When Small Businesses Go Digital: Exploring Innovation and Insecurity in Urban Micro MSMEs

Digital transformation plays a vital role in enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in developing regions. A case in point is Rumahekraf in West Papua Province, which faces infrastructure challenges such as limited internet access, inadequate technological devices, and insufficient digital training for MSME actors. In addition to infrastructure challenges, external factors such as economic conditions, local culture, and the digital divide also influence the adoption rate of this platform. This study aims to investigate the factors that drive and hinder its adoption. By combining the Technology Acceptance Model (TAM), Technology Readiness Index (TRI), and Performance Importance Map Analysis (IPMA). Particularly, this study examines the role of optimism, innovativeness, discomfort, and insecurity in shaping behavioral intention (BI) that might lead to usage behavior (UB). With a total of 157 respondents, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM), the results showed that perceived ease of use (PEOU) and perceived usefulness (PU) have a significant effect on BI (R2=56.3%), while BI influenced UB (R2=58%). Optimism affects PEOU but not PU, this can be explained by the nature of optimism, which tends to reinforce confidence in one's ability to master technology rather than directly evaluating the platform's perceived benefits. While Innovativeness positively affects both. The findings emphasize that in areas with limited infrastructure, such as West Papua, prioritizing easy-to-use design and useful features is key to effective platform adoption. This research provides insights for policymakers and developers to improve strategies in promoting digital platform adoption among MSMEs.

Research Aims: This study aims to examine the effect of Accounting Information System (AIS) quality on the performance of Micro, Small, and Medium Enterprises (MSMEs), with user experience and perceived convenience as mediating variables. The study is grounded in the Technology Acceptance Model (TAM), which highlights the importance of system quality in shaping user attitudes, perceptions, and behavioural intentions toward technology use. Design/methodology/approach: A quantitative approach was employed using a web-based survey distributed to 105 MSMEs across Indonesia. The data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test both the direct and mediating effects among AIS quality, user experience, perceived convenience, and MSME performance. All measurement indicators were adapted from validated prior studies and adjusted to the Indonesian MSME context. Research Findings: The findings reveal that AIS quality significantly and positively affects user experience, perceived convenience, and MSME performance. Furthermore, both user experience and perceived convenience mediate the relationship between AIS quality and performance, although the mediating effect of experience is stronger. These results confirm that reliable, easy-to-use, and secure AIS enhances user satisfaction, operational efficiency, and business competitiveness. Theoretical Contribution/Originality: This study expands the Technology Acceptance Model by integrating user experience and perceived convenience as mediating factors in the relationship between AIS quality and MSME performance. It offers a holistic understanding of how technical quality and user behavioural factors jointly contribute to successful digital technology adoption in MSMEs, particularly in developing countrie

This study investigates the adoption of cloud-based digital learning systems to empower halal Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, which is still rarely explored. The objective was to evaluate the development and adoption of a cloud-based learning management system designed to empower halal-oriented MSMEs in Indonesia, called CSSL UMKM HalalPro. This study applies a system development approach using a structured waterfall model, and the adoption assessment uses Partial Least Squares Structural Equation Modeling (PLS-SEM) based on the Technology-Organization-Environment (TOE) framework and an integrated Technology Acceptance Model (TAM). The platform was developed to include a QR-verified presence, modular digital content, and real-time analytics tailored to the needs of MSMEs. Quantitative analysis was carried out on 179 MSMEs specializing in halal products with six latent constructs, including Adoption Intention (ADI), Digital Learning Behavior (DLB), Organizational Readiness (ORG), Perceived Ease of Use (PEZ), Perceived Usefulness (PRU), and Technology Readiness (TGR) with sub-latents 4, 4, 5, 4, 6, and 6, respectively. After eliminating indicators with low weights, the external evaluation showed that the model was highly reliable and had good construct validity. The internal model suggests that TGR impacts the perceived usefulness and ease of use of a product, which in turn influences the adoption intentions and digital learning behavior. ORG makes the product easier to use, but does not significantly influence perceived usefulness. This suggests that human and technological factors have a greater impact on MSMEs than formal organizational competencies. The findings suggest that user-centered system design and TGR facilitate the adoption of digital technologies by MSMEs, thereby enhancing their capacity. This study uniquely integrates system development with adoption behavior analysis explicitly designed for halal-oriented MSMEs, a sector rarely addressed in digital learning research, and highlights that user-centered design and technology readiness are key to successful digital adoption in this context.

