The Advantages of Digital Literacy Strategies to Improve MSME’s Business Performance

Abstract

This study stems from the gap in research and expert opinions that explain the relationship between entrepreneurial orientation and business performance. This research was conducted in Maluku Province with research areas in West Seram Regency, Ambon City and Central Maluku Regency. To answer the research gap, we developed the concept of digital literacy strategic advantage rooted in Reource advantage Theory of Competition (Hunt&Morgan,1995). We used a sample size of 125 MSMEs spread across three city districts in Maluku province using a non-probability sampling technique with a non-proposive sampling approach. To test the hypothesis, we used structural model analysis with the help of the AMOS SEM version 26 program. The results explained that the three hypotheses we proposed had a positive and significant effect on the business performance of MSMEs in Maluku province. Our theoretical implications and managerial implications are explained to be taken into consideration for theory development and MSME development.