Marketing Performance and Marketing Sustainability In Msmes In Pekanbaru City: Innovation Capability, Market Orientation And Branding
DOI:
https://doi.org/10.61978/commercium.v2i2.218Keywords:
MSMEs, Innovation Ability, Market Orientation, Branding, Marketing SustainabilityAbstract
In the dynamic setting of Pekanbaru City, this study explores the complex interactions among innovation capacity, market orientation, and branding, and their effects on marketing performance and sustainability in Micro, Small, and Medium-Sized Enterprises (MSMEs). Structural Equation Modeling (SEM-PLS 4) was utilized for investigation in a quantitative method with 215 respondents. The study reveals important positive correlations between marketing performance and innovation ability, market orientation and marketing sustainability, and marketing performance and sustainability enhanced by successful branding. Additionally, the synergistic relationship among branding, market orientation, and innovation affects marketing results and sustainability. These findings have important ramifications for MSMEs, policymakers, and researchers. They offer practical guidance for improving tactics and promoting sustainability in the MSME sector of Pekanbaru City.
References
Aaker, D. A. (1996). Measuring brand equity across products and markets. California Management Review, 38(3). DOI: https://doi.org/10.2307/41165845
Akbar, M., Effendi, M., Nawarcono, W., Priambodo, A., & Sufyati, H. S. (2023). The Sustainability of MSME Business Competitiveness in Bogor City in Review from Entrepreneurial Orientation, Financial Capital and Innovation. Jurnal Bisnisman: Riset Bisnis Dan Manajemen, 5(1), 80–93. DOI: https://doi.org/10.52005/bisnisman.v5i1.136
Akhtar, N. (2023). Unlocking the potential: the impact of innovative capability on process, product, and market innovation and firm performance. Marketing i Menedžment Innovacij, 14(2), 19–33. DOI: https://doi.org/10.21272/mmi.2023.2-03
Al Malki, M. (2023). A Review of Sustainable Growth challenges faced by Small and Medium Enterprises. International Journal for Global Academic & Scientific Research, 2(1), 53–67. DOI: https://doi.org/10.55938/ijgasr.v2i1.39
Alfazzi, F. (2023). the Analysis of Challenges and Prospects Faced By Entrepreneurs To Ensure Sustainable Growth of Small and Medium Enterprises. Academic Review, 1(58), 175–186. https://doi.org/10.32342/2074-5354-2023-1-58-13 DOI: https://doi.org/10.32342/2074-5354-2023-1-58-13
Amin, M., Saleh, R., Masitah, M., & Ufayani, N. (2023). MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) IN PROSPERITY BUSINESS ACTORS DURING THE COVID-19 PANDEMIC IN THE VILLAGE ANAIWOI. International Journal of Business, Law, and Education, 4(2), 336–351. DOI: https://doi.org/10.56442/ijble.v1i1.171
Antonyraj, M., & Kumar, R. (2023). A STUDY ON MICRO SMALL MEDIUM ENTERPRISES PRE AND POST GLOBALIZATION ERA. VIDYA-A JOURNAL OF GUJARAT UNIVERSITY, 2(1), 136–147. DOI: https://doi.org/10.47413/vidya.v2i1.165
Anuradha, A., Shilpa, R., Thirupathi, M., Padmapriya, S., Supramaniam, G., Booshan, B., Booshan, S., Pol, N., Chavadi, C. A., & Thangam, D. (2023). Importance of Sustainable Marketing Initiatives for Supporting the Sustainable Development Goals. In Handbook of Research on Achieving Sustainable Development Goals With Sustainable Marketing (pp. 149–169). IGI Global. DOI: https://doi.org/10.4018/978-1-6684-8681-8.ch008
