The Role of Digital Innovation on Business Success of SMEs Restaurant Industry in Indonesia: The Mediating Role of Financial Performance

Abstract

This study aims to examine the influence of digital innovation, and financial performance on business success in the restaurant industry in Tangerang City. The method used in this study uses quantitative methods, with data analysis techniques Structural Equation Modeling. Respondents in this study are restaurant business owners in Tangerang City. The samples that were collected were 214 respondents. The results of the study indicate that there is a positive and significant influence between digital innovation and financial performance on business success. Financial performance has a mediating role that forms the relationship between digital innovation and business success. We recommend to restaurant business owners to improve digital innovation and financial performance to increase the level of business success. Future research is recommended to increase the variables and the sample needs to be increased.