AI-BASED MARKETING, DIGITAL LITERACY, AND SOCIAL MEDIA CAPABILITY AS PREDICTORS OF CREATIVE MSME PERFORMANCE IN MEDAN CITY
Abstract
The rapid development of digital technologies has transformed the way Micro, Small, and Medium Enterprises (MSMEs) create value, interact with customers, and compete in increasingly dynamic markets. Creative MSMEs, which depend heavily on innovation, market visibility, and customer engagement, require digital capabilities to improve their business performance. This study aims to examine the influence of AI-based marketing, digital literacy, and social media capabilities on the performance of creative MSMEs in Medan. This research employed a quantitative approach involving 85 creative MSME actors as respondents. Data were collected using a structured questionnaire with a five-point Likert scale and analyzed using Statistical Package for the Social Sciences (SPSS) version 25. The data analysis included validity testing, reliability testing, classical assumption testing, multiple linear regression analysis, t-test, F-test, and coefficient of determination analysis. The results indicate that AI-based marketing, digital literacy, and social media capabilities have positive and significant effects on creative MSME performance. Among these factors, digital literacy demonstrates the strongest contribution, indicating that entrepreneurs’ ability to understand and utilize digital technologies plays a critical role in improving business outcomes. Furthermore, the regression model shows that the three digital capability factors simultaneously explain 57.6% of the variation in MSME performance. These findings highlight that successful digital transformation among creative MSMEs requires not only technology adoption but also the development of entrepreneurial digital competencies and effective social media management capabilities. This study provides practical implications for MSME owners and policymakers in designing strategies to strengthen digital competitiveness and sustainable business growth.
Keywords
References
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