DIGITAL MARKETING TRANSFORMATION AND COMPETITIVE ADVANTAGE: THE MEDIATING ROLE OF INNOVATION STRATEGY IN CONSTRUCTION SERVICES

Nasyiin Faqih; Ahmad  Guspul; Mulyana Mulyana; Rosman Mahmood; Mochammad Qomaruddin; Musthofa  Musthofa

doi:10.32500/jebe.v8i1.12273

Authors

Nasyiin Faqih Universitas Sains Al-Quran
Ahmad Guspul Universitas Sains Al-Quran https://orcid.org/0000-0001-7242-4089
Mulyana Mulyana Universitas Sultan Agung https://orcid.org/0000-0002-7887-5195
Rosman Mahmood Universiti Teknologi MARA (UiTM) https://orcid.org/0000-0003-3316-1727
Mochammad Qomaruddin Universitas Islam Nahdlatul Ulama https://orcid.org/0000-0001-8193-8794
Musthofa Musthofa Universitas Bojonegoro

DOI:

https://doi.org/10.32500/jebe.v8i1.12273

Keywords:

Digital Marketing Transformation, Market Segmentation, Innovation Strategy, Competitive Advantage, Construction Services

Abstract

Construction service firms face increasing pressure to adapt to digital transformation and intensifying market competition. However, the mechanisms through which digital marketing transformation and market segmentation contribute to competitive advantage, particularly through innovation strategy, remain insufficiently understood in the construction services context. This study examines the direct and indirect effects of digital marketing transformation and market segmentation on competitive advantage, with innovation strategy as a mediating variable. Data were collected from 200 managerial-level respondents in Indonesia and analysed using partial least squares structural equation modelling (PLS-SEM). The findings reveal that digital marketing transformation significantly affects innovation strategy (β = 0.55; p < 0.001), as does market segmentation (β = 0.40; p < 0.001). Innovation strategy has the strongest effect on competitive advantage (β = 0.60; p < 0.001). Digital marketing transformation and market segmentation also have direct effects on competitive advantage, with coefficients of 0.25 and 0.18, respectively. The mediation analysis indicates positive indirect effects through innovation strategy of 0.33 for digital marketing transformation and 0.24 for market segmentation. The model explains 48% of the variance in innovation strategy and 62% in competitive advantage. This study contributes to the strategic management literature by integrating digital marketing transformation and market segmentation within a mediation framework that identifies innovation strategy as a key mechanism linking these factors to competitive advantage in construction services. The findings highlight the importance of aligning digital marketing capabilities and market segmentation with innovation-oriented strategies to strengthen firms' competitive positions.

Author Biographies

Nasyiin Faqih, Universitas Sains Al-Quran

Dr. Ir. Nasyiin Faqih, S.T., M.T., I.P.M. is a lecturer and researcher in Civil Engineering, specializing in Water Resources Engineering at Universitas Sains Al-Qur’an (UNSIQ), Wonosobo, Central Java, Indonesia. He earned his Bachelor of Engineering (S.T.) and Master of Engineering (M.T.) in Civil Engineering, and completed his Doctoral degree (S3) in Civil Engineering at UNDIP. His research focuses on hydrology, hydraulic modeling, flood mitigation, water distribution systems, and sustainable water management. Dr. Nasyiin Faqih has contributed to multiple academic publications indexed in Scopus and SINTA, and maintains an active research profile with expertise in HEC-RAS, EPANET, GIS-based hydrology, and agrivoltaic water management systems.
Ahmad Guspul, Universitas Sains Al-Quran

Dr. Ahmad Guspul, S.E., M.M. is a lecturer in Management at Universitas Sains Al‑Qur’an (UNSIQ), Wonosobo, Central Java, Indonesia. He is affiliated with the Faculty of Economics and Business and focuses on research in management practices, marketing, and socio-economic studies. He holds a Master’s degree in Management and a doctoral degree in Management from Universitas Islam Indonesia (UII). His publications are indexed on Google Scholar and SINTA, and he can be contacted via guspul@unsiq.ac.id.

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