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All Journal Community Development Journal: Jurnal Pengabdian Masyarakat Jurnal Pendidikan dan Teknologi Indonesia Teknikom: Teknologi Informasi, Ilmu Komputer dan Manajemen SmartComp IIJSE Scientific Journal of Informatics
Muhammad Akbar Setiawan
STMIK Widya Utama
Humanities Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Electrical & Electronics Engineering Engineering Health Professions Mathematics Public Health

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Journal : IIJSE

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The Role of Digital Readiness and AI Skills in MSME Business Sustainability in the Era of Digital Transformation Santosa, Muhammad Hery; Setiawan, Muhammad Akbar
Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE) Vol 9 No 1 (2026): Sharia Economics
Publisher : Universitas KH. Abdul Chalim Mojokerto

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31538/iijse.v9i1.9211

Abstract

Digital transformation and the adoption of Artificial Intelligence (AI) are becoming increasingly urgent for Micro, Small, and Medium Enterprises (MSMEs) to maintain competitiveness in a technology-driven economy. This study aims to examine a structural model that explains the influence of digital readiness, AI skills, and policy support on MSME business sustainability using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) approach. Data were collected from 155 MSMEs in Purbalingga Regency engaged in the culinary, fashion, and handicraft sectors. The findings show that digital readiness has a significant effect on AI skills and business sustainability, whereas AI skills and policy support do not yet demonstrate a significant influence on business sustainability. These results highlight the importance of digital readiness as the primary foundation for adapting AI-based marketing strategies, as well as the need to strengthen AI skills and provide more targeted policy support to optimize the benefits of technology. This study contributes practically by offering recommendations for MSMEs, support institutions, and policymakers, and theoretically by reinforcing the concept of Dynamic Capability in the context of AI adoption.
Co-Authors Abdul Karim Adi Suryadi, Gentha Adnan Purwanto Atika Ratna Dewi Briandoko, Singgih Herni Utami Rahmawati Ika Indah Lestari Indra Maulana Joko Purnomo Lestari, Ika Indah Muhammad Hery Santoso Nahar Mahardiyanto Pratama, Bayu Rizkya Putri, Wingki Diyah Rianti Yunita Kisworini Rianti Yunita Kisworini, Rianti Yunita Riyandari, Lutvi Rosalina, Utami Santosa, Muhammad Hery Singgih Briandoko Singgih Setia Andiko Sulistiyasni . Sunaryono Sunaryono Tenia Wahyuningrum Wika Purbasari Wika Purbasari, Wika Zakiyah Apriliya Budiarti