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Digital Transformation and Agility as Drivers of Sustainable Business Performance: The Mediating Role of Legality in Indonesian SMEs Sasongko, Rolan Mart; Budi , Ryan Setya; Adiyatna, Hafidh Rifky; Mubarok, Alvian Alvin
Review: Journal of Multidisciplinary in Social Sciences Vol. 2 No. 07 (2025): July 2025
Publisher : Lentera Ilmu Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.59422/rjmss.v2i07.1025

Abstract

This study investigates how digital transformation and organizational agility influence sustainable business performance in Indonesian Small and Medium-sized Enterprises (SMEs), emphasizing the mediating role of legality. Drawing on dynamic capabilities theory, the research explores how digital technologies and agile practices contribute to resilience and long-term competitiveness. Using a quantitative approach, data were collected from 453 SMEs across Yogyakarta through structured questionnaires administered in hybrid offline-online sessions. Thematic analysis via NVivo revealed a conceptual framework positioning agility as a critical mediator between digital adoption and business sustainability. The findings highlight that SMEs leveraging digital tools demonstrate greater responsiveness, operational flexibility, and innovation capacity. Notably, legal compliance emerged as a foundational enabler: legally registered SMEs were more effective in adopting digital strategies, accessing institutional support, and navigating regulatory environments. This underscore the role of legality not only as a contextual factor but as a strategic asset enhancing digital and agile capabilities. The study contributes to entrepreneurial strategy literature by integrating digital transformation, agility, and legality into a cohesive model for sustainable SME performance. Practical implications suggest that SMEs should prioritize digital investment alongside legal formalization to maximize their strategic agility and long-term success in volatile markets.
RESPONS PEMUDA PEDESAAN TERHADAP KEBIJAKAN PEMBANGUNAN DAERAH DALAM KETERSEDIAAN LAPANGAN KERJA Saraswati, Yudhistira; Sasongko, Rolan Mart; Adiyatna, Hafidh Rifky; Yuliana, Hesty; Rivandi S, Muh
Jurnal Ilmiah Administrasi Pemerintahan Daerah Vol 17 No 1 (2025): Innovative Governance (In Progres)
Publisher : Institut Pemerintahan Dalam Negeri (IPDN)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.33701/jiapd.v17i1.5326

Abstract

Development inequality remains a persistent issue in many regions, often stemming from imbalanced policy implementation and regional disparities. Youth, as a socially and economically vulnerable group, are particularly affected by such conditions. This study aims to analyze the responses of young people in East Java Province to local development policies. Using a descriptive qualitative approach supported by surveys and literature review, the research explores perceptions and experiences of youth toward government-led development initiatives. The findings reveal that, overall, youth in East Java demonstrate a positive attitude toward regional development policies, acknowledging improvements in infrastructure, education, and public services. However, significant concerns remain, particularly regarding the limited and indirect impact of such policies on employment opportunities. Many young people, especially those from rural areas, express dissatisfaction with the lack of accessible jobs, which compels them to migrate to urban centers or other provinces in search of better economic prospects. This phenomenon highlights a critical gap in inclusive development planning. The study underscores the urgent need for strategic policy reforms aimed at reducing regional disparities and enhancing youth participation in local development. One recommended approach is the acceleration of development in underdeveloped areas by optimizing local potentials such as agriculture, creative industries, and rural-based manufacturing. Strengthening these sectors can not only create sustainable employment but also curb youth migration and promote balanced regional growth. The study contributes to the discourse on youth-oriented development and serves as a reference for policymakers seeking inclusive and equitable development strategies.