MSME Sustainability: Evidence from a Gusjigang-Based Cultural and Digital Approach

Abstract

This study aims to examine the influence of brand awareness, financial literacy, and social media utilization on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Kudus, Central Java, based on the local Gusjigang philosophy. A mixed-methods approach was used, involving a survey of 200 MSME actors combined with qualitative data from interviews, observations, and FGDs. The analysis employed Structural Equation Modeling (SEM) using AMOS 26. The results show that brand awareness (β = 0.244, p < 0.001), social media utilization (β = 0.249, p < 0.001), and financial literacy (β = 0.214, p < 0.001) significantly influence MSME sustainability. The R² value of 0.310 indicates the existence of other contributing factors outside the model. This study introduces a cultural approach to MSME development by embedding Gusjigang values into the sustainability framework. Findings suggest the importance of culturally grounded strategies in strengthening MSME resilience, particularly through branding, digital engagement, and financial capability.