The Influence of Digital Transformation and Human Resource Competence on Business Sustainability in MSMEs in Depok City

Abstract

This study aims to analyze the influence of digital transformation and human resource competency on business sustainability in Micro, Small, and Medium Enterprises (MSMEs) in Depok City. This study uses a quantitative method with a causal associative approach. Data were collected through distributing questionnaires to 100 MSMEs in Depok City who were selected as research samples using a purposive sampling technique. Data analysis was carried out using instrument testing, classical assumption testing, hypothesis testing, multiple linear regression analysis, and coefficient of determination (R²) with the help of the IBM SPSS version 29 program. The results of the study indicate that partially digital transformation has a significant effect on business sustainability with a regression coefficient value of 0.638, a calculated t value of 6.728, and a significance value <0.001. Human resource competency also has a significant effect on business sustainability with a regression coefficient value of 0.332, a calculated t value of 5.924, and a significance value <0.001. Simultaneously, digital transformation and human resource competency significantly influence the sustainability of MSMEs in Depok City based on the results of the F test with a significance value of <0.001. The Adjusted R Square value of 0.600 indicates that digital transformation and human resource competency are able to explain 60% of the variation in business sustainability, while the remaining 40% is influenced by other factors outside the study. Thus, digital transformation is a variable that has a greater influence on business sustainability than human resource competency.

Keywords: Digital Transformation, Human Resource Competence, Business Sustainability, MSMEs.