<![CDATA[Study aims to analyze the effect of digital marketing on the business performance of MSMEs in Bali by examining the mediating role of marketing capability and the moderating role of competitive intensity. Using a quantitative survey-based approach, data were collected from 100 MSMEs that actively use digital platforms through purposive sampling. The data were analyzed using Partial Least Squares–Structural Equation Modeling (PLS-SEM) to examine causal relationships, mediation effects, and moderation effects. The results indicate that digital marketing capability plays an important but indirect role in improving the business performance of MSMEs in Bali. Although digital marketing does not have a direct significant effect on business performance, it significantly enhances marketing capability, which in turn becomes a key factor driving improved business performance. Furthermore, the moderating effect of competitive intensity indicates that MSMEs operating in highly competitive environments tend to be better able to maximize the use of digital strategies to maintain their business performance.]]>
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