Entrepreneurial Mindset, Digital Pivots, And Model Innovation: Catalysts For MSME Expansion In Sumbawa
Keywords:
Entrepreneurial Characteristics; Digital Marketing Strategy; Business Model Innovation; MSME Development; PLS-SEM.
Abstract
This study examines the influence of entrepreneurial characteristics, digital marketing strategy, and business model innovation on the development of micro, small, and medium enterprises (MSMEs) in Sumbawa Regency, West Nusa Tenggara, Indonesia. A quantitative research design was adopted, applying Partial Least Squares Structural Equation Modeling (PLS-SEM) through SmartPLS 4.0 software. Using purposive sampling, 100 active MSME operators were recruited as respondents. Data collection relied on a structured, five-point Likert-scale questionnaire. The measurement model demonstrated satisfactory convergent and discriminant validity, with all Average Variance Extracted (AVE) values exceeding 0.50 and all Composite Reliability (CR) coefficients above 0.70. Hypothesis testing via bootstrapping (5,000 re-samples) revealed that entrepreneurial characteristics exert a positive and significant effect on MSME development (beta = 0.312; t = 3.814; p < 0.01), digital marketing strategy positively and significantly influences MSME development (beta = 0.278; t = 2.963; p < 0.05), and business model innovation is the strongest predictor of MSME development (beta = 0.341; t = 4.127; p < 0.01). Business model innovation also partially mediates the relationship between digital marketing strategy and MSME development (indirect effect beta = 0.229; p < 0.001). The combined model explains 58.7% of variance in MSME development (R2 = 0.587). These findings advance the Resource-Based View and Dynamic Capabilities Theory in the MSME context, suggesting that policymakers in peripheral Indonesian regions should simultaneously strengthen entrepreneurial competencies, accelerate digital marketing adoption, and nurture business model renewal to sustain MSME growth.
References
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Radicic, D., & Petkovic, S. (2023). Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs). Technological Forecasting and Social Change, 191, 122474. https://doi.org/10.1016/j.techfore.2023.122474
Rafiq, A., Wulan Ayu, I., & Rahayu, S. (2024). Pengaruh karakteristik wirausaha terhadap keberhasilan UMKM di Kabupaten Sumbawa. Jurnal Riset Kajian Teknologi dan Lingkungan, 7(1), 152-160. https://doi.org/10.58406/jrktl.v7i1.1617
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Ringle, C. M., Wende, S., & Becker, J. M. (2022). SmartPLS 4. SmartPLS GmbH. http://www.smartpls.com
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Teece, D. J. (2021). Dynamic capabilities and strategic management: Organizing for innovation and growth. Strategic Management Review, 2(1), 1-30. https://doi.org/10.1561/111.00000024
Toni, M., Renzi, M. F., & Mattia, G. (2024). Digital marketing strategies and SMEs performance. Journal of Business & Industrial Marketing, 39(2), 123-135. https://doi.org/10.1108/JBIM-12-2022-0563
Udayana, A. (2024). Investigating the role of e-commerce application and digital marketing implementation on the financial and sustainability performance: An empirical study on Indonesian SMEs. International Journal of Data and Network Science, 8(1), 167-178. https://doi.org/10.5267/j.ijdns.2023.10.007
Wu, C.-W., Botella-Carrubi, D., & Blanco-Gonzalez-Tejero, C. (2024). The empirical study of digital marketing strategy and performance in small and medium-sized enterprises (SMEs). Technological Forecasting and Social Change, 200, 123142. https://doi.org/10.1016/j.techfore.2023.123142
Wu, S., Luo, Y., Zhang, H., & Cheng, P. (2024). Entrepreneurial bricolage and entrepreneurial performance: The role of business model innovation and market orientation. Heliyon, 10(4), e26600. https://doi.org/10.1016/j.heliyon.2024.e26600
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Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207
Yahaya, H. D., & Nadarajah, G. (2023). Determining key factors influencing SMEs' performance: A systematic literature review and experts' verification. Cogent Business & Management, 10(3), 1-23. https://doi.org/10.1080/23311975.2023.2251195
Zulfahmi, E., Lilisdar, R., Ferdianti, P., Nurita, C., & Puspita, D. F. (2023). Perkembangan industri perbankan di era digital. Al-Iqtishad: Jurnal Perbankan Syariah dan Ekonomi Islam, 4(1), 1-15.
Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99-120. https://doi.org/10.1177/014920639101700108
Clauss, T., Breier, M., Kraus, S., Durst, S., & Mahto, R. V. (2022). Temporary business model innovation SMEs' innovation response to the Covid-19 crisis. R&D Management, 52(2), 294-312. https://doi.org/10.1111/radm.12498
Creswell, J. W., & Creswell, J. D. (2023). Research design: Qualitative, quantitative, and mixed methods approaches (6th ed.). SAGE Publications.
Deku, W. A., Wang, J., & Preko, A. K. (2024). Digital marketing and small and medium-sized enterprises' business performance in emerging markets. Asia Pacific Journal of Innovation and Entrepreneurship, 18(3), 251-269. https://doi.org/10.1108/APJIE-07-2022-0069
Dewanti, M. A. (2022). Pengaruh karakteristik wirausaha dan strategi pemasaran terhadap perkembangan UMKM di Kabupaten Buleleng. Bisma: Jurnal Manajemen, 8(1), 236-245.
Firdaus, J., Wahono, B., & Hardaningtyas, R. T. (2024). Pengaruh karakteristik wirausaha, modal usaha, dan strategi pemasaran terhadap perkembangan UMKM (studi kasus pada pelaku UMKM di Kecamatan Sangkapura Bawean). E-Jurnal Riset Manajemen, 13(1), 1031-1039.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2-24. https://doi.org/10.1108/EBR-11-2018-0203
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A primer on partial least squares structural equation modeling (PLS-SEM) (3rd ed.). SAGE Publications.
Hasna, N. (2021). Pengaruh inovasi produk, inovasi proses, dan inovasi layanan terhadap kinerja UMKM. Journal Business and Economics Conference in Utilization of Modern Technology, 17(1), 713-719. https://journal.unimma.ac.id/index.php/conference/article/view/4693
Hossain, M. A., Jahan, N., & Islam, M. A. (2022). Business model innovation and competitive advantage: The mediating role of digital marketing capability for SMEs. Journal of Innovation & Knowledge, 7(4), 100244. https://doi.org/10.1016/j.jik.2022.100244
Jadhav, G. G., Gaikwad, S. V., & Bapat, D. (2023). A systematic literature review: Digital marketing and its impact on SMEs. Journal of Indian Business Research, 15(1), 76-91. https://doi.org/10.1108/JIBR-05-2022-0129
Kasim, A., Bessie, J. L. D., Messakh, A. B., & Isliko, T. W. (2023). Pengaruh karakteristik wirausaha, modal usaha, dan strategi pemasaran terhadap perkembangan UMKM. Journal of Management: Small and Medium Enterprises (SMEs), 16(3), 665-673.
Kementerian Koperasi dan UKM Republik Indonesia. (2023). Laporan kinerja UMKM Indonesia 2023. Kementerian Koperasi dan UKM.
Khan, R. U., Salamzadeh, Y., Iqbal, Q., & Yang, S. (2022). The impact of customer relationship management and company reputation on customer loyalty. Journal of Relationship Marketing, 21(1), 1-26. https://doi.org/10.1080/15332667.2020.1840679
Maroufkhani, P., Wagner, R., Wan Ismail, W. K., & Baroto, M. B. (2020). Digital transformation and business model innovation in SMEs: A systematic literature review. Information & Management, 57(2), 103198. https://doi.org/10.1016/j.im.2020.103342
Permata Sari, C., Nirwana, I., & Yamin, M. (2023). Pengaruh kompetensi dan karakteristik wirausaha terhadap perkembangan usaha UMKM (studi kasus pelaku UMKM di Koto Baru). Journal of Creative Student Research (JCSR), 1(1), 55-68.
