Utilization of innovation in digital marketing: Qualitative study of SMEs in Indonesia

This study investigates the adoption of digital marketing innovations by Small and Medium Enterprises (SMEs) in Indonesia, focusing on the Jabodetabek area. Utilizing a qualitative case study approach, data were collected through interviews, observations, and questionnaires with SME owners and managers. Findings indicate that 80% of respondents perceive social media as a significant factor in increasing product visibility, yet many SMEs struggle to fully optimize digital marketing due to technical knowledge limitations. Questionnaire results reveal that 65% of SMEs report a positive impact of digital marketing on sales growth, while observations highlight that businesses implementing advanced strategies—such as paid advertising and influencer collaborations—experience better sales performance than those relying solely on organic reach. The study underscores key barriers to digital marketing adoption, including a lack of expertise, resource constraints, and limited strategic planning. Additionally, the research suggests that SMEs require structured training and policy support to enhance their digital marketing capabilities. By analyzing the challenges and opportunities faced by SMEs, this study provides valuable insights for practitioners and policymakers in formulating strategies to improve digital literacy, increase market competitiveness, and drive sustainable business growth. The findings highlight the urgent need for capacity-building initiatives, such as government-supported digital literacy programs and industry partnerships, to bridge the gap in SMEs' digital marketing proficiency. Moreover, the study contributes to the broader discourse on digital transformation by demonstrating how marketing innovation can enhance business resilience in an increasingly digital economy. Future research could explore comparative analyses between regions or sectors to provide a more comprehensive understanding of SMEs' digital marketing adoption. Overall, this research offers a critical perspective on the role of digital marketing in fostering SME competitiveness and serves as a foundation for developing more effective support mechanisms tailored to the needs of small businesses in Indonesia.