Atichasari, A. S., & Marfu, A. (2023). The Influence of Tax Policies on Investment Decisions and Business Development of Micro, Small, and Medium-Sized Enterprises (MSMEs) and its Implications for Economic Growth in Indonesia. JOURNAL OF ECONOMICS, FINANCE AND MANAGEMENT STUDIES. DOI: https://doi.org/10.47191/jefms/v6-i7-32
Banerjee, B. (2023). CHALLENGES AND OPPORTUNITIES FOR MICRO, SMALL, AND MEDIUM ENTERPRISES: NAVIGATING THE BUSINESS LANDSCAPE. The American Journal of Interdisciplinary Innovations and Research, 5(05), 13–17. DOI: https://doi.org/10.37547/tajiir/Volume05Issue05-04
Budinska228, S., & Taborecka-Petrovicova229, J. (2018). THE EFFECT OF MARKET ORIENTATION ON FINANCIAL VS. NON-FINANCIAL INDICATORS OF BUSINESS PERFORMANCE–COMPARISON OF MARKOR AND MKTOR APPROACH. Recent Advances in Information Technology, Tourism, Economics, Management and Agriculture, 572. DOI: https://doi.org/10.31410/itema.2018.572
Chauhan, S., & Naznin, N. (2023). Green Marketing: An Ethical and Anti-Environmental Resilient Approach for Sustainable Business. Problemy Ekorozwoju, 18(2), 141–147. DOI: https://doi.org/10.35784/preko.3952
Chung, K. C. (2019). Green marketing orientation: achieving sustainable development in green hotel management. Journal of Hospitality Marketing & Management, 29, 1–17. https://doi.org/10.1080/19368623.2020.1693471 DOI: https://doi.org/10.1080/19368623.2020.1693471
Damanpour, F. (2014). Footnotes to research on management innovation. Organization Studies, 35(9), 1265–1285. DOI: https://doi.org/10.1177/0170840614539312
Darmawi, A. (2022). MSME’s Marketing Performance Measures: Examining The Role Of Innovativeness & Competitive Strategy. Manajemen Bisnis, 12(02), 122–128. DOI: https://doi.org/10.22219/mb.v12i02.22231
Dixit, T. (2021). Market innovations driving competitive advantage in MSMEs: An Extensive Literature Review.
Farhana, M. (2012). Brand elements lead to brand equity: Differentiate or die. Information Management and Business Review, 4(4), 223–233. DOI: https://doi.org/10.22610/imbr.v4i4.983
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/https://doi.org/10.1108/EBR-11-2018-0203 DOI: https://doi.org/10.1108/EBR-11-2018-0203
Hanaysha, J. R., Al-Shaikh, M. E., & Kumar, P. (2022). An Examination of Customer Relationship Management and Business Sustainability in Small and Medium Enterprises. International Journal of Customer Relationship Marketing and Management, 13(1), 1–20. https://doi.org/10.4018/IJCRMM.300832 DOI: https://doi.org/10.4018/IJCRMM.300832
Haskas, Y., Mujahid, B., Arif, N., Riyadi, S., & Arief, A. (2021). Encourage small business environmental sustainability performance by market orientation and environmental innovation. IOP Conference Series: Earth and Environmental Science, 737, 12018. https://doi.org/10.1088/1755-1315/737/1/012018 DOI: https://doi.org/10.1088/1755-1315/737/1/012018
Indriyani, M. R. (2023). Business Coaching to Develop Hi Kuliner Production Processes through Business Model Innovation. International Journal of Social Service and Research, 3(6), 1364–1369. DOI: https://doi.org/10.46799/ijssr.v3i6.422
Keller, K. L. (1993). The effects of corporate branding strategies on brand equity. ACR North American Advances.
