The The Role of Digital Marketing Capabilities and MSME Performance in Investment Decisions
DOI:
https://doi.org/10.35134/ekobistek.v14i3.950Keywords:
Digital Marketing Capabilities, MSME Performance, Investment DecisionsAbstract
This study aims to analyze the influence of digital marketing capabilities on investment decisions of micro, small, and medium enterprises (MSMEs) in Sleman Regency, Indonesia, as well as to examine the role of MSME performance in shaping such decisions. Using a quantitative approach, data were collected through a structured survey of 40 MSME owners and analyzed with multiple regression analysis. The findings reveal that digital marketing capabilities have a significant and positive effect on investment decisions, suggesting that MSMEs with stronger digital marketing competencies are more likely to engage in strategic investments. Conversely, MSME performance, measured by indicators such as sales growth, market expansion, and profitability, shows no significant influence on investment decisions. This indicates that current business performance does not necessarily encourage MSMEs to make new investments. Theoretically, this study contributes to the growing literature on digital marketing and investment decision-making within the MSME context. Practically, the results highlight the importance of strengthening digital marketing capabilities to improve MSME readiness in making data-driven and strategic investment choices. The study also provides insights for policymakers and supporting institutions to design programs that enhance MSME digital competitiveness.
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