INDONESIAN'S MSME PERFORMANCE: DIGITAL ENTREPRENEURSHIP, RISK MANAGEMENT, AND BUSINESS MODEL

This study aims to examine the influence of digital entrepreneurship, technology adoption, and risk management on the performance of MSMEs in Indonesia, with business model adaptation as a mediating variable. The method used is a quantitative approach with SEM-PLS analysis, based on data from 200 MSMEs actively utilizing digital platforms. The results indicate that digital entrepreneurship and risk management do not directly influence MSME performance, but significantly influence it through business model adaptation. Furthermore, business model adaptation has a strong and significant direct effect on MSME performance. These findings emphasize the critical role of business model adaptation in transforming digital capabilities and risk strategies into tangible business performance. The practical implications of these results suggest that MSMEs need not only to adopt digital technologies but also to redesign the mechanisms for creating and delivering value within their business models. Support from policymakers, business incubators, and training programs is essential to strengthen MSME competitiveness through business model innovation in a dynamic environment..