Digital Transformation and MSMEs Performance: Mediation of Innovation and Competitive Advantage

DOI

10.2991/978-94-6239-670-8_3How to use a DOI?

Keywords

Digital Transformation; Innovation; Competitive Advantage; Performance

Abstract

Digital transformation has become an essential strategy for micro, small, and medium enterprises (MSMEs) to remain competitive in an increasingly digitalized economy. However, empirical studies exploring how digital transformation drives performance through innovation and competitive advantage particularly among local MSMEs in the food sector remain limited. This study aims to address this gap by examining the effect of digital transformation on the performance of local fried chicken MSMEs in West Jakarta, with innovation and competitive advantage as mediating variables. Purposive sampling technique is used, data were collected from 80 owners or managers who have adopted digital technologies in their business operations. Tools of data analysis is SmartPLS version 4.0. Findings, found that digital transformation has a positive contribution towards performance, innovation, and competitive advantage. Moreover, both innovation and competitive advantage significantly enhance business performance also has mediation effect on digital transformation towards performance. These findings provide new empirical evidence on how digitalization supports MSME competitiveness in the local food industry and offer practical implications for entrepreneurs and policymakers seeking to strengthen MSME resilience in the digital era.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (http://creativecommons.org/licenses/by-nc-nd/4.0/), which permits any noncommercial use, sharing, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if you modified the licensed material. You do not have permission under this license to share adapted material derived from this chapter or parts of it.

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TY  - CONF
AU  - Apriyanti Apriyanti
AU  - Ida Puspitowati
PY  - 2026
DA  - 2026/05/13
TI  - Digital Transformation and MSMEs Performance: Mediation of Innovation and Competitive Advantage
BT  - Proceedings of the fourteenth International Conference on Entrepreneurship and Business Management 2025 (ICEBM 2025)
PB  - Atlantis Press
SP  - 20
EP  - 37
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-670-8_3
DO  - 10.2991/978-94-6239-670-8_3
ID  - Apriyanti2026
ER  -