<![CDATA[Purpose – This investigation evaluates how digital marketing, e-commerce adoption, fintech usage, and digital literacy—as four distinct dimensions of digital transformation—affect the performance of Micro, Small, and Medium Enterprises (MSMEs) based in Medan, with self-reported MSME performance serving as an operational indicator of short- to medium-term business outcomes. Design/methodology/approach – A quantitative research design was executed using empirical data collected through a structured quota-purposive sampling procedure from 200 digitally active MSME operators across five major industrial sectors in Medan. Structural Equation Modeling–Partial Least Squares (SEM-PLS) via SmartPLS 4 was used to evaluate measurement validity, structural path relationships, control variable impacts, and out-of-sample predictive performance using PLSpredict. Finding/Results – The empirical structural evaluation indicates that digital marketing (β = 0.232, p < 0.001), e-commerce adoption (β = 0.185, p < 0.001), fintech usage (β = 0.142, p < 0.001), and digital literacy (β = 0.364, p < 0.001) exhibit positive and statistically significant associations with MSME performance. Inclusion of control variables (firm age, owner education, sector) confirmed the robustness of these baseline relationships. PLSpredict analysis verified the model's out-of-sample predictive capabilities. Originality/Value – The novelty of this study lies in its comparative empirical assessment of four key digital-transformation dimensions as parallel direct predictors within a unified variance-based structural framework among digitally engaged regional MSMEs. Grounded in entrepreneurship theory, the findings emphasize that while external digital platforms provide necessary market access and transactional tools, internal human capabilities (digital literacy) carry the largest relative association with performance outcomes.]]>
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