Synergising competitiveness and technological innovation to enhance micro, small and medium enterprise resilience through entrepreneurial orientation in the digital era

Abstract

Background: Micro, small and medium enterprises (MSMEs) are vital to Indonesia’s economy but remain vulnerable to global competition, economic shocks and digital disruption, challenges intensified by the coronavirus disease 2019 crisis. Aim: This study aims to develop an integrated model to enhance MSME resilience by synergising competitiveness and technological innovation, with entrepreneurial orientation (EO) as a mediating factor. Setting: The research was conducted in Makassar City, Indonesia, involving digitally adaptive MSMEs across various sectors. Methods: A mixed-methods approach was employed, combining quantitative analysis through structural equation modelling–partial least squares based on responses from 200 MSMEs and qualitative data from interviews and focus group discussions with 10 key informants. Seventeen questionnaire items were used to measure four constructs: competitiveness, technological innovation, EO and business resilience. Results: Competitiveness significantly enhances business resilience, while technological innovation influences it indirectly through EO. Both competitiveness and innovation strengthen EO, which positively impacts resilience. Qualitative findings highlight proactive mindsets, risk-taking and digital adaptability as key to sustainability. Conclusion: Micro, small and medium enterprise resilience relies not only on competitiveness or technology adoption but also on EO that transforms these resources into adaptive strategies. Contribution: This study enriches strategic entrepreneurship literature by validating an integrative model and offering policy insights to foster entrepreneurial capability and technology adoption.