<![CDATA[Purpose: This study aims to analyze the influence of managerial competence and digital literacy on business performance through business innovation in women's micro enterprises in the food and beverage sector in Cilegon City. Research Method: The study employed a quantitative approach with an explanatory design. Data were collected through questionnaires from 340 female micro enterprises owners and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). Results and Discussion: The results showed that managerial competence and digital literacy had a positive and significant effect on business innovation and business performance. Business innovation also had a positive effect on business performance and was shown to mediate the influence of managerial competence and digital literacy on business performance. Implications: These findings indicate that improving business performance does not only depend on managerial capabilities or direct use of technology, but on the ability of business actors to transform these capabilities into innovations that provide added value to the business. Originality: This study concludes that the development of women's micro enterprises is a process of capability transformation, where managerial competencies build business management capacity, digital literacy strengthens adaptive capacity, and business innovation becomes a mechanism that transforms both capabilities into sustainable business performance.]]>
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