The Application of Digitalization Skills of Business Actors Mediates The Impact of Business on MSME Performance

: The application of digitalization skills to social media can affect the impact of business on MSME performance. The purpose of this study is to test and find out digital technology in the application of digitalization skills can mediate the impact of business on MSME performance. This study uses a quantitative approach with the design of questionnaire methods and explanatory research, with purposive sampling on the types of products marketed, MSMEs that make sales using social media and e-commerce, and MSMEs that have conducted entrepreneurship training, a sample of 268 MSMEs with a response rate of 50 MSMEs. The analysis used is SmartPLS. The results of the analysis show that the application of digitalization skills partially mediates the impact of business on MSME performance. Digital technology is an intermediary variable that is able to compete in the global market, because MSME players can do online marketing so that product sales can increase and digital technology is able to process products more efficiently by utilizing technology, and can distribute products more effectively. Business impact using the strategies applied, namely communication with media selection, competitive advantage refers to business competition, and innovation for product development. Financial performance has increased sales, non-financial performance has experienced accuracy in sales targets and develops business through the potential of human resources owned.


INTRODUCTION
Human resources are a process of utilizing humans as human labor, so that their physical and psychological potential functions optimally for the achievement of organizational goals (institutions).In addition, man is a complex and unique creature of God and was created in the integration of two non-independent substances, namely the body (physical / physical) as a material element, and the soul which is | immaterial.The most intensive working relationship in the organizational environment is between the leader and the workers (staff) under him.(Nawawi et al., 2002) HRM is a multidisciplinary organizational function that draws theories and ideas from various fields such as management, psychology, sociology and economics (Mardikaningsih, 2024) (Sinambela & Darmawan, 2022).According to (DeCenzo et al., 2016) HR is concerned with the person dimension in management.
Because every organization is made up of people, acquiring their services, developing their skills, motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization is essential to achieving organizational goals (Ahmad & Umrani, 2019) (Darmawan et al., 2023).HRM is a management function that helps managers to recruit, select, train and develop members for an organization.HRM deals with the dimension of people in the organization.
Skill is the ability to develop knowledge gained through training and experience in carrying out several tasks so that someone is trained to be able to work more valuable and faster.According to Leigh Body (2011: 4), skill assessment includes: The ability to use tools and work attitudes, the ability to analyze a job and arrange the sequence of work, the speed of doing tasks, the ability to read images and symbols and the compatibility of predetermined shapes and sizes.According to leighbody (2011: 4), skill is the potential to increase knowledge gained through practice and experience in doing work, so that someone can more quickly complete his work.According to Leighbody (2011: 4), there are several factors that affect skills, as follows: the ability to use tools and work attitudes, the ability to analyze a job and arrange the sequence of work, the speed of doing tasks, the ability to read pictures and symbols and the compatibility of predetermined shapes and sizes.
(Surber & Stauffacher, 2022) For example, Cisco defines digitization as the connection of people, processes, data, and things to provide intelligence and actionable insights.Another industry expert, Garnter defines digitalization by saying, the goal is to create and deliver new value to customers, not just improve what is already done or offered (Moore et al., 2016).
Business actor is any individual or business entity, whether in the form of a legal entity or non-legal entity established and domiciled or carrying out activities in the jurisdiction of the Republic of Indonesia, either alone or jointly through agreements for the implementation of business activities in various economic fields.various technological developments that exist.Mastery of one's creativity will be superior to just a piece of paper (ijasah), meaning that someone will win if it is easy to adapt to the various features of technology that are growing rapidly.This revolution and evolution of technology has resulted in situations that are beyond the ability of people and organizations to adapt, and these situations will only get worse.Many of the most in-demand jobs in sector 4.0 didn't even exist ten years ago.As a result, the capabilities required to perform this role are currently missing.Boundaries between professions are becoming more ambiguous, according to the study's findings.The majority of workers check their work phones and emails after hours, but 15% report that they never leave their jobs.Utilizing work equipment, mobile technology, etc., remote access to the workplace is possible.make it easier for them to work flexibly, manage workloads, be more productive, and feel empowered.(| Kusuma | MEDIA BINA SCIENTIFIC, no date).
Kluyver & Pearce (2006) define strategy as how to position the company to gain its competitive advantage by involving the choice of industry to be entered, what products or services to offer, and how to allocate company resources.Some researchers adopt resource-based theory to answer problems that occur (Nguyen et al., 2020) (Abd Aziz & Samad, 2016;Husnah et al., 2023;Uchegbulam et al., 2015) (Cheng & Rabena, 2017)  is believed that digital transformation is an important key to the progress of MSMEs.The FinTech industry is considered more flexible and flexible than conventional financial services due to the lack of policies that control companies.This condition can be considered When the process of applying for debt, for conventional financial services there are a lot of administrative files that need to be done and completed.The files that need to be completed in a FinTech business are very simple just by uploading them online.
MSMEs are the foundation of the people's economy, where this sector has the ability to support the nation's economy.
MSMEs in Indonesia contributed 61.07% to gross domestic income (GDP) or equivalent to IDR 8,573.89trillion in March 2021.The participation of MSMEs has a positive influence on Indonesia, which is able to reduce poverty, even out people's economic conditions, and become a source of foreign exchange income.MSMEs have a very influential position, because this sector is able to open jobs for the community both directly and indirectly.When Indonesia experiences an economic crisis, the MSME business sector is also able to withstand the shock of the crisis.One of the reasons why the MSME sector is able to survive is the use of raw materials, most of which are local products.When many large-scale businesses were destroyed due to the monetary crisis, MSMEs became saviors from the impact of the monetary crisis.In addition, MSMEs contribute significantly to the export sector other than oil and gas.Based on data released by the Ministry of Cooperatives and SMEs, in 2017 MSMEs contributed to the country's foreign exchange of Rp 88.45 billion.