This research explores the Extended Technology Acceptance Model (TAM) and Partial Least Squares Structural Equation Modelling (PLS-SEM) to investigate the acceptability of blockchain-based digital copyright certification among traditional woven fabric SMEs (Small and Medium Enterprises) in Lombok. This research develops a blockchain-based certification system using NFTs, IPFS, and ECDSA to secure ownership, metadata, and authentication of traditional woven fabrics in Lombok. The problem addressed is the lack of understanding and acceptance of blockchain technology for copyright certification among SMEs, which can impede the protection of their innovations. The aim of this study is to analyze the variables that influence this technology's acceptance and to provide strategies for increasing its adoption. This study explores blockchain-based copyright certification adoption among Lombok's woven fabric SMEs using an Extended TAM with novel variables: Perceived Trust, Privacy, and Government Regulations. Findings from PLS-SEM reveal these, alongside traditional TAM factors, significantly impact adoption. By addressing digital literacy gaps and regulatory challenges, this research provides insights into promoting blockchain adoption through targeted training and outreach, contributing to innovation protection for traditional artisans. A quantitative method was implemented with a validated and reliable surveys distributed both online and offline to SMEs in three main woven villages in Lombok. Data analysis using PLS-SEM revealed significant impacts of perceived usefulness (PU), perceived ease of use (PEOU), Perceived Trust (PT), Government Regulations (GR), Perceived Protection (PP), attitude towards using (ATU), and behavioral intention to use (BITU) on the acceptance of blockchain technology. This study concludes that TAM factors are crucial in evaluating these SMEs' acceptance of blockchain-based copyright certification. Recommendations are provided to enhance SMEs understanding and skills in applying this technology through targeted training and outreach.

This study investigates the factors influencing the adoption of digital accounting among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, aiming to contribute to the achievement of enhanced digital financial inclusion. A quantitative research design was employed, utilizing a questionnaire survey to gather data from 155 MSMEs partnered with Bank Indonesia in South Sulawesi. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 3.0 software. The results reveal that digital financial literacy, perceived usefulness, and perceived ease of use significantly and positively influence the adoption of digital accounting among MSMEs. However, perceived ease of use was not found to have a significant effect on perceived usefulness. The study also confirms that the adoption of digital accounting contributes positively to the advancement of digital financial inclusion. The Digital Technology Acceptance Model (DTAM), extended from the Technology Acceptance Model (TAM) by incorporating digital financial literacy, proves to be a suitable framework for predicting improvements in digital financial inclusion within the context of Indonesian MSMEs. This study provides valuable insights for policymakers, financial institutions, and technology developers. By highlighting the importance of digital financial literacy, the study encourages the development of targeted training programs and user-friendly digital accounting solutions to empower MSMEs and promote financial inclusion.

Micro, Small and Medium Enterprises (MSMEs) are among the most important contributors to the Indonesian economy. In the digital era, using e-commerce is one of the strategies to face the increasing competition in the business world. However, MSMEs in Indonesia are still faced with various obstacles, primarily related to the lack of mastery of technology and the unoptimized utilization of e-commerce in business. Based on this, it is necessary to check the factors that can enhance MSME performance. This study aims to analyze the influence of entrepreneurial orientation, organizational readiness, knowledge management, and e-commerce adoption, which are expected to improve MSME performance in the digital era. Partial Least Squares Structural Equation Modeling (PLS-SEM) is used to test the relationship between these variables. This study involved 241 MSME owners/managers who have adopted e-commerce in their businesses in the food and beverage industry. The results showed that entrepreneurial orientation, organizational readiness, knowledge management, and e-commerce adoption can significantly improve the performance of MSMEs in food and beverage businesses. These findings better explain how MSME players can optimally improve capabilities and organizational resources to achieve sustainable competitive advantage and superior business performance.

This study aims to analyze the influence of digital literacy and sustainable business practices on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector in Makassar City, with competitive advantage as a mediating and moderating variable. This study is motivated by the increasing demands for technological adaptation and sustainable practices in maintaining the existence of MSMEs in the digital economy era. A quantitative approach was used with a survey method of 215 culinary MSMEs. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationship between variables. The results show that digital literacy has a positive and significant effect on the sustainability of MSMEs, both directly and indirectly through competitive advantage. Sustainable business practices have also been shown to strengthen sustainability performance through increased operational efficiency and social reputation. In addition, competitive advantage moderates the relationship between digital literacy and sustainability, where the effect of digital literacy is stronger in MSMEs with high competitiveness. These findings emphasize the importance of synergy between digital capabilities, sustainability orientation, and competitive strategy to create inclusive, adaptive, and sustainable culinary business growth in the digital era.

