Does knowledge management and digital marketing improve the performance of local food home industries?

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Type of the article: Research Article

Abstract
The purpose of this study is to analyze the roles of knowledge management and digital marketing in improving the perfor-mance of local food home industries (LFHIs), which are crucial to strengthening regional food security and community in-comes in the Indonesian archipelago. However, LFHI performance remains hampered by limited digital adoption and integration of knowledge. The analysis was conducted in Maluku Province, particularly Central Maluku Regency, Tual City, and Southeast Maluku Regency. A total of 101 entrepreneurs in Central Maluku, 336 in Southeast Maluku, and 336 in Tual City were identified. Data were analyzed using SmartPLS-SEM. The coefficient of determination (R²) was 0.523, indicating that collaboration networks, marketing capacity, consumer satisfaction, digital marketing, and knowledge management explain 52.3% of the variation in LFHI performance. In comparison, factors outside the model influence the remaining 47.7%. Model fit was confirmed by NFI = 0.852 and SRMR = 0.078, indicating an acceptable fit. The t-statistic results suggest that collaboration networks significantly influence digital marketing and knowledge management, whereas consumer satisfaction has no significant effect on either. Both digital marketing and knowledge management significantly enhance LFHI performance, whereas marketing capacity significantly influences digital marketing but not knowledge management. The results indicate that locally embedded collaboration and knowledge-sharing practices drive digital transformation. The study provides a practical development model to strengthen food-based MSMEs in archipelagic regions.

Acknowledgment
We want to express our gratitude to the DPPM Ministry of Higher Education, Science and Technology for providing research funding to support our research activities in 2025, as outlined in contract No. 096/C3/DT.05.00/PL/2025, dated May 28, 2025.

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    • Figure 1. Conceptual framework
    • Figure 2. Key aspects of e-commerce and marketplace utilization in local food home industries
    • Figure 3. Dimensions of knowledge management and digital marketing practices among LFHIs
    • Figure 4. Measurement and structural model (loadings, path coefficients, and R² values)
    • Figure 5. Bootstrapping results showing t-values between constructs (inner model)
    • Table 1. Coefficient of determination (R²) and adjusted R² for each endogenous variable
    • Table 2. Effect size (F²) of the exogenous variables on endogenous constructs
    • Table 3. Measurement model evaluation: Reliability and convergent validity
    • Table 4. Discriminant validity based on the Fornell–Larcker criterion
    • Table 5. Model fit indices of the SEM-PLS analysis
    • Table 6. Path coefficients and significance levels from bootstrapping analysis
    • Conceptualization
      Natelda R. Timisela, Ernoiz Antriyandarti
    • Data curation
      Natelda R. Timisela, Febby J. Polnaya, Claris F. L. Neka, Maria Nathalia A. Luhukay
    • Formal Analysis
      Natelda R. Timisela, Doms Upuy
    • Funding acquisition
      Natelda R. Timisela
    • Investigation
      Natelda R. Timisela, Maria Nathalia A. Luhukay
    • Methodology
      Natelda R. Timisela
    • Project administration
      Natelda R. Timisela, Doms Upuy, Ernoiz Antriyandarti, Claris F. L. Neka, Maria Nathalia A. Luhukay
    • Resources
      Natelda R. Timisela, Febby J. Polnaya
    • Writing – original draft
      Natelda R. Timisela, Febby J. Polnaya, Doms Upuy, Ernoiz Antriyandarti, Claris F. L. Neka
    • Writing – review & editing
      Natelda R. Timisela, Febby J. Polnaya, Doms Upuy, Ernoiz Antriyandarti, Claris F. L. Neka, Maria Nathalia A. Luhukay
    • Validation
      Febby J. Polnaya
    • Visualization
      Febby J. Polnaya
    • Supervision
      Claris F. L. Neka, Maria Nathalia A. Luhukay