi Dan manajemen.

Qalati, S. A., Li, W., Ahmed, N., Mirani, M. A., & Khan, A. (2020). Examining the factors affecting SME performance: the mediating role of social media adoption. Sustainability. https://doi.org/10.3390/su13010075

Rabie, N., Moustafa, A., & Ghaithi, F. A. (2024). Organizational Practices’ Role in Managing Open Innovation and Business Performance. In Administrative Sciences (Vol. 14, Issue 5). https://doi.org/10.3390/admsci14050087

DOI: http://dx.doi.org/10.26737/jetl.v10i1.6713

Refbacks

There are currently no refbacks.

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Published by:

Institute of Managing and Publishing of Scientific Journals STKIP Singkawang

Sekolah Tinggi Keguruan dan Ilmu Pendidikan (STKIP) Singkawang

Address : STKIP Singkawang, Jalan STKIP - Kelurahan Naram Singkawang, Kalimantan Barat, INDONESIA, 79251
No. Telp. : +62562 420 0344
No. Fax. : +62562 420 0584

JETL (Journal of Education, Teaching, and Learning)

e-ISSN : 2477-8478

p-ISSN : 2477-5924