Integrating Local Wisdom and Digital Transformation to Strengthen MSME Growth in Indonesian Traditional Markets: Evidence from Solo and Jakarta

Oryza Sativa Heningtyas (Darma Persada University, Indonesia)
Herlina Sunarti (Darma Persada University, Indonesia)
Ahmad Basid (Darma Persada University, Indonesia)
Endang Tri Pujiastuti (Darma Persada University)
Firda Auralin (Darma Persada University, Indonesia)

Indonesian Journal of Taxation and Accounting
Vol 4, No 2 (2026): June 2026

Purpose – This study examines whether Javanese relational business wisdom (Tuna Sathak Bathi Sanak) and win-win collaboration influence MSME growth in traditional markets, and whether digital transformation moderates these relationships. Methods – A quantitative survey involved 215 MSME actors from Gede Market, Solo (n = 110), and Glodok Market, Jakarta (n = 105). Data were analyzed using multiple linear regression and moderated regression analysis in SPSS 29. Findings – Tuna Sathak Bathi Sanak positively predicted MSME growth (B = .431, β = .490, p < .001), while win-win collaboration was negative and significant (B = -.391, β = -.400, p < .001). Digital transformation had a positive direct effect and strengthened the cultural-value pathway, but the collaboration interaction remained negative. Research implications – Digital capability can translate local relational values into market resilience when supplier collaboration is governed transparently. Originality – The study integrates local wisdom, interfirm collaboration, and digital transformation in an accounting-oriented MSME growth model.