The aim of this study is to analyze how to improve the competitive advantage and performance of small and medium-sized enterprises (SMEs) in North Sumatra through marketing entrepreneurship and architectural innovation capabilities. The type of research is quantitative research. The study focused on UMKM in North Sumatra who offered the following categories of products: handicrafts, food and beverages, coffee shops, bakeries, fashion, clothing, and services. The research population consists of all 84,758 UMKMs in North Sumatra. As for the sample number ranging between 100 and 200, or at least 5 times the number of variable indicators, when using Structural Equation Modeling (SEM). The entire sample size for stage 1 was 102 SME samples from Medan city. To analyze the research data, the study used SmartPLS (Partial Least Squares). The findings of this study show that market orientation (MO) has a negative and insignificant impact on SME performance from data processing and hypothesis testing results. Entrepreneurship Marketing Architecture Innovation Capacity (EMAIC) has a beneficial and significant impact on Competitive Advantage (CA). The ability of Enterprise Marketing Architectures (EMAC) to innovate has a significant and beneficial impact on their success. Entrepreneurship orientation (EO) provides tangible proof of SME success through competitive advantage (CA). Corporate orientation has no direct impact on SME performance through competitiveness (CA).

This study explores the mediating role of digitalization in the relationship between human resource transformation and competitive advantage in women-led small and medium enterprises. The analysis utilized data from 120 women entrepreneurs across diverse sectors, with the study's methodology incorporating Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that competitive advantage and human resource transformation collectively account for 70.3% of the variance in business performance (R² = 0.703), underscoring their critical Influence. However, the expected mediating effect of digitalization on BP was discovered to be non-significant (P = 0.094), suggesting its role might be more supportive than transformative in this context. Notwithstanding this finding, digitalization remains a pivotal catalyst for operational efficiency and innovation. This study contributes to extant scholarship by drawing upon the Resource-Based View and Dynamic Capabilities Theory, offering novel insights into the strategic importance of digital tools and human capital in women-led Small and Medium Enterprises.