THE MEDIATING ROLE OF DIGITAL CUSTOMER EXPERIENCE ACCENTUATE IN ENHANCING FINANCIAL PERFORMANCE OF B2B MSMES IN INDONESIA AND MALAYSIA

Abstract

 This research examined the impact of digitalization practices on sales performance among Micro, Small and Medium Enterprises (MSMEs) in Indonesia and Malaysia, with specific focus towards the mediating role of digital customer experience (DCX). The data has been collected from robust samples of MSMEs and B2B and has been analyzed by using structural equation modeling (SEM) to test the proposed relationships between digitalization, DCX and sales performance. The outcomes show that digitalization practices have a moderate direct impact on sales performance. Although, this relationship has essentially strengthened when MSMEs effectively integrate with customer centric digital experiences. Personalized and responsive digital interactions emerge as a key mechanism that link technology adoption for improving sales outcomes. The research has provided an actionable insight for MSMEs practitioners by highlighting the requirement to align digital investments with effective customer journey management and continuous feedback mechanisms. Policy makers are encouraged to focus more on capacity-building initiatives which enhance MSMEs’ competencies in digital customer experience design alongside technology adoption.