The Effects of Digital Entrepreneurship, Digital Literacy, and Digital Platforms on Gen Z Purchase Decisions

The rapid advancement of artificial intelligence (AI) and digital technologies has fundamentally transformed the competitive landscape of micro, small, and medium-sized enterprises (MSMEs). To remain competitive, MSMEs are increasingly required to strengthen their digital entrepreneurial capabilities, improve consumers' digital literacy, and optimize the use of digital platforms. This study examines the effects of digital entrepreneurship, digital literacy, and digital platforms on Generation Z purchase decisions as a strategy for strengthening MSME competitiveness in the era of artificial intelligence. The study employed a quantitative approach involving 175 Generation Z consumers of a local culinary MSME in Bogor, Indonesia. Data were collected through questionnaires and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The findings demonstrate that digital entrepreneurship has a positive and significant effect on purchase decisions (β = 0.336, t = 4.040, p < 0.001). Digital literacy also positively and significantly influences purchase decisions (β = 0.205, t = 2.009, p = 0.045), while digital platforms show a positive and significant effect (β = 0.296, t = 3.180, p = 0.001). The model explains 55.8% of the variance in Generation Z purchase decisions. These findings highlight the importance of integrating entrepreneurial digital capabilities, consumer digital literacy, and effective digital platform utilization to enhance MSME competitiveness. In the era of artificial intelligence, these capabilities provide an important foundation for MSMEs to improve market engagement, strengthen consumer decision-making, and sustain their competitiveness in an increasingly technology-driven business environment.