Volume 31, Number 1, 2026

Risk Management as a Dynamic Capability for Business Sustainability: Evidence from Tourism SMEs in West Java

Nanda Farah Dewi ^{a, *}Bahtiar Usman ^b, Susy Muchtar ^c , Darwin Raja Unggul Saragih ^d
a,b,c,d Doctoral Program, Faculty of Economics and Business, Universitas Trisakti, Jakarta Barat, Indonesia
^a faradewinanda@gmail.com
^b bahtiar.usman@trisakti.com
^c susy_muchtar@trisakti.ac.id
^d darwin@asaindo.ac.id

ABSTRACT

This study investigates how financial planning strategy, business digitalization, and entrepreneurial mentality enhance business sustainability through risk management among tourism-related SMEs in West Java. Grounded in Dynamic Capabilities Theory, the study conceptualizes financial planning, digitalization, and entrepreneurial mentality as antecedent capabilities that enable firms to sense uncertainty, seize opportunities, and reconfigure resources. Risk management is positioned as the adaptive mechanism that translates these capabilities into sustainable business outcomes. A quantitative survey was conducted with 300 SME owners and managers, and the data were analyzed using partial least squares structural equation modeling. The measurement model demonstrated satisfactory reliability and convergent validity, while the discriminant-validity assessment was generally supportive but identified elevated overlap between closely related capability constructs; common method variance was not a serious concern. The findings show that financial planning strategy, business digitalization, and entrepreneurial mentality each have a positive effect on risk management. Risk management also has a positive effect on business sustainability. Among the antecedents, business digitalization provides the strongest support for risk management, indicating the importance of digital records, online transactions, and data-based decision-making in improving risk visibility. The results confirm that sustainability is not produced by isolated managerial practices, but by the coordinated transformation of financial discipline, digital capability, and entrepreneurial proactiveness into systematic risk identification, assessment, mitigation, and monitoring. This study contributes by developing a dynamic risk-mediated sustainability framework for SMEs and offers practical guidance for owners, policymakers, and support institutions seeking to strengthen SME resilience, continuity, and long-term value creation within an emerging regional tourism context where volatility, digital competition, and resource constraints shape managerial decisions.

JEL Classifications: G32; Q56; L83

Keywords: business sustainability, risk management, financial planning strategy, business digitalization, entrepreneurial mentality, dynamic capabilities

Cite this article: 

Dewi, N. F., Usman, B., Muchtar, S., & Saragih, D. R. U., Risk Management as a Dynamic Capability for Business Sustainability: Evidence from Tourism SMEs in West Java, International Journal of Business, 31(1), 005. https://doi.org/10.55802/IJB.031(1).005