S udies Managemen and Finance Economics, o Jou nal
0504-2644 (online): ISSN 0490,-2644 (p in ): ISSN
5202 No embe 11 Issue 80 Volume
8.317 Fac o : Impac ,38-i11-10.47191/je ms/ 8 DOI: A icle
5057-7488 No: Page
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7488
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable
Business P ac ices, and Compe i i e Ad an age in Culina y Businesses in
Makassa Ci y
Muhammad Rakib*1, Andika Isma2, Haja Dewan a a3, Dian Anug ah Sanusi4
1,2,3Depa men o Business and En ep eneu ship, Facul y o Economics and Business, Uni e si as Nege i Makassa , Indonesia
4Business Adminis a ion S udy P og am, Facul y o Social and Poli ical Sciences, Uni e si as Sa ya Wiya a Mandala, Indonesia
ABSTRACT. This s udy aims o analyze he in luence o digi al li e acy and sus ainable business p ac ices on he sus ainabili y o
Mic o, Small, and Medium En e p ises (MSMEs) in he culina y sec o in Makassa Ci y, wi h compe i i e ad an age as a media ing
and mode a ing a iable. This s udy is mo i a ed by he inc easing demands o echnological adap a ion and sus ainable p ac ices
in main aining he exis ence o MSMEs in he digi al economy e a. A quan i a i e app oach was used wi h a su ey me hod o 215
culina y MSMEs. Da a analysis was conduc ed using Pa ial Leas Squa es S uc u al Equa ion Modeling (PLS-SEM) o es he
ela ionship be ween a iables. The esul s show ha digi al li e acy has a posi i e and signi ican e ec on he sus ainabili y o
MSMEs, bo h di ec ly and indi ec ly h ough compe i i e ad an age. Sus ainable business p ac ices ha e also been shown o
s eng hen sus ainabili y pe o mance h ough inc eased ope a ional e iciency and social epu a ion. In addi ion, compe i i e
ad an age mode a es he ela ionship be ween digi al li e acy and sus ainabili y, whe e he e ec o digi al li e acy is s onge in
MSMEs wi h high compe i i eness. These indings emphasize he impo ance o syne gy be ween digi al capabili ies, sus ainabili y
o ien a ion, and compe i i e s a egy o c ea e inclusi e, adap i e, and sus ainable culina y business g ow h in he digi al e a.
KEYWORDS: Digi al Li e acy, Sus ainable Business P ac ices, Compe i i e Ad an age, MSME Sus ainabili y, Culina y Business
I. INTRODUCTION
Mic o, small, and medium en e p ises (MSMEs) in he culina y indus y a e c ucial o he global economy, pa icula ly in
de eloping coun ies. In addi ion o p o iding nume ous jobs, his indus y suppo s egional income, p oduc inno a ion, and he
p ese a ion o cul u al he i age h ough culina y di e si y (Rakib e al., 2024; E ani e al., 2024; Nu lina e al., 2023) . Howe e ,
culina y MSMEs equen ly ace a numbe o challenges ha can h ea en hei business con inui y, such as in ense compe i ion,
shi ing consume as es, luc ua ing aw ma e ial p ices, and limi ed access o esou ces (Aji, 2023; Su a e al., 2024) .
The apid ad ancemen o digi al echnology and g owing awa eness o sus ainabili y issues ha e signi ican ly
ans o med he global co po a e landscape in ecen yea s. MSMEs now ha e addi ional op ions o expanding hei cus ome
base, imp o ing ope a ional e ec i eness, and accessing new ma ke s hanks o he digi al e a (E ani e al., 2024; Rahman o,
2024) . Howe e , MSMEs mus ha e an adequa e le el o digi al li e acy, including he capaci y o use digi al echnology wisely
and e ec i ely, in o de o ake ad an age o his oppo uni y (Su a e al., 2024; Nu lina e al., 2023) .
Digi al li e acy includes he abili y o ind, assess, use, and exchange in o ma ion in an e hical and e icien manne in
addi ion o he abili y o use digi al de ices and applica ions (Aji, 2023; Su a e al., 2024; Rahman o, 2024) . Digi al li e acy o
culina y MSMEs includes he use o social media o ma ke ing, e-comme ce o sales, mobile applica ions o o de ing and
deli e y, and da a analysis ools o unde s and clien beha io and imp o e company ac ics (E ani e al., 2024; Nu lina e al.,
2023) . Un o una ely, many culina y MSMEs s ill s uggle o compe e in he digi al ma ke due o low le els o digi al li e acy,
pa icula ly in de eloping coun ies (Aji, 2023; Rahman o, 2024) . In addi ion o digi al li e acy, sus ainable business p ac ices a e
becoming inc easingly impo an o he long- e m su i al o MSMEs in he culina y indus y.
