<![CDATA[The gap in technology adoption among Micro, Small, and Medium Enterprises (MSMEs) amid rapid digital transformation threatens long-term business sustainability, particularly in competitive urban areas such as Depok City. This study examines the influence of digital literacy and information system quality on sustainable business performance of MSMEs, while assessing whether information system quality serves as a mediating variable. A quantitative cross-sectional survey design was employed, involving 214 active MSME respondents selected via purposive sampling. Data were analyzed using multiple linear regression and the Baron & Kenny mediation procedure through IBM SPSS 26. Findings reveal that digital literacy positively and significantly influences sustainable business performance (β = 0.473; p < 0.001), as does information system quality (β = 0.301; p < 0.001). Together, both predictors account for 61.4% of the variance in sustainable business performance (R² = 0.614). Information system quality is confirmed as a partial mediator in the relationship between digital literacy and sustainable business performance. These findings underscore that the most effective intervention is simultaneous: strengthening digital literacy capacity must be coupled with the parallel adoption of high-quality information systems. Depok City Government is recommended to design sector-based digital literacy training programs, with emphasis on digital content production competencies.]]>
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