STRATEGY FOR STRENGTHENING MSMES THROUGH ECONOMIC LITERACY AND DIGITAL MARKETING ON BUSINESS PERFORMANCE IN THE CITY OF LUBUKLINGGAU

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in economic development, particularly in regional contexts such as Lubuklinggau City. However, regional MSMEs frequently encounter challenges in resource management, digital adoption, and strategic decision-making. Grounded in the Resource-Based View (RBV) and the Theory of Planned Behavior (TPB), this study proposes an integrated conceptual framework to explain how an MSME Strengthening Strategy and Economic Literacy drive Business Performance through the mediating role of Digital Marketing Capability. In this model, the MSME Strengthening Strategy (encompassing capacity building, business capability, and market access) and Economic Literacy (financial management, business planning, and economic decision-making) serve as organizational and knowledge-based antecedents. Digital Marketing Capability (utilizing social media, marketplaces, and online promotions) acts as a transformational mechanism that converts resources and knowledge into multidimensional business outcomes, including sales growth, profitability, customer loyalty, and business sustainability. To empirically validate the proposed framework, a quantitative explanatory design using Partial Least Squares Structural Equation Modeling (PLS-SEM) is outlined for a sample of at least 200 registered MSMEs in Lubuklinggau City. This framework provides theoretical insights into the resource–knowledge–capability–performance transformation and offers practical guidance for designing integrated regional MSME development programs.