Enhancing MSME Performance Through Entrepreneurial Orientation, Leadership Competence, and Digital Marketing: The Mediating Role of Strategic Absorptive Capacity

This study investigates the influence of entrepreneurial orientation, leadership competence, and digital marketing strategy on business performance, with strategic absorptive capacity serving as a mediating variable. The research focuses on micro, small, and medium enterprises (MSMEs) operating in West Java, Indonesia. Employing a quantitative approach, data were collected through structured questionnaires distributed to 195 MSME actors. The data were analyzed using Structural Equation Modeling (SEM) with AMOS 24 software. The results show that entrepreneurial orientation, leadership competence, and digital marketing strategy have significant positive effects on strategic absorptive capacity. Furthermore, strategic absorptive capacity has a significant mediating effect on the relationship between these three variables and business performance. The findings underscore the importance of internal capabilities in enhancing business performance, particularly the role of strategic absorptive capacity in leveraging entrepreneurial, leadership, and digital competencies. The study contributes to strategic management literature and offers practical implications for MSMEs aiming to improve their competitiveness and sustainability through internal capacity development