Optimization of Digital Literacy Knowledge Sharing and Human Capital on Digital Economy for MSMEs Business Sustainability

MSMEs strongly influence the national economy as the most strategic sector. MSMEs in Indonesia reach 64.2 million, but facts in the field show that only 17.25 million are included in the digital ecosystem. The research objectives help MSME players understand the current conditions of adopting a digital economy business model in improving business sustainability by focusing on digital literacy knowledge sharing, human capital, and digital transformation with moderation of self-efficacy. The research method uses a quantitative research design with an explanatory research approach. Data collection was carried out through questionnaires given to 216 MSMEs. The purposive sampling technique was used to determine the sample of MSMEs in East Java, Indonesia. The data from the questionnaire was processed using SmartPLS software to test the hypothesis. The results prove that digital literacy knowledge sharing, human capital, and digital transformation affect the sustainability of MSME businesses. Self-efficacy can mode