Drivers of Sustainability Assurance: An Empirical Study of Indonesian Manufacturing Firms

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Tangerang Digital Marketing and Financial Management Proven to Boost MSME Revenue. Research conducted by Riska Febrianti, Yesita Astarina, Dwi Riana, and Ulfah Muharramah from Sriwijaya State Polytechnic, then published in 2026 in the International Journal of Business and Applied Economics (IJBAE).

The research conducted by Riska Febrianti, Yesita Astarina, Dwi Riana, and Ulfah Muharramah confirms that the ability to utilize digital marketing and manage finances in an organized manner has been proven to increase SME revenue significantly. The results of this study are relevant because revenue growth remains a major challenge for small businesses amid digital market competition and rising operational costs.

How the research was carried out

The study involved MSME actors who actively run their businesses and manage daily operations. Data were collected through structured questionnaires distributed to respondents meeting operational and experience criteria. The researchers then analyzed the responses statistically to measure how strongly digital marketing practices and financial management influence business income. The approach allows a direct view of how managerial behavior translates into financial outcomes.

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In simple terms, the research examined whether:

  1. the use of digital marketing tools increases business income,
  2. sound financial management contributes to higher earnings, and
  3. both factors together strengthen income performance.

Key findings from the field

The results show a clear and positive relationship between managerial capability and financial success:

  • Digital marketing has a significant positive effect on MSME income. Businesses that promote products through online platforms, social media, and digital channels report stronger revenue growth.
  • Financial management also significantly increases income. MSMEs that record transactions, monitor expenses, and manage cash flow systematically perform better financially.
  • The combination of both factors produces stronger results than either alone. Digital promotion attracts customers, while financial control ensures revenue is converted into sustainable profit.
  • Internal management explains a substantial share of income variation. This means business performance is not determined solely by external market conditions, but also by how owners run their operations.

The findings confirm that technology adoption without financial discipline is incomplete, and bookkeeping without market reach limits growth. Together, they form a reinforcing cycle: better promotion increases sales, while sound financial control maintains stability and reinvestment capacity.

Why digital marketing makes a difference

Digital marketing expands market reach beyond physical locations. Social media, online marketplaces, and digital communication tools allow MSMEs to reach broader audiences at relatively low cost. The researchers note that consistent online presence, customer interaction, and digital branding help businesses remain competitive in fast-moving markets.

At the same time, increased sales activity demands stronger financial control. Without proper recording and planning, higher revenue can be offset by uncontrolled expenses. The study shows that businesses with clear budgeting, expense tracking, and financial planning convert more sales into net income.

Implications for business development

For MSME owners, the message is practical: learning digital marketing skills and basic financial management can directly improve income. Training programs that combine social media marketing strategies with simple accounting practices are likely to produce tangible economic benefits.

For educators and training institutions, the study supports integrated curricula that blend technology skills with financial literacy. Teaching these areas separately may limit impact, while combining them aligns with real business needs.

For policymakers, the research underlines the importance of supporting MSME digital transformation alongside financial education. Programs that provide access to digital platforms, mentoring, and bookkeeping tools can accelerate local economic growth and resilience.

Academic perspective

The authors from Politeknik Negeri Sriwijaya emphasize that MSME development is not solely about capital assistance. Managerial competence, especially in digital engagement and financial control, shapes long-term sustainability. Their work positions internal capability building as a key strategy in strengthening Indonesia’s small business ecosystem.

Author Profiles

  • Riska Febrianti –  Politeknik Negeri Sriwijaya
  • Yesita Astarina – Politeknik Negeri Sriwijaya.
  • Dwi Riana –  Politeknik Negeri Sriwijaya.
  • Ulfah Muharramah –  Politeknik Negeri Sriwijaya.

Research Source

Febrianti, R., Astarina, Y., Riana, D., & Muharramah, U. (2026). The Influence of Digital Marketing and Financial Management on MSME Income. International Journal of Business and Applied Economics (IJBAE) Vol. 5, No. 1 January 2026: 405-420

 DOI : https://doi.org/10.55927/ijbae.v5i1.583

URL Resmi: https://nblformosapublisher.org/index.php/ijbae

 


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