Capability Configurations and Marketing Performance in MSMEs: The Conditional Role of Digital Capability

Sudarwati Sudarwati; Septiana Novita Dewi; Aris Tri Haryanto; Muhammad Kholid Arif Rozaq; Agus Dwianto; Mukdad Ibrahim; Gehad Mohammed Sultan Saif

doi:10.48161/qaj.v6n2a2512

Authors

Sudarwati Department of Management, Faculty of Economics, Universitas Islam Batik Surakarta, Surakarta 57145, Indonesia; https://orcid.org/0000-0001-5734-235X
Septiana Novita Dewi Faculty of Economics and Business, Universitas Dharma AUB Surakarta, Surakarta 57126, Indonesia; https://orcid.org/0000-0002-0710-5046
Aris Tri Haryanto Faculty of Economics and Business, Universitas Dharma AUB Surakarta, Surakarta 57126, Indonesia; https://orcid.org/0000-0002-6106-7992
Muhammad Kholid Arif Rozaq Department of Art Management, Faculty of Fine Arts and Design, Institute Seni Indonesia Yogyakarta, Yogyakarta 55188, Indonesia; https://orcid.org/0000-0002-3935-1081
Agus Dwianto Department of Accounting, Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia; https://orcid.org/0009-0009-3681-048X
Mukdad Ibrahim Department of Accounting and Finance, Business School, American University of Ras Al Khaimah, Ras Al Khaimah 72603, United Arab Emirates; https://orcid.org/0000-0001-8772-1916
Gehad Mohammed Sultan Saif Department of Accounting, MBA Finance, Bachelor of Science (Hons) in Accounting, University of Aden, Aden 89100, Yemen. https://orcid.org/0009-0002-6819-3518

DOI:

https://doi.org/10.48161/qaj.v6n2a2512

Keywords:

Strategic Capabilities, Digital Capability, Marketing Performance, MSMEs, Emerging Markets.

Abstract

This study examines how multiple strategic capabilities jointly influence marketing performance in Micro, Small, and Medium Enterprises (MSMEs) operating in emerging markets, with particular attention to the contingent role of digital capability. While prior studies have predominantly focused on isolated capabilities, limited research has systematically examined how diverse capabilities interact and whether digital capability consistently strengthens these relationships. Drawing on the integration of the resource-based view (RBV) and the Dynamic Capability’s View (DCV), this study develops and tests a comprehensive model that incorporates innovation, market, technological, and relational capabilities. A sequential explanatory mixed-methods design was employed, combining qualitative insights from 18 MSME interviews with quantitative data from 700 MSMEs, analyzed using PLS-SEM. The findings reveal that not all capabilities contribute equally to marketing performance. Product exploration capability (β = 0.205), digital capability (β = 0.165), and future adaptation capability (β = 0.155) demonstrate significant positive effects, whereas product innovation capability shows a negative and non-significant relationship. Moreover, the moderating role of digital capability is limited and selective, with only one significant interaction effect (FAC × DC), which unexpectedly weakens the relationship with performance. These results suggest that marketing performance in MSMEs is shaped by a selective configuration of capabilities rather than uniformly positive effects across all capability types. Furthermore, digital capability functions as a conditional mechanism rather than a universally enabling factor. This study contributes to the literature by providing an integrated, empirically grounded framework that refines understanding of capability orchestration in emerging-market contexts. It also offers practical insights for MSMEs and policymakers by emphasizing the importance of aligning digital initiatives with specific organizational capabilities rather than assuming universal performance gains.

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