Research aims: This study examines the impact of blockchain adoption on the microeconomic stability of micro, small, and medium enterprises (MSMEs), with financial performance and access to financial services as mediating variables.Design/Methodology/Approach: The analysis employed Partial Least Squares Structural Equation Modeling (PLS-SEM) using data from 200 MSME owners in Indonesia who have integrated blockchain technology into their operations. The constructs, blockchain adoption, financial performance, access to financial services, and microeconomic stability, were measured through a structured questionnaire based on validated indicators from prior research.Research findings: The findings reveal that blockchain adoption significantly enhances financial performance and microeconomic stability. Financial performance strengthens the direct effect of blockchain adoption on stability, while access to financial services positively mediates the relationship between blockchain use and economic stability. Interestingly, an adverse indirect effect through financial performance was observed, suggesting potential implementation-related or contextual risks that merit further investigation.Theoretical Contribution/Originality: This research comprehensively explains MSMEs' blockchain adoption behavior and economic implications by integrating the Technology Acceptance Model (TAM) and the Resource-Based View (RBV) framework.Practitioners/Policy Implications: To promote inclusive adoption, policymakers and MSME stakeholders should prioritize secure and user-friendly blockchain systems, expand access to digital financial services, and develop adaptive regulatory frameworks. Strategic adoption should weigh both efficiency gains and potential challenges, including systemic risks, technological volatility, and unequal benefit distribution.Research Limitations/Implications: The study's scope is limited to MSMEs in Indonesia; future research should explore cross-regional and sectoral comparisons, long-term impacts, regulatory variations, and adoption dynamics across diverse contexts.

Perkembangan Usaha Mikro, Kecil, dan Menengah (UMKM) menjadi semakin signifikan dalam menghadapi tingginya tingkat kompetisi di era globalisasi. Penelitian ini bertujuan untuk mengukur dampak inovasi produk dan sikap proaktif terhadap kinerja UMKM di wilayah Pademangan, dengan ketidakpastian lingkungan sebagai variabel moderasi. Metode pengambilan sampel menggunakan metode non-probability dan purposive sampling. Penelitian dilakukan dengan menyebarkan kuesioner kepada 50 pelaku UMKM di wilayah Pademangan Barat dan Timur. Metode analisis data menggunakan Partial Least Squares Structural Equation Modeling (PLS-SEM). Hasil penelitian menunjukkan bahwa inovasi produk dan sikap proaktif secara positif dan signifikan mempengaruhi kinerja usaha UMKM di wilayah tersebut. Namun, ketidakpastian lingkungan tidak mampu memoderasi pengaruh inovasi produk dan sikap proaktif terhadap kinerja usaha. Temuan ini memberikan wawasan tentang kompleksitas faktor-faktor yang memengaruhi UMKM di tengah dinamika bisnis. The development of Micro, Small and Medium Enterprises (MSMEs) is becoming increasingly significant in facing the high level of competition in the era of globalization. This research aims to measure the impact of product innovation and proactive attitudes on the performance of MSMEs in the Pademangan area, with environmental uncertainty as a moderating variable. The sampling method uses non-probability and purposive sampling methods. The research was carried out by distributing questionnaires to 50 MSMEs in the West and East Pademangan areas. The data analysis method uses Partial Least Squares Structural Equation Modeling (PLS-SEM). The research results show that product innovation and proactive attitudes positively and significantly influence MSME business performance in the region. However, environmental uncertainty is unable to moderate the influence of product innovation and proactive attitudes on business performance. These findings provide insight into the complexity of factors that influence MSMEs amidst business dynamics.

