ENTREPRENEURSHIP ORIENTATION, PRODUCT INNOVATION, AND DIGITAL MARKETING: KEYS TO SUCCESS FOR MSMES IN THE FOOD AND BEVERAGE SECTOR IN SINGKAWANG CITY

Abstract

Singkawang City, a major tourism destination in West Kalimantan, has experienced economic growth supported by food and beverage MSMEs. However, many businesses still struggle with limited entrepreneurial skills, low product innovation, and ineffective digital marketing, reducing their competitiveness. This study examines the effects of entrepreneurial orientation and product innovation on marketing performance, with digital marketing as a mediating variable. A quantitative approach was applied using purposive sampling of 100 food and beverage MSME owners in Singkawang City. Data were analyzed using PLS-SEM with SmartPLS 4.0. The results show that entrepreneurial orientation and product innovation positively and significantly influence both digital marketing and marketing performance. Digital marketing also partially mediates the relationships between entrepreneurial orientation, product innovation, and marketing performance. These findings suggest that strengthening entrepreneurial capabilities, encouraging continuous product innovation, and improving digital marketing practices can enhance marketing performance, competitiveness, and the long-term sustainability of MSMEs in tourism-based local economies.