Enhancing MSME Business Resilience in the Digital Era: Evidence from Banyumas, Indonesia
Keywords:
business resilience, digital capability, adaptive capability, entrepreneurial orientation, environmental dynamism, MSMEsAbstract
This study investigates the effects of digital capability, adaptive capability, and entrepreneurial orientation on business resilience among micro, small, and medium enterprises in Banyumas Regency, Indonesia, while also examining the moderating role of environmental dynamism specifically in the relationship between digital capability and business resilience. Employing a quantitative explanatory approach with a cross-sectional design, this study collected data from 398 MSME owners or managers selected through purposive sampling. The data were analysed using Partial Least Squares Structural Equation Modeling. The findings indicate that digital capability, adaptive capability, and entrepreneurial orientation positively and significantly influence business resilience. Among these determinants, adaptive capability emerges as the strongest predictor, underscoring the critical importance of strategic flexibility and responsiveness in sustaining business continuity. Entrepreneurial orientation also contributes substantially, suggesting that innovativeness, proactiveness, and risk-taking behaviour reinforce organisational resilience. Furthermore, environmental dynamism has a positive and significant direct effect on business resilience, although its moderating effect on the relationship between digital capability and business resilience is not significant. These findings highlight the central role of integrated internal capabilities in strengthening MSME resilience in dynamic business environments.
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