Legal Construction of Adaptive Resilience of MSMEs in Emerging Markets: The Interaction of Financial Regulation, Organisational Governance, and Local Cultural Dynamics

Yuli Agustina; Sumiati; Siti Aisjah; Risna Wijayanti; Olena Bulhakova

doi:10.66325/nusantaralaw.v5i1.225

Authors

Yuli Agustina Universitas Brawijaya Malang, Indonesia
Sumiati Universitas Brawijaya Malang, Indonesia
Siti Aisjah Universitas Brawijaya Malang, Indonesia
Risna Wijayanti Universitas Brawijaya Malang, Indonesia
Olena Bulhakova Donetsk State University of Internal Affairs, Ukraine

DOI:

https://doi.org/10.66325/nusantaralaw.v5i1.225

Keywords:

Adaptive Resilience; Emerging Markets; Financial Regulation; Local Cultural Dynamics; Organisational Governance.

Abstract

This study examines the legal construction of adaptive resilience among Micro, Small, and Medium Enterprises (MSMEs) in emerging markets by analysing the interaction between financial regulation, organisational governance, and local cultural dynamics. It aims to demonstrate how legal frameworks extend beyond compliance to actively shape MSMEs’ capacity to adapt, survive, and transform amid economic uncertainty, market volatility, and structural constraints. Using a socio-legal perspective, the study argues that MSME sustainability is not determined solely by economic factors, but also by how law operates within institutional practices and culturally embedded business environments. The research employs a qualitative socio-legal design that integrates normative legal analysis with empirical inquiry. Normative analysis focuses on financial and MSME regulatory frameworks, particularly their coherence, flexibility, and responsiveness. Empirical data are collected through semi-structured interviews with MSME actors, regulators, and stakeholders, supported by limited field observations. Data analysis follows an interactive model involving reduction, thematic categorisation, and interpretative synthesis, while triangulation ensures validity and analytical rigour. The findings reveal that three interconnected dimensions shape adaptive resilience. First, regulatory design—especially flexibility, proportionality, and access to financial instruments—determines the adaptive space available to MSMEs. Second, internal organisational governance, including risk management capacity and strategic leadership, influences how regulatory opportunities are translated into practical resilience strategies. Third, local cultural dynamics, such as trust-based networks, communal solidarity, and informal norms, mediate the implementation of both regulatory and governance practices. These findings confirm that resilience is not merely a market outcome, but a legally and socially embedded process. The study contributes to socio-legal scholarship by proposing an integrated framework that conceptualises adaptive resilience as a product of regulatory structures, governance mechanisms, and cultural contexts, while offering practical insights for policymakers to design more responsive legal systems that enhance MSME sustainability.

Downloads

Download data is not yet available.

References

Abdullah, Fadli Daud, Doli Witro, Misbahul Munir Makka, Muhamad Sadi Is, and Syahid Mujahid Wiwaha. ‘Contemporary Challenges for Sharia Financial Institutions to Increase Competitiveness and Product Innovation Perspective of Sharia Economic Law: Evidence in Indonesia’. MILRev: Metro Islamic Law Review 3, no. 2 (December 2024): 2. https://doi.org/10.32332/milrev.v3i2.9202.

Ahmad, Shabir, and Yazeed Alsuhaibany. ‘Small Feet, Big Prints: The Contribution of Family-Owned Micro, Small, and Medium Enterprises (MSMEs) to Sustainable Development Goals (SDGs)’. Business Ethics, the Environment and Responsibility 35, no. 1 (2026): 199–214. https://doi.org/10.1111/beer.12790.

Ali, J., S. S. Kumar, and V. H. Prasad. ‘Exploring the Role of Knowledge on Adoptability of Islamic Banking and Financing Options for Micro, Small and Medium Enterprises: The Mediating Role of Trialability’. Journal of Ecohumanism 3, no. 8 (2024): 107–116. Scopus. https://doi.org/10.62754/joe.v3i8.4718.

