Strengthening Marketing Performance Through Entrepreneurial Marketing and Absorptive Capacity: Examining Strategic Alignment Mediation and Digital Capability Moderation
DOI:
https://doi.org/10.58524/smartsociety.v5i2.899Keywords:
Absorptive Capacity, Digital Capability, Entrepreneurial Marketing, Marketing Performance, Strategic AlignmentAbstract
In the context of digital startups in emerging markets, achieving superior marketing performance remains a critical challenge due to rapid environmental changes, intense competition, and limitations in organizational capabilities. Prior studies have emphasized the importance of Entrepreneurial Marketing (EM) and Absorptive Capacity (AC); however, the mechanism through which these capabilities translate into performance, particularly through Strategic Alignment (SA), remains underexplored. In addition, the role of Digital Capability (DC) as a potential boundary condition in strengthening alignment outcomes is still inconclusive. This study aims to examine how EM and AC enhance Marketing Performance (MP) through SA, and whether DC moderates the relationship between SA and MP in Indonesian digital startups. Using survey data from 250 firms and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings reveal that EM and AC significantly strengthen SA, which in turn exerts a strong positive effect on MP. DC also demonstrates a significant direct effect on MP; however, its moderating role in the SA–MP relationship is not supported. These results suggest that while digital capability contributes directly to performance, it does not necessarily amplify the effectiveness of strategic alignment. This study highlights SA as the primary mechanism through which EM and AC translate into superior marketing performance, while positioning DC as an operational enabler rather than a strategic amplifier. Managerially, firms are encouraged to institutionalize alignment practices and leverage digital capability to support execution effectiveness. The study contributes by advancing an integrated alignment-based framework and by clarifying the boundary conditions of digital capability in emerging-market digital startups.
References
Abourokbah, S. H., Mashat, R. M., & Salam, M. A. (2023). Role of absorptive capacity, digital capability, agility, and resilience in supply chain innovation performance. Sustainability, 15(4), 3636. https://doi.org/10.3390/su15043636
Al-Moaid, N. A. A., & Almarhdi, S. G. (2024). Developing dynamic capabilities for successful digital transformation projects: the mediating role of change management. Journal of Innovation and Entrepreneurship, 13(1), 85. https://doi.org/10.1186/s13731-024-00446-9
Alshahrani, M. A. & Salam, M. A. (2023). Entrepreneurial orientation and SMEs' performance in an emerging economy: the mediating role of absorptive capacity. Journal of Research in Marketing and Entrepreneurship, 26(1), 1–24. https://doi.org/10.1108/jrme-07-2022-0090
Antara. (2024a, September 16). Indonesia punya ekosistem paling dinamis pengembangan startup di ASEAN [Indonesia has the most dynamic startup development ecosystem in ASEAN]. Antara News. Retrieved from Indonesia punya ekosistem paling dinamis pengembangan startup di ASEAN - ANTARA News
Antara. (2024b, October 14). Kemenkop UKM: 25,5 juta UMKM telah “go digital” [Ministry of Cooperatives and SMEs: 25.5 million MSMEs have “gone digital”]. Antara News. Retrieved from Kemenkop UKM: 25,5 juta UMKM telah "go digital" - ANTARA News
Badan Pusat Statistik. (2025, August 29). *Telecommunication statistics in Indonesia 2024*. Retrieved From https://www.bps.go.id/en/publication/2025/08/29/beaa2be400eda6ce6c636ef8/telecommunication-statistics-in-indonesia-2024.html
Balta, M., Παπαδόπουλος, Θ., & Spanaki, K. (2023). Business model pivoting and digital technologies in turbulent environments. International Journal of Entrepreneurial Behavior &Amp; Research, 30(2/3), 773-799. https://doi.org/10.1108/ijebr-02-2023-0210
Bui, M.-T., & Le, H.-L. (2023). Digital Capability and Creative Capability to Boost Firm Performance and Formulate Differentiated CSR-based Strategy. Heliyon, 9(3), e14241. https://doi.org/10.1016/j.heliyon.2023.e14241
Chen, C.-L., Lin, Y.-C., Chen, W.-H., Chao, C.-F., & Pandia, H. (2021). Role of Government to Enhance Digital Transformation in Small Service Business. Sustainability, 13(3), 1028. https://doi.org/10.3390/su13031028
