https://e-journal.uac.ac.id/index.php/khodimulummah/issue/feed 2026-07-24T00:13:59+00:00 Idris idrizy.09@gmail.com Open Journal Systems <p>Jurnal LPPM</p> https://e-journal.uac.ac.id/index.php/khodimulummah/article/view/10857 2026-07-24T00:13:59+00:00 Fitri Dian Wilujeng fitridianw@gmail.com

<table width="590"> <tbody> <tr> <td width="446"> <p>The acceleration of digital transformation demands Micro, Small, and Medium Enterprises (MSMEs) to integrate advanced technologies to maintain market relevance. This study aims to analyze the influence of Generative Artificial Intelligence (GenAI) utilization on digital marketing performance and competitive advantage of MSMEs in Probolinggo Regency. Using the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT) frameworks, this research examines how cognitive computing technology can function as an operant resource to stimulate competitive advantage. This quantitative research involves 150 MSME actors in Probolinggo Regency selected through purposive sampling. Data analysis was conducted using the Partial Least Squares Structural Equation Modeling (PLS-SEM) approach with SmartPLS 4 software. The results indicate that GenAI utilization has a positive and significant effect on digital marketing performance and competitive advantage. Furthermore, digital marketing performance is proven to play a crucial partial mediating role in bridging GenAI technology adoption toward achieving sustainable competitive advantage. The study concludes that returns on smart technology investments in resource-constrained markets depend heavily on firms' dynamic capabilities to reconfigure business models and align automation with local uniqueness and human interaction authenticity.</p> <p>&nbsp;</p> </td> </tr> </tbody> </table>

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