An Integrated Social Media, AI, and Data Analytics Marketing Capability Model for Enhancing MSME Performance and SDG Achievement

Abstract

Purpose: This study develops and empirically tests an integrated marketing capability model to explain how Social Media Marketing Capability, Artificial Intelligence Marketing Capability, and Data Analytics Capability jointly influence the marketing performance of MSMEs. Research Method: An explanatory sequential mixed-methods design was employed. The qualitative phase involved in-depth interviews and focus group discussions with 12 MSMEs to refine and validate the research instruments. The quantitative phase surveyed 75 digitally based MSMEs in West Sulawesi, Indonesia. Data were analyzed using SEM-PLS with SmartPLS 4.0. Results and Discussion: The model explains 72.3% of the variance in marketing performance. Data Analytics Capability showed the strongest effects on Customer Insight Quality, Marketing Agility, and Marketing Performance. Social Media Marketing Capability significantly influenced all three outcomes, while AI Marketing Capability significantly affected only Customer Insight Quality. Customer Insight Quality and Marketing Agility also served as significant mediators. Implications: MSME development programs should prioritize data analytics capability, strengthen strategic social media practices, and implement AI adoption gradually. Originality: This study integrates three digital marketing capabilities with customer insight and marketing agility within a single empirical model for digitally based MSMEs.