Sustainable Business Model Innovation And Firm Performance: The Mediating Role Of Digital Marketing Capability

Abdurrahman; Zamroni Alpian Muhtarom; Baiq Handayani  Rinuastuti; Muhammad Mujahid  Dakwah; Mohammad Najib  Roodhi

doi:10.69657/dts5rp12

Authors

Abdurrahman Universitas Mataram Author
Zamroni Alpian Muhtarom Universitas Mataram Author
Baiq Handayani Rinuastuti Universitas Mataram Author
Muhammad Mujahid Dakwah Universitas Mataram Author
Mohammad Najib Roodhi Universitas Mataram Author

DOI:

https://doi.org/10.69657/dts5rp12

Keywords:

Digital Marketing Capability, Firm Performance, SMEs, Sustainable Business Model Innovation

Abstract

This study aims to examine the effect of sustainable business model innovation (SBMI) on firm performance (FP) with digital marketing capability (DMC) as a mediating variable among creative economy SMEs. Its originality lies in the simultaneous empirical test of the SBMI-DMC-performance mechanism among creative economy SMEs in an emerging regional economy, which has rarely been tested jointly in the literature. A quantitative approach was employed using a survey of 150 SME owners and managers in Lombok, West Nusa Tenggara. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with 5,000 bootstrap subsamples. The results show that SBMI has a positive and significant effect on FP (β = 0.36, p < 0.001) and on DMC (β = 0.75, p < 0.001), which in turn positively affects FP (β = 0.48, p < 0.001). The mediation analysis confirms that DMC partially mediates the SBMI-FP relationship. These findings underscore the importance of integrating sustainability-oriented innovation with digital marketing capability to achieve superior performance, with implications for SME owners, managers, and policymakers to treat sustainability and digital marketing as complementary agendas.

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