Qalati, S. A., Yuan, L. W., Khan, M. A. S., & Bhutto, F. A. (2022). Managing SMEs' performance through social media adoption: The mediating role of entrepreneurial orientation. Cogent Business & Management, 9(1), 2153820. https://doi.org/10.1080/23311975.2022.2153820
Radicic, D., & Petkovic, S. (2023). Impact of digitalization on technological innovations in small and medium-sized enterprises (SMEs). Technological Forecasting and Social Change, 191, 122474. https://doi.org/10.1016/j.techfore.2023.122474
Rafiq, A., Wulan Ayu, I., & Rahayu, S. (2024). Pengaruh karakteristik wirausaha terhadap keberhasilan UMKM di Kabupaten Sumbawa. Jurnal Riset Kajian Teknologi dan Lingkungan, 7(1), 152-160. https://doi.org/10.58406/jrktl.v7i1.1617
Raj, A., Shukla, D., Quadir, A., & Sharma, P. (2024). What drives the adoption of digital technology in the MSME sector in a developing economy? Journal of Business and Industrial Marketing, 39(9), 1984-2002. https://doi.org/10.1108/JBIM-09-2023-0512
Ringle, C. M., Wende, S., & Becker, J. M. (2022). SmartPLS 4. SmartPLS GmbH. http://www.smartpls.com
Sarstedt, M., Ringle, C. M., & Hair, J. F. (2021). Partial least squares structural equation modeling. In C. Homburg, M. Klarmann, & A. Vomberg (Eds.), Handbook of market research (pp. 587-632). Springer. https://doi.org/10.1007/978-3-319-57413-4_15
Srimulyani, V. A., Hermanto, Y. B., Rustiyaningsih, S., & Waloyo, L. A. S. (2023). Internal factors of entrepreneurial and business performance of small and medium enterprises (SMEs) in East Java, Indonesia. Heliyon, 9(11), e21637. https://doi.org/10.1016/j.heliyon.2023.e21637
Sultoni, M. H., Sudarmiatin, Hermawan, A., & Sopiah. (2022). Digital marketing, digital orientation, marketing capability, and information technology capability on marketing performance of Indonesian SMEs. International Journal of Data and Network Science, 6(4), 1381-1388. https://doi.org/10.5267/j.ijdns.2022.5.013
Teece, D. J. (2021). Dynamic capabilities and strategic management: Organizing for innovation and growth. Strategic Management Review, 2(1), 1-30. https://doi.org/10.1561/111.00000024
Toni, M., Renzi, M. F., & Mattia, G. (2024). Digital marketing strategies and SMEs performance. Journal of Business & Industrial Marketing, 39(2), 123-135. https://doi.org/10.1108/JBIM-12-2022-0563
Udayana, A. (2024). Investigating the role of e-commerce application and digital marketing implementation on the financial and sustainability performance: An empirical study on Indonesian SMEs. International Journal of Data and Network Science, 8(1), 167-178. https://doi.org/10.5267/j.ijdns.2023.10.007
Wu, C.-W., Botella-Carrubi, D., & Blanco-Gonzalez-Tejero, C. (2024). The empirical study of digital marketing strategy and performance in small and medium-sized enterprises (SMEs). Technological Forecasting and Social Change, 200, 123142. https://doi.org/10.1016/j.techfore.2023.123142
Wu, S., Luo, Y., Zhang, H., & Cheng, P. (2024). Entrepreneurial bricolage and entrepreneurial performance: The role of business model innovation and market orientation. Heliyon, 10(4), e26600. https://doi.org/10.1016/j.heliyon.2024.e26600
Wahyudin, M., Muhammad, N., Supartono, W., Chen, C., & Tsai, K. (2022). MSMEs' technology readiness: Indicator and index in adopting digital marketing. Atlantic Press Advances in Social Science, Education and Humanities Research, 685. https://doi.org/10.2991/978-94-6463-086-2_70
Wernerfelt, B. (1984). A resource-based view of the firm. Strategic Management Journal, 5(2), 171-180. https://doi.org/10.1002/smj.4250050207
Yahaya, H. D., & Nadarajah, G. (2023). Determining key factors influencing SMEs' performance: A systematic literature review and experts' verification. Cogent Business & Management, 10(3), 1-23. https://doi.org/10.1080/23311975.2023.2251195
Zulfahmi, E., Lilisdar, R., Ferdianti, P., Nurita, C., & Puspita, D. F. (2023). Perkembangan industri perbankan di era digital. Al-Iqtishad: Jurnal Perbankan Syariah dan Ekonomi Islam, 4(1), 1-15.
Published
2026-07-09
How to Cite
Zulkieflimansyah, & Sugiarto, A. (2026). Entrepreneurial Mindset, Digital Pivots, And Model Innovation: Catalysts For MSME Expansion In Sumbawa. International Journal of Economics, Business and Innovation Research, 5(04), 3657-3679. https://doi.org/10.63922/ijebir.v5i04.5058
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