<![CDATA[This study aims to examine the effect of managerial competence, product differentiation, and institutional collaboration on the competitive performance of micro, small, and medium enterprises, with digital capability as a mediating variable. The study is motivated by the increasing importance of digital transformation in enhancing business competitiveness in a dynamic market environment. A quantitative approach was employed using survey data collected from micro, small, and medium enterprises, analyzed through variance-based structural equation modeling. The results indicate that managerial competence and institutional collaboration have a positive and significant effect on digital capability, while product differentiation does not show a significant effect. Digital capability significantly influences competitive performance and mediates the relationship between managerial competence and institutional collaboration on performance, but does not mediate the effect of product differentiation. The study concludes that digital capability plays a crucial role in strengthening competitiveness by transforming internal competencies and external collaboration into performance outcomes.]]>
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