THE INFLUENCE OF MARKETING CAPABILITY ON BUSINESS PERFORMANCE THROUGH SUPPLY CHAIN INTEGRATIONS AS A MEDIATION VARIABLE ON MSMES IN SAMARINDA CITY

Abstract

This study examines the mediating role of supply chain integration (SCI) in the relationship between marketing capability and business performance in micro, small, and medium enterprises (MSMEs) in Samarinda City. MSMEs face increasing pressure to enhance their business performance while navigating dynamic market environments. This research aims to assess how marketing capability influences business performance and the extent to which SCI strengthens this relationship. The study adopts a quantitative approach, utilizing data collected from 299 usable data MSMEs in Samarinda City through structured questionnaires. Smart-PLS is employed to analyze the data and test the hypothesized relationships among the variables. The findings reveal that marketing capability has a significant positive effect on business performance. Additionally, SCI is shown to mediate this relationship, underscoring its critical role in optimizing the impact of marketing efforts. The results provide valuable insights for MSME practitioners and policymakers by highlighting the importance of developing marketing capabilities alongside integrated supply chain strategies. This study contributes to the body of knowledge by offering empirical evidence on the interplay between marketing capability, SCI, and business performance within the MSMEs context