Determinants of MSME Success: The Role of Entrepreneurial University, Generation Z Mentoring, and Product Differentiation

Authors

  • Mintarti Indartini Universitas Merdeka Madiun, East Java, Indonesia
  • Mohammad Sofyan Universitas Merdeka Madiun, East Java, Indonesia
  • Ahmad Hidayat Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
  • Tuswoyo Tuswoyo Institut Ilmu Sosial dan Manajemen STIAMI, Jakarta, Indonesia
  • Solikah Nurwati Universitas Palangka Raya, Central Kalimantan, Indonesia

DOI:

https://doi.org/10.38035/dijemss.v8i1.6638

Keywords:

Generation Z Mentoring, Product Differentiation, Managerial Competence, Digital Capability, MSME Success

Abstract

This study aims to analyze the influence of Entrepreneur University, Generation Z Mentoring, and Product Differentiation on MSME Success through Managerial Competence, with Digital Capability as a moderating variable. This research employs a quantitative approach using Structural Equation Modeling based on Partial Least Squares (SEM-PLS) with a sample of 270 MSME actors in Indonesia selected through purposive sampling. The results show that Entrepreneur University, Generation Z Mentoring, and Product Differentiation have a significant positive effect on Managerial Competence. Managerial Competence has a significant positive association with MSME Success. However, the mediation results indicate a significant indirect effect only for Product Differentiation, rather than for all three independent variables. Product Differentiation has the strongest effect on both managerial competence and MSME success, while Entrepreneur University also shows a significant direct effect. In contrast, Generation Z Mentoring does not have a significant direct effect on MSME Success. Digital Capability showed no statistically significant direct association with MSME Success and did not significantly moderate the relationships examined in the model. These findings do not establish whether digital technologies were effectively utilized by the participating MSMEs. These findings highlight that MSME success is primarily driven by managerial competence and product differentiation rather than digital readiness. This study contributes to the Resource-Based View by emphasizing the importance of internal capabilities in determining firm performance.

References

Aimah, S. (2024). ENTREPRENEUR UNIVERSITY: CHALLENGES AND OPPORTUNITIES Siti. International Conference on Humanity Education and Sosial, 3(1).

’Aliyah, H., & Wahyuni, S. (2024). The Strategy to Improve MSME Performance through Entrepreneurial Orientation, Organizational Readiness, Knowledge Management, and E-Commerce Adoption. Journal La Sociale, 5(5), 1204–1229. https://doi.org/10.37899/journal-la-sociale.v5i5.1300

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/014920639101700108

Chillakuri, B. (2020). Understanding Generation Z expectations for effective onboarding. Journal of Organizational Change Management, 33(7). https://doi.org/10.1108/JOCM-02-2020-0058

Csobanka, Z. E. (2016). The Z Generation. Acta Technologica Dubnicae, 6(2), 63–76. https://doi.org/10.1515/atd-2016-0012

Etzkowitz, H. (2003). Research groups as ‘quasi-firms’: the invention of the entrepreneurial university. Research Policy, 32(1), 109–121. https://doi.org/10.1016/S0048-7333(02)00009-4

Gibb, A. (2002). Creating Conducive Environments for Learning and Entrepreneurship. Industry and Higher Education, 16(3), 135–148. https://doi.org/10.5367/000000002101296234

Guerrero, M., Urbano, D., Fayolle, A., Klofsten, M., & Mian, S. (2016). Entrepreneurial universities: emerging models in the new social and economic landscape. Small Business Economics, 47(3), 551–563. https://doi.org/10.1007/s11187-016-9755-4

Gyamerah, S., Afshari, L., & Asante, D. (2025). Digital transformation in the SME context: The nexus between leadership, digital capabilities and digital strategy. International Small Business Journal: Researching Entrepreneurship, 43(3), 303–328. https://doi.org/10.1177/02662426251314108

Hasibuan, M. Z., Ramon, H., Samio, S., Nurjannah, N., & Rijal, R. (2025). The influence of Sharia implementation, financing access, and managerial capacity on MSME performance in Medan City, Indonesia. Journal of Islamic Economics Lariba, 12(1).

Herman, H., & Suyono, S. (2024). THE ROLE OF MANAGERIAL ABILITY AND PRODUCT DIFFERENTIATION ON THE PERFORMANCE OF MSMES IN BATAM CITY. Jurnal Apresiasi Ekonomi, 12(3), 532–538. https://doi.org/10.31846/jae.v12i3.840

Kim, J., & Jin, W. (2024). Impact of digital capabilities on entrepreneurial performance in SMEs. Journal of Innovation and Knowledge, 9(4). https://doi.org/10.1016/j.jik.2024.100609

Kotler, P., & Keller, K. L. (2009). Marketing management (13th ed.). In Prentice Hall.

