This study aims to analyze the effect of market orientation on marketing performance with the mediating role of digital marketing among café and restaurant SMEs in Purworejo Regency. Increasing business competition and rapid digital transformation require business owners to understand market needs while effectively utilizing digital platforms in their marketing activities. This study employed a quantitative approach using a survey method involving owners or managers of café and restaurant SMEs in Purworejo Regency. Data were collected through questionnaires and analyzed using Structural Equation Modeling (SEM). The findings indicate that market orientation has a positive and significant effect on both marketing performance and digital marketing. Digital marketing also has a positive and significant effect on marketing performance. Furthermore, digital marketing mediates the relationship between market orientation and marketing performance, indicating that a deeper understanding of customer needs can improve marketing performance more effectively when supported by digital technology utilization. The results contribute theoretically to the development of market orientation and digital marketing literature and provide practical implications for SME owners in designing adaptive marketing strategies to enhance business competitiveness and marketing outcomes.
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