DIGITAL LITERACY AND WORK MOTIVATION ON CONSUMER BEHAVIOR: THE MEDIATING ROLE OF SERVICE QUALITY AND THE MODERATION OF EMPLOYEE COMPETENCE

Abstract

The effective use of digital technology in MSMEs requires adequate human resource capabilities to create value in service delivery and customer interactions. This study examines the relationships between digital literacy, work motivation, and consumer behavior through service quality, while also assessing the moderating role of employee competence. An explanatory quantitative design was applied to MSMEs using the MP Store platform in Surabaya. Data were obtained through questionnaires and analyzed using PLS-SEM. A population of 2,879 users. The sample size was determined using Slovin's formula with a 5% error rate, resulting in a minimum sample requirement of 352 MSME units. The findings indicate that higher levels of digital literacy and work motivation contribute to better service quality. Service quality, in turn, positively contributes to consumer behavior and mediates the effects of both factors. Employee competence also strengthens the relationships of digital literacy and work motivation with service quality. These findings suggest that successful technology utilization among MSMEs should be accompanied by the development of digital capabilities, work motivation, and employee competence to enhance service quality and foster positive consumer behavior.