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Strategic competence and MSME performance: The mediating role of digital transformation in Jambi Province, Indonesia Aira, Dian Mala Fithriani; Yacob, Syahmardi; Johannes, Johannes; Rosita, Sry
Jurnal Perspektif Pembiayaan dan Pembangunan Daerah Vol. 14 No. 4 (2026): Jurnal Perspektif Pembiayaan dan Pembangunan Daerah (In Progress)
Publisher : Program Magister Ilmu Ekonomi Pascasarjana Universitas Jambi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.22437/ppd.v14i4.59692

Abstract

This study examines the mediating role of digital transformation in the relationship between strategic competence and the performance of micro, small, and medium enterprises (MSMEs) in Jambi Province, Indonesia. Cross-sectional questionnaire data from 90 MSME owners in Jambi City, Bungo Regency, and Sungai Penuh City were analyzed using partial least squares structural equation modeling (PLS-SEM). The reported structural results show that strategic competence is positively associated with digital transformation (β = 0.422, p = 0.003), but its direct association with MSME performance is not statistically significant (β = 0.028, p = 0.892). Digital transformation is positively associated with performance (β = 0.598, p = 0.005). The indirect association between strategic competence and performance through digital transformation is positive and significant (β = 0.252, p = 0.022), indicating an indirect-only mediation pattern within the estimated model. These findings align with the view that strategic capabilities may relate to business outcomes by translating into digital practices. The study provides empirical evidence from three localities in Jambi Province and suggests that MSME support programs should integrate strategic management capabilities with practical support for digital transformation. Given the cross-sectional design, the relationships should not be interpreted as definitive causal effects.