Market Orientation, Social Media Optimization, and Marketing Performance: The Mediating Role of Digital Marketing

Abstract

The rapid growth of digital technology has intensified competition in the garment industry, requiring firms to adopt effective marketing strategies to improve performance. This study aims to examine the effects of market orientation, social media optimization, and environmental change on digital marketing and marketing performance, as well as the mediating role of digital marketing. An explanatory quantitative approach was employed. Data were collected from 114 respondents representing 38 garment companies affiliated with the Indonesian Garment Companies Association (APGI) in East Java and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results indicate that market orientation (b = 0.473; p < 0.001), social media optimization (b = 0.374; p < 0.001), and environmental change (b = 0.425; p < 0.001) significantly influence digital marketing. Marketing performance is significantly affected by market orientation (b = 0.298; p < 0.001), environmental change (b = 0.324; p < 0.001), and digital marketing (b = 0.465; p < 0.001), whereas social media optimization has no direct significant effect (b = 0.073; p = 0.281). These findings highlight the importance of digital marketing in enhancing marketing performance in the garment industry.