<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) play a critical role in economic growth and job creation, yet achieving long-term sustainability remains challenging in increasingly competitive business environments. Drawing on the Resource-Based View and Institutional Theory, this study examines the effects of digital marketing, circular economy practices, credit facilities, inclusive partnerships, distribution strategy, pricing strategy, and innovation strategy on business competition and MSME sustainability, with business competition as a mediating variable and institutional regulation as a moderating variable. A quantitative research design using a survey was employed to collect data from 250 MSME owners and managers in East Java, Indonesia. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings indicate that circular economy practices, distribution strategy, and pricing strategy significantly affect business competition. Circular economy practices, inclusive partnerships, pricing strategy, and institutional regulation have significant positive effects on MSME sustainability. Business competition has a significant negative effect on MSME sustainability, suggesting that intense competitive pressure may weaken long-term business performance. In contrast, digital marketing, credit facilities, and innovation strategy have no significant effects on either business competition or MSME sustainability, while the moderating effect of institutional regulation on the relationship between business competition and MSME sustainability is not significant. Business competition also does not significantly mediate the relationships between the predictor variables and MSME sustainability. Practically, the findings suggest that MSME managers should prioritize circular economy practices, inclusive partnerships, and effective pricing strategies, while policymakers should strengthen institutional support mechanisms that directly enhance MSME sustainability.]]>