Consume s a e becoming mo e conce ned abou sus ainabili y issues and p e e companies ha a e socially and
en i onmen ally esponsible (Su a e al., 2024) . Sus ainabili y is no jus abou p o ec ing he en i onmen ; i is also abou c ea ing
long- e m economic and social alue (Nu lina e al., 2023) . Sus ainable business p ac ices encompass a ange o ini ia i es, such
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7489
as he use o local and o ganic aw ma e ials, educing ood was e, ene gy e iciency, ai labo p ac ices, and suppo ing local
communi ies.
Thus, culina y MSMEs can enhance hei b and image, a ac new clien s, and inc ease cus ome loyal y by using
sus ainable business p ac ices (Nu lina e al., 2023) . Fo culina y MSMEs o h i e in he ace o inc easingly ie ce compe i ion,
hey mus ha e hei own compe i i e edge. Many ac o s, including p oduc quali y, compe i i e p icing, excep ional cus ome
se ice, p oduc inno a ion, and b and di e en ia ion, can p o ide a compe i i e ad an age (Wibowo e al., 2023) . Th ough he
use o digi al echnologies, such as pe sonalized ma ke ing, consume da a analysis, o he c ea ion o c ea i e mobile applica ions,
culina y MSMEs can also gain a compe i i e ad an age in he digi al e a (E ani e al., 2024) .
Mo eo e , as mo e and mo e cus ome s seek ou socially and ecologically conscious companies, sus ainable business
p ac ices can also p o ide a compe i i e ad an age (Nu lina e al., 2023) (Su a e al., 2024) . Nume ous s udies ha e shown ha
compe i i e ad an age, sus ainable business p ac ices, and digi al li e acy all imp o e he pe o mance o MSMEs (E ani e al.,
2024; Nu lina e al., 2023) . The impac o hese cha ac e is ics on he sus ainabili y o culina y MSMEs, especially in de eloping
coun ies, has no been well esea ched, al hough (Aji, 2023; Rahman o, 2024) . In addi ion, cu en esea ch o en igno es he
in e ac ions be ween hese ac o s and only concen a es on one o wo ac o s.
The e o e, by examining in-dep h he impac o digi al li e acy, sus ainable business p ac ices, and compe i i e ad an age
on he sus ainabili y o culina y MSMEs, his s udy seeks o close his gap. MSMEs in he culina y indus y mus be ac i ely in ol ed
in ini ia i es such as aining o imp o e hei online o digi al business capabili ies. 1 Pos he global Co id-19 pandemic, digi al
and inancial li e acy o culina y MSMEs has become a ca alys o economic eco e y (Rahman o, 2024) . I is impo an o conduc
esea ch on MSME sus ainabili y, pa icula ly ela ed o digi al li e acy, sus ainable business p ac ices, and compe i i e ad an age
in he culina y indus y in Makassa Ci y. This can con ibu e signi ican ly o he MSME economy bo h a he local and na ional
le els.
The main p oblem in his esea ch is how digi al li e acy, sus ainable business p ac ices, and compe i i e ad an age
in e ac o in luence he sus ainabili y o culina y MSMEs. Digi al li e acy has become a majo ocus in esea ch on MSMEs in he
digi al e a. Digi al li e acy is he ounda ion o MSME g ow h in he digi al e a. Resea ch highligh s ha businesses wi h s ong
digi al capabili ies a e mo e likely o succeed in online ma ke ing, cus ome engagemen , and p ocess au oma ion (Wayan S i
Mai i, Komang Widhya Sedana Pu a, Kadek Wulanda i Laksmi, 2024; Noo & S iyono, 2024) . Fo example, a s udy in Bali ound
ha social media inno a ion signi ican ly imp o es business sus ainabili y when mode a ed by high le els o digi al li e acy.
Ano he s udy concluded ha digi al li e acy inc eases p oduc i i y by enabling MSMEs o op imize social media o ma ke ing
s a egies (E ani e al., 2024) .
