The Role of Digital Technology as an Intervening in Optimizing Business Strategy and Performance of MSMEs in Demak Regency
Sulistyorini (a*), Ayu Nurafni Octavia (a), Any Setyarini (a), Afshoqul Miftah (a), Etsa Limar Hita (a).

a)Fakultas Ekonomi, Universitas Semarang, Semarang
Jalan Soekarno Hatta Rt. 007 Rw. 007, Tlogosari Kulon, Indonesia

Abstract

Special attention is needed because the implementation and utilization of the digital economy assess the success of MSMEs. The higher the optimal performance goals of MSMEs are, the more obstacles there are to achieving that performance. This study aims to identify variables that influence performance. Digital technology, techno-ownership, and business strategy are the variables considered in this study. With the help of Smart PLS (Partial Square Least) Version 4, a quantitative approach was used in this study. In this study, the researcher combined non-probability sampling with convenience sampling. Since it is impossible to identify the exact population size, the sampling in this study refers to Hair^s statement, and there are 109 respondent samples. The relationship between the research variables is then ascertained using the questionnaire-based data collection approach. Based on the results of the PLS test of the study, the company^s strategy positively and significantly influences digital technology. MSME performance is positively and significantly influenced by business strategy. MSME performance is positively and significantly influenced by digital technology. Digital technology can moderate the impact of business strategy on MSME performance in the mediation test.

Keywords: Business Strategy, Digital Technology, MSME Performance.

Topic: Economics