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Identifying the impact of absorptive capacity, new product development, and marketing capabilities on digital marketing adoption and new product performance in Indonesian SMEs

Author

Listed:
  • Edy Yulianto

    (University of Brawijaya)

  • Supriono Supriono

    (University of Brawijaya)

  • Aniesa Samira Bafadal

    (University of Brawijaya)

Abstract

This study investigates the impact of absorptive capacity on enhancing the performance of SMEs through new product development, marketing capabilities, and the adoption of digital marketing. The research problem addresses how absorptive capacity influences these factors to improve new product performance. A quantitative approach was employed, collecting data from 212 SMEs in three cities in East Java Province, Indonesia. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that critical factors influencing new product performance include the ability of SMEs to absorb external knowledge (indicator AC3, loading factor 0.852), new initiatives in product development (indicator NPD4, loading factor 0.886), and strong marketing strategies (indicator MC3, loading factor 0.878). Further analysis reveals that absorptive capacity positively and significantly affects new product development (ß=0.763; p-value 0.05). However, digital marketing adoption positively and significantly impacts new product performance (ß=0.628; p-value

Suggested Citation

  • Edy Yulianto & Supriono Supriono & Aniesa Samira Bafadal, 2024. "Identifying the impact of absorptive capacity, new product development, and marketing capabilities on digital marketing adoption and new product performance in Indonesian SMEs," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 4(13 (130)), pages 95-109, August.
    • Handle: RePEc:baq:jetart:v:4:y:2024:i:13:p:95-109
    DOI: 10.15587/1729-4061.2024.310101
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    References listed on IDEAS

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