Amnesti, Sheila Kusuma Wardani, Hasnan Bachtiar, Rayno Dwi Adityo, and Siti Zulaichah. ‘From Regulation to Ethics: The Legal Effectiveness of Smart Village Policy through Village SDGs and Maqāṣid al-Sharīah’. Justicia Islamica 22, no. 2 (November 2025): 247–276. https://doi.org/10.21154/justicia.v22i2.11831.

Astuty, I., R. J. Astuti, S. M. Mahmud, and V. Widodo. ‘A Closer Look at the Work Behavior of Gen Z in Micro, Small, and Medium Enterprises of Developing Countries’. International Journal of Human Capital in Urban Management 10, no. 1 (2025): 135–148. Scopus. https://doi.org/10.22034/IJHCUM.2025.01.09.

Berisha, A., A. Hoti, and H. Hoti. ‘An Empirical Study on Micro, Small, and Medium Enterprises Access to Finance in Kosovo: A Survey Based Analysis’. Multidisciplinary Science Journal 6, no. 5 (2024). Scopus. https://doi.org/10.31893/multiscience.2024068.

Choiruddin, Muhammad Nanang, Heri Pratikto, F. Danardana Murwani, and Nurika Restuningdiah. ‘Financial Literacy, FinTech, and Contemporary Innovation in Islamic Economic Law: An Analysis of MSME Performance Sustainability in Indonesia and Malaysia’. MILRev: Metro Islamic Law Review 4, no. 2 (August 2025): 976–1008. https://doi.org/10.32332/milrev.v4i2.10164.

Farisi, Salman Al, Muhammad Iqbal Fasa, and Suharto. ‘Peran Umkm (Usaha Mikro Kecil Menengah) Dalam Meningkatkan Kesejahteraan Masyarakat’. Jurnal Dinamika Ekonomi Syariah 9, no. 1 (January 2022): 1. https://doi.org/10.53429/jdes.v9iNo.1.307.

Fatmawati, Putri Putri, Firman Setiawan, and Khoerun Nasik. ‘Analisis Religiusitas, Kesadaran Halal, Literasi Halal, Dan Niat Berperilaku Dalam Memprediksi Pelaku UMKM Melakukan Sertifikasi Halal Di Kabupaten Bangkalan’. Maro: Jurnal Ekonomi Syariah Dan Bisnis 6, no. 1 (May 2023): 76–88. https://doi.org/10.31949/maro.v6i1.3692.

Fawaid, Akh, Masdukil Makruf, Sayyidi Sayyidi, Sri Wahyuni Fatmawati, and Ika Oktaviana Dewi. ‘Theoretical Model of Green Entrepreneurship and Digital Transformation in Enhancing the Sustainability of Batik MSMEs with Business Innovation as a Mediating Variable’. Cleaner Production Letters 10 (2026). https://doi.org/10.1016/j.clpl.2026.100135.

Hamdana, Hamdana, Heri Pratikto, and Sopiah Sopiah. ‘A Conceptual Framework Of Entrepreneurial Orientation, Financial Literacy, And MSMEs Performance: The Role Of Access To Finance’. Devotion: Journal of Research and Community Service 3, no. 2 (2021): 67–82.

Handayani, Wiwik, Zulnaidi Yaacob, Septian Sony Utomo, Nurkholish Majid, and Virginia Mandasari. ‘Green Technology as an Indispensable Mediator of Leadership and Vision for Green Product Development in Surabaya MSMEs’. Discover Sustainability 7, no. 1 (2026). https://doi.org/10.1007/s43621-025-02405-0.

Hardana, Ali, Jafar Nasution, Arti Damisa, and Yuriani Nasution. ‘Business Management Training in Improving Culinary Msme Enterprises’. Jurnal Pengabdian Masyarakat Bestari 3, no. 1 (January 2024): 1. https://doi.org/10.55927/jpmb.v3i1.7465.

Hasanudin, Kamsi, and Ahmad Yani Anshori. ‘The Contestation of Legal Foundations in the Resolution of Islamic Economic Disputes in Religious Courts’. Al-Manahij: Jurnal Kajian Hukum Islam, 19 September 2024, 271–288. https://doi.org/10.24090/mnh.v18i2.11934.

