<![CDATA[Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in Indonesia’s economic growth by creating jobs and improving community welfare. Nevertheless, the sector still faces serious challenges, particularly low competitiveness amid rapid digital transformation and global competition. This study aims to examine the effect of digitalization and human resource (HR) development on MSME competitiveness and their contribution to economic inclusion in Pidie Regency. A quantitative approach was applied through a survey of 150 purposively selected MSME actors. Data were collected using structured questionnaires and analyzed with Partial Least Squares Structural Equation Modeling (PLS-SEM) assisted by SmartPLS. The results indicate that digitalization positively and significantly influences MSME competitiveness (β = 0.333; p < 0.05), as does HR development (β = 0.352; p < 0.05). The R² value of 0.331 shows that both independent variables provide a moderate contribution. The model was validated as reliable and predictive based on Q², SRMR, and CVPAT tests. Overall, the investigation emphasizes the value of digitalization and HR strengthening in enhancing MSME competitiveness. Practically, regional policies should prioritize digital adoption and HR development programs to strengthen skills, expand access to digital platforms, and enable MSMEs to play a greater role in economic inclusion]]>
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