The Effect of Product Innovation and Financial Literacy on MSME Performance with Digital Marketing as a Mediating Variable

Abstract

Digital marketing is something that can improve the performance of MSMEs. This study aims to identify direct and indirect influences on product innovation and financial literacy on MSME performance through digital marketing as a mediating variable. The approach in this study is to use a research approach that is descriptive and quantitative. The population and sample used are 250 MSME actors in Deli Serdang Regency. Data analysis used in this research uses a SEM based on PLS. The results of this study show that product innovation and financial Literacy directly have a positive and significant effect on digital marketing. Furthermore, product innovation, financial Literacy, and digital marketing also positively and significantly impact the performance of MSMEs in Deli Serdang Regency, North Sumatra. The research also found that digital marketing fully mediates product innovation and financial literacy variables on the version of MSMEs in the Deli Serdang Regency.