Innovative Mindset and Strategic Leadership Driving MSME Sustainability and Value Creation

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in economic resilience, yet they continue to face sustainability and competitiveness challenges in volatile market environments. This study aims to explore how innovative mindset and strategic leadership contribute to the sustainability and value creation of MSMEs. A qualitative research method with a phenomenological approach was employed to gain deep insights from selected MSME actors. Data were collected through in-depth interviews, participatory observation, and document analysis. Thematic analysis was conducted to identify core patterns and linkages across data sources. Findings reveal that a proactive, adaptive mindset combined with visionary leadership enables MSMEs to innovate, survive, and scale value sustainably. Strategic planning, learning culture, and responsiveness to change emerged as key enablers. This study concludes that integrating innovation and leadership is essential for long-term MSME resilience. Future studies should investigate sector-specific strategies to further strengthen MSME ecosystems.