The Role of Digital Marketing in Enhancing MSME Competitiveness in the Digital Economy Era: A Study on MSMEs in West Sumatra
Keywords:
digital marketing, competitiveness, customer loyalty, MSMEsAbstract
This study aims to analyze the role of digital marketing in enhancing the competitiveness of MSMEs in West Sumatra, focusing on aspects of sales improvement, market expansion, and customer loyalty. A quantitative approach was employed through a survey of 100 MSME actors in the culinary, handicraft, and tourism sectors who had used digital platforms for at least one year. Data were analyzed using multiple linear regression to examine the influence of digital marketing and customer loyalty on MSME competitiveness. The results show that digital marketing has a positive and significant effect on competitiveness (β = 0.617; p < 0.001), while customer loyalty also contributes positively, though to a lesser extent (β = 0.283; p < 0.01). Social media emerged as the dominant digital channel used (72%), while paid advertising and marketplaces were relatively less utilized. These findings indicate that digital marketing strategies can drive short-term sales growth; however, strengthening long-term competitiveness requires fostering customer loyalty through continuous interaction, after-sales service, and customer management system integration. The study recommends digital literacy training, assistance in integrating social media with e-commerce, and regional policy support to encourage MSMEs’ transformation from organic strategies to more sustainable omnichannel strategies. This research contributes theoretically by reinforcing the literature on the mechanisms through which digital marketing and customer loyalty influence MSME competitiveness in the digital economy era
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