Huda, Miftakul Huda, Daspar Daspar, Nani Hartati, and Donny Maulana. ‘Training For Micro, Small and Medium Enterprises (MSMEs) By Making Wall Hanging Handicrafts For The Community Of Simpangan Cikarang Utara Village, Bekasi Regency’. Inaba of Community Services Journal 2, no. 1 (June 2023): 9–15. https://doi.org/10.56956/inacos.v2i1.162.

‘Interpreting Corporate Zakat as Trade Zakat: The Construction of Islamic Legal Knowledge and Zakat Collection Practices at Baitulmaal Munzalan Indonesia’. Accessed 5 May 2026. https://e-journal.iainptk.ac.id/index.php/jil/article/view/3679.

Ismawati, and Suud Sarim Karimullah. ‘Consumer Protection in the Digital Era: An Analysis of Consumer Protection in E-Commerce’. NUSANTARA: Journal Of Law Studies 3, no. 02 (December 2024): 68–80. https://doi.org/10.5281/zenodo.17376951.

Ismiyanti, Yulina, Sucihatiningsih Dian Wisika Prajanti, Cahyo Budi Utomo, Eko Handoyo, Eva Banowati, Imam Kusmaryono, and Muhammad Nur Huda. ‘Technopreneurship Enhancing Student MSMEs Competitive Edge via Digital Marketing’. APTISI Transactions on Technopreneurship 8, no. 1 (2026): 24–36. https://doi.org/10.34306/att.v8i1.594.

Jayanti, Esih, and Nandang Bekti Karnowati. ‘Digitalisasi UMKM Dan Literasi Keuangan Untuk Keberlanjutan Umkm Di Kabupaten Cilacap’. Kajian Bisnis Sekolah Tinggi Ilmu Ekonomi Widya Wiwaha 31, no. 1 (January 2023): 1. https://doi.org/10.32477/jkb.v31i1.504.

Juita, Ratna, Dedi I. Inan, and Budi Santoso. ‘Digital Market Adoption by Underserved MSMEs in Developing Countries: Mediation and Moderation by Self-Efficacy and Trust’. International Journal of Information Management Data Insights 6, no. 1 (2026). https://doi.org/10.1016/j.jjimei.2025.100384.

Khabbaz, Lara, Omaya Kuran, and Hasan Youness. ‘The Adaptive Enactment of Value Propositions in Fragile Economies: Evidence from Sustainable MSMEs’. Sustainable Technology and Entrepreneurship 5, no. 2 (2026). https://doi.org/10.1016/j.stae.2026.100135.

Komara, Wildan Gilang, Dr Ratna Meisa Da’i, and Dr Suryanto. ‘Analisis Tingkat Literasi Keuangan UMKM Di Kawasan Lapangan Saparua, Kota Bandung’. Jurnal Sekretaris Dan Administrasi Bisnis 8, no. 1 (February 2024): 71–76. https://doi.org/10.31104/jsab.v8i1.335.

Kurniawati, Elya, Idris Idris, Puji Handayati, and Sharina Osman. ‘Digital Transformation of MSMEs in Indonesia during the Pandemic’. Entrepreneurship and Sustainability Issues 9, no. 2 (2021): 316.

Mashadi, Mumuh Mulyana, Septian Cahyadi, Rizal Riyadi, and Muanas. ‘Performance and Adoption of a PWA-Based Omnichannel Application for MSMEs: Insights from SinariUMKM’. International Journal of Data and Network Science 10, no. 1 (2026): 221–232. https://doi.org/10.5267/j.ijdns.2025.10.001.

Mayangsari, Risfiana. ‘Consumer Protection in Muamalah Transactions’. Jurnal Ilmiah Mizani: Wacana Hukum, Ekonomi Dan Keagamaan 11, no. 1 (April 2024): 206–216. https://doi.org/10.29300/mzn.v11i1.4958.

Miles, Matthew B., and A. Michael Huberman. Analisis Data Kualitatif : Buku Sumber Tentang Metode-Metode Baru. Jakarta: Universitas Indonesia Press, 2014.

