This study examines the effect of entrepreneurial leadership on the sustainable performance of agro industrial MSMEs in border areas through digital human resource capabilities and innovation capabilities. Using a quantitative approach and SEM-PLS analysis on data from 150 MSMEs in Sambas Regency, the findings show that entrepreneurial leadership, digital capabilities, and innovation capabilities did not significantly influence sustainable performance. The results indicate that digital transformation and innovation remain operational rather than strategic in border-region MSMEs. The study extends the ResourceBased View and Dynamic Capability Theory by highlighting the influence of structural limitations, including weak infrastructure, technology access, and institutional support, on business sustainability.
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