<![CDATA[This study aims to examine the effect of sustainable business model innovation (SBMI) on firm performance (FP) with digital marketing capability (DMC) as a mediating variable among creative economy SMEs. Its originality lies in the simultaneous empirical test of the SBMI-DMC-performance mechanism among creative economy SMEs in an emerging regional economy, which has rarely been tested jointly in the literature. A quantitative approach was employed using a survey of 150 SME owners and managers in Lombok, West Nusa Tenggara. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) with 5,000 bootstrap subsamples. The results show that SBMI has a positive and significant effect on FP (β = 0.36, p < 0.001) and on DMC (β = 0.75, p < 0.001), which in turn positively affects FP (β = 0.48, p < 0.001). The mediation analysis confirms that DMC partially mediates the SBMI-FP relationship. These findings underscore the importance of integrating sustainability-oriented innovation with digital marketing capability to achieve superior performance, with implications for SME owners, managers, and policymakers to treat sustainability and digital marketing as complementary agendas.]]>
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