The Influence of Digital Marketing Capability and Product Innovation on the Competitive Advantage of Culinary MSMEs in Manokwari City, with Business Capital as a Moderating Variable
Keywords:
digital marketing capability; product innovation; business capital; competitive advantage; culinary MSMEs.
Abstract
Culinary MSMEs in Manokwari City face intensifying competition amid the growth of digital marketing and shifting consumer tastes. This study analyses the effect of digital marketing capability and product innovation on the competitive advantage of culinary MSMEs, and the moderating role of business capital. A quantitative approach was applied through a survey of 96 culinary MSME owners in Manokwari City selected via purposive sampling. Data were collected using a five-point Likert questionnaire covering 32 indicators and analysed through Moderated Regression Analysis (MRA) in IBM SPSS. The results show that digital marketing capability (β=0.328; p<0.001), product innovation (β=0.437; p<0.001), and business capital (β=0.308; p<0.001) have a positive and significant effect on competitive advantage. Business capital strengthens the effect of both digital marketing capability (β=0.202; p=0.016) and product innovation (β=0.180; p=0.022) on competitive advantage. The model explains 54.4% of the variance in competitive advantage. These findings reinforce the Resource-Based View in the context of regional micro-enterprises and confirm that business capital, including government capital assistance, is a crucial enabler for digital marketing capability and product innovation to translate into competitive advantage.
References
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Aguinis, H., Edwards, J. R., & Bradley, K. J. (2017). Improving our understanding of moderation and mediation in strategic management research. Organizational Research Methods, 20(4), 665–685. https://doi.org/10.1177/1094428115627498
Bakator, M., Cockalo, D., Makitan, V., Stanisavljev, S., & Nikolic, M. (2023). Developing a model for improving business performance of SMEs through digital marketing. Sustainability, 15(4), 3557. https://doi.org/10.3390/su15043557
Barney, J. B. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108
Beck, T., Demirguc-Kunt, A., & Maksimovic, V. (2005). Financial and legal constraints to growth: Does firm size matter? The Journal of Finance, 60(1), 137–177. https://doi.org/10.1111/j.1540-6261.2005.00727.x
Cenamor, J., Parida, V., & Wincent, J. (2019). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity. Journal of Business Research, 100, 196–206. https://doi.org/10.1016/j.jbusres.2019.03.035
Day, G. S. (1994). The capabilities of market-driven organizations. Journal of Marketing, 58(4), 37–52. https://doi.org/10.1177/002224299405800404
Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15–21. https://doi.org/10.1016/j.kjss.2018.07.009
Ferreira, J., Coelho, A., & Moutinho, L. (2020). Dynamic capabilities, creativity and innovation capability and their impact on competitive advantage and firm performance. Technovation, 92--93, 102061. https://doi.org/10.1016/j.technovation.2018.11.004
Fowowe, B. (2017). Access to finance and firm performance: Evidence from African countries. Review of Development Finance, 7(1), 6–17. https://doi.org/10.1016/j.rdf.2017.01.006
Gupta, S., Malhotra, N. K., Czinkota, M., & Foroudi, P. (2016). Marketing innovation: A consequence of competitiveness. Journal of Business Research, 69(12), 5671–5681. https://doi.org/10.1016/j.jbusres.2016.02.042
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
Hanaysha, J. R., Al-Shaikh, M. E., Joghee, S., & Alzoubi, H. M. (2022). Impact of innovation capabilities on business sustainability in small and medium enterprises. FIIB Business Review, 11(1), 67–78. https://doi.org/10.1177/23197145211042232
Khin, S., & Ho, T. C. F. (2019). Digital technology, digital capability and organizational performance: A mediating role of digital innovation. International Journal of Innovation Science, 11(2), 177–195. https://doi.org/10.1108/IJIS-08-2018-0083
Kijkasiwat, P., & Phuensane, P. (2020). Innovation and firm performance: The moderating and mediating roles of firm size and small and medium enterprise finance. Journal of Risk and Financial Management, 13(5), 97. https://doi.org/10.3390/jrfm13050097
Nuseir, M. T., & Aljumah, A. (2020). Digital marketing adoption influenced by relative advantage and competitive industry: A UAE tourism case study. International Journal of Innovation, Creativity and Change, 11(2), 617–631.
Porter, M. E. (1985). The Competitive Advantage: Creating and Sustaining Superior Performance. Free Press.
Rajapathirana, R. P. J., & Hui, Y. (2018). Relationship between innovation capability, innovation type, and firm performance. Journal of Innovation & Knowledge, 3(1), 44–55. https://doi.org/10.1016/j.jik.2017.06.002
Rakshit, S., Islam, N., Mondal, S., & Paul, T. (2021). Mobile apps for SME business sustainability during COVID-19 and onwards. Journal of Business Research, 135, 28–39. https://doi.org/10.1016/j.jbusres.2021.06.005
Rao, P., Kumar, S., Chavan, M., & Lim, W. M. (2023). A systematic literature review on SME financing: Trends and future directions. Journal of Small Business Management, 61(3), 1247–1277. https://doi.org/10.1080/00472778.2021.1955123
Schumpeter, J. A. (1934). The Theory of Economic Development. Harvard University Press.
Troise, C., Corvello, V., Ghobadian, A., & O’Regan, N. (2022). How can SMEs successfully navigate VUCA environment: The role of agility in the digital transformation era. Technological Forecasting and Social Change, 174, 121227. https://doi.org/10.1016/j.techfore.2021.121227
Wielgos, D. M., Homburg, C., & Kuehnl, C. (2021). Digital business capability: Its impact on firm and customer performance. Journal of the Academy of Marketing Science, 49(4), 762–789. https://doi.org/10.1007/s11747-021-00771-5
Zulu-Chisanga, S., Chabala, M., & Mandawa-Bray, B. (2021). The differential effects of government support, inter-firm collaboration and firm resources on SME performance in a developing economy. Journal of Entrepreneurship in Emerging Economies, 13(2), 175–195. https://doi.org/10.1108/JEEE-07-2019-0105
Published
2026-08-24
How to Cite
Sinaga, N., & Manuel Lambi. (2026). The Influence of Digital Marketing Capability and Product Innovation on the Competitive Advantage of Culinary MSMEs in Manokwari City, with Business Capital as a Moderating Variable. International Journal of Education, Vocational and Social Science , 5(03), 8396-8412. https://doi.org/10.63922/ijevss.v5i03.5627
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