THE ORIENTATION OF ENTREPRENEURSHIP, INNOVATION CAPABILITIES, ACCESS TO FINANCING, AND THE APPLICATION OF DIGITAL TECHNOLOGY ON THE GROWTH AND SUSTAINABILITY OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) IN INDONESIA

Erizal  Nazaruddin; Junet  Kaswoto; Dwi Saleha; Irwan Irawadi  Barus; Annuridya Rosyidta Pratiwi  Octasylva

doi:10.54783/jin.v8i1.1430

Erizal Nazaruddin Universitas Andalas, Padang, Indonesia
Junet Kaswoto Universitas Muhammadiyah Tangerang, Indonesia
Dwi Saleha Universitas Muhammadiyah Jakarta, Indonesia
Irwan Irawadi Barus Universitas Dian Nusantara, Jakarta Barat, Indonesia
Annuridya Rosyidta Pratiwi Octasylva Institut Teknologi Indonesia, Tangerang Selatan, Indonesia

DOI: https://doi.org/10.54783/jin.v8i1.1430

Keywords: Entrepreneurial Orientation; Innovation Capabilities; Access To Financing; Digital Technology; MSME Sustainability.

Abstract

This study examines the effects of entrepreneurial orientation, innovation capabilities, access to financing, and the application of digital technology on the growth and sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Using a quantitative approach, data were collected from 175 MSME respondents through a Likert scale (1–5) questionnaire and analyzed using the Structural Equation Modelling-Partial Least Squares (SEM-PLS 3) technique. The results show that entrepreneurial orientation and innovation capabilities significantly and positively influence MSME growth, emphasizing that proactive and innovative business behavior enhances performance and competitiveness. Meanwhile, access to financing plays a vital role in supporting long-term sustainability, enabling MSMEs to maintain liquidity and expand operations. Furthermore, the application of digital technology demonstrates a significant impact on both growth and sustainability, suggesting that digital transformation strengthens market presence and operational efficiency. Collectively, these factors account for a substantial portion of the variance in MSME growth and sustainability, highlighting the interdependence between entrepreneurship, innovation, financial access, and technology adoption in shaping Indonesia’s MSME ecosystem.

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THE ORIENTATION OF ENTREPRENEURSHIP, INNOVATION CAPABILITIES, ACCESS TO FINANCING, AND THE APPLICATION OF DIGITAL TECHNOLOGY ON THE GROWTH AND SUSTAINABILITY OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) IN INDONESIA

Abstract

References

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