Does knowledge management and digital marketing improve the performance of local food home industries?
-
DOIhttp://dx.doi.org/10.21511/ppm.24(2).2026.08
-
Article InfoVolume 24 2026, Issue #2, pp. 103-119
- 14 Views
-
2 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
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.
- Keywords
-
JEL Classification (Paper profile tab)O14, L26, O12, M31
-
References54
-
Tables6
-
Figures5
-
- 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
-
- Abubakar, A. M., Elrehail, H., Alatailat, M. A., & Elçi, A. (2019). Knowledge management, decision-making style and organizational performance. Journal of Innovation & Knowledge, 4(2), 104-114.
- Afif, A., Supriyadi, E., & Nugroho, A. A. (2024). Optimization of maritime logistics transportation as a catalyst for economic equity in Indonesia. In Proceedings of the 1st International Conference of Economics, Management, Accounting, and Business Digital (ICEMAB 2024) (pp. 124-132).
- Alkhresheh, D. A. S. (2025). The Impact of Knowledge Management on Supply Chain Performance Through Performance Management Systems: Evidence from Jordanian Firms. Journal of Logistics, Informatics and Service Science, 12(8), 97-113.
- Belmonte-Ureña, L. J., Plaza-Úbeda, J. A., Vazquez-Brust, D., & Yakovleva, N. (2021). Circular economy, degrowth and green growth as pathways for research on sustainable development goals: A global analysis and future agenda. Ecological Economics, 185.
- Bening, S. A., Dachyar, M., Pratama, N. R., Park, J., & Chang, Y. (2023). E-commerce technologies adoption strategy selection in Indonesian SMEs using the decision-makers, technological, organizational and environmental (DTOE) framework. Sustainability (Switzerland), 15(12).
- Cartwright, S., Liu, H., & Davies, I. A. (2022). Influencer marketing within business-to-business organisations. Industrial Marketing Management, 106, 338-350.
- Chaffey, D., & Ellis-Chadwick, F. E. (2016). Digital marketing: Strategy, implementation and practice (6th ed.). Pearson Education.
- Cui, R., Wang, J., Xue, Y., & Liang, H. (2020). Interorganizational learning, green knowledge integration capability and green innovation. European Journal of Innovation Management, 24(4), 1292-1314.
- Duan, Y., Bin, X., Xin, X., & Siyuan, X. (2024). The impact of government subsidies on green innovation performance in new energy enterprises: A digital transformation perspective. International Review of Economics & Finance, 94, Article 103414.
- Durst, S., Foli, S., & Edvardsson, I. R. (2024). A systematic literature review on knowledge management in SMEs: Current trends and future directions. Management Review Quarterly, 74(1), 263-288.
- Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., Jain, V., Karjaluoto, H., Kefi, H., Krishen, A. S., Kumar, V., Rahman, M. M., Raman, R., Rauschnabel, P. A., Rowley, J., Salo, J., Tran, G. A., & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59, Article 102168.
- Feliciano-Cestero, M. M., Ameen, N., Kotabe, M., Paul, J., & Signoret, M. (2023). Is digital transformation threatened? A systematic literature review of the factors influencing firms’ digital transformation and internationalization. Journal of Business Research, 157, Article 113546.
- Gebayew, C., Hardini, I. R., Panjaitan, G. H. A., Kurniawan, N. B., & Suhardi. (2018). A systematic literature review on digital transformation. In Proceedings of the 2018 International Conference on Information Technology Systems and Innovation, ICITSI 2018 (pp. 260-265). Bandung, Indonesia.
- Gherghina, S. C., Botezatu, M. A., Alexandra, H., & Simionescu, L. N. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability, 12(1).
- Ghozali, I. (2021). Aplikasi Analisis Multivariate dengan Program IBM SPSS 26 (Edisi ke-10) [Multivariate Analysis Application with IBM SPSS 26 Program (10th edition)]. Badan Penerbit Universitas Diponegoro. (In Indonesian).
- Ghozali, I., & Hengky, L. (2014). Partial Least Squares : Konsep, Teknik dan Aplikasi Menggunakan SmartPLS 3.0 (Edisi ke-2) [Partial Least Squares : Concepts, Techniques, and Applications Using SmartPLS 3.0 (2nd edition)]. Badan Penerbit Universitas Diponegoro. (In Indonesian).