Corvello, V., Felicetti, A. M., Troise, C., & Tani, M. (2023). Betting on the future: How to build antifragility in innovative start-up companies. Review of Managerial Science, 18(4), 1101-1127. https://doi.org/10.1007/s11846-023-00636-x
Dang, L., & Merino, F. (2024). FDI Impact: Catalyzing Digital Capabilities in Host Nations. International Journal of Development Issues, 23(2), 325–347. https://doi.org/10.1108/ijdi03-2023-0085
Danil, L., Jahroh, S., Syarief, R., & Taryana, A. (2025). Technological Innovation in Start-Ups on a Pathway to Achieving Sustainable Development Goal (SDG) 8: A Systematic Review. In Sustainability (Switzerland), 17(3). https://doi.org/10.3390/su17031220
Dubey, R., Gunasekaran, A., Childe, S. J., Bryde, D. J., Giannakis, M., Foropon, C., Roubaud, D., & Hazen, B. T. (2020). Big data analytics and artificial intelligence pathway to operational performance under the effects of entrepreneurial orientation and environmental dynamism: A study of manufacturing organisations. International Journal of Production Economics, 226, 107599. https://doi.org/https://doi.org/10.1016/j.ijpe.2019.107599
Filho, M. S., & Albertin, A. L. (2024). Digital Transformation Path: How Dynamic Capabilities Further Strategic Use of Information Technology Benefits Through Alliances. Ram Revista De Administração Mackenzie, 25(5). https://doi.org/10.1590/1678-6971/eramg240162
Foguesatto, C. R., Balestrin, A., Martins, B. V., & Frare, A. B. (2024). Understanding the role of social media and dynamic capabilities in innovation performance in AgTech: a serial mediation model. Journal of Small Business and Enterprise Development, 31(6), 1225–1248. https://doi.org/10.1108/JSBED-12-2023-0574
Fotopoulos, G. (2023). Knowledge Spillovers, Entrepreneurial Ecosystems and the Geography of High Growth Firms. Entrepreneurship Theory and Practice, 47(5), 1877–1914. https://doi.org/10.1177/10422587221111732
Gong, Y., Le, Y., Zhang, X., Chen, X., & Zeng, H. (2021). Organizational Adaptability Influenced by Practice Strategy, Environmental Dynamism, and Absorptive Capacity. Complexity, 2021(1) 4241485. https://doi.org/10.1155/2021/4241485
Hanaysha, J. R. (2023). Exploring the Relationship between Entrepreneurial Marketing Dimensions, Brand Equity and SME Growth. IIM Kozhikode Society & Management Review, 12(1), 22–38. https://doi.org/10.1177/22779752221125265
Hanaysha, J. R., & Al-Shaikh, M. E. (2022). An Examination of Entrepreneurial Marketing Dimensions and Firm Performance in Small and Medium Enterprises. Sustainability, 14(18), 11444. https://doi.org/10.3390/su141811444
Hooper, V., Huff, S. L., & Thirkell, P. (2010). The impact of is-marketing alignment on marketing performance and business performance. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 41(1), 36–55. https://doi.org/10.1145/1719051.1719054
Hussain, N., Bhatti, W. A., Khan, S. A., Arslan, A., & Tarba, S. Y. (2022). Firm absorptive capacity: multidimensionality, drivers and contextual conditions. Journal of Knowledge Management, 26(10), 2718–2742. https://doi.org/10.1108/jkm-07-2021-0552
Iqbal, M., Mawardi, M. K., Sanawiri, B., Alfisyahr, R., & Syarifah, I. (2023). Strategic orientation and its role in linking human capital with the performance of small and medium enterprises in Indonesia. Journal of Research in Marketing and Entrepreneurship, 25(3), 514-542. https://doi.org/10.1108/jrme-11-2021-0150
Jiménez-Barrionuevo, M. A. M., Molina, L. M., & García-Morales, V. J. (2019). Combined influence of absorptive capacity and corporate entrepreneurship on performance. Sustainability (Switzerland), 11(11). https://doi.org/10.3390/su11113034
Keller, R., Ollig, P., & Rövekamp, P. (2022). Pathways to Developing Digital Capabilities within Entrepreneurial Initiatives in Pre-Digital Organizations. Business & Information Systems Engineering, 64(1), 33–46. https://doi.org/10.1007/s12599-021-00739-3
Li, F. & Sukpasjaroen, K. (2024). The impact of the digital capability of college students’ new enterprises on business model innovation driven by the digital economy: the mediating effect of digital opportunity discovery. Journal of Risk and Financial Management, 17(4), 152. https://doi.org/10.3390/jrfm17040152
Li, Y., Cui, L., Wu, L., Lowry, P. B., Kumar, A., & Tan, K. H. (2024). Digitalization and network capability as enablers of business model innovation and sustainability performance: The moderating effect of environmental dynamism. Journal of Information Technology, 39(4), 687-715.