Kusumawardani, N., Sukmasari, D., Habsary, D., & Sarumpaet, S. (2022). PENDAMPINGAN KEMITRAAN UMKM GO DIGITAL BAGI NEW ENTREPRENEUR MAKE-UP ARTIST DI DESA WAY HUI. Journal of Social Sciences and Technology for Community Service (JSSTCS), 3(2), 311. https://doi.org/10.33365/jsstcs.v3i2.2236

Nambisan, S., Wright, M., & Feldman, M. (2019). The digital transformation of innovation and entrepreneurship: Progress, challenges and key themes. Research Policy, 48(8), 103773. https://doi.org/10.1016/j.respol.2019.03.018

OECD. (2021). COVID-19 crisis: A fast-track path towards more innovation and entrepreneurship? OECD. https://doi.org/10.1787/706b5701-en

Pahlevi, R. (2025). The Influence of Managerial Competence on the Success of Micro, Small, and Medium Enterprises (MSMEs). American Journal of Economic and Management Business (AJEMB), 4(1), 7–13. https://doi.org/10.58631/ajemb.v4i1.157

Porter, M. E. (1998). Competitive Advantage: Creating and Sustaining Superior Performance. In The Free: Fir Free P (Number 1). https://doi.org/10.1016/j.neubiorev.2009.11.015

Priporas, C.-V., Stylos, N., & Fotiadis, A. K. (2017). Generation Z consumers’ expectations of interactions in smart retailing: A future agenda. Computers in Human Behavior, 77, 374–381. https://doi.org/10.1016/j.chb.2017.01.058

Redjeki, F., & Zia’ul Huda, E. (2025). DIFFERENTIATION AND POSITIONING STRATEGY IN INCREASING THE COMPETITIVENESS OF MSME PRODUCTS. INTERNATIONAL JOURNAL OF FINANCIAL ECONOMICS (IJEFE), 2(2).

Rohmatiah, A., Mutmainah, M., & Wildaniyati, A. (2025). Peran Entrepreneur University dalam Mendongkrak UMKM Kabupaten Magetan melalui Generasi Z. Jurnal Samudra Ekonomi Dan Bisnis, 16(1), 95–105. https://doi.org/10.33059/jseb.v16i1.10803

Sarstedt, M., Hair, J. F., Cheah, J.-H., Becker, J.-M., & Ringle, C. M. (2019). How to Specify, Estimate, and Validate Higher-Order Constructs in PLS-SEM. Australasian Marketing Journal, 27(3), 197–211. https://doi.org/10.1016/j.ausmj.2019.05.003

Setiadi, N. J., Prasandy, T., & Alam, D. P. (2024). ENHANCING MSME EMPOWERMENT THROUGH TECHNOLOGY ADOPTION: A UNIVERSITY-INDUSTRY PARTNERSHIP. Social Economics and Ecology International Journal (SEEIJ), 8(1), 17–34. https://doi.org/10.21512/seeij.v8i1.11370

Sudirjo, F., Zaini, Moh., Rahmanto, B. T., & Juminawati, S. (2025). The Influence of Managerial Competence, Innovation, and Market Orientation on the Performance of Micro, Small and Medium Enterprises (MSMEs). West Science Journal Economic and Entrepreneurship, 3(02), 268–278. https://doi.org/10.58812/wsjee.v3i02.1898

Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40–49. https://doi.org/10.1016/j.lrp.2017.06.007

Van Hoang, D., Thi Hien, N., Van Thang, H., Nguyen Truc Phuong, P., & Thi-Thuy Duong, T. (2025). Digital Capabilities and Sustainable Competitive Advantages: The Case of Emerging Market Manufacturing SMEs. Sage Open, 15(2). https://doi.org/10.1177/21582440251329967

Warner, K. S. R., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long Range Planning, 52(3), 326–349. https://doi.org/10.1016/j.lrp.2018.12.001

Widiastini, N. M. A., Arsa, I. K. S., Syah, A. M., & Hajarrahmah, D. (2023). How do Micro, Small, and Medium Enterprises (MSMES) in Bali Survive the Pandemic? a Qualitative Study in Buleleng, Tabanan, Gianyar, and Denpasar. International Journal of Professional Business Review, 8(3), e0829. https://doi.org/10.26668/businessreview/2023.v8i3.829

World Bank. (2022). Small and medium enterprises (SMEs) Finance. World Bank SME Finance: Development News, Research, Data | World Bank.

Wulandari, A., Marcelino, D., Suryawardani, B., & Adithya, D. (2024). Digital Capability and Literacy for MSME Transformation: Perspectives of Digital and Business Performance. Asia Pacific Management and Business Application, 13(2), 109–128. https://doi.org/10.21776/ub.apmba.2024.013.02.2

Zakiyah, I., Khafidah, F., & Muzdalifah, L. (2023). Pendampingan Peningkatan Brand Image Produk UMKM Takoyaki di Sidoarjo. Jurnal Pemberdayaan Ekonomi, 2(2), 81–88. https://doi.org/10.35912/jpe.v2i2.2266

Downloads

Published

2026-10-08

How to Cite

Indartini, M., Sofyan, M., Hidayat, A., Tuswoyo, T., & Nurwati, S. (2026). Determinants of MSME Success: The Role of Entrepreneurial University, Generation Z Mentoring, and Product Differentiation. Dinasti International Journal of Education Management and Social Science, 8(1), 261–273. https://doi.org/10.38035/dijemss.v8i1.6638

Issue

Vol. 8 No. 1 (2026): Dinasti International Journal of Education Management and Social Science (October - November 2026)

Section

Articles

License

Copyright (c) 2026 Mintarti Indartini, Mohammad Sofyan, Ahmad Hidayat, Tuswoyo Tuswoyo, Solikah Nurwati

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Authors who publish their manuscripts in this journal agree to the following conditions:

  1. The copyright on each article belongs to the author(s).
  2. The author acknowledges that the Dinasti International Journal of Education Management and Social Science (DIJEMSS) has the right to be the first to publish with a Creative Commons Attribution 4.0 International license (Attribution 4.0 International (CC BY 4.0).
  3. Authors can submit articles separately, arrange for the non-exclusive distribution of manuscripts that have been published in this journal into other versions (e.g., sent to the author's institutional repository, publication into books, etc.), by acknowledging that the manuscript has been published for the first time in the Dinasti International Journal of Education Management and Social Science (DIJEMSS).