Augmenting SME's Performance

This study examines how digital marketing capabilities (DMCs) enhance marketing performance (MP) among small and medium enterprises (SMEs), emphasizing the mediating roles of entrepreneurial orientation (EO) and entrepreneurial marketing (EM). Using survey data from 398 SMEs in North Sumatra, Indonesia, analyzed through PLS–SEM (SmartPLS 4.0), results show that DMCs positively affect MP. EO and EM significantly mediate this relationship, highlighting that digital tools must be complemented by entrepreneurial and adaptive marketing behaviors. Grounded in Dynamic Capabilities Theory, the study proposes an integrated framework where DMCs, EO, and EM function as interrelated dynamic capabilities, jointly driving competitiveness and marketing success in technology-driven markets.