Determinants of Food MSME Performance in Tangerang Regency: Investigating the Mediating Mechanism of E-Commerce Adoption

This study aims to analyze the influence of Technological Innovation, Dynamic Capabilities, Technology Investment, and Financial Access on MSME Performance, both directly and through the mediation of E-Commerce Adoption. The study uses an explanatory quantitative approach based on Stimulus–Organism–Response Theory and Dynamic Capability Theory. Data were obtained through questionnaires from 292 MSMEs in the food sector in 28 sub-districts of Tangerang Regency, then analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that Dynamic Capabilities and Financial Access have a significant positive effect on E-Commerce Adoption, while Technological Innovation and Technology Investment do not have a significant effect. Conversely, Technological Innovation and Technology Investment have a significant positive effect on MSME Performance, while Dynamic Capabilities, Financial Access, and E-Commerce Adoption do not show a significant effect. In addition, E-Commerce Adoption does not mediate the relationship between the four independent variables and MSME Performance. This finding indicates that the improvement in MSME performance is more influenced by innovation and operational technology investment than e-commerce adoption. Therefore, the study recommends strengthening technology investment accompanied by assistance in utilizing digital platforms so that e-commerce implementation can provide a more optimal impact on business performance.