Effect of Artificial Intelligence Implementation and Product Innovation on Digital Marketing Strategy Effectiveness in Palopo City's Micro, Small, and Medium Enterprises
DOI:
https://doi.org/10.37638/bima.7.1.955-964Keywords:
Artificial Intelligence, Product Innovation, Effectiveness, Digital Marketing StrategyAbstract
Purpose: This study aims to analyze the effect of artificial intelligence and product innovation on the effectiveness of digital marketing strategies among MSMEs in Palopo City. Methodology: A quantitative approach with a causal explanatory design was employed. The population consisted of MSMEs actively engaged in digital marketing. Using purposive sampling and the MoE formula, a sample of 96 respondents was obtained. Data were collected through questionnaires and analyzed statistically using SmartPLS 3. Results: The results show that artificial intelligence and product innovation directly have a positive and significant effect on the effectiveness of digital marketing strategies, both partially and simultaneously. Findings: The findings confirm that AI adoption and product innovation are key drivers of digital marketing effectiveness in the local MSME context. Novelty & Originality: This study offers novelty by examining AI and product innovation in the context of MSMEs in Palopo City, a region rarely explored in prior research on digital marketing. Conclusions: The results imply that the use of AI and product innovation can increase the effectiveness of digital marketing strategies for MSME products in Palopo City. Type of Paper: This paper is an empirical research paper.
References
Adeleye, R. A., Awonuga, K. F., Asuzu, O. F., Ndubuisi, N. L., & Tubokirifuruar, T. S. (2024). Digital marketing analytics: A review of strategies in the age of big data and AI. World Journal of Advanced Research and Reviews, *21*(2). https://doi.org/10.30574/wjarr.2024.21.2.0395 DOI: https://doi.org/10.30574/wjarr.2024.21.2.0395
Agung, M., & Hendra, H. (2023). Product innovation in the context of international marketing: Strategy and implementation. Jurnal Minfo Polgan, *12*(2). https://doi.org/10.33395/jmp.v12i2.13306 DOI: https://doi.org/10.33395/jmp.v12i2.13306
Bouhelal, F., & Adouka, L. (2022). Shift from product innovation strategy to marketing innovation strategy to add value to the firm. Management Dynamics in the Knowledge Economy, *10*(2). https://doi.org/10.2478/mdke-2022-0012 DOI: https://doi.org/10.2478/mdke-2022-0012
Faerrosa, L., Athar, H. S., & Widiana, H. (2022). Market orientation and product innovation as an MSME marketing strategy. Amwaluna: Jurnal Ekonomi dan Keuangan Syariah, *6*(2). https://doi.org/10.29313/amwaluna.v6i2.10044 DOI: https://doi.org/10.29313/amwaluna.v6i2.10044
Firman, Saerang, I. S., & Nelwan, O. S. (2024). The influence of digital competency, digital organizational culture and organizational citizenship behavior on employee performance at Bank Sulutgo. International Journal of Humanities, Social Sciences and Innovation Management, *2024*(2), 15–31. https://pubjournals.com/
Haudi, Wijoyo, H., & Cahyono, Y. (2020). Effect of product innovation and marketing strategy on consumer purchase decisions in Indonesia. Journal of Critical Reviews, *7*(13).
Huang, M. H., & Rust, R. T. (2021). A strategic framework for artificial intelligence in marketing. Journal of the Academy of Marketing Science, *49*(1). https://doi.org/10.1007/s11747-020-00749-9 DOI: https://doi.org/10.1007/s11747-020-00749-9
Kanagal, N. B. (2015). Innovation and product innovation in marketing strategy. Journal of Management and Marketing Research, *18*.
Kotler, P., Keller, K. L., Brady, D. M., Goodman, M., & Hansen, M. T. (2012). Marketing management.
