OPTIMIZING DIGITAL MEDIA AS A PROMOTIONAL TOOL TO ENHANCE THE MARKETING PERFORMANCE OF BUMDES PRODUCTS: THE ROLE OF PROMOTIONAL INNOVATION

Abstract

This study aims to examine the role of digital media optimization as a promotional tool in improving the marketing performance of BUMDes products, with promotional innovation as a mediating variable. The research investigates the effects of promotion quality and product quality on marketing performance, both directly and indirectly through promotional innovation. A quantitative approach was employed using a survey method, with data collected from 40 BUMDes business actors in Kotawaringin Timur Regency, Central Kalimantan, Indonesia. The data were analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS), which is suitable for predictive models with relatively small sample sizes. The results reveal that promotion quality and product quality have positive and significant effects on promotional innovation and marketing performance. Promotional innovation also shows a positive and significant effect on marketing performance and partially mediates the relationships between promotion quality and marketing performance, as well as between product quality and marketing performance. These findings indicate that high-quality digital promotion and superior product quality contribute more effectively to marketing performance when supported by continuous promotional innovation. From a theoretical perspective, this study reinforces the Dynamic Capability Theory by demonstrating that the abilities of sensing market opportunities through digital media, seizing those opportunities via effective promotional execution, and transforming promotional strategies through innovation are crucial for enhancing marketing performance in rural enterprises. Practically, the findings suggest that BUMDes managers should strengthen digital promotional capabilities, maintain consistent product quality, and continuously innovate promotional strategies to enhance competitiveness and ensure sustainable marketing performance.