Theoretical Foundation
The theory of Resource-Based View-RBV is that the resources in a company merge into bundles and the capabilities underlying production are not the same as each other.The essence of the combination of resources and capabilities as "what" that makes an organization unique in terms of its ability to offer value to its customers Purwohandoko in Stellmaris (2013: 13).
According to Barney and Grant in Defin and Atim (2013: 393), resourcebased business management is one alternative solution for MSMEs, because through this management, they are able to create special competencies and provide strategic choices to achieve sustainable competitive advantage.From this perspective, digital technology training programs and business strategies are related to providing control over MSME performance, or digital technology can mediate the impact of business strategy on MSME performance.

Digital Technology
With the existence of digital technology will make it easier for everyone to communicate and find information quickly.The role of | The Application of Digitalization Skills of Business Actors Mediates The Impact of Business on MSME Performance technology is very important, because with technological advances will give rise to online marketing activities.Technology is a rational method that leads to the efficiency of every human activity.1 Digital is a complex and flexible way in which human life becomes essential.Digital is closely related to media, because digital is an electronic device that displays visual images.
Digital technology is a tool whose operation no longer requires human labor and tends to be a system that can automatically connect with all computers.Digital technology literacy also brings various conditions about awareness of digital use, one of which is about social change, because digital technology can present a virtual public, as well as rapid transmission of information.Almost every day humans are always in contact with various kinds of digital technology ranging from the internet to smartphones.The development of digital technology makes it easy for people to get various related information about online payments.
The impact of globalization, supported by technological advances, has changed the business system in the contemporary world, with the aim of surviving and achieving maximum results.Digital technology is considered as an important thing, for the efficient management of the organization in service to consumers, by increasing production, through; faster communication, and better in the distribution of MSME products (Mary et al., 2015).
The impact of globalization, supported by technological advances, has changed the business system in the contemporary world, with the aim of surviving and achieving maximum results.Therefore, it is important to prepare for competition to take advantage of dynamic business opportunities (Enis Bulak & Turkyilmaz, 2014).Many companies are starting to use and utilize digital resources to formulate and implement digital business strategies (Chi et al., 2016), with the aim that a company can reduce costs, improve company performance, and achieve competitive business sustainability (Enis Bulak & Turkyilmaz, 2014).

Business Strategy
According to Sofjan Assauri, the term "strategy" is formulated as a goal to be achieved, an effort to communicate what will be done, by who does it, how to do it, and to whom these things are also communicated.Strategy directs how the business can achieve the desired goals and objectives.In terms of business winning efforts, the strategy carried out by a company in order to succeed must meet the following criteria: 1. Strategy must fit and be appropriate to the circumstances at hand According to M. Manullang, in his book it is explained that business can be defined as all activities of various institutions that produce goods and services that are necessary for people's daily lives.With this understanding there are a number of important elements, in the definition, namely: 1.All activities -Institutions 2. Produce goods and services 3. Necessary for people's lives Strategies in maintaining sustainable competitive advantage, namely by choosing the right business strategy, using digital technology to carry out various innovations to improve the performance of MSMEs, so that they can be used optimally in various company activities and different markets (Wernerfelt, 1984).

