JEFMS Journal

ABSTRACT:

This study aims to analyze the role of competitive advantage in mediating social capital to increase the marketing performance of SMEs. Many studies have found that SME social capital can increase marketing performance. Does this effect also apply if the relationship between these two variables is mediated by competitive advantage? This research was conducted in Malang Raya, East Java, Indonesia on SMEs who are followers of the Facebook account: Aneka Usaha and Bisnis Malang Raya (AUBMR) until January 2023, as many as 40.156 followers, with a sample of 100 SMEs. Research analysis using Partial Least Squares (PLS) method. The results of the study are: social capital directly affects competitive advantage but not on marketing performance. And competitive advantage has a significant positive effect on marketing performance. Indirectly, social capital has a significant positive effect on marketing performance through competitive advantage. These results indicate that the role of the competitive advantage variable is important in increasing the influence of social capital on marketing performance as a mediating variable. The influence of social capital variable only increasing marketing perfomance if via competitive advantage variable.

KEYWORDS:

Social Capital, Competitive Advantage, Market Performance, SMEs, Malang Raya

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