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Organizational resilience and ambidexterity as mediators between digital capability and MSMEs performance: the moderating role of government support

Year: 2026

Type: article

Abstract: Digital capabilities are increasingly important for Micro, Small, and Medium Enterprises (MSMEs) to sustain performance amid uncertainty. This study examines the relationship between digital capability and firm performance, focusing on the mediating roles of organizational ambidexterity and resilience and the moderating role of government support. Survey data from 302 senior managers of Indonesian MSMEs were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results show that digital capability enhances both ambidexterity and resilience, but only resilience mediates its positive effect on performance. Ambidexterity has no significant direct or indirect effect on performance. Government support strengthens the indirect effect through resilience but weakens the pathway through ambidexterity. These findings extend Dynamic Capabilities Theory by identifying organizational resilience as the primary mechanism linking digital capability to MSME performance. Practically, MSMEs should prioritize digital initiatives that strengthen resilience, while policymakers should design flexible support programs that enhance digital readiness and adaptive capacity.

Source: Cogent Business & Management

DOI: 10.1080/23311975.2026.2750601

Authors: Agung Nugroho Luthfi Imam Fahrudi, Azman Mat Isa, Eliana Sandy Yuliaji

Institutions: University of Brawijaya, Universiti Teknologi MARA System, Universiti Teknologi MARA

Language: English

Topic: Innovation and Knowledge Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: gold

Estimated APC paid: $1,165