Abstract
This study aims to analyze the effect of digital marketing capability on SME performance with market agility as a mediating variable. The research employs a quantitative approach with an explanatory design. The population consists of SME actors in Kecamatan Medan Kota, with a sample of 100 respondents selected using purposive sampling. Data were collected through questionnaires using a Likert scale and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that digital marketing capability has a positive and significant effect on both SME performance and market agility. Market agility also has a significant positive effect on SME performance. Furthermore, market agility mediates the relationship between digital marketing capability and SME performance with partial mediation. These findings suggest that digital marketing capability will be more effective in improving SME performance when supported by the ability to adapt to market changes. This study contributes to the business management literature and provides practical implications for SME actors in optimizing adaptive digital marketing strategies to enhance business performance.
