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

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.