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All Journal Greenation International Journal of Economics and Accounting
Abdul Gofur
Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
Economics, Econometrics & Finance

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Enhancing MSME Competitive Performance in Indonesia: The Role of Digital Capability Ahmad Hidayat; Tuswoyo Tuswoyo; Abdul Gofur; Hanuna Shafariah
Greenation International Journal of Economics and Accounting Vol. 4 No. 2 (2026): Greenation International Journal of Economics and Accounting (May - June 2026)
Publisher : Greenation Research & Yayasan Global Resarch National

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/gijea.v4i2.876

Abstract

This study aims to examine the effect of managerial competence, product differentiation, and institutional collaboration on the competitive performance of micro, small, and medium enterprises, with digital capability as a mediating variable. The study is motivated by the increasing importance of digital transformation in enhancing business competitiveness in a dynamic market environment. A quantitative approach was employed using survey data collected from micro, small, and medium enterprises, analyzed through variance-based structural equation modeling. The results indicate that managerial competence and institutional collaboration have a positive and significant effect on digital capability, while product differentiation does not show a significant effect. Digital capability significantly influences competitive performance and mediates the relationship between managerial competence and institutional collaboration on performance, but does not mediate the effect of product differentiation. The study concludes that digital capability plays a crucial role in strengthening competitiveness by transforming internal competencies and external collaboration into performance outcomes.
Co-Authors Ahmad Hidayat Hanuna Shafariah Tuswoyo Tuswoyo