Drivers of Consumer Purchase Decisions on TikTok: A Social Commerce Perspective

Abstract

This study aims to examine the effect of digital adoption on competitive advantage among cultural product micro, small, and medium enterprises (MSMEs) in North Sumatera from a marketing perspective. The research seeks to understand how the utilization of digital technologies contributes to strengthening the competitive position of culturally embedded enterprises operating in a dynamic market environment. A quantitative explanatory research design was employed using a cross-sectional survey approach. Data were collected from 220 owners and managers of cultural product MSMEs in North Sumatera through a structured questionnaire. Purposive sampling was applied to ensure that respondents had experience in adopting digital technologies for marketing activities. The data were analyzed using multiple linear regression, supported by validity and reliability tests as well as classical assumption testing. Statistical analysis was conducted using SPSS. The results reveal that digital adoption has a positive and statistically significant effect on competitive advantage among cultural product MSMEs. The findings indicate that MSMEs that actively integrate digital technologies into their marketing practices are more capable of enhancing product differentiation, expanding market reach, and strengthening customer relationships. Digital adoption emerges as an important strategic driver of competitiveness in culturally based enterprises. This study contributes to the literature by extending the Resource-Based View and Dynamic Capability Theory to the context of cultural product MSMEs at the regional level. From a practical perspective, the findings provide insights for MSME owners and policymakers on the importance of aligning digital adoption with marketing strategies to achieve sustainable competitive advantage while preserving cultural authenticity.