THE IMPORTANCE OF COLLABORATIVE NETWORKS DIGITAL LEADERSHIP TO IMPROVE AIS OUTCOMES AND SUSTAINABILITY IN SMES

SMEs have a significant role in economic growth, especially in developing countries, including Indonesia. In Indonesia, SMEs can contribute to the gross domestic product by> 60% to increase economic growth. Despite having a strategic role, SMEs have many obstacles to surviving in an uncertain environment, so they need the right strategy to maintain good performance. Low technology adoption is also an obstacle for SMEs to compete due to inefficient company operations. Therefore, referring to the RBV theory, this study will describe the efficient use of resources so that the organization runs optimally. This study will test several factors that can improve AIS outcomes and be sustainability-oriented. This study will analyze whether collaboration and leadership networks can encourage the application of technology in SMEs. Researchers distributed 104 questionnaires to SME owners in Yogyakarta, which consisted of one city and four districts. This study uses primary data and the Smart PLS tool to test the hypothesis. This study was conducted for four months, from September to December 2024. This study provides methodological novelty because it tests the mediation effect of AIS outcomes that previous research still needs to explain. The study results indicate that collaboration networks and digital leadership can improve AIS outcomes and business sustainability. The results of this study provide an overview to SME owners that digital capabilities are critical because they can encourage SMEs to survive and compete with competitors. Furthermore, the most crucial point is support from the government to provide training so SME owners can improve their skills and understanding of the importance of technology. JEL Classification Codes: O32, D91, L25.