Cultural Identity Meets Algorithmic Visibility: How Visual Branding and Social Commerce Drive Brand Differentiation in Indonesia’s Creative Economy SMEs
Keywords:
Cultural Identity, Brand Differentiation, Digital Branding, UMKM, Resource-Based View, Cultural Branding, Social CommerceAbstract
This study examines the role of local cultural visual identity in shaping brand differentiation and digital brand performance among Indonesian Micro, Small, and Medium Enterprises (UMKM) within the creative economy. Grounded in Resource-Based View (RBV) theory, Cultural Branding Theory, and digital ecosystem perspectives, the study conceptualizes culturally embedded branding as a strategic intangible asset in competitive digital markets. Using a qualitative systematic literature synthesis approach, the research integrates findings from SME branding, digital marketing, and cultural branding studies, particularly those employing SEM and PLS-SEM methods. The analysis focuses on how cultural identity is operationalized, how brand differentiation is measured, and how digital brand performance is evaluated in UMKM contexts. The findings indicate that cultural visual identity significantly enhances digital engagement, perceived authenticity, and consumer trust. Through social commerce platforms, culturally resonant visual content improves interaction rates, shareability, and algorithmic visibility. Brand differentiation acts as a mediating mechanism that transforms cultural identity into emotional attachment, perceived uniqueness, and willingness to pay, ultimately strengthening brand equity, engagement, and sales performance. However, the effectiveness of cultural branding depends on authenticity, consistency, and alignment with platform dynamics and audience expectations. Within RBV theory, cultural identity functions as a VRIN resource whose value is maximized through dynamic capabilities and adaptive branding strategies. The study concludes that local cultural visual identity is a strategic driver of differentiation and digital performance in UMKM, contributing theoretically through the integration of RBV, Cultural Branding, and digital platform perspectives.
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