Impact of Digital Literacy, Business Innovation, Competitive Advantage on the Existence of SMEs: A quantitative study in Makassar City, Indonesia

Abstract

The purpose of this study is to analyze the effect of digital literacy, business innovation, and competitive advantage on business existence in SMEs. This study uses a quantitative approach, the research population consists of 409 SMEs which are people who receive assistance in Makassar City, Indonesia, and are used to determine the sample using the Slovin formula, namely 202 respondents. Sampling was carried out by probabilistic sampling using a simple random sampling technique. The data collection technique uses research field data developed from research variable indicators and tested for validity and reliability. The data analysis method uses SEM Amos 21. The results show that digital literacy and innovation have a significant effect on competitive advantage and business existence as well as digital literacy and business innovation significant effect on the existence of SMEs through competitive advantage. The implication of this research is a reference in adding insight in the field of entrepreneurship, especially for the government, academics and researcher. For further studies, it is recommended for researchers to conduct studies on other variables that also affect the existence of businesses with a wider locus.