Liang, Z., Du, J., & Hua, Y. (2025). The Impact of Digital Marketing Capability on Firm Performance: Empirical Evidence from Chinese Listed Manufacturing Firms. Journal of Theoretical and Applied Electronic Commerce Research, 20(3), 236. https://doi.org/10.3390/jtaer20030236
Lim, S. and Ok, C. (2023). Realizing potential through absorptive capacity to create competitive advantage in hospitality organizations. International Journal of Contemporary Hospitality Management, 35(10), 3410–3433. https://doi.org/10.1108/ijchm-07-2022-0820
Ma, Y., Ni, Y., & Meng, N. (2024). Financial development and the impact of FDI on firm innovation: Evidence from bank deregulation in China. International Review of Economics and Finance, 94. https://doi.org/10.1016/j.iref.2024.103390
Mahdi, A., Crick, D., Crick, J. M., Lamine, W., & Spence, M. (2024). A study of entrepreneurial marketing activities and firm performance in an immediate post-COVID-19 era: the moderating role of coopetition. International Journal of Entrepreneurial Behavior &Amp; Research, 30(6), 1527-1552. https://doi.org/10.1108/ijebr-07-2023-0743
Makhloufi, L. (2023). Predicting the Impact of Big Data Analytics Capability and Green Absorptive Capacity on Green Entrepreneurship Orientation and Eco-Innovation. Journal of Enterprising Communities: People and Places in the Global Economy, 18(4), 746–770. https://doi.org/10.1108/jec-05-2023-0069
Morris, M., Schindehutte, M., & LaForge, R. (2002). Entrepreneurial marketing: A construct for integrating emerging entrepreneurship and marketing perspectives. J Mark Theory Pract, 10(4), 1–19.
Mubarik, M., Maciukaite-Zviniene, S., Mubarak, M. F., Ghobakhloo, M., & Pilkova, A. (2025). Strategic and organisational factors for advancing knowledge in intelligent automation. Journal of Innovation and Knowledge, 10(2). https://doi.org/10.1016/j.jik.2025.100675
Nwankwo, C. A., & Kanyangale, M. (2020). Deconstructing Entrepreneurial Marketing Dimensions in Small and Medium-Sized Enterprises in Nigeria: A Literature Analysis. International Journal of Entrepreneurial Venturing, 12(3), 321. https://doi.org/10.1504/ijev.2020.107931
Nwankwo, C. A., & Kanyangale, M. I. (2023). Critical Understanding of Existing Entrepreneurial Marketing Models: 2002 – 2022. Foundations of Management, 15(1), 89–100. https://doi.org/10.2478/fman-2023-0007
Oxford Business Group. (2024). Financing growth: The consolidation of government services and new start-ups are offering enhanced opportunities for investment. Retrieved from https://oxfordbusinessgroup.com/reports/indonesia/2024-report/digitaleconomy/financing-growth-the-consolidation-of-government-services-and-new-start-upsare-offering-enhanced-opportunities-for-investment-overview/
Pashutan, M., Abdolvand, N., & Harandi, S. R. (2022). The impact of IT resources and strategic alignment on organizational performance: The moderating role of environmental uncertainty. Digital Business, 2(2). https://doi.org/10.1016/j.digbus.2022.100026
Pathak, M. D., Kar, B., Panigrahi, R. R., & Shrivastava, A. K. (2024). Role of entrepreneurial resilience in SMEs to promote marketing and entrepreneurship amid Covid19 challenges. Journal of Research in Marketing and Entrepreneurship, 26(1), 44–62. https://doi.org/10.1108/JRME-04-2022-0050
Ponce-Espinosa, G., Peiro-Signes, A., & Segarra-Oña, M. (2022). Absorptive capacity and incompany routines: modelling knowledge creation in the tourism industry. Knowledge Management Research & Practice, 20(5), 732–742. https://doi.org/10.1080/14778238.2020.1796544
