Digitalization has become a crucial focus in today’s world, permeating various facets of life and business. Its benefits have notably amplified since the Covid-19 pandemic, influencing both corporate resilience and sustainability. Despite the significant role SMEs play in contributing to Gross Regional Domestic Product (GRDP), many exhibit limited understanding of how digitalization and sustainability can bolster their resilience. This study explores the effects of digitalization and sustainability on SME resilience using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS software. The findings reveal that both digitalization and sustainability have a significant positive impact on SME resilience. Additionally, digitalization is shown to play a critical role in enhancing SME sustainability. The research aims to provide actionable insights for SMEs, guiding them in integrating digitalization and sustainability strategies to strengthen their resilience.

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The Impact of Digitalization and Sustainability on the Resilience of Small and Medium Enterprises

  • Elita Amrina,
  • Insannul Kamil,
  • Rini Syahfitri

摘要

Digitalization has become a crucial focus in today’s world, permeating various facets of life and business. Its benefits have notably amplified since the Covid-19 pandemic, influencing both corporate resilience and sustainability. Despite the significant role SMEs play in contributing to Gross Regional Domestic Product (GRDP), many exhibit limited understanding of how digitalization and sustainability can bolster their resilience. This study explores the effects of digitalization and sustainability on SME resilience using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS software. The findings reveal that both digitalization and sustainability have a significant positive impact on SME resilience. Additionally, digitalization is shown to play a critical role in enhancing SME sustainability. The research aims to provide actionable insights for SMEs, guiding them in integrating digitalization and sustainability strategies to strengthen their resilience.