THE INFLUENCE OF DIGITAL MARKETING ON BUSINESS PERFORMANCE THROUGH SUPPLY CHAIN INTEGRATIONS AS A MEDIATOR IN MSMES IN SAMARINDA

Abstract

This study investigates the mediating role of supply chain integrations (SCI) in the relationship between digital marketing and business performance among small and medium enterprises (MSMEs) in Samarinda. MSMEs face increasing challenges in adapting to rapidly evolving digital landscapes while maintaining efficient supply chain processes. This research aims to determine how digital marketing strategies influence business performance and whether SCI serves as a critical mechanism in enhancing this impact. The study employs a quantitative research approach, utilising a structured survey distributed to MSMEs in Samarinda. Data were analyzed using Smart-PLS to evaluate the direct and indirect relationships among the variables. Results indicate that digital marketing positively impacts both SCI and business performance. Furthermore, SCI significantly mediates the relationship between digital marketing and business performance, highlighting its strategic importance in optimizing outcomes. These findings emphasize the necessity for MSMEs to adopt robust digital marketing practices while strengthening supply chain integrations to achieve sustainable business growth. The study contributes to the existing literature by offering empirical evidence on the synergistic effects of digital marketing and SCI in the MSMEs context.