This study aimed to identify the factors influencing the adoption of the Quick Response Code Indonesian Standard (QRIS) among Micro, Small, and Medium Enterprises (MSMEs) in the D.I. Yogyakarta Region and its surrounding areas, as well as to examine the impact of this payment method on MSMEs' performance. By utilizing an extended Technology Acceptance Model (TAM) and Structural Equation Modeling-Partial Least Square (SEM-PLS), this research explored the relationships between perceived ease of use, attitude towards using, behavioral intention, actual use, and SMEs performance. The findings revealed that perceived ease of use significantly influenced attitude towards using, which in turn positively impacted behavioral intention and actual use. Furthermore, actual use was found to have a significant positive effect on SMEs performance. Path analysis also indicated a mediation relationship, whereby attitude towards using had a significant positive impact on SMEs performance through behavioral intention and actual use. These findings highlight the importance of government efforts to cultivate a positive attitude among MSMEs towards QRIS, particularly by enhancing perceived ease of use.

Aims: This study aims to examine the impact of lean management practices on organizational competitiveness, with operational performance positioned as a mediating mechanism. Specifically, the study seeks to analyse how lean management practices influence operational performance and how these operational improvements subsequently contribute to enhancing the competitive position of small and medium-sized enterprises (SMEs). Study Design: This study employs a quantitative explanatory research design using a cross-sectional survey approach. The relationships among lean management practices, operational performance, and organizational competitiveness are examined through Partial Least Squares Structural Equation Modeling (PLS-SEM). Place and Duration of Study: The study was conducted among small and medium-sized enterprises located in the Greater Bandung area, Indonesia. Data collection took place between 15 November to 5 December 2025. Methodology: Data were collected from 186 SME owner–managers in Bandung, Indonesia, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The measurement items were adapted from established literature on lean management, operational performance, and competitiveness. The data were analysed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to assess the reliability and validity of the measurement model and to test the proposed structural relationships, including the mediating role of operational performance. Results: The results indicate that lean management practices have a significant positive effect on operational performance. Operational performance, in turn, significantly enhances organizational competitiveness. In addition, lean management practices also exert a direct positive effect on organizational competitiveness. Mediation analysis reveals that operational performance partially mediates the relationship between lean management practices and organizational competitiveness, indicating that the competitive benefits of lean management are achieved primarily through improvements in operational performance. Conclusion: The study concludes that lean management serves as an effective strategic approach for enhancing the competitiveness of SMEs when it is implemented in a manner that strengthens operational performance. The findings underscore the importance of focusing on operational improvements as a key mechanism through which lean management translates into sustainable competitive advantages.

This research is about the adoption of cloud-based accounting (CBA) systems with a focus on small and medium-sized enterprises (SMEs) through the lens of the Technology Acceptance Model (TAM). This study focuses on the mediating role of attitude (ATU) in the effects of perceived ease of use (PEOU), perceived usefulness (PU), and behavioral intention (BI) to adopt CBA. The data of 200 SMEs in Odisha, India, was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results confirm the model’s validity and support all hypotheses. Both PEOU and PU have a significant impact on ATU, which in turn, has a strong impact on BI. Mediation analysis indicates that ATU partially mediates the impact of PEOU and PU on BI. These results underscore the need to improve adoption by targeting positive attitudinal outcomes with system design and functionality. This study contributes to theory on technology acceptance while also providing practical recommendations aimed at fostering digital adoptions for SMEs in developing markets.

This research provides valuable insights into the impact of digital entrepreneurship on the digitalization of small and medium-sized enterprises (SMEs) in Yemen. By integrating the Technology Acceptance Model (TAM) and the Technology-Organization-Environment (TOE) framework, the research examines the role of various factors-technological, organizational, environmental, and individual, affecting technology adoption and utilization in SMEs. The study primarily explores the direct and indirect influences of these factors on actual system use, with a particular focus on the mediating roles of perceived usefulness and perceived ease of use in shaping attitudes toward technology adoption. Data were collected through a survey of 392 respondents, and the results were analyzed using partial least squares structural equation modelling (PLS-SEM). The measurement model was validated for reliability and accuracy, followed by an evaluation of the structural model to test the proposed hypotheses. The findings highlight the critical role of information and communication technology (ICT) adoption in enhancing both perceived ease of use and perceived usefulness. Additionally, the knowledge of IT entrepreneurs and government support were found to uniquely influence perceived ease of use and perceived usefulness, respectively. Both of these perceptions, in turn, positively impacted attitudes toward and the actual use of digital tools within SMEs. To address the challenges faced by Yemeni SMEs, it is recommended to enhance digitalization through ICT adoption and promote a pro-technology culture. Policymakers should create a supportive environment via targeted policies, subsidies, and public-private partnerships to foster sustainable growth and competitiveness.