Sus ainabili y is no longe an op ion bu a necessi y o businesses seeking long- e m success. Key indings include:
Sus ainable p ac ices such as was e educ ion and ene gy e iciency con ibu e o cos sa ings while enhancing b and image.4
G een in ellec ual capi al and o ganiza ional cul u e also play a c ucial ole in ensu ing business con inui y (Su jadi e al., 2024) .
Compe i i e ad an age allows a business o di e en ia e i sel in a compe i i e ma ke : Resea ch shows ha in angible
asse s such as inno a ion capabili ies a e c i ical o main aining a compe i i e posi ion3. Compe i i e s a egies oo ed in
di e en ia ion o cos leade ship can inc ease esilience o ma ke dis up ions (Asy u i e al., 2024) .
In eg a ion o Fac o s. Recen s udies ha e shown ha combining hese elemen s—digi al li e acy, sus ainabili y, and
compe i i e ad an age—will c ea e syne gies ha s eng hen he impac o each elemen : Digi al ans o ma ion suppo ed by
knowledge sha ing will imp o e human esou ce de elopmen and business sus ainabili y.8 Digi al li e acy ac s as a mode a ing
a iable ha s eng hens he impac o o he s a egic ini ia i es on business ou comes (Su jadi e al., 2024) .
This esea ch o e s no el y by in eg a ing h ee impo an a iables in o one comp ehensi e s udy. I no only examines
he in luence o each a iable sepa a ely bu also explo es he in e ac ion be ween digi al li e acy and sus ainable business
p ac ices and hei impac on compe i i e ad an age.
II. MATERIALS & METHODS
This s udy uses a quan i a i e app oach o analyze he in luence o digi al li e acy, sus ainable business p ac ices, and
compe i i e ad an age on he sus ainabili y o MSMEs. A quan i a i e app oach was chosen because i allows o objec i e
measu emen and s a is ical analysis o he da a ob ained.
The popula ion in his s udy is all MSMEs ope a ing in he culina y sec o egis e ed wi h he Makassa Ci y Tou ism
O ice. The sample will be aken using a andom sampling me hod, whe e esponden s a e selec ed based on ce ain c i e ia such
as: a) Ha ing a business ha has been ope a ing o a leas one yea , b) Using digi al echnology in business ope a ions, and c)
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7490
Implemen ing sus ainable business p ac ices. The sample size is 215 esponden s, which is conside ed su icien o alid s a is ical
analysis.
This s udy employed a causal esea ch design wi h a c oss-sec ional app oach . This design was chosen because i allows
o es ing he causal ela ionship be ween digi al li e acy, sus ainable business p ac ices (independen a iables), compe i i e
ad an age (media o a iable), and MSME sus ainabili y (dependen a iable).
The main ins umen in his s udy is a ques ionnai e con aining s a emen s measu ing he esea ch a iables. The
ques ionnai e will be s uc u ed on a 5-poin Like scale (1 = S ongly Disag ee, 5 = S ongly Ag ee). The ques ionnai e will be
es ed o alidi y and eliabili y be o e being used o da a collec ion.
Da a was collec ed h ough a su ey using a ques ionnai e dis ibu ed online (e.g., ia Google Fo ms) o a sample o
culina y business owne s. The collec ed da a will be analyzed using desc ip i e s a is ical analysis echniques and pa h analysis.
III. RESULTS AND DISCUSSION
A. RESULT
1. Responden Cha ac e is ics
Table 1. Responden Cha ac e is ics Based on Gende
No
Gende
F equency
Pe cen age (%)
1
Man
59
27.2
2
Woman
156
71.9
Amoun
215
100
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025.
Table 1 shows ha o he 215 esponden s, 156 (71.9%) we e emale, ollowed by 59 (27.2%). These indings indica e
ha women play a dominan ole in MSME ac i i ies, pa icula ly in home-based, c ea i e, and local se ice-based sec o s such as
culina y, c a s, and small ade. This demons a es ha women's en ep eneu ship is a c ucial ac o in suppo ing he economic
sus ainabili y o amilies and local communi ies.
Table 2. Responden Cha ac e is ics Based on Age
No
Responden Age
F equency
Pe cen age (%)
1.
< 20 yea s
13
6.0
2.
