THE INFLUENCE OF DIGITAL SKILLS AND TECHNOLOGY ADAPTATION ON EMPLOYEE PERFORMANCE IN THE ERA OF DIGITAL TRANSFORMATION

Abstract

This study aims to analyze the influence of digital skills and technology adaptation on employee performance in the digital transformation era, as well as identify the role of entrepreneurship education as a catalyst in improving the sustainability of Micro, Small, and Medium Enterprises (MSMEs). Using a quantitative approach, the analysis was carried out through two empirical studies: multiple linear regression analysis on 35 employees of the modern retail sector to measure the impact of digital work culture, and PLS-SEM-based Structural Equation Modeling (SEM) analysis on 293 culinary MSME actors in Indonesia to assess the influence of entrepreneurial education on competitive advantage. The results of the study show that digital skills and technology adaptation have a positive and significant effect on employee performance, both partially and simultaneously. Technological adaptation is proving to be a major determining factor in a dynamic work environment. Digital technology-based entrepreneurship education (edupreneurship) plays a crucial role as a competency bridge that mitigates the negative impact of disruption, such as the digital divide and technology anxiety (digital stress), while increasing the self-efficacy of business actors. The success of digital transformation is not solely determined by technological infrastructure, but also by the readiness of human resource capacity. This research recommends structured investment in digital training and the internalization of adaptive culture to encourage sustainable MSME performance growth.