Sustainable Performance of Small Dynamic Enterprises in the Digital Business Era

Purpose – This study aims to identify factors that can influence the sustainable performance of small dynamic enterprises by analyzing the influence of technological capability, digital innovation, and sustainable competitive advantage on the sustainable performance of microenterprises. Methodology – The research data were collected through questionnaires filled out by 260 micro-enterprises in Batam as the research objects. We used Partial Least Squares - Structural Equation Model. Findings – The results of this study found the influence of technological capability, digital innovation, and sustainable competitive advantage on the sustainable performance of micro-enterprises in Batam City. As well as the discovery of the impact of mediation on the influence relationship. As well as the discovery of the mediating impact of Digital Innovation (DI) on the indirect effect of Technological Capability (TC) on Sustainable Performance (SP) and Sustainable Competitive Advantage (SCA). Then, the mediating impact of SCA on the indirect effect of TC and DI on SP. Originality – This research shows the discovery or novelty that digital innovation can act as a mediator for technological capability in encouraging the sustainable competitive advantage of a micro business. The findings are expected to be helpful for micro business entrepreneurs in boosting their business performance in general.