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).

The digital transformation era has profoundly altered how small and medium-sized enterprises (SMEs) compete, particularly those in traditional industries. This study examines the relationship between second-order digital marketing and purchase intention, emphasizing the mediating role of e-service quality in Ulos-based SMEs in North Sumatra, Indonesia. Digital marketing is conceptualized as a second-order construct composed of cost efficiency, incentive programs, interactivity, and site design, reflecting the multidimensional nature of digital strategies. Data were collected from customers of Ulos SMEs who had engaged with online platforms through a structured survey. The measurement and structural models were tested using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results confirm that digital marketing significantly affects its four dimensions and positively predicts e-service quality. However, the direct effect of digital marketing on purchase intention was insignificant. Instead, e-service quality strongly affects purchase intention and mediates the relationship between digital marketing and purchase intention. The model explained 54.6% of the variance in e-service quality and 65.9% in purchase intention, indicating substantial explanatory power. The findings contribute theoretically by validating digital marketing as a second-order construct and clarifying the mediating role of e-service quality, thereby addressing prior inconsistencies in the literature. Practically, the results underscore that SMEs, particularly in cultural industries such as Ulos, must integrate service quality with digital marketing to convert exposure into purchase behavior. This study highlights how balancing cultural authenticity with digital innovation enables heritage-based SMEs to achieve sustainability and competitiveness in the digital economy.

Digital transformation has encouraged companies to optimize their digital platform capabilities and big data analytics as strategic resources in creating innovation excellence. This study aims to examine the influence of Digital Platform Capability (DPC) and Big Data Analytics Capability (BDAC) on Innovation Performance (IP) in the telecommunications industry in Indonesia. Data was collected from 331 managerial respondents through a survey and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that both DPC (β = 0.316; T = 5.282; P < 0.001) and BDAC (β = 0.484; T = 8.033; P < 0.001) have a significant positive effect on IP. These findings emphasize the importance of companies' ability to manage digital platform integration and utilize big data analytics to strengthen innovation performance. Theoretically, this study expands on the Resource-Based View (RBV) and Dynamic Capability View (DCV) by emphasizing the role of DPC and BDAC as dynamic resources that support innovation. The practical implications suggest that telecommunications companies need to develop integrated digital strategies, strengthen their analytical infrastructure, and foster a data-driven culture to enhance their competitiveness.