Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java

Budi Wahono ; Sudarmiatin Sudarmiatin ; Heri Pratikto
International Journal of Management and Digital Sc... 📅 2026 Vol 3, No 2 🔗 DOI: 10.70062/managementdynamics.v3i2.534
Abstract
Increasingly digitalised and globally integrated market competition demands that micro, small and medium-sized enterprises (MSMEs) no longer merely excel in local markets, but are also capable of building sustainable competitiveness in broader markets. Recent literature indicates that innovation, digital capabilities, and international networks are increasingly viewed as strategic determinants of MSME competitiveness, although the relationships between these variables are often examined in isolation and are not always consistent. This study aims to analyse the influence of innovation, digital capabilities, and international networks on the global competitiveness of MSMEs. The research employs an explanatory quantitative approach with a cross-sectional design. The sample consists of 200 owners or principal managers of SMEs in East Java, selected using purposive sampling. Data were collected via a structured questionnaire and analysed using Structural Equation Modelling–Partial Least Squares (SEM-PLS). The results of the analysis indicate that innovation, digital capabilities, and international networks have a positive and significant influence on the global competitiveness of SMEs. The path coefficient values indicate that digital capabilities are the strongest predictor, followed by international networks and innovation. These findings confirm that strengthening the global competitiveness of MSMEs requires an integrated strategy that links value renewal, digital transformation, and the sustainable development of external networks.
Keywords
Digital Capabilities; Global Competitiveness of MSMEs; Innovation; International Networks; SEM-PLS
How to Cite

Budi Wahono, et al. (2026). Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java. International Journal of Management and Digital Sciences, 3(2). https://doi.org/10.70062/managementdynamics.v3i2.534

Budi Wahono; Sudarmiatin Sudarmiatin; Heri Pratikto, "Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java," International Journal of Management and Digital Sciences, vol. 3, no. 2, 2026.

Budi Wahono; Sudarmiatin Sudarmiatin; Heri Pratikto. "Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java." International Journal of Management and Digital Sciences, vol. 3, no. 2, 2026.

Budi Wahono; Sudarmiatin Sudarmiatin; Heri Pratikto. "Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java." International Journal of Management and Digital Sciences 3, no. 2 (2026).

Budi Wahono, et al. (2026) 'Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java', International Journal of Management and Digital Sciences, 3(2). doi: 10.70062/managementdynamics.v3i2.534.

Budi Wahono; Sudarmiatin Sudarmiatin; Heri Pratikto. Determinants of Global Competitiveness of MSMEs through Innovation, Digital Capabilities, and International Networks: Empirical Evidence from East Java. International Journal of Management and Digital Sciences. 2026;3(2).

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