Journal of Economics, Business, and Accountancy Ventura Vol. 26, No. 1, April – July 2023, pages 115 – 128 115 Do Adaptability and Innovation Speed Matter in Increasing Sales of MSMEs during the COVID-19 Pandemic? Rahmat Sabuhari * , Marwan Man Soleman, Mukhtar A. Adam, Sulfi Abdul Haji Universitas Khairun, Ternate, Maluku Utara, Indonesia ARTICLE INFO Article history: Received: 15 April 2022 Revised: 8 May 2023 Accepted: 12 May 2023 JEL Classification: D24, L25, L26, O31 DOI: 10.14414/jebav.v26i1.2994 Keywords: COVID-19 pandemic, Adaptability, Innovation speed, Sales, Entrepreneurship MSMEs 1. INTRODUCTION There is something different in today’s digital era; namely, change is happening on a large scale and has never happened before (Brosseau et al., 2019). An extreme example is the current destructive situation brought about by the global COVID-19 pandemic. Consequently, many organizations, including micro, * Corresponding author, email address: rahmat.sabuhari@unkhair.ac.id ABSTRACT Micro, Small, and Medium-sized Enterprises (MSMEs) in Eastern Indonesia are threatened with bankruptcy during the COVID-19 pandemic. This situation occurred due to significantly decreased people’s purchasing power, and most production activities stopped. In light of this issue, this study aims to investigate how well MSMEs’ adaptability and innovation speed in Eastern Indonesia have increased their sales during the pandemic. We collected the data by distributing questionnaires on offline and online channels using Google Forms to MSMEs owners in Maluku and North Maluku Provinces. We eventually gathered 262 pieces of data and analyzed it through the PLS-SEM approach. The results showed that adaptability has a positive and significant effect on sales and the speed of innovation, while innovative speed has no impact on sales. In other words, the innovation speed can also not mediate adaptability to MSMEs sales. The results of this study are expected to benefit MSMEs owners in implementing appropriate business strategies, especially how MSMEs owners have the adaptability and innovation speed to manage their business in this condition of uncertainty. Additionally, this research is expected to provide an empirical contribution to the government of Indonesia in making considerations, policies, and decision-making related to the empowerment of MSMEs during the pandemic and beyond. ABSTRAK Usaha Mikro, Kecil, dan Menengah (UMKM) di Indonesia Timur terancam gulung tikar di masa pandemi COVID-19. Situasi ini terjadi karena daya beli masyarakat yang menurun secara signifikan dan sebagian besar kegiatan produksi terhenti. Sehubungan dengan hal tersebut, penelitian ini bertujuan untuk mengetahui seberapa baik kemampuan adaptasi dan kecepatan inovasi UMKM di Indonesia Timur dalam meningkatkan penjualan selama pandemi. Kami mengumpulkan data dengan menyebarkan kuesioner secara offline dan online menggunakan Google Formulir kepada pemilik UMKM di Provinsi Maluku dan Maluku Utara. Kami akhirnya mengumpulkan 262 data dan menganalisisnya melalui pendekatan PLS-SEM. Hasil penelitian menunjukkan bahwa kemampuan beradaptasi berpengaruh positif dan signifikan terhadap penjualan dan kecepatan inovasi, sedangkan kecepatan inovasi tidak berpengaruh terhadap penjualan. Dengan kata lain, kecepatan inovasi juga tidak dapat memediasi kemampuan beradaptasi terhadap penjualan UMKM. Hasil penelitian ini diharapkan dapat memberikan manfaat bagi pemilik UMKM dalam menerapkan strategi bisnis yang tepat, terutama bagaimana pemilik UMKM memiliki kemampuan beradaptasi dan kecepatan berinovasi dalam mengelola bisnisnya di tengah kondisi yang penuh dengan ketidakpastian. Selain itu, penelitian ini diharapkan dapat memberikan kontribusi empiris bagi pemerintah Indonesia dalam membuat pertimbangan, kebijakan, dan pengambilan keputusan terkait pemberdayaan UMKM di masa pandemi dan seterusnya.