Enhancing MSME Competitive Performance in Indonesia: The Role of Digital Capability

Authors

  • Ahmad Hidayat Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
  • Tuswoyo Tuswoyo Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
  • Abdul Gofur Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
  • Hanuna Shafariah Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia

DOI:

https://doi.org/10.38035/gijea.v4i2.876

Keywords:

Managerial Competence, Product Differentiation, Institutional Collaboration, Digital Capability, MSME Competitive Performance

Abstract

This study aims to examine the effect of managerial competence, product differentiation, and institutional collaboration on the competitive performance of micro, small, and medium enterprises, with digital capability as a mediating variable. The study is motivated by the increasing importance of digital transformation in enhancing business competitiveness in a dynamic market environment. A quantitative approach was employed using survey data collected from micro, small, and medium enterprises, analyzed through variance-based structural equation modeling. The results indicate that managerial competence and institutional collaboration have a positive and significant effect on digital capability, while product differentiation does not show a significant effect. Digital capability significantly influences competitive performance and mediates the relationship between managerial competence and institutional collaboration on performance, but does not mediate the effect of product differentiation. The study concludes that digital capability plays a crucial role in strengthening competitiveness by transforming internal competencies and external collaboration into performance outcomes.

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Published

2026-06-25

How to Cite

Hidayat, A., Tuswoyo, T., Gofur, A., & Shafariah, H. (2026). Enhancing MSME Competitive Performance in Indonesia: The Role of Digital Capability. Greenation International Journal of Economics and Accounting, 4(2), 329–343. https://doi.org/10.38035/gijea.v4i2.876

Issue

Vol. 4 No. 2 (2026): Greenation International Journal of Economics and Accounting (May - June 2026)

Section

Articles

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Copyright (c) 2026 Ahmad Hidayat, Tuswoyo Tuswoyo, Abdul Gofur, Hanuna Shafariah

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