Unveiling the Mediating Role of Intellectual Capital in the Digital Marketing-Marketing Performance Relationship through Digital Strategies among Creative Waste-based MSMEs in Indonesia

Abstract

Aims: This study investigates the relationship between digital marketing, intellectual capital, and marketing performance in the context of creative industries processing waste and used goods. Methodology: The research reveals that digital marketing has a significant and positive impact on marketing performance, both directly and indirectly, through the mediating role of intellectual capital. The research sample of 200 respondents was selected through accidental-purposive-sampling technique. Quantitative primary data were collected through questionnaire surveys and analysed using path analysis. Results: A total of 200 SME Creative Industry in Indonesia were selected as research participants. The majority are involved in repurposing textile waste, such as fabric scraps, into a wide range of creative patchwork products — including keychains, wallets, bags, pillow covers, tablecloths, garments, and even unique bed covers valued at up to IDR 5 million per piece. The results of this study indicate that digital marketing has a direct, positive, and significant effect on marketing performance. The higher the digital marketing, the higher the marketing performance. Even a slight increase in digital marketing will result in a relatively large increase in intellectual capital. Conclusion: These findings highlight the importance of digital marketing and intellectual capital in driving marketing performance in the SME.