With the evolution of the world, digital technology has transformed information, communication, and connectivity, largely driven by Industry 4.0 technologies, among which cloud computing stands out. Cloud computing facilitates data storage and information exchange via the internet, offering significant advantages to businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), by enabling them to manage data independently and efficiently. The adoption of cloud computing is anticipated to advance digitalization in Indonesia, potentially increasing income and creating employment opportunities in the coming years. This research aims to identify the factors influencing cloud computing adoption among MSMEs in Bandung City. Utilizing the Extended Unified Theory of Acceptance and Use of Technology (UTAUT2) with Technology Readiness, the study collected 158 valid responses through an online questionnaire from MSMEs that have utilized or are currently utilizing cloud computing services in Bandung City. The data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM). The findings reveal that Performance Expectancy, Effort Expectancy, Facilitating Conditions, Habit, and Optimism positively influence the intention of MSMEs to adopt cloud computing. Furthermore, Behavioral Intention positively affects Actual Usage. This research shows that MSMEs with a strong intention to adopt cloud computing are more likely to integrate it into their daily operations. Enhancing MSMEs' knowledge and digital skills can further facilitate their use of cloud computing services, given their positive perception of these services. Recommendations for MSMEs include focusing on improving digital skills, while the government should implement digital literacy programs to support MSMEs in using cloud computing. However, this study is limited to MSMEs in Bandung City, which may restrict the generalizability of the findings. Future research should explore the types of services used by MSMEs, incorporate additional variables, employ different methodological approaches, and consider a broader sample.

Perkembangan Usaha Mikro, Kecil, dan Menengah (UMKM) saat ini memiliki peran penting dalam sektor perekonomian, terutama UMKM makanan dan minuman. Faktor-faktor kunci dalam menghadapi dinamika bisnis modern melibatkan pemanfaatan media sosial, inovasi produk, dan dukungan keluarga. Media sosial memberikan manfaat positif dalam promosi produk, pengurangan biaya pemasaran, peningkatan hubungan dengan konsumen, dan perluasan pasar. Inovasi produk menjaga relevansi dan pertumbuhan bisnis di tengah persaingan yang ketat yang mendorong perusahaan untuk terus melakukan perubahan dan perbaikan guna memenuhi kebutuhan konsumen. Dukungan keluarga berperan sebagai pendukung secara emosional maupun instrumental. Penelitian ini bertujuan untuk menguji secara empiris pengaruh media sosial, inovasi produk, dan dukungan keluarga terhadap kinerja usaha UMKM kuliner di Jakarta Pusat. Penelitian ini menggunakan metode kuantitatif dengan pendekatan kausal. Populasi penelitian adalah pelaku UMKM kuliner di Jakarta Pusat. Pengambilan sampel dilakukan dengan metode non-probability menggunakan teknik purposive sampling terhadap 80 responden. Analisis data yang digunakan adalah Partial Least Squares Structural Equation Modeling (PLS-SEM) menggunakan software SmartPLS 4 v.4.0.9.8. Hasil pengujian hipotesis menunjukkan bahwa media sosial memiliki pengaruh positif dan signifikan terhadap kinerja usaha. Selanjutnya, inovasi produk memiliki pengaruh positif yang tidak signifikan terhadap kinerja usaha. Kemudian, dukungan keluarga memiliki pengaruh positif dan signifikan terhadap kinerja usaha. The current development of Micro, Small, and Medium Enterprises (MSMEs) plays a crucial role in the economic sector, especially in the food and beverage MSMEs. Key factors in facing the dynamics of modern business involve utilizing social media, product innovation, and family support. Social media provides positive benefits in product promotion, reducing marketing costs, enhancing consumer relationships, and expanding the market. Product innovation maintains business relevance and growth amid intense competition, driving companies to continuously change and improve to meet consumer needs. Family support plays a role as both emotional and instrumental support. This research aims to empirically examine the influence of social media, product innovation, and family support on the performance of culinary MSMEs in Central Jakarta. The study employs a quantitative method with a causal approach, sampling culinary MSMEs in Central Jakarta using purposive sampling with 80 respondents. The data analysis utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 v.4.0.9.8 software. Hypothesis testing results indicate that social media has a positive and significant influence on business performance. Additionally, product innovation has a positive but not significant impact on business performance, while family support has a positive and significant influence on business performance.