Search

The changes and uncertainty of the business environment in the VUCA era are serious challenges that must be faced, especially for SMEs. The unpreparedness of business actors to face these changes can impact the decline in SME performance and business sustainability. SMEs must continue to adapt to all changes that occur in their capabilities. Thus, SME players must have a business strategy using their resources by increasing dynamic entrepreneurial capabilities supported by financial resources to compete in the market. This research aims to analyze the relationship between digital technology capability, relational capability, innovation capability, financial resource development, and SMEs’ performance in Surakarta. The results of 120 SME respondents in Surakarta show that dynamic entrepreneurial capability, in this case, is measured using the variables digital technology capability (DTC), relational capability (RC), and innovation capability (IC) which are proven to have a significant influence on SMEs performance and also the development of financial resources can only partially mediate digital technology capability, however Financial resource development cannot mediate the influence of relational capability or innovation capability on SMEs performance. This research implies that it is important for SMEs to have dynamic entrepreneurial capabilities and develop their financial resources to maintain and improve their business performance.

Digital transformation is more than just providing online and mobile banking services. The banking and finance industry needs to innovate by combining digital technology with customer interactions. In this case, these new technology findings should make it easier and more convenient for users to access banking services. However, to understand the relationship between resources (capabilities) and performance, the empirical research is still very limited and rare to explain why some firms successfully use their capabilities while others do not. The aim of the research is to answer whether digital technology, digital leadership, and digital marketing have a significant influence on company performance. The research is a quantitative study using a survey method by distributing questionnaires to employees and leaders in banks. It obtains 100 respondents. The analytical method is the Structural Equation Model (SEM) approach using the Smart Partial Least Square (PLS) statistical software. There are several obtained results. First, digital technology capabilities have a positive and insignificant effect on company performance. Second, digital leadership capability significantly, positively affects digital technology capability and digital marketing capability. Third, digital marketing capability has a positive and significant effect on company performance. Finally, digital leadership capability only has a positive and significant effect on company performance after being mediated by digital marketing capabilities. However, the effect is not significant if it is mediated by digital technology capabilities.