Proença, M., & Martins, T. S. (2024). The role of absorptive capacity in the use of digital marketing analytics for effective marketing decisions. Journal of Marketing Analytics, 12(3), 687–700. https://doi.org/10.1057/s41270-023-00224-8
Project Everyone. (2025). Goal 9: Industry, innovation and infrastructure. *The Global Goals*. Retrieved from https://globalgoals.org/goals/9-industry-innovation-and-infrastructure/
Proksch, D., Rosin, A. F., Stubner, S., & Pinkwart, A. (2024). The influence of a digital strategy on the digitalization of new ventures: The mediating effect of digital capabilities and a digital culture. Journal of Small Business Management, 62(1), 1–29. https://doi.org/10.1080/00472778.2021.1883036
Pu, K., & Liu, W. (2023). Is absorptive capacity the “panacea” for organizational development? A META analysis of absorptive capacity and firm performance from the perspective of constructivism. PLOS ONE, 18(2), e0282321. https://doi.org/10.1371/journal.pone.0282321
Rahim, H. A., Ibrahim, S., Kamaruddin, S. B. A., Ghani, N. A. M., & Musirin, I. (2020). Exploration on digital marketing as business strategy model among malaysian entrepreneurs via neurocomputing. IAES International Journal of Artificial Intelligence, 9(1), 18–24. https://doi.org/10.11591/ijai.v9.i1.pp18-24
Rehman, F. U. (2025). Digital capabilities and market competitiveness: the two-fold mediation of internal and external drivers. European Business Review, 37(1), 116–139. https://doi.org/10.1108/EBR-02-2024-0088
Samsuden, N. S., Kohar, U. H. A., Khatib, S. F. A., & Abbas, A. F. (2024). Digital Capabilities and Business Performance: A Systematic Literature Review. Sustainability, 16(24), 11108. https://doi.org/10.3390/su162411108
Sarma, M., Septiani, S., & Nanere, M. (2022). The Role of Entrepreneurial Marketing in the Indonesian Agro-Based Industry Cluster to Face the ASEAN Economic Community. Sustainability, 14(10), 6163. https://doi.org/10.3390/su14106163
Senivongse, C., & Bennet, A. (2024). Unveiling the Triagonal Dynamics of Absorptive Capacity 4.0. International Journal of Knowledge Management, 20(1), 1–27. https://doi.org/10.4018/IJKM.348958
Shah, N., Zehri, A. W., Saraih, U. N., Abdelwahed, N. A. A., & Soomro, B. A. (2023). The Role of Digital Technology and Digital Innovation Towards Firm Performance in a Digital Economy. Kybernetes, 53(2), 620–644. https://doi.org/10.1108/k-01-2023-0124
Sherani, Zhang, J., Shehzad, M. U., Ali, S., & Cao, Z. (2025). Unlocking digital innovation: a moderated-mediation approach exploring the knowledge creation processes, IT-enabled capabilities and absorptive capacity in software SMEs. Business Process Management Journal, 31(1), 170–201. https://doi.org/10.1108/BPMJ-03-2024-0127
Stettler, T. R., Moosauer, E. J., Schweiger, S. A., Baldauf, A., & Audretsch, D. (2025). Absorptive capacity in a more (or less) absorptive environment: A meta‐analysis of contextual effects on firm innovation. Journal of Product Innovation Management, 42(1), 18–47. https://doi.org/10.1111/jpim.12758
Sulaiman, M.A.B.A., Asad, M., Awain, A.M.S.B. et al. Entrepreneurial marketing and performance: contingent role of market turbulence. Discov Sustain 5, 492 (2024). https://doi.org/10.1007/s43621-024-00710-8
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strateg Manage J, 18(7), 509–535.