20 – 30 yea s
155
71.4
3.
31-40 yea s old
18
8.3
4.
> 40 yea s
29
13.4
Amoun
215
100
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025
Based on Table 2, i can be seen ha o he 215 esponden s, he majo i y we e esponden s in he age g oup unde 20
yea s wi h a o al o 13 esponden s o 6.0 pe cen , ollowed by he age g oup o 20 o 30 yea s wi h 155 people o 71.4 pe cen ,
hen he age g oup o 31-40 yea s wi h 18 people o 8.3 pe cen and he age g oup abo e 40 yea s also wi h 29 people o 13.4
pe cen . The majo i y o esponden s we e in he p oduc i e age (20-30 yea s), which is a posi i e indica o o he sus ainabili y
o MSMEs. The younge gene a ion has g ea po en ial in d i ing inno a ion, digi aliza ion, and business compe i i eness.
Howe e , o ensu e long- e m sus ainabili y, he e needs o be syne gy be ween he en husiasm o he younge gene a ion and
he expe ience o he olde gene a ion, as well as ongoing suppo om educa ional ins i u ions, he go e nmen , and inancial
ins i u ions.
Table 3. Responden Cha ac e is ics Based on P oduc Type
No
Types o p oduc s
F equency
Pe cen age (%)
1.
Snack
48
22.1
2.
T endy D inks
53
24.4
3.
F ozen Food
12
5.5
4.
P ocessed Foods
78
35.9
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7491
5.
B ead and Cake
24
11.1
Amoun
215
100
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025
Based on Table 3, i can be seen ha o he 215 esponden s, he dominan ype o p ocessed ood business is a business
ha sells chicken-based menus, mea , noodles, ied ice, and o he s, amoun ing o 78 o 35.9 pe cen , hen he leas F ozen Food
business such as sausages, nugge s, mea balls, and dim sum ha a e eady o be p ocessed a home, he numbe is only 12
esponden s wi h 5.5 pe cen . This dis ibu ion e lec s ha p ocessed ood businesses in Makassa Ci y, which a e gene ally
culina y businesses in he ield o p ocessed ood and a e easy o un by mic o-en ep eneu s.
Table 4. Responden Cha ac e is ics Based on Leng h o Business
No
Leng h o Business
F equency
Pe cen age (%)
1
< 1 yea
14
6.5
2
15 yea s
162
74.7
3
6 – 10 yea s
22
10.1
4
>10 yea s
17
7.8
Amoun
215
100
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025.
Based on Table 4, i can be seen ha he mos common leng h o business is be ween 1 and 5 yea s. This is e idenced by
he esul s o a su ey o 215 esponden s, wi h 74.7 pe cen choosing he leng h o business. This dis ibu ion indica es ha he
majo i y o MSMEs a e s ill in he de elopmen and s abiliza ion s age, which is a c ucial phase in de e mining long- e m business
sus ainabili y.
2. Da a P esen a ion and Analysis
a. Desc ip i e Analysis
Analysis was ca ied ou on he minimum, maximum, a e age and s anda d de ia ion alue pa ame e s o each indica o
and he o al alue o he a iable.
1) Digi al Li e acy
The desc ip i e digi al li e acy a iable includes ou indica o s. The indica o s and ques ionnai e esul s can be seen in
he able below.
Table 5. Desc ip i e S a is ics on Digi al Li e acy Va iables
Va iables/Indica o s
N
Range
Min
Max
Mean
S d.
Access capabili ies
215
12
3
15
12.73
2,265
E alua ion skills
215
12
3
15
12.50
2,273
Abili y o use
215
12
3
15
12.21
2,515
Pa icipan s in he aining
215
12
3
15
11.52
2,838
Digi al Li e acy
215
48
12
60
48.96
9,000
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025.
Table 5 shows ha digi al li e acy is suppo ed by access, e alua ion, use, and pa icipa ion in aining. O e all, he
s a is ics indica e ha MSMEs ha e a high le el o digi al li e acy, pa icula ly in e ms o echnology access, e alua ion, and use.
This is a posi i e indica o o MSME sus ainabili y, as digi al li e acy s eng hens adap abili y, inno a ion, and business e iciency.
2) Sus ainable Business P ac ices
The desc ip i e a iables o sus ainable business p ac ices include ou indica o s. The indica o s and ques ionnai e
esul s a e shown in he ollowing able.
