Marketing Capabilities, Branding and Marketing Performance in SMEs: An Empirical Evidence in Medan, Indonesia

Yeni Absah, Endang Sulistya Rini

The role of Small Medium Enterprises (SMEs) is currently the backbone of the Indonesian economy. SMEs must be ready to face the challenges of tight competition. Based on Resources-Based View approach, to improve competitiveness, SMEs should advance some core competencies. Each SME has its distinctiveness and different strategic resources. Utilizing strategic resources as optimal core competencies by SMEs will improve marketing performance. Cooperation from various stakeholders such as business people, government agencies, community leaders and educational institutions, and their support will stimulate highly competitive for SMEs. The present study used the quantitative method. The population is SMEs for leather, shoes culinary, and fashion. The sample size is 225 businesses where each sector amounts to 75 businesses. The writer tested a theoretical model that specifies branding as the mediation variable that links marketing capabilities to the SMEs marketing performance. Research used Partial Least Square (PLS) as analytical tools by software Smart PLS 3.0. PLS is one of the methods to implement the Structural Equation Modeling (SEM) model. The results indicate that the model fits well with the data, all hypothesized path coefficients are positive and significant.

Volume 12 | Issue 6

Pages: 854-861

DOI: 10.5373/JARDCS/V12I6/S20201102