<![CDATA[This study examines the effect of Environmental, Social, and Governance (ESG) practices on SME performance in Surabaya, Indonesia, and evaluates the moderating roles of digital transformation and government support. Using a quantitative cross-sectional design, data from 100 Small and Medium-sized Enterprises (SME) owners and managers were collected through purposive sampling and analyzed using PLS-SEM with SmartPLS 4. The measurement model met reliability and validity criteria after removing two weak ESG indicators. ESG practices positively affected SME performance (β=0.348, t=3.137, p=0.002), and government support also had a significant effect (β=0.342, t=3.621, p<0.001), while digital transformation showed a positive but non-significant effect (β=0.219, t=1.802, p=0.072). The moderating effects of digital transformation (β=0.108, t=1.423, p=0.155) and government support (β=-0.085, t=0.863, p=0.388) were not significant. The model explained 51.3% of SME performance variance (R²=0.513) and showed positive predictive relevance (Q² predict=0.457). This study is limited by its cross-sectional design and focus on SMEs in a single urban context, which may affect generalizability. The findings contribute to the resource-based and dynamic-capability perspectives by demonstrating that ESG and government support directly enhance SME performance, while digital transformation does not automatically strengthen ESG outcomes.]]>
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