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All Journal Jurnal Manajemen & Keuangan
Htet Paing Soe
Department of International Technology and Innovation Management, International Collage
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Other

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The Role of Business Sustainability in Enhancing SME Competitiveness Through Working Capital and Digital Technology Mirhamida Rahmah; Dinda Fatmah; Nurul Aslikhah; Htet Paing Soe; Yusriyah Rahmah; Zakiyah Zulfa Rahmah; Chamdan Purnama
Jurnal Manajemen dan Keuangan Vol 14 No 2 (2025): Journal Management and Finance
Publisher : Program Studi Manajemen Fakultas Ekonomi Universitas Samudra

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33059/jmk.v14i2.12569

Abstract

This study aims to analyze the role of business sustainability as a mediating variable in the relationship between working capital and digital technology on the competitiveness of SMEs in Indonesia. The study is motivated by the growing awareness of the importance of sustainable business practices amidst dynamic market challenges and global environmental pressures. Using a quantitative approach and path cici4d analysis techniques based on Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from 200 SMES actors in the halal fashion and food sectors through structured questionnaires. The findings indicate that business sustainability acts as a significant mediator, strengthening the indirect influence of working capital and digital technology on competitiveness. These results affirm that sustainability is not merely a social responsibility, but a strategic resource that enhances the competitive position of SMEs. The adoption of digital technology and efficient working capital management will yield stronger competitive advantages when directed cici4d toward sustainability goals. This research contributes to the SMES literature and offers practical insights for business actors and policymakers in designing sustainable and competitive business strategies.
Co-Authors Chamdan Purnama Dinda Fatmah Mirhamida Rahmah Nurul Aslikhah Yusriyah Rahmah Zakiyah Zulfa Rahmah