Organizational Resilience and Strategic Capabilities for Transformational Entrepreneurship in Cooperative Microfinance Digital Service Transformation

Cooperative-based Microfinance Institutions (MFIs) are reconfiguring their financial services through digital channels while operating under resource constraints, competitive pressure, and recurring disruption, which makes organizational capabilities decisive for service continuity and entrepreneurial renewal. However, empirical evidence on how psychological, relational, and strategic capabilities jointly shape Transformational Entrepreneurship Behaviour (TEB) in this setting remains limited. This study examines the relationships among psychological capital, leader–member exchange, organizational ambidexterity, Competitive Advantage Strategy (CAS), organizational resilience, and TEB, and interprets the results in terms of digital service transformation. A quantitative cross-sectional survey of 897 respondents from 223 cooperative-based MFIs across Indonesia was analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) in SmartPLS 4. CAS had significant positive effects on organizational resilience and TEB, while organizational resilience and ambidexterity were significantly and positively related to TEB. Psychological capital, leader–member exchange, and ambidexterity did not significantly predict organizational resilience. Organizational resilience significantly mediated the relationship between CAS and TEB, whereas the other indirect effects were nonsignificant. Adjusted R² values were 0.536 for CAS, 0.526 for organizational resilience, and 0.621 for TEB. The findings indicate that differentiated, efficient, and threat-aware strategies, supported by resilience and ambidextrous capabilities, form the organizational base on which digital service transformation and entrepreneurial renewal in cooperative microfinance depend. Managerial implications for service continuity, digital service portfolio design, and capability building are outlined.