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Determinants of MSMEs Performance: The Role of Social Capital, Product Innovation, And Digital Marketing Effectiveness

Jul 2026 · Journal of economics, finance and management studies · Vol 09, pp. 3613-3623 · 0 citations

Abstract

The acceleration of the performance of Micro, Small, and Medium Enterprises (MSMEs) plays a crucial role in local economic growth; however, business actors are often faced with limitations in technology adoption and network strengthening. This study aims to analyze the partial effects of social capital, product innovation, and digital marketing on MSME performance. The research employed a quantitative method, with data collected through the distribution of questionnaires to 98 MSME owners in Bayan District as respondents. Data analysis was conducted using multiple linear regression analysis. The results indicate that social capital, product innovation, and digital marketing each have a positive and significant partial effect on MSME performance. Increased trust within business networks, creativity in product differentiation, and the consistent use of digital platforms have proven to be key factors in boosting sales performance and expanding market reach. The implications of this research emphasize the growth and sustainability of MSMEs in Bayan District which are highly dependent on a combination of strong social capital, product creativity, and technological adaptation so as not to be left behind and lose competitiveness in the rapidly growing digital market.

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