Drivers of business growth in seafood processing SMEs: the roles of human resource competencies, certification, product innovation and digitalization

Seafood-processing small- and medium-sized enterprises (SMEs) face challenges related to perishable raw materials, food-safety requirements, certification, market access and value-added product development. However, limited evidence explains how internal capabilities and institutional requirements jointly shape innovation and growth in this sector. This study examines the effects of human resource competencies and certification and legality on product innovation and business growth, the mediating role of product innovation and the moderating roles of digitalization adoption and access to finance. Data were collected from 466 seafood-processing SMEs in East Kalimantan, Indonesia and analyzed using partial least squares structural equation modeling with SmartPLS. Certification and legality show the strongest effects on business growth and product innovation, while digitalization adoption strengthens the certification and legality–product innovation relationship. Product innovation contributes positively but only modestly to business growth and mediates the certification and legality–business growth relationship, but not the human resource competencies–business growth relationship. Access to finance does not moderate either growth relationship. The findings indicate that SME competitiveness depends on aligning internal capabilities and institutional legitimacy with sector-specific regulatory, operational and market conditions.