The Role of Business Strategy and Business Environment in Improving the Performance of MSMES in Denpasar City

This study examines the impact of business strategy on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the city of Denpasar, taking into account the moderating role of the business environment. A cross-sectional survey approach was employed, involving 100 MSME owners or managers, and the data were analyzed using SmartPLS 4.0. The results indicate that business strategy has a significant impact on the performance of MSMEs, and the business environment moderates these relationships, thereby strengthening the influence of business strategies in specific contexts. This research offers new insights into the significance of external factors in MSME strategic planning, recommending that MSMEs adjust their plan to the prevailing business environment conditions and encourage the government to develop policies that support the growth of MSMEs.