- Hafeez, S., Shahzad, K., Helo, P., & Mubarak, M. F. (2025). Knowledge management and SMEs’ digital transformation: A systematic literature review and future research agenda. Journal of Innovation & Knowledge, 10(3).
- Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Prentice Hall International.
- Hameed, M. M. A., Hashem, A. E. A. E., & Ali, T. M. (2025). Knowledge management enablers and innovative capabilities: The mediating role of knowledge transfer – Insights from telecom industry in Egypt. Future Business Journal, 11(1), Article 20.
- Hanaysha, J. R., & Mehmood, K. K. (2022). An exploration of the effect of customer relationship management on organizational performance in the banking sector. International Journal of Customer Relationship Marketing and Management (IJCRMM), 13(1), 1-16.
- Hartarto, A. (2022, March 31). Pemerintah terus mendorong penguatan fondasi ekonomi dengan menetapkan transformasi digital UMKM sebagai salah satu prioritas [The government continues to encourage strengthening the economic foundations by establishing digital transformation of MSMEs as one of the priorities]. Jakarta: Biro Komunikasi, Layanan Informasi, Dan Persidangan Kementerian Koordinator Bidang Perekonomian Haryo Limanseto. (In Indonesian).
- Hartawan, E., Liu, D., Handoko, M. R., Evan, G., & Widjojo, H. (2021). Pengaruh iklan di media sosial instagram terhadap minat beli masyarakat pada e-commerce [The influence of advertising on Instagram social media on people’s purchasing interest in e-commerce]. JMBI UNSRAT (Jurnal Ilmiah Manajemen Bisnis Dan Inovasi Universitas Sam Ratulangi), 8(1), 217-228. (In Indonesian).
- Idrees, H., Xu, J., Haider, S. A., & Tehseen, S. (2023). A systematic review of knowledge management and new product development projects: Trends, issues, and challenges. Journal of Innovation & Knowledge, 8(2).
- Islam, A., & Wahab, S. A. (2021). The intervention of strategic innovation practices in between regulations and sustainable business growth: A holistic perspective for Malaysian SMEs Available to Purchase. World Journal of Entrepreneurship, Management and Sustainable Development, 17(3), 396-421.
- Jogiyanto, H. (2011). Konsep dan aplikasi structural equation modeling: Berbasis varian dalam penelitian bisnis [Concept and application of variant-based structural equation modeling (SEM) in business research]. UPP STIM YKPN. (In Indonesian).
- Khilji, N., Nicolic, K., & Ikram-ur-Rehman (2024). The influence of knowledge management on digital transformation: An overview for managing change and innovation. In K. Arai (Ed.), Advances in Information and Communication (vol. 919, pp. 368-388). Cham: Springer.
- Kırmızı, M., & Kocaoglu, B. (2022). Digital transformation maturity model development framework based on design science: Case studies in manufacturing industry. Journal of Manufacturing Technology Management, 33(7), 1319-1346.
- Kowshik, S. T. H., Chew, E. Y. T., & Lee, S. W. H. (2025). Knowledge transfer as a dynamic capability: A meta-analysis of its impact on organizational outcomes in international contexts. Knowledge Management Research and Practice.
- Krings, W., Palmer, R., & Inversini, A. (2021). Industrial marketing management digital media optimization for B2B marketing. Industrial Marketing Management, 93, 174-186.
- Laudon, K. C., & Traver, C. G. (2017). E-commerce: Business, technology, society (13th ed.). Pearson.
- Lee, K. L., Azmi, N. A. N., Hanaysha, J. R., Alzoubi, H. M., & Alshurideh, M. T. (2022). The effect of digital supply chain on organizational performance: An empirical study in Malaysia manufacturing industry. Uncertain Supply Chain Management, 10(2), 495-510.
- Lito, L. S. J., Samudro, B. R., & Soesilo, A. M. (2025). Digital transformation and regional development disparities in Indonesia. In The Fourth International Conference on Government Education Management and Tourism (ICoGEMT-4) (pp. 1-13).
- Maluku Central Statistics Agency. (2024). Profil Industri Mikro dan Kecil Provinsi Maluku 2024 [Micro and Small Industry Profile of Maluku Province 2024]. (In Indonesian).
