Sustainability of MSMEs: An Empirical Study of Digital Literacy, Sustainable Business Practices, and Competitive Advantage in Culinary Businesses in Makassar City

This study aims to analyze the influence of digital literacy and sustainable business practices on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in the culinary sector in Makassar City, with competitive advantage as a mediating and moderating variable. This study is motivated by the increasing demands for technological adaptation and sustainable practices in maintaining the existence of MSMEs in the digital economy era. A quantitative approach was used with a survey method of 215 culinary MSMEs. Data analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) to test the relationship between variables. The results show that digital literacy has a positive and significant effect on the sustainability of MSMEs, both directly and indirectly through competitive advantage. Sustainable business practices have also been shown to strengthen sustainability performance through increased operational efficiency and social reputation. In addition, competitive advantage moderates the relationship between digital literacy and sustainability, where the effect of digital literacy is stronger in MSMEs with high competitiveness. These findings emphasize the importance of synergy between digital capabilities, sustainability orientation, and competitive strategy to create inclusive, adaptive, and sustainable culinary business growth in the digital era.