The role of digital marketing in improving SME’s prod- uct competitiveness in The ASEAN Economic Community (AEC) (Case study in Indonesia)

Small Medium Enterprises (SME's); Usaha Kecil Menengah (UKM) has a huge contribution in indonesia and asean economic. There is 96% micro business in ASEAN and 99% in Indonesia. Digital technology helps SME's move faster and more competitive in national and international context. Technology and Internet had a huge impact of economic growth in the world including Indonesia. The effective free market is basic point of SME's. There- fore, it needs the right strategy in increasing competitiveness to compete in AEC. Little Bandung is one of Bandung Goverment program in increasing SME's to active in Internatioal business and contributes an economic growth nationally with becoming a part of global value chain as a response for AEC challange. The purpose of this re- search is identifying the characteristics of SME's in little Bandung. The research will analyze the impact of digital marketing to the competitiveness of SME's little bandung in AEC, and the effectiveness factor of digital marketing in SME's. Data collection process will held in Indonesia. This research identifies three main variables that have potential to influence Digital Marketing (DM) and Digital Leadership Capability (DLC) that is Digital Culture(DC), Digital Attitude (DA), Leadership Skill (LS). Furthermore, digital marketing and digital leadership capability is also tested whether it has potential for influence on competitiveness. The the research is quantitative which collected by visiting SME's dan melalui google form. The data analysis method is partial least squares; structural equation modeling. The results of these tests indicated in the hypothesised relationship.