Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills
Background: In the digital era, SMEs must adapt to technological advancements to remain competitive. Digital literacy is increasingly recognized as a crucial factor in enhancing entrepreneurial skills and business performance. Purpose: The aim is to uncover how improving digital literacy can lead t...
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| Main Authors: | , , , , , |
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| Format: | Article |
| Language: | Indonesian |
| Published: |
Bogor Agricultural University
2024-09-01
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| Series: | Jurnal Aplikasi Bisnis dan Manajemen |
| Online Access: | https://journal.ipb.ac.id/index.php/jabm/article/view/53511 |
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| author | Intan Novela Q.A Hunik Sri Runing Sawitri Asri Laksmi Riani Suryandari Istiqomah Anastasia Riani Suprapti Mugi Harsono |
| author_facet | Intan Novela Q.A Hunik Sri Runing Sawitri Asri Laksmi Riani Suryandari Istiqomah Anastasia Riani Suprapti Mugi Harsono |
| author_sort | Intan Novela Q.A |
| collection | DOAJ |
| description | Background: In the digital era, SMEs must adapt to technological advancements to remain competitive. Digital literacy is increasingly recognized as a crucial factor in enhancing entrepreneurial skills and business performance.
Purpose: The aim is to uncover how improving digital literacy can lead to better business outcomes for SMEs.
Design/methodology/approach: The research targeted 101 SMEs from manufacturing and trade sectors in the Greater Solo area. Data were collected through online surveys and offline methods. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was used to test the hypotheses.
Findings/Result: The study found that digital literacy positively affects the development of entrepreneurial skills, which in turn enhances business performance. Performance was measured through revenue growth, profitability, market share, and customer satisfaction. Digital literacy is a key driver of entrepreneurial skills development and improved business performance in SMEs. Investing in digital literacy can significantly enhance SMEs' competitive edge and overall success.
Conclusion: The research concludes that digital technology is vital for improving SMEs' performance and competitiveness by expanding market access, attracting customers, and increasing sales. Additionally, digital literacy is crucial for enhancing operational efficiency, product and service innovation, and customer communication.
Originality/value (State of the art): The research broadens the understanding of digital literacy, positioning it as more than just a technical skill. It shows that digital literacy equips SMEs with essential tools for market access, operational efficiency, innovation, and customer communication. By linking digital literacy to strategic business study highlights its critical importance in navigating the modern digital economy.
Keywords: digital literacy, entrepreneurial skills, business performance, SMEs, digital era |
| format | Article |
| id | doaj-art-865a6e2896474fd48035c16bf3c0edb3 |
| institution | Kabale University |
| issn | 2528-5149 2460-7819 |
| language | Indonesian |
| publishDate | 2024-09-01 |
| publisher | Bogor Agricultural University |
| record_format | Article |
| series | Jurnal Aplikasi Bisnis dan Manajemen |
| spelling | doaj-art-865a6e2896474fd48035c16bf3c0edb32025-02-07T08:01:38ZindBogor Agricultural UniversityJurnal Aplikasi Bisnis dan Manajemen2528-51492460-78192024-09-0110384784710.17358/jabm.10.3.84753511Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial SkillsIntan Novela Q.A0Hunik Sri Runing Sawitri1Asri Laksmi Riani2Suryandari Istiqomah3Anastasia Riani Suprapti4Mugi Harsono5Department of Management, Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami No.36, Jebres, Jebres, Surakarta, Central Java 57126, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami No.36, Jebres, Jebres, Surakarta, Central Java 57126, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami No.36, Jebres, Jebres, Surakarta, Central Java 57126, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami No.36, Jebres, Jebres, Surakarta, Central Java 57126, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami No.36, Jebres, Jebres, Surakarta, Central Java 57126, IndonesiaDepartment of Management, Faculty of Economics and Business, Universitas Sebelas Maret, Jl. Ir. Sutami No.36, Jebres, Jebres, Surakarta, Central Java 57126, IndonesiaBackground: In the digital era, SMEs must adapt to technological advancements to remain competitive. Digital literacy is increasingly recognized as a crucial factor in enhancing entrepreneurial skills and business performance. Purpose: The aim is to uncover how improving digital literacy can lead to better business outcomes for SMEs. Design/methodology/approach: The research targeted 101 SMEs from manufacturing and trade sectors in the Greater Solo area. Data were collected through online surveys and offline methods. Structural Equation Modeling with Partial Least Squares (SEM-PLS) was used to test the hypotheses. Findings/Result: The study found that digital literacy positively affects the development of entrepreneurial skills, which in turn enhances business performance. Performance was measured through revenue growth, profitability, market share, and customer satisfaction. Digital literacy is a key driver of entrepreneurial skills development and improved business performance in SMEs. Investing in digital literacy can significantly enhance SMEs' competitive edge and overall success. Conclusion: The research concludes that digital technology is vital for improving SMEs' performance and competitiveness by expanding market access, attracting customers, and increasing sales. Additionally, digital literacy is crucial for enhancing operational efficiency, product and service innovation, and customer communication. Originality/value (State of the art): The research broadens the understanding of digital literacy, positioning it as more than just a technical skill. It shows that digital literacy equips SMEs with essential tools for market access, operational efficiency, innovation, and customer communication. By linking digital literacy to strategic business study highlights its critical importance in navigating the modern digital economy. Keywords: digital literacy, entrepreneurial skills, business performance, SMEs, digital erahttps://journal.ipb.ac.id/index.php/jabm/article/view/53511 |
| spellingShingle | Intan Novela Q.A Hunik Sri Runing Sawitri Asri Laksmi Riani Suryandari Istiqomah Anastasia Riani Suprapti Mugi Harsono Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills Jurnal Aplikasi Bisnis dan Manajemen |
| title | Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills |
| title_full | Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills |
| title_fullStr | Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills |
| title_full_unstemmed | Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills |
| title_short | Digital Literacy on SME Business Performance and The Mediating Role of Entrepreneurial Skills |
| title_sort | digital literacy on sme business performance and the mediating role of entrepreneurial skills |
| url | https://journal.ipb.ac.id/index.php/jabm/article/view/53511 |
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