Transformation Strategy of Omni-Channel Marketing (OCM) Based on Digital Innovation to Foster Sustainable Competitive Advantage for MSMEs
Keywords:
Transformation, Omni-Channel Marketing, Digital Innovation, Sustainable Competitive Advantage, MSMEsAbstract
Micro, Small, and Medium Enterprises (MSMEs) still rely on conventional marketing strategies that are less effective in enhancing competitiveness. According to data from the Ministry of Cooperatives and SMEs (KemenKopUKM), only 21% of MSMEs have adopted digital approaches, with remaining challenges including limited infrastructure, lack of digital skills, and minimal policy support. Omni-Channel Marketing (OCM) based on digital innovation emerges as a strategic solution to expand market reach, improve business efficiency, and create sustainable competitive advantage. In line with the President's Asta Cita Point 3, "promoting entrepreneurship," a transformative strategy for OCM driven by digital innovation is needed to help MSMEs survive and grow in an increasingly competitive global market. This study employs a quantitative approach. The sample consists of 1,000 MSMEs in Medan City, selected using purposive sampling. Data were collected through a questionnaire survey. The study uses Partial Least Squares (PLS) with SmartPLS software for data analysis. The findings indicate that the Omni-Channel Marketing (OCM) Transformation Strategy and Digital Innovation have a positive and significant effect on Sustainable Competitive Advantage. Moreover, the OCM Transformation Strategy influences Digital Innovation, and the OCM Transformation Strategy, mediated by Digital Innovation, also affects Sustainable Competitive Advantage.
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