MSME Performance
According to (Mutegi et al., 2015), the performance of MSMEs is the result of work achieved by individuals who adjust to the role or task of the individual in a company in a certain period, which is associated with a certain measure of value or standard in the individual company works.The performance of MSMEs is one of the most important targets for financial management, namely by maximizing the owner's ability in addition to maximizing company value.
According to (Hasibuan & Soemitra, 2022) performance is the result of work achieved by individuals and organizations when carrying out the tasks assigned to them based on experience, skills, and time sincerity.Meanwhile, according to Rivai (2005), kinera is the result or measure of overall individual success in a certain period when carrying out tasks compared to possibilities, such as targets, work results, objectives or criteria that have been previously set and agreed upon together.The performance of MSMEs is a display of the complete state of the company over a certain period of time, is the result or achievement that is influenced by the company's operational activities in utilizing the resources owned.
Based on the description above, it can be concluded that the performance of MSMEs is the result of work achieved as a whole and compared to the work results, targets, targets and criteria that have been set out in the law.Micro, Small and Medium Enterprises (MSMEs) are business activities that can expand employment and play an important role in the process of equitable distribution and increasing community income, encouraging economic growth, and realizing national economic stability.
The performance of MSMEs is an indicator to measure the level of success and health of these MSMEs.MSME performance (financial performance and non-financial performance) is used as an objective measurement medium to

RESEARCH METHODOLOGY
This study used a quantitative approach with an explanatory research design.

Data Collection Methods
This study comes from primary data.
Observation methods and questionnaires are used to obtain data and information directly to MSME actors.

Population and Sample
The population in this study is MSMEs in Kaliwulu Village, which is 268 MSMEs.In this study, the sampling technique used was based on population, using purposive sampling with criteria for MSME actors who had attended entrepreneurship training.The general population in this study is MSME actors.While the target population is MSME actors in Kaliwulu Village, Plered District, Cirebon Regency.
Questionnaires are distributed by visiting directly (observation / survey) to respondents whose location distance can be reached by researchers, and conducting telephone interviews with respondents whose location distance is not reached by researchers, questionnaires that return and those that can be contacted via telephone amounting to 50 MSMEs.

Data Analysis Techniques
The analysis tool used is structural equation modeling (SEM) with SmartPLS software version 4.0.The SmartPLS SEM modeling process includes two basic stages, namely measurement model verification and structural model testing.

RESULTS AND DISCUSSION
The research was conducted in Kaliwulu Village, Plered District, Cirebon.Research focus on MSMEs.In this study, the sampling technique used was based on population, using purposive sampling with criteria for MSME actors who had attended entrepreneurship training.

Path Coefficient Analysis
Tables 5 and 6 show that all variables (outer model and inner model) have coefficient values with a positive direction, meaning that business strategies are more effective in determining market targets and selling prices, if the use of digital technology (ecommerce and social media) is carried out optimally and on target, so as to improve the performance of MSMEs.

Hypothesis Testing
The initial stage carried out is by testing the direct effect of business strategies on MSME performance without involving digital technology mediation variables (e-commerce and social media), the results can be seen in table 7.
Based on table 7, that business strategy has a positive effect on MSME performance, meaning that determining the business strategy applied by MSME actors appropriately and in accordance with the products produced can improve MSME performance.The results above show the fulfillment of this requirement and can proceed to the next test, namely testing business strategies affecting MSME performance mediated by digital technology, can be seen in figure 1 and  table 7.
Based on table 7, it shows that the coefficient of the business strategy path → the performance of MSMEs is significant at 0.468, while table 6 is the coefficient of the business strategy path → the performance of MSMEs is significant at 0.086.These results show that related to the effect of business strategy mediation on MSME performance with the coefficient of business strategy path → MSME performance of 0.468 to 0.086, which means that the hypothesis of the mediation effect in this study is accepted.

