Competitive Advantage as a Mediator of Business Resilience: An Analysis of Digital Adaptability and Financial Capabilities of Yogyakarta Culinary MSMEs
DOI:
https://doi.org/10.21831/jim.v23i1.97878Keywords:
business resilience, competitive advantage, culinary MSMEs, digital adaptability, financial capabilitiesAbstract
Economic uncertainty requires Micro, Small, and Medium Enterprises (MSMEs) to demonstrate high endurance. This study aims to analyze the impact of digital adaptability and financial capabilities on business resilience, and to examine the role of competitive advantage as a mediating variable among traditional culinary MSMEs in the Special Region of Yogyakarta. A quantitative explanatory approach was employed, with primary data collected via questionnaires distributed to 87 culinary MSME owners. The sampling was conducted using a purposive sampling technique. Data were analyzed using the Structural Equation Modeling-Partial Least Squares (SEM-PLS) method in SmartPLS 4. The empirical results reveal that the structural model possesses strong predictive power, explaining 77.5% of the variance in business resilience. Specifically, the findings indicate that both digital adaptability and financial capabilities have a positive and significant direct effect on competitive advantage and business resilience. Furthermore, the mediation analysis confirms that competitive advantage serves as a significant partial mediator in the relationship between both digital and financial capabilities toward business resilience. These findings conclude that merely adopting technology and maintaining financial discipline are insufficient; these resources must be strategically leveraged to create a distinct competitive advantage for MSMEs to survive and thrive in the era of disruption. The practical implications of this study provide strategic guidance for MSME practitioners and local governments in designing economic recovery programs focused on strategic value creation rather than basic digital onboarding.
References
Abdulshakour, S. (2020). Impact of financial statements for financial decision-making. Open Science Journal, 5(2). https://doi.org/10.23954/osj.v5i2.2260
Adhianata, H., Ari Wibowo, M., & Iskandar, Z. (2024). Traditional Culinary Potentials as an Attractiveness and Gastro-Diplomacy for Madura Culinary Tourism. BIO Web of Conferences, 98. https://doi.org/10.1051/bioconf/20249804001
Albukhitan, S. (2020). Developing Digital Transformation Strategy for Manufacturing. Procedia Computer Science, 170. https://doi.org/10.1016/j.procs.2020.03.173
Almansouri, M., Bajrai, M. W., Al Sarraj, M. M., Al Muhanna, M., Mohamed, H. A., Alshammari, G. M., Alhelal, A., & Hakeem, M. J. (2026). Culinary innovation, sustainable agriculture, and gastronomic heritage in Northern Saudi Arabia: Pathways toward food security, tourism, and vision 2030. International Journal of Gastronomy and Food Science, 43. https://doi.org/10.1016/j.ijgfs.2025.101396
Briantama Yanuar, R., Ni Wayan, K. S., Zithny Ilman, P., & Satria, Y. A. (2019). Perception of People on Modernized Traditional Culinary in Yogyakarta. In H. null, T. Nurlambang, E. Kusratmoko, S. null, H. Setiadi, & D. Susiloningtyas (Eds.), IOP Conference Series: Earth and Environmental Science, 338(1). Institute of Physics Publishing. https://doi.org/10.1088/1755-1315/338/1/012003
Cai, Q., Wu, J., Wu, T., Chang, P.-C., & Mardani, A. (2024). The impact of digital leadership on hidden champions’ competitive advantage: A moderated mediation model of ambidextrous innovation and value co-creation. Journal of Business Research, 182. https://doi.org/10.1016/j.jbusres.2024.114819
Chang, C. L., McAleer, M., & Wong, W. K. (2020). Risk and Financial Management of COVID-19 in Business, Economics and Finance. Journal of Risk and Financial Management, 13(5). https://doi.org/10.3390/jrfm13050102
Cifci, I., & Atsiz, O. (2022). Components of gastro-tourists’ experiences in culinary destinations: Evidence from sharing economy platforms. In Handbook on Tourism and Social Media: Research Handbooks in Tourism series, 395–411. Edward Elgar Publishing Ltd. https://doi.org/10.4337/9781800371415.00040
Dinas Koperasi dan UKM DIY. (2025). Laporan data perkembangan UMKM Daerah Istimewa Yogyakarta. Pemerintah Daerah Istimewa Yogyakarta. https://diskopukm.jogjaprov.go.id/
Handayani, E., Pandansari, T., & Fatkhurohman, I. (2025). The Role of the MSMEs Association Network in MSMEs Business Resilience Post the Covid 19 Pandemic. Quality - Access to Success, 26(205), 423–433. https://doi.org/10.47750/QAS/26.205.43
