Digital Marketing and Service Quality in Driving the Performance of Lampung Coffee Smes: The Role of Business Strategy Mediation

Moh Fakhrurozi; Juhari Aly; Tulus Suryanto; Zulkarnain Kedah

doi:10.59890/ijefbs.v4i1.384

Authors

Moh Fakhrurozi Asia e University
Juhari Aly Asia e University
Tulus Suryanto UIN Raden Intan Lampung
Zulkarnain Kedah Asia e University

DOI:

https://doi.org/10.59890/ijefbs.v4i1.384

Keywords:

Digital Marketing, Service Quality, Business Strategy, SME Performance, SEM-PLS

Abstract

This study examines the relationships between digital marketing, service quality, business strategy, and SME performance in the coffee industry in Lampung, Indonesia. This study employed a quantitative explanatory design, collecting data from 243 coffee SME owners through structured questionnaires and analyzing them using SEM-PLS. The results show that digital marketing and service quality significantly enhance SME performance, both directly and through business strategy. Digital marketing was found to have the strongest influence on business strategy, highlighting its role as a critical source of market intelligence and competitive advantage. Service quality also significantly contributes to shaping customer-oriented strategies. Furthermore, business strategy acts as a partial mediator, strengthening the impact of internal capabilities on performance outcomes. The model demonstrates strong explanatory power and good fit, confirming its robustness. The findings support the integration of Resource-Based View (RBV) and Balanced Scorecard (BSC) perspectives in explaining SME performance. Practically, the study emphasizes the importance of integrating digital capabilities and service quality into strategic planning to enhance competitiveness and sustainability in SMEs

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