Millaningtyas, Restu, Moh Amin, Agus Hermawan, and Puji Handayati. ‘Digital Transformation of Financial Literacy and Inclusion as a Support for Convenience for MSMEs’. International Journal of Humanities Education and Social Sciences 3, no. 5 (April 2024). https://doi.org/10.55227/ijhess.v3i5.824.

Mujib, Abdul. ‘The Failure of Indonesian E-Commerce Law in Adapting to Digital Economy’. Ijtihad : Jurnal Wacana Hukum Islam Dan Kemanusiaan 25, no. 2 (December 2025): 213–230. https://doi.org/10.18326/ijtihad.v25i2.213-230.

Nahidloh, Shofiyun, Lailatul Qadariyah, Firman Setiawan, Trischa Relanda Putra, and Tri Pujiati. ‘Evaluating Halal Certification Assessment on Madurese Tourism Destination’. AL-IHKAM: Jurnal Hukum & Pranata Sosial 20, no. 2 (2025): 643–672. https://doi.org/10.19105/al-lhkam.v20i2.14913.

Nurani, Nina, Apriwandi Apriwandi, and Hafied Noor Bagja. ‘Intellectual Property Rights Law Reform Based on Maqāṣid Al-Sharī‘ah as a Model for Green Business-Based Creative Industry Protection to Support Sustainable Development’. De Jure: Jurnal Hukum Dan Syar’iah 18, no. 1 (February 2026): 1–32. https://doi.org/10.18860/j-fsh.v18i1.40840.

Podungge, Rulyjanto, Rizal Darwis, Zumiyati S. Ibrahim, Arhjayati Rahim, A. Zamakhsyari Baharuddin, and Syarifuddin. ‘Increasing Halal Industry MSMEs in Gorontalo through Maqāṣid Asy-Syarī`ah’. Asy-Syari’ah: Jurnal Hukum Islam 27, no. 2 (December 2025): 171–192. https://doi.org/10.15575/as.v27i2.39577.

Puspita, Vina Anggilia, Dito Rinaldo, and Gunardi Gunardi. ‘Enhancing Financial Literacy to Promote Sustainability in MSMEs’. Jurnal Ilmu Keuangan Dan Perbankan (JIKA) 14, no. 1 (December 2024): 121–130.

Putra, Gilang Kharisma, and Nanang Apriliyanto. ‘Factors Affecting MSMEs’ Interest In Using Sharia Crowdfunding Mediated By Perception’. IQTISHADUNA: Jurnal Ilmiah Ekonomi Kita 13, no. 2 (December 2024): 2. https://doi.org/10.46367/iqtishaduna.v13i2.2168.

Rahadjeng, Erna Retno, Heri Pratikto, Imam Mukhlis, and Nurika Restuningdiah. ‘Analysis of Financial Technology, Financial Literacy, Financial Attitudes, on Mediated Business Performance Financial Inclusion and Self-Efficiency in Small Medium Industry (SMI) in Malang City, Indonesia’. International Journal of Professional Business Review: Int. J. Prof. Bus. Rev. 8, no. 8 (2023): 45.

Rosyidah, Umu, and Heri Pratikto. ‘The Role of Behavioral Bias on Financial Decision Making: A Systematic Literature Review and Future Research Agenda’. Journal of Enterprise and Development (JED) 4, no. 1 (June 2022): 1. https://doi.org/10.20414/jed.v4i1.5102.

Rusdiana, Shelvi, Ampuan Situmeang, and Winda Fitri. ‘The Urgency of Sustainability Disclosure in Indonesia’s Agricultural Regulations: A Legal Strategy for Achieving SDG 2’. Nurani: Jurnal Kajian Syari’ah Dan Masyarakat 25, no. 1 (May 2025): 171–184. https://doi.org/10.19109/nurani.v25i1.26454.

Sakinah, Zurria, Mumtaz Muzaffar, and Maudy Farras Raihan. ‘Indonesia’s Strategic Legal and Economic Response to the US–China Trade War: Implications for Global Value Chains, Foreign Investment and MSMEs’. Trunojoyo Law Review 7, no. 2 (August 2025): 287–313. https://doi.org/10.21107/tlr.v7i2.30350.

