skip to main content

DIGITAL MARKETING IMPLEMENTATION AND THE IMPACT ON MICRO AND SMALL ENTERPRISES (MSEs) AGRIBUSINESS PERFORMANCE IN INDONESIA

*Ratih Septiyanti  -  Magister Sains Agribisnis, Fakultas Ekonomi dan Manajemen, Institut Pertanian Bogor, Jl. Kamper Wing 4 Level 5, Bogor, Indonesia, Indonesia
Nia Rosiana  -  Departemen Agribisnis, Fakultas Ekonomi dan Manajemen, Institut Pertanian Bogor, Jl. Kamper Wing 4 Level 5, Bogor, Indonesia, Indonesia
Maryono Maryono  -  Departemen Agribisnis, Fakultas Ekonomi dan Manajemen, Institut Pertanian Bogor, Jl. Kamper Wing 4 Level 5, Bogor, Indonesia, Indonesia

Citation Format:
Abstract

The micro and small enterprises (MSEs) in the agribusiness sector still face marketing challenges. Digital marketing has the potential to be a marketing solution, but only 33.8 percent of agribusiness MSEs have utilized it in their operations. This study aims to analyse the factors influencing digital marketing implementation by non-food agribusiness micro and small enterprises (MSEs) and evaluate their impact on business performance. The analytical methods used are logistic regression to identify the determinants of digital marketing, and Propensity Score Matching (PSM) to measure its impact on profit, turnover, and market reach. The results show that innovation, education level, labor, business status, and marketing training have a positive and significant influence on digital marketing decisions. Meanwhile, the age of the entrepreneur and business age have a negative and significant influence. Digital marketing has been proven to have a positive impact on market reach. These findings indicate that digital marketing plays a significant role in strengthening the performance of non-food agribusiness MSEs in expanding market access.

Fulltext Email colleagues
Keywords: business performance; digital marketing; impact analysis; market reach; propensity score matching

Article Metrics:

