The Influence of Digital Transformation on the Competitiveness of MSMEs with Performance as a Mediating Variable : A Study on MSMEs in Kediri City

Dian Arini; Mochammad Reza Zulfikar; Hermono Widiarto

doi:10.56741/IISTR.jmsd.002088

Authors

Dian Arini
dianarini066@gmail.com
Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya (STIESIA)
Mochammad Reza Zulfikar Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya (STIESIA)
Hermono Widiarto Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya (STIESIA)

DOI:

https://doi.org/10.56741/IISTR.jmsd.002088

Keywords:

Competitiveness, Digital Transformation, MSMEs, Performance

Abstract

The contemporary business ecosystem environment continues to evolve rapidly, particularly with the advent of the Fourth Industrial Revolution. Businesses now have to adjust to a more competitive and digitally focused environment if they are to survive. This research is aimed at understanding the effects of digital transformation of MSMEs and its effects on competitiveness, as well as MSME performance, and the impact of digitization on the MSME performance of MSMEs in the City of Kediri. 390 respondents were sampled for the given study, and the data were analyzed using Structural Equation Modeling and Partial Least Squares Sem analysis. Findings support the theory that digital transformation impacts the MSME performance positively. Furthermore, it positively impacts the MSME's competitiveness. This is further demonstrated in the research, as the performance is stated to have a positive impact on their competitiveness. With the business performance improved financially, operationally, and in marketing, MSME's ability to generate value and strengthen a customer base and market position is enhanced. MSME performance mediates the influence of digital transformation on MSME competitiveness.

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Author Biographies

Dian Arini, Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya (STIESIA)

is a permanent lecturer in the Management Study Program at STIESIA Surabaya, Indonesia. She earned her diploma in Agribusiness Management from Jember State Polytechnic, bachelor’s degree from Muhammadiyah University of Jember, master’s degree from Sriwijaya University, and doctorate in Strategic Management from Brawijaya University. Besides teaching, she is active as a speaker, entrepreneurship competition judge, organizational participant, and entrepreneur. (email: dianarini066@gmail.com).

Mochammad Reza Zulfikar, Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya (STIESIA)

is an academic and professional in Human Resources and Organizational Development at STIESIA Surabaya, Indonesia. He has extensive experience managing HRD, GA, PR, Legal, and Secretariat systems in various companies. His expertise includes recruitment, competency mapping, remuneration, organizational culture development, employee training, industrial relations, and corporate branding. He actively contributes to organizational transformation and strategic human resource management practices. (email: rezazulfikar@stiesia.ac.id).

Hermono Widiarto, Sekolah Tinggi Ilmu Ekonomi Indonesia Surabaya (STIESIA)

is a permanent lecturer at STIESIA Surabaya, Indonesia, with expertise in economics and management. He actively participates in higher education activities covering teaching, research, and community service. Currently, he serves as Head of the Intellectual Property Rights (IPR) Section at the Institute for Research and Community Service (LPPM) STIESIA Surabaya. His responsibilities include managing, mentoring, and developing intellectual property protection for lecturers and students. (email: hermonowidiarto@stiesia.ac.id).

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