Journal of Management, Economic, and Accounting
Vol. 4 No. 2 (2025): Juli-Desember

Empowering Women-Led MSMEs: A Mediation Analysis of Entrepreneurial Self-Efficacy in the Relationship Between Market Orientation, Digital Capability, and Business Performance (A Case Study of Women Entrepreneurs in HIPPI Medan)

Erwansyah, Erwansyah (Unknown)
Sari, Maya Macia (Unknown)



Article Info

Publish Date
08 Dec 2025

Abstract

This study aims to analyze the influence of Market Orientation and Digital Capability on Business Performance among women-led MSMEs, with Entrepreneurial Self-Efficacy (ESE) examined as a mediating construct. Using a quantitative approach, data were collected from female entrepreneurs and analyzed through Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate both direct and indirect relationships. The findings reveal that Market Orientation and Digital Capability significantly and positively affect ESE, indicating that market-driven strategic behavior and the ability to utilize digital tools enhance entrepreneurial confidence. Moreover, Digital Capability shows the strongest direct effect on Business Performance, while the effect of Market Orientation is positive but relatively smaller. Mediation analysis demonstrates that ESE significantly transmits the effects of both Market Orientation and Digital Capability on Business Performance, highlighting the critical psychological mechanism through which cognitive and strategic capabilities translate into improved business outcomes. The study contributes to the literature by reinforcing the role of self-efficacy as a central pathway in women’s entrepreneurship performance models. Practically, the results underscore the importance of capacity-building initiatives focused on digital skills, market literacy, and psychological empowerment to strengthen the competitiveness of women-led MSMEs in an increasingly digital economy.

Copyrights © 2025






Journal Info

Abbrev

JMEA

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Journal of Management, Economic, and Accounting is a peer-reviewed journal. JMEA invites academics and researchers who do original research in the fields of economics, management, and accounting, including but not limited to: Management Science Marketing Financial management Human Resource ...