The Role of Digital Literacy in Moderating the Effect of Entrepreneurial Orientation and Market Orientation on Business Sustainability in the Culinary Sector MSMEs in Surabaya

Abstract

MSME empowerment is an effort to facilitate the achievement of the goal of bringing the community towards economic sustainability. Evidence shows that MSMEs have been able to survive and thrive in the face of the crisis for more than six years, but during the pandemic, MSMEs experienced a downturn due to restrictions on activities. The government has made various efforts to encourage MSMEs to rise again, including through digitalization. This study aimed to determine and analyze the role of digital literacy in moderating entrepreneurial orientation and market orientation on the sustainability of the culinary sector MSME business in Surabaya. Digital literacy variables are moderating variables, entrepreneurial orientation, and market orientation are independent variables, and MSME business sustainability is the dependent variable. 80 MSME players were taken from culinary business actors who sell in three culinary tourism centers in South Surabaya. The questionnaire is used to collect data that has been systematically arranged to contain the requirements for obtaining data on the variables studied. Furthermore, it will be analysed using PLS-SEM (Partial Least Square-Structural Equation Modelling), which previously carried out instrument tests and assumption tests as analytical requirements to prove the relationship between the dependent and independent variables. The results of the analysis indicate that entrepreneurial orientation has a meaningful effect on business sustainability, market orientation has a significant effect on business sustainability, digital literacy moderates the influence of entrepreneurial orientation and market orientation of MSME business actors in the culinary sector in Surabaya.