Track: Entrepreneurship and Innovation

Abstract

The entrepreneurial ecosystem, a set of multidimensional factors that interact in an entrepreneurial environment, is one of the constellations that can strengthen entrepreneurial activity and support sustainable economic growth. Despite the importance of the entrepreneurial ecosystem, there is a void in research about how the entrepreneurial ecosystem can also help enterprises improve digitalization and innovation performance. These performances are essential in all fields of enterprises to sustain in this industrial 4.0 era, especially for MSMEs. Thus, this study aims to explain the mediating effect of digitalization and innovation on the relationship between the entrepreneurial ecosystem and sustainability among MSMEs in Indonesia. This study utilized four well-known entrepreneurial ecosystem frameworks to assess how entrepreneurial ecosystem elements are indispensable in enhancing MSMEs' digitalization and innovation which will end up amplifying sustainability. This research uses a structured survey questionnaire-based data collection method with Indonesian MSME actors as respondents. This study contributes by providing a mediation analysis of digitalization and innovation in channeling the entrepreneurial ecosystem element to boost operational, economic, and marketing sustainability. Through this study, EE elements such as the government, higher education institutions, professional infrastructure, and entrepreneurs themselves are suggested to collaborate to improve Indonesian EE quality by adopting digitalization and nurturing innovation to reinforce sustainability growth in Indonesia.

Keywords: Entrepreneurial Ecosystem, Digitalization Performance, Innovation Performance, Sustainability, and MSME