Branding: Jurnal Manajemen & Bisnis
Vol 4 No 2 (2025): BRANDING: Jurnal Manajemen dan Bisnis

TRANSFORMATION OF SMES IN WEST JAVA: BUILDING NATIONAL ECONOMIC RESILIENCE THROUGH DIGITAL INNOVATION

Mafriningsianti, Evi (Unknown)
Setiadi, Sandi (Unknown)



Article Info

Publish Date
24 Oct 2025

Abstract

This study aims to analyze the effect of digital transformation, MSME innovation, and government policies on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in West Java, with Human Resource (HR) capacity as a moderating variable. Using a quantitative approach with a causal design, this study tests hypotheses through Structural Equation Modeling (SEM) with the help of SmartPLS software. The research population consists of active MSMEs in West Java Province, with a minimum sample of 99 respondents selected using stratified purposive sampling. The results show that digital transformation has a positive and significant effect on MSME sustainability. MSME innovation also shows a very strong and dominant positive effect on business sustainability. In addition, government policies also contribute positively and significantly to the sustainability of MSMEs, although the impact is relatively weaker. However, an important finding is that human resource capacity does not significantly moderate the relationship between digital transformation, innovation, and government policies on the sustainability of MSMEs. This is likely due to the low digital literacy of MSME human resources or because the innovations carried out are still simple and do not require high human resource skills.

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Journal Info

Abbrev

branding

Publisher

Subject

Economics, Econometrics & Finance

Description

BRANDING: Jurnal Manajemen & Bisnis (issn: 2963-8852) is a peer-reviewed journal published two times a year (April and October) by Department of Management, Faculty of Economic and Islamic Business. This journal is intended to be the journal for publishing articles reporting the results of research ...