Hernan Ramirez, E., Huerta-Soto, M., Villanueva-Calderón, J., Ajour El Zein, S., & Clemente-Almendros, J. A. (2026). Understanding the Competitiveness of Small and Medium-Sized Enterprises: The Positive Nonlinear Influence of Digitalization, Environmental Policies, and Innovation. American Behavioral Scientist. https://doi.org/10.1177/00027642251413967
Herrera-Ballesteros, J., de las Heras-Rosas, C. J., & Mota Veiga, P. (2026). The digital paradox in social innovation: the interplay between digital maturity and business model innovation. European Journal of Innovation Management, 29(11), 104–130. https://doi.org/10.1108/EJIM-07-2025-0915
Hinduan, Z. R., & Agia, M. I. (2024). Financial literacy and money management. In Gen Z Around the World: Understanding the Global Cohort Culture of Generation Z, 101–108. https://doi.org/10.1108/978-1-83797-092-620241011
Islam, A., Islam, M. A., Dal Mas, F., Fijałkowska, J., Rahman, M., & Massaro, M. (2025). Configuring AI-guided sustainable competitive advantage for SMEs through business model innovation: A systematic literature review approach. Journal of Engineering and Technology Management, 78. https://doi.org/10.1016/j.jengtecman.2025.101921
Isle, M. B., & Freudenberg, B. (2022). A comprehensive analysis of the business literacies of Australian Small Businesses. Journal of Australian Taxation, 23(1), 67–102. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85126278021&partnerID=40&md5=44b88dbafea93251053f728e7c67792c
Kapoor, M., & Aggarwal, V. (2020). Tracing the economics behind dynamic capabilities theory. International Journal of Innovation Science, 12(2), 187–201. https://doi.org/10.1108/IJIS-05-2019-0050
Kementerian Koperasi dan UKM Republik Indonesia. (2021). Data perkembangan usaha mikro, kecil, dan menengah (UMKM) di Indonesia. https://kemenkopukm.go.id/data-umkm
Kumar, R., Samadhiya, A., Kumar, A., Luthra, S., Pandey, K. K., & El Jaouhari, A. (2025). Nourish resilience in digital food supply chain in post COVID landscape: literature swill for past insights and future roadmap. International Journal of Industrial Engineering and Operations Management, 7(2), 100–116. https://doi.org/10.1108/IJIEOM-02-2024-0007
Ma, H., & Xiao, B. (2025). Dynamic Capability: A Supporting Theory for Innovation-Driven Entrepreneurship in Uncertain Environments. In A Theoretical Foundation for Innovation-Driven Entrepreneurship, 179–187. Springer Science and Business Media. https://doi.org/10.1007/978-981-96-3133-9_18
Modiba, F. S., Musasa, G., Matindike, S., Kwanhi, T., Damiyano, D., & Mago, S. (2024). Can the digital economy transform financial inclusion in rural communities? A gendered lens. Journal of Infrastructure, Policy and Development, 8(8). https://doi.org/10.24294/jipd.v8i8.3756
Muafi, M., Hidayat, A., & Jufri, A. (2025). The Role of Moderating Digital Leadership and Digital Entrepreneurship in Enhancing the Resilience and Independence of MSMEs Towards Business Sustainability. Review of Integrative Business and Economics Research, 14(2), 812–827. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85219008965&partnerID=40&md5=a34c8a1000943d1e935eb87eb0fd4a60
Ngah, R., Salleh, Z., Wahab, I. A., & Azman, N. A. (2016). Sustainable competitive advantage in small and medium enterprises through a qualitative lens: Insights on intellectual capital. In K. S. Soliman (Ed.), Proceedings of the 27th International Business Information Management Association Conference - Innovation Management and Education Excellence Vision 2020: From Regional Development Sustainability to Global Economic Growth, IBIMA 2016, 3220–3227). International Business Information Management Association, IBIMA. https://www.scopus.com/inward/record.uri?eid=2-s2.084984643507&partnerID=40&md5=c1e4c64fe1332a92fc8cb20dbcec9e56
Öztürk, N. (2024). Dynamic Capabilities Theory for Sustainable Development. In Integrating Organizational Theories With Sustainable Development, 171–191. IGI Global. https://doi.org/10.4018/979-8-3693-8337-7.ch009
Pai T, V., Kamath, B. S., Popescu, V., & Birau, R. (2025). AI-Driven Digital Transformation: Enhancing Competitiveness and Sustainability in the Modern Business Landscape. In S. O. Idowu, C. Sitnikov, A. Bandoi, & E. Özen (Eds.), Springer Proceedings in Business and Economics, 245–268. Springer Nature. https://doi.org/10.1007/978-3-031-91778-3_12
Pal, A., Gupta, K., Gaur, D., Tiwari, C. K., & Bhat, M. A. (2026). Enabling entrepreneurial breakthroughs: the synergistic role of social capital, dynamic capabilities and innovative thinking. Journal of Innovation and Entrepreneurship, 15(1). https://doi.org/10.1186/s13731-026-00618-9
