THE INFLUENCE OF BUSINESS CRITERIA MODELS, DIGITAL INFORMATION, THROUGH CO-INNOVATION ON BANK-SME RELATIONS IN SURABAYA: PATH ANALYSIS STUDY

Abstract

Purpose:This research discusses the importance of business criteria models, digital information, eco-innovation, and bank-SME relationships in achieving sustainability. This research identifies these indicators and focuses on digital platform integration, sensor installation, customer engagement, environmental innovation, competitive strategy, and knowledge management.   Design/methodology/data analysis:This research uses an intervening model with path analysis techniques to analyze whether mediating variables can influence the relationship between the independent and dependent variables. The research population is MSMEs in East Java City with a sample of 620 respondents. The instruments used were questionnaire-based surveys and interviews via Zoom using Smart PLS 3, Google Sheet and Google Forms. The variables measured include business model criteria, sustainable digital information, eco-innovation dynamism, and sustainability of SMEs-Bank relationships. Research procedures include measurement, boostrapping testing, and measuring mediator models to determine the significance of the relationship between variables.   Findings:Research findings show that it is important for MSMEs in Surabaya to implement sustainable innovation, strengthen relationships with banks, and utilize digital information sustainably to improve the sustainability of their business.   Originality/value: This research examines the integrated influence of various factors, including business model criteria, sustainable digital information, eco-innovation dynamism, and MSME-bank relationships, on MSME sustainability.   Practical implications:The findings of this research can be used by policy makers and related institutions to develop programs and policies that support MSMEs in achieving sustainability.