Marketing Performance and Marketing Sustainability In Msmes In Pekanbaru City: Innovation Capability, Market Orientation And Branding

Authors

  • Gatot Wijayanto Universitas Riau
  • Jushermi Jushermi Universitas Riau
  • Aida Nursanti Universitas Riau
  • Arwinence Pramadewi Universitas Riau
  • Arini Novandalina Sekolah Tnggi Ilmu Ekonomi Semarang
  • Yutiandry Rivai Institut Bisnis Dan Teknologi Pelita Indonesia

DOI:

https://doi.org/10.61978/commercium.v2i2.218

Keywords:

MSMEs, Innovation Ability, Market Orientation, Branding, Marketing Sustainability

Abstract

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

Downloads

Published

2024-04-17

How to Cite

Wijayanto, G., Jushermi, J., Nursanti, A., Pramadewi, A., Novandalina, A., & Rivai, Y. (2024). Marketing Performance and Marketing Sustainability In Msmes In Pekanbaru City: Innovation Capability, Market Orientation And Branding . Commercium : Journal of Business and Management, 2(2), 121–138. https://doi.org/10.61978/commercium.v2i2.218

Issue

Section

Articles