ENTREPRENEURIAL ORIENTATION AS A MODERATING VARIABLE IN THE INFLUENCE OF E-COMMERCE ON THE SUSTAINABILITY OF FASHION MSMES IN THE MARKET CENTER OF MEDAN CITY

Abstract

This study aims to analyze the influence of e-commerce on the sustainability of fashion Micro, Small, and Medium Enterprises (MSMEs) and examine the role of entrepreneurial orientation as a moderating variable in fashion MSMEs in the Medan City Market Center. This study uses a quantitative approach with an associative causality method. The study population is fashion MSME traders in the Medan City Market Center who have used at least one e-commerce platform. The research sample consisted of 130 respondents determined by purposive sampling technique. Data collection was carried out by distributing questionnaires using a Likert scale of 1-4. The data analysis technique used Moderated Regression Analysis (MRA) with the help of the SPSS program. The results of the study indicate that e-commerce has a positive and significant effect on the sustainability of fashion MSMEs (β = 0.555; p = 0.000 <0.05). Entrepreneurial orientation also has a positive and significant effect on the sustainability of MSMEs (β = 0.302; p = 0.000 <0.05). The results of the interaction test show that entrepreneurial orientation is proven to positively and significantly moderate the influence of e-commerce on the sustainability of MSMEs, with an interaction coefficient of 0.018 and a significance of 0.014 <0.05, so it is classified as a Quasi Moderator. The Adjusted R Square value of 0.479 indicates that 47.9% of the variation in MSME sustainability can be explained by e-commerce, entrepreneurial orientation, and the interaction of the two. Thus, the use of e-commerce supported by a high entrepreneurial orientation can strengthen the ability of fashion MSMEs to maintain and develop the sustainability of their businesses.