<![CDATA[Rapid expansion of the Muslim fashion industry has led to fierce competition an create a red ocean market for MSMEs across Java Island. This study investigates how Value Innovation and Market Positioning drive Market Expansion while evaluating the mediating role of Digital Marketing Capability. In this intense digital landscape, small businesses must adopt efficient, innovation-driven marketing approaches to survive. By using quantitative explanatory method, data were gathered through a cross sectional survey of 220 respondents selected via purposive sampling. The conceptual model tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS. The empirical results demonstrate that both Value Innovation and Market Positioning exert a direct, positive, and significant influence on Digital Marketing Capability as well as Market Expansion. Also, the analysis indicates that Digital Marketing Capability serves as a partial mediator in this relationship. These insights emphasize that digital capability is far more than an operational tool, it acts as a strategic catalyst that successfully translates product innovation and brand image into actual business growth. To sustain a competitive advantage, MSMEs are highly encouraged to continuously upgrade their digital services, standardize promotional efforts, and invest in data analytics literacy.]]>
Copyrights © 2026