Article Info
Section: Articles
Language : EN
  1. [APJII]. Asosiasi Penyelenggara Jasa Internet Indonesia. 2024. Laporan Survei Internet APJII 2024. Asosiasi Penyelenggara Jasa Internet Indonesia. 2024: 1–146. https://apjii.or.id/survei
  2. [BPS]. Badan Pusat Statistik. 2023. Profil Industri Mikro dan Kecil. Badan Pusat Statistik
  3. Afifah, A. N., & Najib, M. (2022). Digital marketing adoption and the influences towards business successes of MSMEs creative sector in Indonesia and Malaysia. Jurnal Aplikasi Manajemen, 16(3), 377–386. https://doi.org/10.21776/ub.jam.2022.020.03.09
  4. Baker, J. (2011). The technology–organization–environment framework. In Y. K. Dwivedi, M. R. Wade, & S. L. Schneberger (Eds.), Information systems theory: Explaining and predicting our digital society (Vol. 1, pp. 231–245). Springer. https://doi.org/10.1007/978-1-4419-6108-2_12
  5. Cassetta, E., Monarca, U., Dileo, I., Di Berardino, C., & Pini, M. (2020). The relationship between digital technologies and internationalisation: Evidence from Italian SMEs. Industry and Innovation, 27(4), 311–339. https://doi.org/10.1080/13662716.2019.1632756
  6. Chau, N. T., Deng, H., & Tay, R. (2020). Critical determinants for mobile commerce adoption in Vietnamese small and medium-sized enterprises. Journal of Marketing Management, 36(5–6), 456–487. https://doi.org/10.1080/0267257X.2020.1736608
  7. Dahnil, M. I., Marzuki, K. M., Langgat, J., & Fabeil, N. F. (2014). Factors influencing SMEs adoption of social media marketing. Procedia: Social and Behavioral Sciences, 148, 119–126. https://doi.org/10.1016/j.sbspro.2014.07.025
  8. Dlodlo, N., & Dhurup, M. (2013). Drivers of e-marketing adoption among small and medium enterprises (SMEs) and variations with age of business owners. Mediterranean Journal of Social Sciences, 4(14), 53–66. https://doi.org/10.5901/mjss.2013.v4n14p53
  9. Eze, S. C., Awa, H. O., Chinedu-Eze, V. C., & Bello, A. O. (2021). Demographic determinants of mobile marketing technology adoption by small and medium enterprises (SMEs) in Ekiti State, Nigeria. Humanities and Social Sciences Communications, 8(1), 1–11. https://doi.org/10.1057/s41599-020-00680-1
  10. Fajri, W. N., Suryantini, A., & Masyhuri, M. (2023). Do entrepreneurial marketing and internet marketing impact on business performance? (Case study ornamental plant agribusiness in Banyumas). Jurnal Manajemen dan Agribisnis, 20(2), 276–291. https://doi.org/10.17358/jma.20.2.276
  11. Feryanto, & Rosiana, N. (2021). Penggunaan Telepon Seluler untuk Pemasaran serta Dampaknya Terhadap Kesejahteraan Petani. Agrisep, 20(1), 25–40. https://doi.org/10.31186/jagrisep.20.1.25- 40
  12. Hagsten, E., & Kotnik, P. (2017). ICT as facilitator of internationalisation in small-and medium-sized firms. Small Business Economics, 48(2), 431–446. https://doi.org/10.1007/s11187-016-9781-2
  13. Irwandi, P., Feryanto, F., & Fariyanti, A. (2025). The decision of micro and small industries to implement certification and the impact on industrial performance. Agrisocionomics: Jurnal Sosial Ekonomi Pertanian, 9(2), 313–334. https://doi.org/10.14710/agrisocionomics.v9i2.24433
  14. Kawira, K. D., Mukulu, E., & Odhiambo, R. (2019). Effect of digital marketing on the performance of MSMEs in Kenya. Journal of Marketing and Communication, 2(1), 1–23. https://doi.org/10.2139/ssrn.3181502
  15. Lee, C. (2020). Constructing county-level data for agricultural inputs and analyzing agricultural productivity, 1951–1980. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3692685
  16. May, S., & Hosmer, D. W. (2003). Hosmer and Lemeshow type goodness-of-fit statistics for the Cox proportional hazards model. In C. R. Rao & R. S. Rao (Eds.), Handbook of statistics (Vol. 23, pp. 383–394). Elsevier. https://doi.org/10.1016/S0169-7161(03)23015-9
  17. Molla, A., Peszynski, K., & Pittayachawan, S. (2010). The use of e-business in agribusiness: Investigating the influence of e-readiness and TOE factors. Journal of Global Information Technology Management, 13(1), 56–78. https://doi.org/10.1080/1097198X.2010.10856516
  18. Ouaida, F., & El Hajjar, S. (2018). Assessing e-commerce productivity for French micro firms using propensity score matching (No. 2018-66). Economics Discussion Papers, Kiel Institute for the World Economy. https://doi.org/10.2139/ssrn.3181502
  19. Pollák, F., & Markovič, P. (2021). Size of business unit as a factor influencing adoption of digital marketing: Empirical analysis of SMEs operating in the Central European market. Administrative Sciences, 11(3), 71. https://doi.org/10.3390/admsci11030071
  20. Pradhan, P., Nigam, D., & Ck, T. (2018). Digital marketing and SMEs: An identification of research gap via archives of past research. Journal of Internet Banking and Commerce, 23(1), 1–14
  21. Purba, M., Simanjuntak, D., Malau, Y., Sholihat, W., & Ahmadi, E. (2021). The effect of digital marketing and e-commerce on financial performance and business sustainability of MSMEs during COVID-19 pandemic in Indonesia. International Journal of Data and Network Science, 5(3), 275–282. https://doi.org/10.5267/j.ijdns.2021.6.003
  22. Silaban, S., Kusnadi, N., & Feryanto, F. (2024). The impact of e-commerce implementation on the performance of micro and small industries in Indonesia. Agrisocionomics: Jurnal Sosial Ekonomi Pertanian, 8(1), 126–133. https://doi.org/10.14710/agrisocionomics.v8i1.17725
  23. Sujana, U. T., Suharno, S., & Rosiana, N. (2025). Impact of entrepreneurial competencies, innovation types, and digital marketing strategies on ground coffee business performance: A case study of West Lampung. Jurnal AGRISEP: Kajian Masalah Sosial Ekonomi Pertanian dan Agribisnis, 24(1), 273–290. https://doi.org/10.31186/jagrisep.243.01.273-290
  24. Talaja, A., Viskovic, J., & Ribarovic, M. (2021). Achieving superior performance: The importance of industry structure. In Economic and Social Development: Book of Proceedings (pp. 14–22). Varazdin Development and Entrepreneurship Agency. https://www.esd-conference.com/upload/book_of_proceedings/Book_of_Proceedings_esdLisbon2021_Online.pdf
  25. Thaha, A. R., Maulina, E., Muftiadi, R. A., & Alexandri, M. B. (2021). Digital marketing and SMEs: A systematic mapping study. Library Philosophy and Practice, 2021, 1–19. https://digitalcommons.unl.edu/libphilprac/5113
  26. Tambunan, T. T. H. (2022). Recent development of micro, small and medium enterprises in Indonesia. International Journal of Social Sciences and Management Review, 6(1), 193–214. https://doi.org/10.37602/IJSSMR.2022.61012
  27. Ullah, I., Khan, M., Rakhmonov, D. A., Bakhritdinovich, K. M., Jacquemod, J., & Bae, J. (2023). Factors affecting digital marketing adoption in Pakistani small and medium enterprises. Logistics, 7(3), 41. https://doi.org/10.3390/logistics7030041
  28. WeAreSocial. (2024, January). Digital 2024 Indonesia. WeAreSocial Creative Agency. https://wearesocial.com/id/blog/2024/01/digital-2024/
  29. White, H., & Raitzer, D. A. (2017). Impact evaluation of development interventions: A practical guide. Asian Development Bank. https://doi.org/10.22617/TCS178859
  30. Yusgiantoro, I., Wirdiyanti, R., Soekarno, S., Damayanti, S., & Mambea, I. (2019). The impact of e-commerce adoption on MSMEs performance and financial inclusion in Indonesia. Otoritas Jasa Keuangan (OJK) Working Paper, WP/19/062, 1–19. https://doi.org/10.2139/ssrn.3181502

Last update:

No citation recorded.

Last update:

No citation recorded.