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7492
Table 6. Desc ip i e S a is ics on Sus ainable Business P ac ices
Va iables/Indica o s
N
Range
Min
Max
Mean
S d.
use o esou ces
215
12
3
15
12.50
1,977
Co po a e social esponsibili y
215
12
3
15
12.42
2,047
Sus ainable p oduc inno a ion
215
12
3
15
12.34
2,067
Sus ainabili y ce i ica ion
215
12
3
15
12.60
1,810
Sus ainable Business P ac ices
215
48
12
60
49.87
7,184
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025.
Table 6 shows ha sus ainable business p ac ices a e suppo ed by e icien esou ce use, co po a e social esponsibili y,
sus ainable p oduc inno a ion, and sus ainable ce i ica ion. O e all, he s a is ical esul s indica e ha MSMEs ha e
implemen ed sus ainable business p ac ices e ec i ely. The high a e age sco es o e iciency, inno a ion, and ce i ica ion
indica e a shi in mindse om simply seeking p o i o long- e m business sus ainabili y. This indica es ha MSMEs a e no only
d i e s o he local economy bu also agen s o change owa d sus ainable de elopmen . To s eng hen his, suppo in he o m
o g een business aining, ce i ica ion incen i es, and sus ainable inno a ion men o ing is needed so ha sus ainable business
p ac ices become mo e ins i u ionalized in MSME ac i i ies.
3) Compe i i e Ad an age
The desc ip i e a iables o compe i i e ad an age include 4 indica o s which can be seen in he able below.
Table 7. Desc ip i e S a is ics on Compe i i e Ad an age
Va iables/Indica o s
N
Range
Min
Max
Mean
S d.
P oduc quali y
215
12
3
15
12.85
1,700
Se ice di e en ia ion
215
12
3
15
12.43
1,882
Cus ome sa is ac ion
215
12
3
15
12.80
1,994
Ma ke sha e
215
12
3
15
12.45
1,868
Compe i i e Ad an age
215
48
12
60
50.53
6,658
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025.
Based on Table 7, he o al a e age alue o he compe i i e ad an age a iable is 50.53 ou o a maximum sco e o 60,
indica ing ha MSMEs ha e a high le el o compe i i e ad an age. A high a e age alue o each indica o indica es ha MSMEs
ha e a solid compe i i e ad an age, pa icula ly in e ms o p oduc quali y and cus ome sa is ac ion. This ad an age is a c ucial
ac o in suppo ing business sus ainabili y, as MSMEs ha a e able o p o ide added alue o consume s will ha e a s ong ma ke
posi ion and long- e m g ow h p ospec s. Thus, compe i i e ad an age is no only he esul o economic e iciency, bu also o
inno a i e s a egies, quali y se ices, and a ocus on cus ome sa is ac ion, which a e a he co e o MSME sus ainabili y.
4) Sus ainabili y o MSMEs
The desc ip i e a iables o MSME sus ainabili y include ou indica o s. The indica o s and ques ionnai e esul s a e
shown in he able below.
Table 8. Desc ip i e S a is ics on MSME Sus ainabili y
Va iables/Indica o s
N
Range
Min
Max
Mean
S d.
Re enue g ow h
215
12
3
15
12.45
1,888
Ope a ional s abili y
215
12
3
15
12.52
1,800
Ma ke esilience
215
12
3
15
12.34
1,928
Communi y in ol emen
215
12
3
15
12.22
1,921
Sus ainabili y o MSMEs
215
48
12
60
49.53
6,697
Sou ce: Resea ch Ques ionnai e Ins umen , p ocessed 2025.
Based on he able abo e, he a e age o al alue o he MSME sus ainabili y a iable is 49.53, indica ing ha he le el
o sus ainabili y o MSME businesses is in he high ca ego y. This indica es ha mos MSMEs ha e been able o main ain hei
business con inui y h ough a ious aspec s such as e enue, ope a ional s abili y, ma ke esilience, and social engagemen .
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7493
O e all, he esul s in Table 8 indica e ha MSMEs ha e a high le el o sus ainabili y, wi h ope a ional s abili y and
e enue g ow h as key s eng hs. This e lec s he abili y o MSMEs o manage hei businesses adap i ely and socially esponsibly.
