PENGARUH TRANSFORMASI DIGITAL DAN ORIENTASI PASAR TERHADAP KINERJA KEUANGAN UMKM DI PASAMAN BARAT: PERAN KEUNGGULAN BERSAING SEBAGAI VARIABEL MEDIASI

This research seeks to empirically investigate the impact of digital transformation and market orientation on the financial performance of businesses, with competitive advantage serving as a mediating factor in this relationship. The study used purposive sampling to select a sample consisting of 100 Micro, Small, and Medium Enterprises (MSMEs) located in West Pasaman. Data were gathered through surveys, where questionnaires were distributed both by visiting the MSMEs directly at their business sites and by using Google Forms to reach respondents in areas that were difficult to access physically. The analysis was conducted using path analysis techniques, employing Smart-PLS software to process the data. The findings reveal that both digital transformation and market orientation significantly influence competitive advantage, and in addition, these two factors also have a
direct positive impact on the financial performance of the MSMEs studied.

Keywords: digital transformation and market orientation, competitive advantage, financial performance