Paul, D., & Mathew, J. (2025). Using Internal Resources for Transition From Temporary to Sustained Competitive Advantage. In Empowering Sustainable Performance and Competitive Advantage in Tourism, 57–87. IGI Global. https://doi.org/10.4018/979-8-3373-4546-8.ch003
Prasetya, A., Rahardjo, K., Mawardi, M. K., Rustam Hidayat, R., & Prakasa, Y. (2021). The mediation role of financial literation in ensuring MSMEs sustainability: An organizational characteristics perspective. JEMA: Jurnal Ilmiah Bidang Akuntansi dan Manajemen, 18(1). https://doi.org/10.31106/jema.v18i1.10356
Prima, A. P., Efriyenty, D., & Purba, M. A. (2025). The Role of Digital Accounting and Management Quality Using The Toe Method on The Sustainability of Msmes. In A. Enrici (Ed.), E3S Web of Conferences, 657. EDP Sciences. https://doi.org/10.1051/e3sconf/20256570402
Reniati, R., Susantyo, B., Irmayani, N. R., Sabri, F., & Widiastuti, W. (2025). The Influence of Leadership Strategies and Social Capital on the Business Performance and Resilience of Indonesian MSMEs. Journal of the Knowledge Economy, 16(2), 9932–9971. https://doi.org/10.1007/s13132-024-02254-8
Respati, D. K., Widyastuti, U., Nuryati, T., Musyaffi, A. M., Handayani, B. D., & Ali, N. R. (2023). How do students’ digital financial literacy and financial confidence influence their financial behavior and financial well-being? Nurture, 17(2), 40–50. https://doi.org/10.55951/nurture.v17i2.154
Rudkouskaya, V., & Malik, F. A. (2024). Financial management degree for innovation-driven business: Its challenges and prospects. In Fostering Industry-Academia Partnerships for Innovation-Driven Trade (pp. 234–248). https://doi.org/10.4018/979-8-3693-3096-8.ch015
Teece, D. J. (2014). The foundations of enterprise performance: Dynamic and ordinary capabilities in an (economic) theory of firms. Academy of Management Perspectives, 28(4), 328–352. https://doi.org/10.5465/amp.2013.0116
Thakuri, S., Bon, M., Cavus, N., & Sancar, N. (2024). Artificial Intelligence on Knowledge Management Systems for Businesses: A Systematic Literature Review. Technology, Education, Management and Informatics Journal, 2146–2155. https://doi.org/10.18421/tem133-42
Wahyuningtyas, E., & Puspitasari, I. (2026). How small and medium enterprises (SMEs) in Indonesia implement their digital transformation: A literature review. In M. F. F. Mardianto & I. Syahzaqi (Eds.), AIP Conference Proceedings, 3326(1). American Institute of Physics. https://doi.org/10.1063/5.0308801
Wardhana, I. W., Riesfandiari, I., Jamal, E., Hanifah, V. W., Pihri, P., Handoyo, F. W., Purwono, N., Ramadhan, R. P., Setyawan, B., Placek, M., W, B. P. A., Chrysanti, N. D., Daniswara, R. M., Wijanarko, B., & Setiadi, E. (2025). Does a special economic zone impact the surrounding economy? The case study of Kendal, Indonesia. Humanities and Social Sciences Communications, 12(1). https://doi.org/10.1057/s41599-025-04448-0
Downloads
Published
How to Cite
Issue
Section
License
An author who publishes in the journal "Jurnal Ilmu Manajemen (JIM)" agrees to the following terms:
Author retains the copyright and grants the journal the right of first publication of the work simultaneously licensed under the Creative Commons Attribution-ShareAlike 4.0 License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
Author is able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book) with the acknowledgement of its initial publication in this journal.
Author is permitted and encouraged to post his/her work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of the published work (See The Effect of Open Access).
All materials in this site are protected by the law. It is prohibited to quote a part of or all of this website contents for commercial purposes without the permission or consent of the editors.
If anyone finds one article or more in this journal violate or potentially violate one's copyrights, please report to us through e-mail of Principle Contact.
Legal-formal aspects of accessing any information and manuscript in this journal website refer to the provision of license Creative Commons Attribution-Share Alike (CC BY-SA). Read more about the Creative Commons Attribution-ShareAlike 4.0 Licence here: https://creativecommons.org/licenses/by-sa/4.0/.
All information available in 'Jurnal Ilmu Ekonomi (JIM)' is academic in nature. 'Jurnal Ilmu Ekonomi (JIM)' is not responsible for loss due to the abuse of information in the website.
.png)
