MSMe Competitive Advantage Model Strategy: Transformation Towards a Green Economy, Mastery of Digital Technology and Market Exploration in NTB Province
Authors: Huda Nurul , Ernawati Sri , Munandar Aris , Nurharyadin Muhammad , Fajrianti Kurnia 
Published: December 2024

Objective: The purpose of this study is to find out the direct relationship between Green Economy Transformation, Digital Transformation and Market Exploration to the Competitive Advantage of MSMEs. As well as the indirect relationship between, digital transformation to the Competitive Advantage of MSMEs through Professional Training, Digital Strategy.

Theoretical Framework: This theoretical framework for MSME competitive advantage in NTB Province integrates concepts from Porter's Competitive Advantage Theory, Green Economy Theory, Digital Transformation Theory, and Market Exploration Theory. MSMEs can build competitive advantage by adopting eco-friendly practices that align with sustainable development goals, meeting the increasing demand for green products while improving resource efficiency. Digital Transformation Theory highlights the role of technology in enhancing operational efficiency, expanding market reach, and maintaining competitiveness in a digital-first economy. Market Exploration Theory further encourages MSMEs to identify new market opportunities, both locally and beyond, enabling diversification and increased revenue potential. Together, these strategies empower MSMEs in NTB to achieve long-term competitive advantage, contribute to sustainable development, and drive economic growth in the region.

Method: This study uses a mixed sequential mixed methods, a quantitative approach by distributing questionnaires, and a Case Study Quantitative Approach with data collection techniques through interviews.

Results and Discussion: The results of this study provide information that Green Economy Transformation, Digital Transformation, and Market Exploration have an influence on the competitive advantage of MSMEs. Likewise with the indirect effects, the results show that digital transformation has an effect on the competitive advantage of MSMEs through Professional Leadership, Digital Strategy.

Research Implications: By adopting green practices, MSMEs can attract environmentally conscious consumers, reduce operational costs, and comply with emerging sustainability regulations, contributing to long-term resilience. Emphasizing digital mastery helps MSMEs improve operational efficiency, broaden their market reach, and remain agile in a digital economy. Market exploration empowers MSMEs to identify new opportunities, adapt to customer needs, and mitigate risks associated with local market limitations. This strategic model encourages policymakers, educators, and support institutions to tailor programs that foster sustainable practices, digital literacy, and market adaptability for MSME growth and competitiveness in NTB.

Originality/Value: The originality and value of the MSME Competitive Advantage Model Strategy lie in its integrated approach to strengthening MSME competitiveness through sustainable practices, digital transformation, and proactive market expansion tailored to NTB Province. This model is unique in combining green economy principles with digital and market strategies, helping MSMEs reduce environmental impact, increase efficiency, and access wider markets. By promoting eco-friendly practices, digital proficiency, and market adaptability, the strategy not only addresses current business challenges but also positions MSMEs to thrive in a future-focused, technology-driven, and sustainability-conscious economy. This model provides a relevant, adaptable framework for MSMEs aiming for sustainable growth and competitive edge in regional and global markets.