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All Journal Innovation, Technology, and Entrepreneurship Journal
Puspita Sari, Vincentia Indah
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Computer Science & IT Decision Sciences, Operations Research & Management Engineering Social Sciences

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Digital Entrepreneurship Readiness, Innovation Mindset, and Sustainable Business Performance: Unraveling The Mediating Role of Market Orientation Cahyo, Septian Dwi; Puspita Sari, Vincentia Indah; Kuwatno, Kuwatno
Innovation, Technology, and Entrepreneurship Journal Vol. 3 No. 2 (2026)
Publisher : Universitas Muhammadiyah Magelang

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31603/itej.17506

Abstract

This study examines the effects of digital entrepreneurship readiness and innovation mindset on sustainable business performance, with market orientation serving as a mediating mechanism. The study is motivated by the persistent challenge faced by Micro, Small, and Medium Enterprises (MSMEs) in transforming digital adoption and innovative capabilities into sustainable performance outcomes. Although previous studies have highlighted the importance of digital readiness and innovation, limited research has explained the mechanism through which these resources contribute to sustainability, particularly among MSMEs in developing economies. A quantitative approach was employed using survey data collected from 110 MSMEs in Kendal Regency, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with WarpPLS 8.0. The findings reveal that digital entrepreneurship readiness and innovation mindset positively and significantly influence market orientation and sustainable business performance. Furthermore, market orientation partially mediates the relationships between digital entrepreneurship readiness, innovation mindset, and sustainable business performance. This study contributes theoretically by extending the Resource-Based View and Dynamic Capability perspectives through the integration of digital resources, cognitive capabilities, and market-oriented mechanisms. Practically, the findings suggest that MSME owners and policymakers should strengthen digital capability development and innovation oriented strategies to achieve long-term business sustainability
Co-Authors Cahyo, Septian Dwi Kuwatno Kuwatno, Kuwatno