E o s o imp o e sus ainabili y can con inue by s eng hening inno a ion capaci y, digi al li e acy, and communi y pa ne ships,
enabling MSMEs o su i e and g ow amids a dynamic business en i onmen .
b. Pa h Analysis
1) Measu emen Model Analysis (Ou e Model)
In his s udy, da a analysis used he Pa ial Leas Squa es (PLS) app oach. PLS is a s uc u al equa ion modeling (SEM)
model based on componen s o a ian s. The pa h diag ams o he ou e and inne models in his s udy a e depic ed as ollows.
Figu e 1. Ou e Model and Inne Model
.
The c i e ia o using Sma PLS 4 da a analysis echniques o assess he ou e model include con e gen alidi y,
disc iminan alidi y, composi e eliabili y, and C onbach's alpha. Fo he inne model, boo s apping was used o ob ain s a is ical
T- es pa ame e s o p edic causali y.
Analysis o he measu emen model analysis model o ou e model uses wo s ages o es ing, including:
1) Validi y and Reliabili y o he Cons uc
a. Disc iminan Validi y
(1) Cons uc eliabili y and alidi y
Con e gen alidi y is he loading ac o alue on he la en a iable and i s indica o s .
Table 9. Ou e Loading
Digi al
Li e acy
Sus ainable Business
P ac ices
Compe i i e
Ad an age
Sus ainabili y o
MSMEs
X1.0
0.822
X1.1
0.799
X1.10
0.785
X1.11
0.801
X1.12
0.806
X1.2
0.780
X1.3
0.837
X1.4
0.801
X1.5
0.833
X1.6
0.891
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7494
Digi al
Li e acy
Sus ainable Business
P ac ices
Compe i i e
Ad an age
Sus ainabili y o
MSMEs
X1.7
0.848
X1.8
0.904
X2.1
0.694
X2.10
0.824
X2.11
0.863
X2.12
0.824
X2.2
0.750
X2.3
0.780
X2.4
0.697
X2.5
0.805
X2.6
0.856
X2.7
0.830
X2.8
0.750
X2.9
0.752
X3.1
0.839
X3.10
0.845
X3.11
0.829
X3.12
0.767
X3.2
0.834
X3.3
0.853
X3.4
0.846
X3.5
0.725
X3.6
0.748
X3.7
0.815
X3.8
0.798
X3.9
0.816
Y1
0.724
Y10
0.768
Y11
0.740
Y12
0.732
Y2
0.803
Y3
0.850
Y4
0.811
Y5
0.813
Y6
0.863
Y7
0.847
Y8
0.840
Y9
0.852
Sou ce: Sma PLS 3 P ocessed Resul s, 2025.
he ou e loading ac o alues o all indica o s a e abo e 0.7, he e is a alue o 0.6, bu he e a e expe s who say ha
his alue is s ill conside ed alid, so i is concluded ha all indica o s ha e me he equi emen s o con e gen alidi y. and alid
indica o s o be used in measu ing he ou esea ch a iables.
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7495
(2) Disc iminan Validi y
The ollowing a e he esul s o he calcula ion o es ing o Disc iminan Validi y.
