Empowering MSMEs through Strategy Marketing and Digital Transformation: Reassessing Pathways to Distribution Financing

Muhammad Al Ikhsan Nur; Felina C. Young; Sionnida A. Baes; Robert Y Co; Lilia C. Chio; Ephralmuel Jose L. Abellana

doi:10.55927/mudima.v5i11.690

Authors

Muhammad Al Ikhsan Nur Philippine Woman's University
Felina C. Young Philippine Woman's University
Sionnida A. Baes Philippine Woman's University
Robert Y Co Philippine Woman's University
Lilia C. Chio Philippine Woman's University
Ephralmuel Jose L. Abellana Philippine Woman's University

DOI:

https://doi.org/10.55927/mudima.v5i11.690

Keywords:

Strategy Marketing, Digital Transformation, Distribution Financing

Abstract

Micro, Small and Medium Enterprises (MSMEs) are critical engines of economic growth and innovation, yet their potential is often constrained by limited access to financing. This dissertation explores how strategy marketing and digital transformation can empower MSMEs to overcome these barriers and secure financial resources more effectively. Utilizing a mixed-methods design, the study combines quantitative path analysis with qualitative insights from 399 MSME owners in Palembang, Indonesia, offering a nuanced understanding of how market oriented strategies and digital capabilities interact to influence capital access. Results demonstrate that well crafted Strategy marketing significantly facilitate the adoption of digital tools, which in turn act as a crucial mediator enhancing MSMEs’ credibility and appeal to financial institutions. Digital transformation is revealed not merely as a technological shift but as a dynamic capability that strengthens value communication, operational efficiency, and market responsiveness. The study also highlights contextual factors such as firm size, sector, and digital literacy that shape the extent to which marketing and digital initiatives translate into tangible financial outcomes. Theoretically, this research extends the resource-based view and dynamic marketing capabilities frameworks by showing how intangible assets, including marketing expertise and digital proficiency, drive concrete economic benefits. Practically, the findings offer actionable guidance for policymakers, financial institutions, and MSME support programs, suggesting that integrative strategies combining marketing insight and digital adoption can unlock broader access to capital. By reassessing the pathways to financing, this dissertation provides an evidence based framework for empowering MSMEs to navigate financial constraints, enhance competitiveness, and thrive in an increasingly digital economy.

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