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The Role Of Innovation Capability In Mediating The Effect Of Strategic Agility On Business Performance Of Smes In The Food And Beverage Sector In Cimahi Azzam Tiar Busyeri; Rofi Rofaida; Hady Siti Hadijah; Asep Kurniawan
Dinasti International Journal of Education Management And Social Science Vol. 5 No. 6 (2024): Dinasti International Journal of Education Management and Social Science (Augus
Publisher : Dinasti Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.38035/dijemss.v5i6.3238

Abstract

Micro, Small, and Medium Enterprises (MSMEs) in Cimahi City possess strategic potential, particularly in the food and beverage sector. Cimahi is one of the cities experiencing growth in the number of MSMEs, with a growth rate of 50.24%. However, the increase in the number of MSMEs has not been accompanied by consistent revenue growth, which has fluctuated from 2019 to 2023. Several challenges have been identified, including a lack of basic entrepreneurial knowledge among the workforce, insufficient self-reliance in entrepreneurship, and limited proficiency in the use of technology. To address these performance issues, it is crucial for MSME actors to create added value by strengthening strategic agility and innovation capability. The objective of this study is to examine the impact of strategic agility on business performance, mediated by innovation capability. The study sample consists of 106 MSMEs, selected using probability sampling with a cluster sampling technique. Descriptive analysis results categorize business performance and innovation capability as moderate, while strategic agility is categorized as high. The research findings indicate that strategic agility does not affect innovation capability, strategic agility influences business performance, innovation capability affects business performance, and innovation capability does not mediate the influence of intellectual capital on business performance.
Linking entrepreneurial leadership and digital literacy competence to firm performance through business innovation Nandang Nandang; Disman Disman; Janah Sojanah; Hady Siti Hadijah; Heny Hendrayati; Frederic Marimon; Marhadi Marhadi
Jurnal Fokus Manajemen Bisnis Vol. 16 No. 1 (2026)
Publisher : Universitas Ahmad Dahlan

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12928/fokus.v16i1.15070

Abstract

This study examines the relationships between entrepreneurial leadership, digital literacy competence, and business performance, with business innovation as a mediating mechanism. Previous research has frequently examined leadership or digital capabilities separately. 157 owners or managers of micro, small, and medium enterprises in West Java, Indonesia were selected through non-probability purposive sampling. A seven-point Likert scale was used to gather the data. Structural equation modelling–partial least squares was used for analysis. The findings demonstrate that business performance and innovation are positively affected by entrepreneurial leadership. Digital literacy competence has a beneficial impact on company innovation but has no impact on business performance. Business innovation positively affects business performance and significantly mediates the effects of entrepreneurial leadership and digital literacy competence on business performance. These findings highlight innovation as a key pathway through which leadership and digital capabilities improve performance, underscoring the importance of innovation-oriented leadership development and the strategic deployment of digital capabilities to strengthen the competitiveness of micro, small, and medium enterprises. Theoretically, this study contributes to the development of dynamic capabilities theory by demonstrating how entrepreneurial leadership and digital literacy competence enhance firm performance through innovation as a reconfiguration mechanism. In practice, the findings provide policymakers and micro, small, and medium enterprises development programs with insights to focus on strengthening entrepreneurial leadership and innovation-oriented digital capabilities to improve the competitiveness and sustainability of engineering-sector micro, small, and medium enterprises.