The sustainability of Micro, Small, and Medium Enterprises (MSMEs) is influenced not only by internal managerial factors but also by external institutional dynamics, particularly political communication and tax system transformation. This study examines the effect of political narratives and the digital taxation system (Coretax) on MSME business sustainability in Karawang Regency. A quantitative research design was employed using primary data collected through questionnaires distributed to 126 MSME owners selected via purposive sampling. Data were analyzed using Partial Least Squares (PLS) with SmartPLS 4.0. The results indicate that political narratives have a positive and significant effect on MSME sustainability (β = 0.292; p = 0.006). Similarly, the digital taxation system (Coretax) also shows a positive and significant influence on MSME sustainability (β = 0.317; p = 0.004). These findings suggest that consistent and pro-MSME political narratives enhance business trust and certainty, while the implementation of an inclusive digital tax system improves administrative efficiency and compliance. This study concludes that the interaction between political stability and adaptive digital taxation plays a crucial role in supporting the long-term sustainability of MSMEs.
Copyrights © 2025