Business Model Transformation and Managerial Capabilities for Improving MSME Performance in Digital Ecosystems

Tuti Nurhaeni; Marviola Hardini; Nasrul Hidayat; Maulana Arif Komara; Andrei Ivanov

doi:10.33050/tmj.v11i2.2749

Authors

Tuti Nurhaeni Universitas Raharja
Marviola Hardini Universitas Raharja
Nasrul Hidayat Universitas Raharja
Maulana Arif Komara Universitas Raharja
Andrei Ivanov Ijiis Incorporation

DOI:

https://doi.org/10.33050/tmj.v11i2.2749

Keywords:

Business Model Transformation, Managerial Capabilities, MSME Performance, Digital Business Ecosystem, PLS-SEM

Abstract

The rapid expansion of digital business ecosystems has fundamentally altered the competitive landscape faced by micro, small, and medium enterprises (MSMEs), compelling them to reconfigure their business models and strengthen managerial capabilities in order to remain viable and competitive. This study aims to examine the influence of business model transformation and managerial capability on MSME performance within a digital business ecosystem, as well as to analyze how these two factors interact to shape sustainable competitive advantage. A quantitative approach was employed, involving 150 MSME owners and managers operating in digitally enabled markets, with data collected through a structured questionnaire and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the proposed research model. The findings reveal that business model transformation has a significant positive effect on MSME performance, and that managerial capability not only directly enhances performance but also strengthens the relationship between business model transformation and performance outcomes, indicating its role as a critical enabling factor in digital adaptation. Furthermore, the results demonstrate that MSMEs which actively innovate their value proposition, revenue structure, and digital collaboration networks tend to achieve higher performance levels compared to those relying on conventional business practices. In conclusion, this study confirms that the synergy between adaptive business model transformation and robust managerial capability is essential for MSMEs to thrive amid digital disruption, offering theoretical contribution to the dynamic capability literature and practical implications for policymakers and business practitioners seeking to accelerate MSME digitalization and long-term competitiveness.

Author Biographies

Tuti Nurhaeni, Universitas Raharja

Faculty of Sains and Technology
Marviola Hardini, Universitas Raharja

Faculty of Sains and Technology
Nasrul Hidayat, Universitas Raharja

Faculty of Economics and Business
Maulana Arif Komara, Universitas Raharja

Faculty of Economics and Business
Andrei Ivanov, Ijiis Incorporation

Department Information System

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