- Marpaung, D., & Fadillah, N. (2024). Pengaruh persepsi harga, digital marketing dan inovasi terhadap kepuasan konsumen pada coffe coustik [The influence of price perception, digital marketing and innovation on consumer satisfaction at Coustik coffee]. Seminar Nasional Sosial Humaniora Dan Tekhnologi, 1(1), 269-273. (In Indonesian).
- Nerima, M., & Ralyté, J. (2021). Towards a digital maturity balance model for public organizations. In S. Cherfi, A. Perini, & S. Nurcan (Eds.), Research Challenges in Information Science (pp. 295-310). Cham: Springer.
- Nonaka, I., & Takeuchi, H. (1995). The knowledge-creating company: How Japanese companies create the dynamics of innovation. New York, NY: Oxford Academic.
- Panda, M., Pradhan, R. K., & Singh, S. K. (2022). What makes organization-assigned expatriates perform in the host country? A moderated mediation analysis in the India-China context. Journal of Business Research, 142, 663-673.
- Prabaningtias, N., Mustaniroh, S. A., & Dania, W. A. P. (2024). Development of potato chip cluster supply chain institutional model with the integration of ISM (interpretive structural modeling) and ANP (analytic network process). AgriTECH, 44(4).
- Pribadi, A. K., & Gautama, T. (2025). Legal analysis of government intervention in the management of Cassava agricultural commodities in East Lampung Regency. Research Horizon, 5(3), 879-888.
- Riry, J., Makaruku, M. H., & Tanasale, V. L. (2023). The potential of local food diversification in supporting sustainable food security in Maluku Islands. Inclusive Society and Sustainability Studies, 3(2), 29-48.
- Sarstedt, M., Ringle, C. M., & Hair, J. F. (2022). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of Market Research (pp. 1-40). Cham: Springer.
- Schilirò, D. (2024). Digital transformation and its impact on organizations. International Journal of Business and Management, 19(6), 71-81.
- Schrempf-Stirling, J., Van-Buren, H.J., & Wettstein, F. (2022). Human rights: A promising perspective for business & society. Business & Society, 61, 1282-1321.
- Scott, B. B., & Manning, M. (2022). Designing the collaborative organization: A framework for how collaborative work, relationships, and behaviors generate collaborative capacity. The Journal of Applied Behavioral Science, 60.
- Sharabati, A. A. A., Ali, A. A. A., Allahham, M. I., Hussein, A. A., Alheet, A. F., & Mohammad, A. S. (2024). The impact of digital marketing on the performance of SMEs: An analytical study in light of modern digital transformations. Sustainability (Switzerland), 16(19).
- Trisia, M. A., Tachikawa, M., & Ehara, H. (2021). The role of the sago supply chain for rural development in Indonesia: A review and perspective. Reviews in Agricultural Science, 9(1), 143-156.
- Tseng, M. L., Islam, M. S., Karia, N., Fauzi, F. A., & Afrin, S. (2019). A literature review on green supply chain management: Trends and future challenges. Resources, Conservation and Recycling, 141, 145-162.
- Tuten, T. L., & Solomon, M. R. (2018). Social media marketing (1st ed.). Pearson.
- Umayasari, U., & Amantha, G. K. (2025). The boomerang effect of the cassava floor price policy: An analysis of the impact of the governor of Lampung’s directive on the tapioca industry and farmers’ welfare. Priviet Social Sciences Journal, 5(6), 71-87.
- Utama, D. R., Hamsal, M., Abdinagoro, S. B., & Rahim, R. K. (2024). Developing a digital transformation maturity model for port assessment in archipelago countries: The Indonesian case. Transportation Research Interdisciplinary Perspectives, 26.
- Vermeulen, S. J., Dinesh, D., Howden, S. M., Cramer, L., & Thornton, P. K. (2018). Transformation in practice: A review of empirical cases of transformational adaptation in agriculture under climate change. Frontiers in Sustainable Food Systems, 2.
- Wong, K. K. (2013). Partial least squares structural equation modeling (PLS-SEM) techniques using SmartPLS. Marketing Bulletin, 24.
- Vial, G. (2019). Understanding digital transformation: A review and a research agenda. Journal of Strategic Information Systems, 28(2), 118-144.
- Yu, S., Abbas, J., Álvarez-Otero, S., & Cherian, J. (2022). Green knowledge management: Scale development and validation. Journal of Innovation & Knowledge, 7(4).