Indirect Influence
Table 8 shows the results of testing the indirect effect between business strategy variables on MSME performance mediated by digi tal technology.At the level of significant levels of 5% of 4.255 > 1.96 and P Values of 0.000.The path coefficient value of 0.457 indicates that the relationship of business strategy to MSME performance is mediated by digital technology.This shows that the higher or tighter the implementation and determination of business strategies through the use of digital technology optimally and on target, it will lead to improving company performance.A standard deviation value of 0.108 indicates that the collected data has a small (homogeneous) variation, meaning that this hypothesis is accepted.

Total Influence
Based on Tables 7 and 8, it shows that the coefficient of business strategy path affects the performance of MSMEs significantly and positively by 0.457.While Table 8 coefficient of business strategy path affects the performance of MSMEs significantly and positively by 0.513.These results show that related to the effect of business strategy mediation on MSME performance with the influence of the total business strategy Rully Nurliah, Syahdilla Azzahra R, Elsa Wafiq Azizah, Anna Suzana | path coefficient affecting MSME performance of 0.582, which means that the hypothesis of the mediation effect in terms of the partial mediation model in this study is accepted.
The results of direct effects, indirect effects and total effects from this study, it can be concluded that all variables studied have significant value and positive influence.So that hypothesis 1 proposed is accepted.
The next analysis process is with the Variance Accounted For (VAF) method on the influence of business strategy on MSME performance mediated by digital technology, it can be explained that business strategy has a direct and significant effect on company performance, so that it meets the criteria to be continued at the VAF value calculation stage.The mediating effect of the VAF method with criteria; No mediation (0%-19%), partial mediation (20%-80%), and full mediation (81%-100%) namely; Digital Technology mediates the influence of business strategy on MSME performance.VAF = Indirect influenceTotal influence x 100 % VAF = 0.4570.582x 100 % VAF = 78.52%VAF calculations show that the results reach 78.52% that digital technology mediates partially mediation on the influence of business strategy on MSME performance, meaning that digital technology is not the only variable that can mediate the influence of business strategy on MSME performance, but there are still other variables and opportunities for further researchers.So that in this study, it shows that digital technology is able to mediate the influence of business strategies on MSME performance which proves that the hypothesis is accepted.

Discussion
The results of this study show that the application of digitalization skills of business actors mediates in a partial mediation manner the impact of business on MSME performance.The application of digitalization skills becomes an intermediary (mediation) so that business actors are able to compete in the global market.From the results of this study, there are still many business actors who have not penetrated into the digitalization era due to the lack of knowledge and application of skills about digitalization, however, there are also some business actors who have implemented digitalization in their businesses.
The results of the analysis obtained when business actors who have applied their digitalization skills feel the ease of managing their business with the help of digital platforms that are widely available in today's technological era.In addition to the application of digitalization skills, business actors should also develop their business by collaborating with distributors, open resellers so as to make it easier for business actors to develop their business.
However, there are some business actors who lack confidence and lack the level of human resources who understand the era of technology, so business actors need to have skills to be able to follow the era in order to compete competently with other business competitors and also be able to develop business according to the needs and desires of consumers.
Business actors who have applied or have skills have a more dominant | The Application of Digitalization Skills of Business Actors Mediates The Impact of Business on MSME Performance advantage than business actors who lack skills.This is because business competition is very tight so that when business actors do not develop skills, they will experience lagging behind because good skills are needed to build a business.In this case, it proves that the application of digitalization skills is able to mediate the impact of business on MSME performance.

CONCLUSION
The results of the study prove that the application of digitalization skills of business actors mediates the impact of business on the performance of MSMEs in Kaliwulu Village, Kec.Plered, can be concluded as follows; The business strategy adopted by product MSME players is a business strategy that is more effective in determining market targets and selling prices; Determining the business strategy applied by MSME players appropriately in accordance with the products produced can improve MSME performance.
MSME performance (both financial performance and non-financial performance) has increased, nonfinancial performance has increased in terms of; service quality, product quality, and achievement of production targets.
This research contributes to the field of strategy-based management accounting and contributes to MSME actors in Kaliwulu Village, namely in adopting the right strategy, utilizing digital technology to improve MSME performance.
The Application of Digitalization Skills of Business Actors Mediates The Impact of Business on MSME Performance alienated because they cannot keep up with

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The Application of Digitalization Skills of Business Actors Mediates The Impact of Business on MSME Performance