<![CDATA[In the dynamic era of digitalization, MSMEs are required to optimize internal resources to maintain a competitive advantage. This study aims to analyze the influence of Inventory Information Systems and Operational Cost Efficiency on Business Performance in MSMEs. Referring to the Resource-Based View (RBV) as a grand theory, this study positions information technology and cost management capabilities as strategic assets that determine organizational success. The research method used a quantitative approach with primary data collected through a structured questionnaire. A purposive sampling technique was used to determine a sample of 128 MSMEs operating in the tempeh industry in Bogor City, with a total of 320 respondents. Data analysis was performed using variance-based Structural Equation Modeling (SEM) with the assistance of SmartPLS 3 software. The results showed that all hypotheses were significantly accepted. Inventory Information Systems have been shown to positively impact business performance by improving data accuracy and speeding decision-making. Similarly, Operational Cost Efficiency has a strong positive impact on business performance by optimizing profit margins and minimizing resource waste. These findings provide practical insights for MSMEs in designing digital transformation strategies and more targeted cost control. Future research is recommended to integrate external variables such as market uncertainty to enrich the research model.]]>
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