Authors - Made Ermawan Yoga Antara Abstract - This study is to examine how sustainable MSMEs are impacted by digital innovation and entrepreneurial mindset, mediated by entrepreneurial resilience. This study was carried out in the province of Bali using a quantitative methodology, focusing on MSMEs in the creative economy craft sub-sector. The study sample consisted of 361 MSME owners and leaders selected using proportional random sampling from a total population of 3,745 business units. Data were collected using a Likert-scale questionnaire and analyzed using SEM-PLS with the assistance of SmartPLS software. The results showed that digital innovation and entrepreneurial mindset have a positive and significant effect on both entrepreneurial resilience and sustainability in MSMEs. Additionally, sustainable MSMEs benefit greatly from entrepreneurial resilience. The association between digital innovation and entrepreneurial mindset on sustainable MSMEs is partially mediated by entrepreneurial resilience, according to the mediation test results. Digital innovation has the largest influence on entrepreneurial resilience, while entrepreneurial mindset has the largest direct influence on sustainable MSMEs. These findings emphasize the importance of integrating digital technology adoption and internal entrepreneurial capabilities in driving business sustainability. This research supports dynamic capabilities theory, which emphasizes sensing, seizing, and transforming capabilities in enhancing the resilience and sustainability of MSMEs. Practically, MSMEs need to strengthen digital innovation, entrepreneurial mindsets, and business resilience to adapt to environmental dynamics. This research contributes to the development of sustainable entrepreneurship literature, particularly in the creative economy in developing countries.
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