Teguh, M. J., Noermijaty, N., Moko, W., & Rofiaty, R. (2022). The impact of digital organizational culture and digital capability on organizational performance through digital innovation mediation in the COVID-19 era: a study on Indonesian pharmaceutical soes. Jurnal Pengurusan, 66. https://doi.org/10.17576/pengurusan-2022-66-08
United Nations. (2015). *Transforming our world: The 2030 Agenda for Sustainable Development*. https://sdgs.un.org/2030agenda
United Nations. (2025). *Sustainable Development Goals*. Retrieved from https://sdgs.un.org/
Venkatraman, N. (1989). Strategic orientation of business enterprises: The construct, dimensionality and measurement. Manage Sci, 35, 942–962.
Wang, H. and Li, B. (2023). Research on the synergic influences of digital capabilities and technological capabilities on digital innovation. Sustainability, 15(3), 2607. https://doi.org/10.3390/su15032607
Wang, J., & Du, Y. (2023). From Leverage to Learning: Latecomer Trade-Offs Between Technology Purchase and Imitation. Technology Analysis & Strategic Management, 36(11), 3786–3798. https://doi.org/10.1080/09537325.2023.2223733
Wang, L., Li, J., & Wang, S. (2021). Rivalling Firms’ Absorptive Capacity Congruence in Coopetition Relationships: The Reciprocal Effects on Firms’ Innovation Performance. Knowledge Management Research & Practice, 21(3), 651–666. https://doi.org/10.1080/14778238.2021.2007809
Wu, M., Kozanoglu, D. C., Min, C., & Zhang, Y. (2021). Unraveling the capabilities that enable digital transformation: A data-driven methodology and the case of artificial intelligence. Advanced Engineering Informatics, 50. https://doi.org/10.1016/j.aei.2021.101368
Yadav, A., Paul, J., Bansal, S., & Talan, A. (2024). Developing and validating a scale for entrepreneurial marketing orientations: EMICO framework and its impact on business performance in startups. Journal of Organizational Change Management, 37(7), 1655–1687. https://doi.org/10.1108/JOCM-11-2023-0461
Zahra, S. A., & George, G. (2002). Absorptive Capacity: A Review, Reconceptualization, and Extension. Academy of Management Review, 27(2), 185–203. https://doi.org/10.5465/amr.2002.6587995
Zou, T., Ertug, G., & George, G. (2018). The capacity to innovate: a meta-analysis of absorptive capacity. Innovation: Organization and Management, 20(2), 87–121. https://doi.org/10.1080/14479338.2018.1428105
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Budi Setiawan, Burhan Bungin, Wirawan Endro Dwi Radianto, Siti Zahro, Rommy Pramono

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with the Smart Society: Community Service and Empowerment Journal retain all of the copyrights in their work. Smart Society: Community Service and Empowerment Journal, collaborates with with researchers from many countries as the Editors and the Advisory International Editorial Board make every effort to ensure that no wrong or misleading data, opinions, or statements are published in the journal. In any way, the contents of the articles and advertisements published in the are the sole and exclusive responsibility of their respective authors and advertisers.
Smart Society: Community Service and Empowerment Journal ( e-ISSN: 2807-5757 ) is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License
Authors who publish with Smart Society: Community Service and Empowerment Journal agree to the following terms:
1. The journal allows the author to hold the copyright of the article without restrictions.
2. The journal allows the author(s) to retain publishing rights without restrictions
3. The legal formal aspect of journal publication accessibility refers to Creative Commons Attribution ShareAlike 4.0 International License (CC BY-SA).

Smart Society: Community Service and Empowerment Journal is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

