THE INFLUENCE OF KNOWLEDGE WORKERS PRODUCTIVITY AND DIGITAL INNOVATION ON THE SUSTAINABILITY PERFORMANCE OF MICRO, SMALL, AND MEDIUM ENTERPRISES(A Case Study of Micro, Small, and Medium Enterprises in the Food and Beverage Sector, Tarakan City)
DOI:
https://doi.org/10.35334/r4hc5022Keywords:
sustainability reporting, financial performance, corporate governance, firm size, PLS-SEMAbstract
Abstract: This study is motivated by the persistently low sustainability performance of micro, small, and medium enterprises (MSMEs) in Tarakan City, despite a significant increase in the number of registered business units. The primary challenge resides in the limited productivity of knowledge-based workers and the uneven adoption of digital innovation across the sector. This study aims to examine the influence of Knowledge Workers Productivity (KWP) and Digital Innovation (DI) on Sustainability Performance (SP) among MSMEs operating in the Food and Beverage (F&B) sector in Tarakan City. The theoretical foundations underpinning this study encompass the Resource-Based View (RBV), Knowledge-Based View (KBV), and Dynamic Capability Theory. A quantitative research method with an explanatory design was employed. Primary data were collected through a questionnaire survey involving 190 employees of F&B MSMEs, selected by means of purposive sampling. Data analysis was conducted using the Partial Least Squares-Structural Equation Modeling (PLS-SEM) approach with SmartPLS software. The findings reveal that KWP exerts a positive and significant effect on SP, both directly and through the mediating role of DI. Notably, DI emerged as the most dominant predictor in enhancing SP and effectively mediates the relationship between KWP and SP. It is concluded that the sustainability impact of knowledge workers' productivity is optimized when channeled through concrete digital innovation initiatives. Investment in human resource capacity and the acceleration of digital transformation are identified as the principal determinants for MSMEs in sustaining long-term competitive advantage.
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