The Role of Government Support in Moderating The Effect of Digital Transformation, Risk Management, and Entrepreneurial Character on the Resilience of MSMES in the Leather Craft Industry Center

Amanita Novi Yushita; Agatha Saputri; R. Andro Zylio Nugraha; Dian Normalitasari Purnama; Dhyah Setyorini

doi:10.61132/anggaran.v4i2.2547

Authors

Amanita Novi Yushita Universitas Negeri Yogyakarta
Agatha Saputri Universitas Negeri Yogyakarta
R. Andro Zylio Nugraha Universitas Negeri Yogyakarta
Dian Normalitasari Purnama Universitas Negeri Yogyakarta
Dhyah Setyorini Universitas Negeri Yogyakarta

DOI:

https://doi.org/10.61132/anggaran.v4i2.2547

Keywords:

Digital Transformation, Entrepreneurial Character, Government Support, MSMEs Resilience, Risk Management

Abstract

This study analyzes whether government support moderates the effects of digital transformation, risk management, and entrepreneurial character on MSMEs resilience in the Bantul (Yogyakarta) leather craft cluster. Using a quantitative survey of 197 actively producing artisans, we employed a Likert scale questionnaire and tested the measurement and structural models with Partial Least Squares Structural Equation Modeling (PLS-SEM). Results indicate that digital transformation, risk management, and entrepreneurial character each exert a positive and significant effect on MSMEs resilience, with risk management emerging as the strongest driver of enterprise durability. Moderation tests show that government support significantly amplifies the link between entrepreneurial character and resilience, but does not significantly moderate the relationships between digital transformation or risk management and resilience. The findings imply that strengthening MSMEs resilience cannot rely solely on external support; it must be anchored in internal capacities particularly robust risk management and adaptive entrepreneurial traits. Policy should prioritize entrepreneur empowerment, digital literacy upgrading, and targeted training facilitation to enhance competitiveness and sustainability of leather-craft MSMEs in a globalized market.

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