Table 10. Disc iminan Validi y (C oss Loading)
Digi al Li e acy
Sus ainable Business
P ac ices
Compe i i e
Ad an age
Sus ainabili y o
MSMEs
X1.0
0.822
0.490
0.510
0.439
X1.1
0.799
0.527
0.463
0.350
X1.1
0
0.785
0.528
0.439
0.485
X1.1
1
0.801
0.493
0.421
0.389
X1.1
2
0.806
0.520
0.416
0.423
X1.2
0.780
0.484
0.442
0.364
X1.3
0.837
0.513
0.504
0.433
X1.4
0.801
0.570
0.609
0.457
X1.5
0.833
0.632
0.549
0.515
X1.6
0.891
0.542
0.501
0.447
X1.7
0.848
0.558
0.546
0.467
X1.8
0.904
0.587
0.569
0.476
X2.1
0.398
0.694
0.544
0.490
X2.1
0
0.534
0.824
0.726
0.619
X2.1
1
0.525
0.863
0.661
0.582
X2.1
2
0.500
0.824
0.620
0.560
X2.2
0.477
0.750
0.604
0.515
X2.3
0.691
0.780
0.698
0.639
X2.4
0.501
0.697
0.467
0.512
X2.5
0.472
0.805
0.577
0.612
X2.6
0.496
0.856
0.616
0.623
X2.7
0.516
0.830
0.635
0.573
X2.8
0.580
0.750
0.552
0.544
X2.9
0.448
0.752
0.517
0.494
X3.1
0.474
0.647
0.839
0.649
X3.1
0
0.575
0.654
0.845
0.718
X3.1
1
0.576
0.722
0.829
0.679
X3.1
2
0.500
0.630
0.767
0.636
X3.2
0.458
0.616
0.834
0.661
X3.3
0.478
0.673
0.853
0.653
X3.4
0.517
0.670
0.846
0.704
X3.5
0.477
0.534
0.725
0.617
X3.6
0.535
0.568
0.748
0.604
X3.7
0.421
0.605
0.815
0.593
X3.8
0.410
0.557
0.798
0.600
X3.9
0.466
0.586
0.816
0.603
Y1
0.398
0.538
0.542
0.724
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7496
Digi al Li e acy
Sus ainable Business
P ac ices
Compe i i e
Ad an age
Sus ainabili y o
MSMEs
X1.0
0.822
0.490
0.510
0.439
Y10
0.376
0.557
0.606
0.768
Y11
0.490
0.513
0.570
0.740
Y12
0.541
0.515
0.536
0.732
Y2
0.432
0.592
0.622
0.803
Y3
0.484
0.666
0.714
0.850
Y4
0.422
0.604
0.687
0.811
Y5
0.345
0.546
0.649
0.813
Y6
0.442
0.608
0.676
0.863
Y7
0.406
0.582
0.654
0.847
Y8
0.418
0.574
0.686
0.840
Y9
0.419
0.634
0.707
0.852
Sou ce: Sma PLS 3 P ocessed Resul s, 2025.
Based on he da a abo e, he c oss-loading alues o all cons uc indica o s a e g ea e han 0.700, meaning each
indica o is alid and has passed disc iminan alidi y . Howe e , some expe s a gue ha 0.6 is s ill conside ed alid.
Acco ding o Fo nell and La kell, i he squa e oo alue o he A e age Va iance Ex ac ed (AVE) o each a iable is
g ea e han he co ela ion alue be ween he a iable and o he a iables in he model, hen he model is said o ha e good
disc iminan alidi y.
Table 11. Fo nel-Lacke C i e ion Values
Digi al li e acy
Sus ainable business
p ac ices
Compe i i e
ad an age
Sus ainabili y o
MSMEs
Digi al Li e acy
0.827
Sus ainable Business P ac ices
0.653
0.787
Compe i i e Ad an age
0.608
0.770
0.811
Sus ainabili y o MSMEs
0.533
0.720
0.796
0.805
Sou ce: Sma PLS 3 P ocessed Resul s, 2025.
The esul s o he Fo nell-Lacke C i e ion show ha he lowes alue is digi al sus ainable en ep eneu ship a 0.818 and
he highes alue is digi al compe ence a 0.666.
(3) Cons uc Reliabili y
To measu e he in e nal consis ency o a measu ing ins umen in PLS, a eliabili y es is used. Acco ding o (Sugiyono,
2019), his is measu ed using h ee c i e ia: C onback's Alpha (CA), Composi e Reliabili y (CR), and A e age Va iance Ex ac ed
(AVE).
The ollowing p esen s he composi e eliabili y alues o each a iable.
Table 12 . Composi e Reabili y
Va iables
Composi e Reliabili y
Digi al Li e acy
0.963
Sus ainable Business P ac ices
0.951
Compe i i e Ad an age
0.958
Sus ainabili y o MSMEs
0.957
Sou ce: Sma PLS 3 P ocessed Resul s, 2025.
Based on he da a p esen ed in Table 12, i can be concluded ha all cons uc s ha e me he eliabili y c i e ia, as
e idenced by composi e eliabili y alues g ea e han 0.9. All indica o s consis en ly measu e he i e a iables. The ollowing a e
C onbach's Alpha alues: o each a iable.
Sus ainabili y o MSMEs: An Empi ical S udy o Digi al Li e acy, Sus ainable Business P ac ices, and Compe i i e
Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7503
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Ad an age in Culina y Businesses in Makassa Ci y
JEFMS, Volume 08 Issue 11 No embe 2025 www.ije m.co.in Page 7505
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