“…The test of the financial framework in this research can fill the Jurnal Manajemen Universitas Bung Hatta Vol.17, No.02, July, 2022ISSN : 1907 The phenomenon of innovation in SMEs that is happening at this time is business digitalization, which means the businesses are run by applying the new digital technology (Ansong & R.Boateng, 2019). The companies must successfully do innovation through the digital technology to improve the business performance, include to increase experiences and involvements, minimizing the operations, and creating new business models or on the other side, the company will be destroyed of the other competitor companies which implement these strategies (Giantri et al, 2021) (Ong & Chen, 2013). In this definition, digital innovation can be conceptualized as the solution of innovative technology which integrates the digital technology that appears to support the digitization of non-technology businesses like banking, healthcare, manufacturing, and retail.…”