Integrated Adaptive Digital Systems and SME’s Business Competitiveness: The Role of Analytics and Decision-Making Capability

Martino Wibowo; Ali Muktiyanto; Faizul Mubarok; Sahraman Hadji Latief

doi:10.61255/jeemba.v4i5.1867

Authors

Martino Wibowo Universitas Terbuka, Tangerang Selatan, Indonesia
Ali Muktiyanto Universitas Terbuka, Tangerang Selatan, Indonesia
Faizul Mubarok Universitas Terbuka, Tangerang Selatan, Indonesia
Sahraman Hadji Latief Mindanao State University, Philippines

DOI:

https://doi.org/10.61255/jeemba.v4i5.1867

Keywords:

digital transformation, data analytics capability, digital literacy, organizational adaptability, MSME competitiveness

Abstract

Purpose – This study examines how integrated adaptive digital systems, digital data analytics capability, and technology-based decision-making capability relate to Indonesian MSME competitiveness, and whether digital literacy and organizational adaptive capability condition the system- and analytics-based relationships.

Design/methodology/approach – A cross-sectional survey of 340 MSME respondents from five Indonesian provinces measured six reflective constructs on five-point Likert scales. PLS-SEM in SmartPLS 4 assessed measurement quality, three direct paths, and four moderation effects.

Finding/Results – Integrated adaptive digital systems showed the largest direct association with competitiveness (β = 0.620, p < .001), followed by analytics capability (β = 0.354, p < .001) and technology-based decision-making capability (β = 0.148, p = .002). Digital literacy moderated the analytics relationship (β = 0.092, p = .016), as did organizational adaptive capability (β = 0.282, p < .001); neither moderated the systems path. The Fornell–Larcker matrix indicated inadequate X2–Y1 discriminant validity, so the analytics coefficient requires cautious interpretation.

Originality/Value – By separating infrastructure, analytics, decision use, digital literacy, and organizational adaptability, the study identifies capability-specific complementarity: human and organizational capabilities are more consequential for extracting value from analytics than for the integrated-systems path in this sample.

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