Digitalization of solutions to improve the productivity of MSMEs in Pekanbaru city

Abstract

This study examines the impact of MSME owner behavior and digital adaptation on the performance and productivity of frozen food MSMEs. Using a quantitative approach, data were collected from MSME owners and analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). The findings reveal that the behavior of MSME owners, including risk-taking, creativity, confidence, and a positive attitude, significantly influences their business performance and productivity. Digital adaptation also plays a crucial role in enhancing efficiency, expanding market reach, and improving operational processes. Furthermore, this study identifies the mediating role of business performance in the relationship between MSME owner behavior, digital adaptation, and productivity. The results suggest that an effective combination of entrepreneurial mindset and digital transformation is essential for increasing competitiveness and sustainability in the frozen food MSME sector. The implications of this research highlight the need for policies and programs that support digital literacy and entrepreneurial development among MSME owners.