The aim of this research is to analyze the relationship between the managerial-operational capability of digital business strategy and innovation performance on the setting of entrepreneurial small and medium enterprises (SMEs). This article is valuable to extend the comprehension and knowledge of SME’s entrepreneurship to obtain innovation performance through digital business strategies and these efforts are encouraged by effectuation decision-making logic. This survey targets the manufacturing of small and medium-scale food and beverage SMEs in Indonesia. A total of 52 SME entrepreneurs were selected as the respondent in this research. The data obtained from the collecting of the online questionnaires were analyzed using Moderating Regression Analysis with SPSS for data analysis. The successful entrepreneurial SMEs enhance their innovation performance by improving managerial-operational capability. Effectuation decision-making logic contributes more to strengthening the relationship between managerial capability with innovation performance than operational capability with innovation performance.

This study examines the impact of environmental uncertainty and integrative strategy on growth of firm performance through the mediating role of the Business Model Transformation (BMT) strategy of information communication technology (ICT) in Indonesia. The research data was collected from the executive management of ICT through survey research with 30 questionnaire surveys and exploratory study with seven company leaders through in-depth interviews. This study analyzes the suitability of the overall model through causal relationships using Partial Least Square-Path Modeling (PLS-PM). The results show that the BMT predominantly influences the growth of ICT companies. The BMT is predominantly built by the environmental uncertainty (ET) strategy rather than by integrative capability. Thus, companies need to improve their ability and creativity to anticipate and adapt to any uncertainty that unexpectedly results in dynamic competition.