Khan, I., & Fatma, M. (2023). Does Perceived Sustainability Affect the Customer Responses toward the Brands? Role of Customer Engagement as a Mediator. Sustainability, 15(10), 8259. DOI: https://doi.org/10.3390/su15108259
Krisprimandoyo, D. A. (2020). The influence of marketing orientation on market-led organization culture. KnE Social Sciences, 222–228. DOI: https://doi.org/10.18502/kss.v4i3.6405
Maswin, M., & Sudrajad, O. Y. (2023). Analysis of Financial Indicator Literacy Determinants on The Performance of Bandung City SMEs. International Journal of Current Science Research and Review, 06(06), 3792–3804. https://doi.org/10.47191/ijcsrr/v6-i6-68 DOI: https://doi.org/10.47191/ijcsrr/V6-i6-68
Maulani, E. D., Trishananto, Y., & Fauziah, U. N. (2022). Study on Improving MSMEs Performance through Business Strategies. Indonesian Journal of Economics and Management, 2(3), 452–457. https://doi.org/10.35313/ijem.v2i3.3896 DOI: https://doi.org/10.35313/ijem.v2i3.3896
Mubarak, R. R., Manaroinsong, J., & Lonto, M. P. (2023). Factors Influencing the Accounting Recording of Micro, Small, and Medium Enterprises in East Bolaang Mongondow Regency. AKUMULASI: Indonesian Journal of Applied Accounting and Finance, 2(1), 24–33. DOI: https://doi.org/10.20961/akumulasi.v2i1.732
Narver, J. C., & Slater, S. F. (1990). The Effect of a Market Orientation on Business. DOI: https://doi.org/10.1037/t60597-000
No, P. (2023). Building Competitive Advantage through entrepreneurial Marketing in Order to Improve Marketing Performance of Msmes in Malang City.
Noorali, M., & Gilaninia, S. (2017). The Role of Small and Medium - Sized Enterprises in Development. Nigerian Chapter of Arabian Journal of Business and Management Review, 4(4), 36–40. https://doi.org/10.12816/0040342 DOI: https://doi.org/10.12816/0040342
Osuagwu, C. (2019). Market orientation conceptualizations, components and performance-impacts: A literature review and conceptual framework. International Journal of Marketing Studies, 11(2), 102–114. DOI: https://doi.org/10.5539/ijms.v11n2p102
Ozuem, W., & Ranfagni, S. (2023). Sustainable Marketing, Branding and CSR in the Digital Economy. DOI: https://doi.org/10.3390/books978-3-0365-7097-6
Padubidri, S. (2023). CONSUMER PERSPECTIVES ABOUT THE EFFECT OF BRANDING ON PRODUCT MARKETING. International Journal of Humanities & Social Science Studies (IJHSSS), 12, 131–136.
Peattie, S., & Peattie, K. (2003). Ready to fly solo? Reducing social marketing’s dependence on commercial marketing theory. Marketing Theory, 3(3), 365–385. DOI: https://doi.org/10.1177/147059310333006
Sari, Y., Oktarina, Y., & Kenamon, M. (2022). The Role of Innovation Capability in MSME Sustainability During the Covid-19 Pandemic. International Journal of Social Science and Business, 6(4). DOI: https://doi.org/10.23887/ijssb.v6i4.46158
Seyferth, A. V, Egan, J. M., & Chung, K. C. (2022). Branding in Health Care. Plastic and Reconstructive Surgery, 150(3), 481–485. DOI: https://doi.org/10.1097/PRS.0000000000009387
Shen, H., Ou, Z., Bi, K., & Gao, Y. (2023). Impact of Customer Predictive Ability on Sustainable Innovation in Customized Enterprises. Sustainability, 15, 10699. https://doi.org/10.3390/su151310699 DOI: https://doi.org/10.3390/su151310699
Situmorang, J. (2019). Market Orientation as the Appropriate Approach for SMEs in Dealing with External Environmental Factors. Advances in Social Sciences Research Journal, 6(7), 163–174. DOI: https://doi.org/10.14738/assrj.67.6540
