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    MANAGEMENT AND ACCOUNTING REVIEW, VOLUME 25 NO. 2, AUGUST 2026

    Integrated Capability Model for MSME Sustainability

     

    Karsam1, Nadiah Abd Hamid2*, Solihin3 and Saifulrizan 

    1,3Magister Akuntansi -Institut Bisnis dan Komunikasi Swadaya, Jakarta, Indonesia
    2Faculty of Accountancy, Universiti Teknologi MARA, Puncak Alam Campus, Malaysia
    4Faculty of Accountancy, Universiti Teknologi MARA, Samarahan Campus, Malaysia

     
    ABSTRACT

    Micro, Small, and Medium Enterprises (MSMEs) play a vital role in economic development, employment generation, and business resilience. However, sustaining competitiveness in an increasingly digital and sustainability-oriented environment requires MSMEs to develop multiple organisational capabilities. Drawing upon the Resource-Based View and Dynamic Capability Theory, this study develops and validates an integrated capability model by examining the effects of technology adoption, financial literacy, and green intellectual capital on MSME sustainability across Indonesia, Japan, and Malaysia. Using a quantitative approach, survey data were collected from 360 MSME owners and managers and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results reveal that technology adoption, financial literacy, and green intellectual capital positively influence MSME sustainability, with technology adoption emerging as the strongest predictor. Multi-group analysis indicates no significant differences across the three countries, suggesting that the proposed model is robust across diverse national contexts. This study contributes to the literature by providing cross-national evidence for an integrated capability framework that combines digital, financial, and sustainability capabilities in explaining MSME sustainability. The findings offer practical implications for policymakers and practitioners seeking to enhance the long-term sustainability and resilience of MSMEs in increasingly dynamic business environments.

    Keywords:
    MSMEs
    Sustainable Growth
    Financial Literacy
    Green Intellectual Capital
    Technology Adoption

    *Corresponding Author.
    E-mail address: nadiah201@uitm.edu.my

    Accounting Research Institute (ARI), Level 12, Menara SAAS, Universiti Teknologi MARA (UiTM), 40450 Shah Alam, Selangor, MALAYSIA
    Tel: +603 5544 4829   |   Fax : +603 5544 4992

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