Maintaining Sustainable Growth of Micro and Small Enterprises: Antecedents of Management Orientation and Digital Business

Abstract

This study examines the Effect of management orientation on digital business and business growth and the Effect of digital business on micro and small business growth. This research belongs to the associative/explanatory category accompanied by hypothesis testing. The unit of analysis in this study was micro and small businesses in East Java, with a population of 358. The sampling technique in this study used purposive sampling with specific criteria and obtained a sample size of 191, which is referred to as respondents. Path analysis results show that management orientation has a positive and significant effect on digital business and business growth, and digital business has a positive and significant effect on the growth of micro and small businesses in East Java. The findings of this study indicate that management orientation based on the principle of change responsively and wisely in utilizing digital platforms in business will undoubtedly encourage the strengthening of digital business operations to be more effective, thereby encouraging the growth of micro and small businesses. Therefore, management orientation and digital business must be managed optimally to maintain sustainable micro and small business growth.