Stocker, F., Zanini, M., & Irigaray, H. (2021). The Role of Multi-Stakeholders in Market Orientation and Sustainable Performance. Marketing Intelligence & Planning, Early View. https://doi.org/10.1108/MIP-05-2021-0157 DOI: https://doi.org/10.1108/MIP-05-2021-0157
Sujanska, L., & Nadanyiova, M. (2023). Sustainable Marketing and its Impact on the Image of the Company. Marketing i Menedžment Innovacij, 14(2), 51–57. DOI: https://doi.org/10.21272/mmi.2023.2-06
Sun, M., & Kim, J. (2023). Sustainability and Brand Equity: The Moderating Role of Brand Color and Brand Gender. Sustainability, 15(11), 8908. DOI: https://doi.org/10.3390/su15118908
Sutrisno, S. (2022). The Importance Of The Role Of The Logo In Building Branding On Msmes. Proceeding Of The International Conference On Economics And Business, 1(2), 589–597. DOI: https://doi.org/10.55606/iceb.v1i2.222
Swaroop, K. R., & Gade, S. (2023). Sustainable Marketing and People Behavior for Enhanced Governance. In Leadership and Governance for Sustainability (pp. 242–262). IGI Global. DOI: https://doi.org/10.4018/978-1-6684-9711-1.ch013
Timotius, E. (2023). THE ROLE OF INNOVATION IN BuSINESS STRATEGY AS A COMPETITIVE ADVANTAGE: EVIDENCE FROM INDONESIAN MSMES. DOI: https://doi.org/10.21511/ppm.21(1).2023.09
Vidiati, C., Mokti, H. A., Selasi, D., & Iqbal, M. (2023). Assistance of MSMEs: Sustainability Business of Tempe Entrepreneurs, Tegalkarang-Palimanan-Cirebon. International Conference On Research And Development (ICORAD), 2(1), 56–62. DOI: https://doi.org/10.47841/icorad.v2i1.96
Vijayakumar, V., & Chandrasekar, K. (2022). Moderating Role of Commercial Capabilities on Firm Performance Through Innovative Capability in Manufacturing Msmes. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev., 7(3), 8. DOI: https://doi.org/10.26668/businessreview/2022.v7i3.0620
Wang, C. L., & Ahmed, P. K. (2007). Dynamic capabilities: A review and research agenda. International Journal of Management Reviews, 9(1), 31–51. DOI: https://doi.org/10.1111/j.1468-2370.2007.00201.x
Weinmayer, K., Garaus, M., & Wagner, U. (2023). The impact of corporate sustainability performance on advertising efficiency. OR Spectrum, 1–35. DOI: https://doi.org/10.1007/s00291-023-00717-z
Yose, R. F. (2023). Job Creation Efforts through Empowering Micro, Small and Medium Enterprises. AURELIA: Jurnal Penelitian Dan Pengabdian Masyarakat Indonesia, 2(2), 1211–1214. https://doi.org/10.57235/aurelia.v2i2.719 DOI: https://doi.org/10.57235/aurelia.v2i2.719
Yuliani, S., Al Ghifari, M., Aladl, A. S., Farhan, A., Pratama, J. F., Ardiani, A., Estiningtyas, I. H., Wardani, M. I., Dewitri, R., & Akyani, V. J. (2023). Strategi Pemasaran Sebagai Upaya untuk Meningkatkan Produktivitas UMKM di Desa Sambiharjo Kecamatan Paranggupito. Joong-Ki: Jurnal Pengabdian Masyarakat, 2(2), 194–198. DOI: https://doi.org/10.56799/joongki.v2i2.1548
Zhang, T., & Wang, H. (2020). The Essence of Brand-Relationship Based on Innovation. 402(Ssphe 2019), 180–184. https://doi.org/10.2991/assehr.k.200205.038 DOI: https://doi.org/10.2991/assehr.k.200205.038
Zulfikar, I. (2022). Building a Strong Brand: Marketing Strategy to Increase Brand Awareness and Consumer Loyalty. Neo Journal of Economy and Social Humanities, 1(4), 280–284. DOI: https://doi.org/10.56403/nejesh.v1i4.79



