DRIVING DIGITAL INNOVATION: THE ROLE OF ENTREPRENEURIAL TRAITS AND CAPABILITIES IN GENDER-BASED SMALL MEDIUM ENTREPRISES

Authors

  • Lela Nurlaela Wati Universitas Teknologi Muhammadiyah Jakarta, Post Graduate School, Indonesia
  • Momon Universitas Teknologi Muhammadiyah Jakarta, Faculty of Economics and Business, Indonesia
  • Heri Ispriyahadi Universitas Teknologi Muhammadiyah Jakarta, Post Graduate School, Indonesia
  • Rita Yuni Mulyanti Universitas Teknologi Muhammadiyah Jakarta, Post Graduate School, Indonesia
  • Saiful Simanullang Universitas Teknologi Muhammadiyah Jakarta, Post Graduate School, Indonesia

DOI:

https://doi.org/10.2478/eoik-2025-0102

Keywords:

Characteristics, digital orientation, digital capabilities, digital innovation, competitive advantage

Abstract

Despite the growing significance of digital innovation, research on its
determinants and effects on SMEs, especially those led by women, is

limited. This study examined the role of digital innovation in mediat-
ing the impact of entrepreneurial characteristics, digital orientation, and

digital capabilities on the competitive advantage of SMEs managed by
males and females. The research sample comprised 325 SME owners
and managers in Indonesia. This study employed a structural equation
model and multi-group sample testing to evaluate the hypothesis. The

determinants of digital innovation in SMEs managed by males are en-
trepreneurial characteristics, digital orientation, and capability. Digital

capabilities are distinct from those of SMEs managed by females. Digi-
tal orientation does not directly affect competitive advantage but has an

indirect effect on digital innovation. The different test results for the dig-
ital capabilities of males and females indicate that there is a gender gap

in digital technology. This study corroborates the resource-based view

(RBV) and expands the RBV Theory in the realm of digital innova-
tion by empirically identifying the factors that drive digital innovation,

which enhances the competitive advantage of SMEs. Thus, the govern-
ment needs to conduct a digital literacy program and accept a technol-
ogy pact to encourage more female students in science, technology, en-
gineering, and mathematics (STEM) to narrow the gender gap in digital

literacy. Research examining different models of digital innovation and
competitive advantage to prove the gender gap between females and
males in the use of digital technology has not yet been conducted.

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Published

2025-12-01

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Lela Nurlaela Wati, Momon, Heri Ispriyahadi, Rita Yuni Mulyanti, & Saiful Simanullang. (2025). DRIVING DIGITAL INNOVATION: THE ROLE OF ENTREPRENEURIAL TRAITS AND CAPABILITIES IN GENDER-BASED SMALL MEDIUM ENTREPRISES. ECONOMICS - INNOVATIVE AND ECONOMICS RESEARCH JOURNAL, 13(4), 399–421. https://doi.org/10.2478/eoik-2025-0102

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Vol. 13 No. 4 (2025): ECONOMICS - Innovative and Economics Research Journal

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