3rd Asia Pacific International Conference on Industrial Engineering and Operations Management

The Influence of Digital Business Strategy, Mental Accounting, and Growth Mindset on MSMEs Business Performance

0 Paper Citations
Track: Business Management

The COVID-19 pandemic has affected the global economy, including Indonesia. As the backbone of Indonesia’s national economy, MSMEs has been affected by the pandemic which adds to the various problems it already has. Some of MSMEs problems are weakness of business legality; unclear business model; no separation between personal and corporate wealth; limited business capital and human resources; lack of professional management, innovation, creativity, and technology literate; and lack of accounting knowledge in making accounting decisions. This paper aims to investigate the effect of digital business strategy, mental accounting, and growth mindset on MSMEs Business Performance that could help MSMEs overcome their problems. This research uses a quantitative method using questionnaires with 66 items. The sampling technique uses convenient sampling. This study uses a sample of 95 respondents from MSMEs operating in South Tangerang with minimum business age of 3 years. This study uses a statistical method with the IBM SPSS Statistics 28 program as a test tool. The result indicates that digital business strategy and growth mindset have a positive effect on business performance. Meanwhile, mental accounting does not affect business performance. This proves that entrepreneurs need knowledge and vision concerning digital transformation to drive competitive advantage. Entrepreneurs need to have creativity and innovation to enhance MSMEs' business performance to develop the business.



Business Performance, Digital Business Strategy, Growth Mindset, Mental Accounting and MSMEs

Published in: 3rd Asia Pacific International Conference on Industrial Engineering and Operations Management, Johor Bahru, Malaysia

Publisher: IEOM Society International
Date of Conference: September 13-15, 2022

ISBN: 978-1-7923-9162-0
ISSN/E-ISSN: 2169-8767