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The Impact of Digital Transformation and Entrepreneurial Orientation on Women-Led MSME Performance: The Mediating Role of Innovation Capability Engel San Andrea; Patricia
Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt)
Publisher : Universitas Pelita Harapan

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Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a central role in Indonesia’s economy by generating employment and contributing to GDP. However, rapid technological change requires MSMEs to embrace digital transformation and strengthen entrepreneurial orientation to sustain growth. This study investigates how digital transformation and entrepreneurial orientation affect MSME performance, with innovation capability serving as a mediating factor. A quantitative descriptive design was employed, collecting data through surveys from 150 women-led MSMEs in the Greater Jakarta area. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test seven proposed hypotheses. The results indicate that digital transformation and entrepreneurial orientation both have positive effects on innovation capability and business performance. Furthermore, innovation capability significantly improves MSME performance and mediates the influence of digital and entrepreneurial factors. This study contributes to the literature by linking digital transformation and entrepreneurial orientation with innovation-driven performance in women-led MSMEs. It also provides practical insights for policymakers and support institutions to develop digitalization and innovation programs that strengthen competitiveness in a dynamic market environment.
Green Entrepreneurial Orientation, Self-Efficacy, and Innovation: An RBV and Dynamic Capabilities Perspective on SME Performance Patricia; Imannuel Christianus
Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt)
Publisher : Universitas Pelita Harapan

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Abstract

Sustainable entrepreneurship is vital for small and medium-sized enterprises (SMEs) in emerging economies facing environmental and market pressures. This study investigates how green entrepreneurial self-efficacy (GESE), green entrepreneurial orientation (GEO), and green innovation (GI) influence the economic performance of SMEs in Jakarta, Indonesia. Drawing on the Resource-Based View (RBV) and Dynamic Capabilities (DC) theory, the study examines both direct effects and the mediating role of GI. A quantitative approach was employed using survey data from 95 SME owners who implement green practices. Analysis with Partial Least Squares Structural Equation Modeling (PLS-SEM) revealed that GEO significantly promotes GI, while GESE does not. GI strongly enhances economic performance and mediates the relationship between GEO and economic performance, but not between GESE and performance. These findings extend RBV and DC by showing that strategic orientation, when translated into innovation, drives SME competitiveness, whereas self-efficacy alone is insufficient. The study offers theoretical contributions and practical implications for strengthening green strategies and innovation capacity in SMEs.