Competitive Advantage as Intervening Variable on Marketing Performance of Songket Melayu MSM Enterprises

Abstract

This research departs from the problem that whether competitive advantage as an intervening variable has an influence on the marketing performance of Songket Melayu MSM Enterprises, Indonesia. The purpose of this study was to determine and analyze how much the effect of competitive advantage mediates the marketing performance of Songket Melayu MSM Enterprises, then to see whether competitive advantage can mediate digital marketing, product innovation and product quality on marketing performance. The primary data collection technique is in the form of distributing questionnaires using a Likert scale. The population in this study were of Songket Melayu MSM Enterprise that have innovated and carried out digital marketing. The sampling technique was purposive sampling, which is based on predetermined criteria. The criteria in this study are: a) Owner of Songket Melayu MSME’s who have been doing digital marketing for at least the last 2 years, b) Songket Melayu MSMEs who innovate their products, c) Songket Melayu MSM Enterprises that have been established for at least the last 5 years. Based on these criteria, a sample of 68 Songket MSMEs was obtained. The data analysis technique uses quantitative analysis with path analysis. The analysis tool uses the SmartPLS 4 application. The results showed that: 1) competitive advantage has a positive and significant effect on marketing performance with a T-Statistic value of 2.066> 1.96 and a P-Value of 0.019 0.05. 2) competitive advantage is able to mediate digital marketing on marketing performance with a T-statistic value of 2.359 1.96 and a p-value of 0.047. 3) competitive advantage is able to mediate product innovation on marketing performance with a T- statistic value of 4.234> 1.96 and a p-value of 0.001 0.05. 4) competitive advantage is able to mediate product quality on marketing performance with a T-statistic value of 3.755 1.96 and a p-value of 0.040 0.05. Overall, the results of this study indicate that competitive advantage has a direct positive influence on marketing performance, and also serves as an important mediator in the relationship between factors such as digital marketing, product innovation, and product quality and marketing performance. These findings can provide important insights for business practitioners in optimizing their strategies to improve marketing performance.