Setiawan, Iwan, Dudang Gojali, Chaerul Shaleh, and Mualimin Mochammad Sahid. ‘Legal and Ethical Analysis of Mystery Box Transactions in E-Commerce Platforms: A Sharia Economic Law Perspective’. El-Mashlahah 15, no. 2 (December 2025): 324–346. https://doi.org/10.23971/el-mashlahah.v15i2.9786.

Shaferi, Intan, Refius Pradipta Setyanto, and Alisa Tri Nawarini. ‘Increasing the Financial Income for MSMEs by Gaining Role of Industrial Networking and Demand of Goods’. Multidisciplinary Reviews 9, no. 7 (2026). https://doi.org/10.31893/multirev.2026322.

Suhartini, Endeh, Euis Hertiani, R. Djuniarsono, Hidayat Rumatiga, and Nurfajrina Sabila Pm. ‘Analysis of Halal Certification for Micro and Small Business Actors from the Perspective of Maslahah Principles and Legal Certainty’. Al-’Adalah 21, no. 2 (December 2024): 401–426. https://doi.org/10.24042/adalah.v21i2.23442.

Susilawati, Made, Eko Nur Hermansyah, Jamaluddin Majid, Ria Kristia Fatmasari, and Dedah Ningrum. ‘Effect of Financial Management Training Program on Micro, Small and Medium Enterprises (MSMEs) in Area Y’. Abdimas Indonesian Journal 4, no. 2 (December 2024): 2. https://doi.org/10.59525/aij.v4i2.545.

Suwarno, Rindi Andika, Daud Arifin, and Nia Deniati Lumbangaol. ‘Analysis of the Influence of Training and Education on the Development of MSMEs in the Community of Kwala Serapuh Langkat Village Moderated by Motivation Variables’. Journal of Community Research and Service 8, no. 2 (2024): 2. https://doi.org/10.24114/jcrs.v8i2.63048.

Syamsuri, Fina Nurafni, Ahmad Havid Jakiyudin, and Mohammad Taqiuddin Mohamad. ‘Connecting ISF to ISEs for Decent Work (SDG 8): A Conceptual Framework’. Al-Muamalat 13, no. 1 (March 2026): 1–26. https://doi.org/10.15575/am.v13i1.49387.

Utami, Elok Sri, Mega Rizky Aprilia, and Ihrom Caesar Ananta Putra. ‘Financial Literacy Of Micro, Small, And Medium Enterprises Of Consumption Sector In Probolinggo City’. Jurnal Manajemen Dan Kewirausahaan 23, no. 1 (April 2021): 1. https://doi.org/10.9744/jmk.23.1.10-17.

Widiyati, Sri, Edi Wijayanto, and Prihartiningsih Prihartiningsih. ‘Financial Literacy Model at Micro Small Medium Entreprise (MSMEs)’. MIMBAR : Jurnal Sosial Dan Pembangunan 34, no. 2 (December 2018): 2. https://doi.org/10.29313/mimbar.v34i2.2914.

Widodo, Slamet, Suhendi, and Muhammad Agung Putranto. ‘Impact of Training and Assistance on Home Industry SMEs Development by Housewives in Klambir Lima Village’. Sinergi International Journal of Economics 2, no. 3 (August 2024): 3. https://doi.org/10.61194/economics.v2i3.215.

Wijatmoko, Sigit, Ika Sartika, and Rosmery Elsye. ‘Collaborative Governance in Digital Transformation Policy Implementation for MSMEs in Jakarta: A Socio-Legal Perspective’. Jurnal Hukum 41, no. 2 (June 2025): 366–393. https://doi.org/10.26532/jh.v41i2.45941.

Winarno, Agung, and Trisetia Wijijayanti. ‘Does Entrepreneurial Literacy Correlate to the Small-Medium Enterprises Performance in Batu East Java?’ Academy of Entrepreneurship Journal 24, no. 1 (2018): 1–13.