<![CDATA[Micro, small, and medium enterprises (MSMEs) increasingly operate at the intersection of digital commerce, regulatory knowledge, and entrepreneurial action, yet tax literacy remains predominantly positioned in compliance-oriented research and evidence on performance-mediated sustainability is inconsistent. This study examines an integrated capability-based model linking e-commerce utilization, tax literacy, and entrepreneurial orientation with MSME performance and business sustainability, with performance tested as a statistical mediating mechanism. A quantitative cross-sectional survey dataset comprising 300 e-commerce-using MSMEs from multiple Indonesian regions was analyzed using variance-based partial least squares path modeling with 10,000 bootstrap resamples. The measurement model showed satisfactory internal consistency and convergent validity (alpha = 0.867–0.901; composite reliability = 0.898–0.920; AVE = 0.556–0.605), while the maximum HTMT value was 0.715. E-commerce utilization, tax literacy, and entrepreneurial orientation were positively associated with MSME performance (β = 0.358, 0.263, and 0.277, respectively) and business sustainability (β = 0.138, 0.174, and 0.213). MSME performance was positively associated with sustainability (β = 0.427), and all three indirect effects through performance were positive and statistically supported. The model explained 36.4% of performance variance and 47.8% of sustainability variance. The findings extend tax-literacy research beyond compliance by showing that fiscal-regulatory knowledge is associated with firm-level outcomes alongside digital and entrepreneurial capabilities, while MSME performance functions as a complementary statistical transmission mechanism toward sustainability.]]>
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