Ligeza, A. (1995). Artificial intelligence: A modern approach. Neurocomputing, *9*(2). https://doi.org/10.1016/0925-2312(95)90020-9 DOI: https://doi.org/10.1016/0925-2312(95)90020-9
Maihani, S., et al. (2023). The role of artificial intelligence (AI) in marketing innovation. Warta Dharmawangsa, *17*(4). https://doi.org/10.46576/wdw.v17i4.3817 DOI: https://doi.org/10.46576/wdw.v17i4.3817
Muhammad Iqbal, I., Muhammad Fahmi Julianto, F., Umi Khultsum, U., & Destiana Putri, D. (2024). Using artificial intelligence (AI) as a supporting media for marketing micro, small, and medium enterprises (MSMEs) products in special Borneo MSMEs. Journal of Researcher and Community Service Officer Jotika, *3*(2). https://doi.org/10.56445/jppmj.v3i2.117 DOI: https://doi.org/10.56445/jppmj.v3i2.117
Ningrum, S., Fitra, V. D., & Sanjaya, V. F. (2020). The influence of product innovation, competitive advantage, and marketing strategy on marketing performance. Jurnal MUTIARA Manajemen, *5*(2). https://doi.org/10.51544/jmm.v5i2.1614 DOI: https://doi.org/10.51544/jmm.v5i2.1614
Purchase, S., & Volery, T. (2020). Marketing innovation: A systematic review. Journal of Marketing Management, *36*(9–10). https://doi.org/10.1080/0267257X.2020.1774631 DOI: https://doi.org/10.1080/0267257X.2020.1774631
Sari, D., Kusuma, B. A., Sihotang, J., & Febrianti, T. (2023). The role of entrepreneurial marketing & innovation capability in the performance of SMEs during the covid-19 pandemic: Evidence of MSMEs in West Java. Cogent Business & Management, *10*(1). https://doi.org/10.1080/23311975.2023.2194091 DOI: https://doi.org/10.1080/23311975.2023.2194091
Shaik, M. (2023). Impact of artificial intelligence on marketing. East Asian Journal of Multidisciplinary Research, *2*(3). https://doi.org/10.55927/eajmr.v2i3.3112 DOI: https://doi.org/10.55927/eajmr.v2i3.3112
Supriyadi, E. I., & Asih, D. B. (2021). Implementation of artificial intelligence (AI) in the field of public administration in the era of industrial revolution 4.0. Jurnal RASI, *2*(2). https://doi.org/10.52496/rasi.v2i2.62 DOI: https://doi.org/10.52496/rasi.v2i2.62
Wiji Prasetiyo, B., & Firmantyas Putri Pertiwi, I. (2021). The influence of product innovation, marketing strategy, and entrepreneurship orientation on sharia hotel marketing performance in the Covid-19 pandemic period with competitive advantage as an intervening variable. Journal of Business and Management Review, *2*(9). https://doi.org/10.47153/jbmr29.2122021 DOI: https://doi.org/10.47153/jbmr29.2122021
Wiryawan, I. P. G. H., & Seminari, N. K. (2022). The role of product innovation in mediating market orientation on marketing performance. E-Jurnal Manajemen Universitas Udayana, *11*(6). https://doi.org/10.24843/ejmunud.2022.v11.i06.p02 DOI: https://doi.org/10.24843/EJMUNUD.2022.v11.i06.p02
Wu, C. W., & Monfort, A. (2023). Role of artificial intelligence in marketing strategies and performance. Psychology & Marketing, *40*(3). https://doi.org/10.1002/mar.21737 DOI: https://doi.org/10.1002/mar.21737
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Ananda Ananda, Suhardi M Anwar, Muhammad Aqsa (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
An author who publishes in the BIMA JOURNAL: Business, Management, and Accounting Journal agrees to the following terms:
Author retains the copyright and grants the journal the right of first publication of the work simultaneously licensed under the Creative Commons Attribution-ShareAlike 4.0 License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal
Submission of a manuscript implies that the submitted work has not been published before (except as part of a thesis or report, or abstract); that it is not under consideration for publication elsewhere; that its publication has been approved by all co-authors. If and when the manuscript is accepted for publication, the author(s) still hold the copyright and retain publishing rights without restrictions. For the new invention, authors are suggested to manage its patent before published. The license type is CC-BY-SA 4.0.
BIMA JOURNAL: Business, Management and Accounting is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
You are free to:
Share — copy and redistribute the material in any medium or format
Adapt — remix, transform, and build upon the material
for any purpose, even commercially.
The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
- You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation.
- No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
How to Cite
