How dynamic capabilities and digital transformation enhance business resilience in Indonesian beekeeping msmes during covid-19

Abstract

This study explores how Dynamic Capabilities (DC) and Digital Transformation (DT) influence business resilience among beekeeping Micro, Small, and Medium Enterprises (MSMEs) in Indonesia during the COVID-19 pandemic. Conducted amidst economic disruptions caused by the crisis, the research addresses the primary question: How do DC and DT contribute to the resilience of beekeeping MSMEs, and does DT mediate the relationship between DC and resilience across different firm sizes and business models (family vs. non-family)? The study fills a research gap by providing empirical evidence from a developing country context, focusing on the livestock sector, specifically beekeeping, which faced unique challenges like supply chain disruptions and increased demand. Data were collected from 388 beekeeping MSMEs in East Java, Indonesia, and analyzed using Structural Equation Modeling (SEM) with SmartPLS 3.0. The research examines the impact of DC on DT, DT on resilience, and DC on resilience, considering firm size (micro, small, medium) and business type (family or non-family). Key findings reveal that DC significantly enhances DT across all MSME types. However, DT’s impact on resilience is significant only for family-owned small and medium enterprises, not for micro or non-family small businesses. DT mediates the relationship between DC and resilience in small and medium family businesses but not in micro or non-family firms. These findings suggest tailored policy approaches for different MSME scales to bolster resilience through technology adoption and capability development, offering insights applicable to other dynamic livestock sectors in developing economies.