Digital Transformation in Tomohon City MSMEs

Abstract

This research aims to examine and analyze the influence of digital transformation on business performance, with the research variables digital literacy (X1), digital ability (X2), entrepreneurial character (Z1), organizational innovation (Z2), and business performance (Y). This research numbered 1,942 who used digital platforms. The sampling technique uses a technique carried out by Roscoe. The data collection technique consists of documentation and questionnaires. Data analysis is carried out using path analysis. The results of the research show that partially digital literacy, digital skills, entrepreneurial character have a positive effect on business performance while the organizational innovation variable has no effect on business performance. This research also found that entrepreneurial character is a mediator of the influence of digital capabilities on business performance but is not a mediating variable on the influence of digital literacy on business performance, while organizational innovation cannot mediate the relationship between digital literacy and digital capabilities on business performance