The Effect of Consumer Satisfaction on MSME Performance: The Moderating Role of Digital Marketing

Abstract

Micro, small, and medium enterprises (MSMEs) increasingly face demands to improve environmental performance while sustaining customer value and business outcomes. This study examines whether digital marketing moderates the relationship between consumer satisfaction and MSME performance, within a model in which green innovation acts as the antecedent of both satisfaction and performance. A quantitative explanatory cross-sectional design was applied to food and beverage MSMEs in Sumbawa Regency, Indonesia. Data from 100 respondents were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The measurement model met convergent validity, discriminant validity, and reliability requirements: outer loadings ranged from 0.797 to 0.926, average variance extracted ranged from 0.720 to 0.779, and composite reliability ranged from 0.911 to 0.934. The structural model explained 27.6% of the variance in consumer satisfaction and 58.3% of the variance in MSME performance. Digital marketing significantly strengthened the satisfaction–performance relationship (? = 0.241, p < 0.001), and it also had a positive direct effect on performance (? = 0.419, p < 0.001). Green innovation was positively associated with consumer satisfaction (? = 0.525, p < 0.001) and MSME performance (? = 0.325, p < 0.001), and consumer satisfaction was positively associated with performance (? = 0.282, p = 0.002). Consumer satisfaction partially mediated the green innovation–performance relationship (? = 0.148, p = 0.007). These findings position digital marketing as a capability that amplifies the performance returns of consumer satisfaction generated by green innovation in MSMEs.