SUSTAINABLE INNOVATIONS IN MSMES DURING THE ERA OF DIGITAL TRANSFORMATION: A STUDY IN INDONESIA
Abstract
Business value generation processes have been significantly impacted by digital transformation, especially for the Micro, Small, and Medium Enterprises (MSMEs) sector, which accounts for 61% of GDP and is the backbone of the Indonesian economy. This study is to review the most recent research on how MSMEs employ digitalization to address a range of opportunities and challenges in order to promote sustainable innovation in a changing global context. This study investigates the use of digital technology in MSMEs prior to, during, and following the Covid-19 pandemic using a combination of approaches.
Sales turnover records were used to collect quantitative data, and in-person interviews with respondents were used to gather qualitative data. According to the analysis's findings, digital technology plays a significant role in enhancing MSME capacity to meet strategic objectives, which the COVID-19 epidemic has expedited. With the pandemic speeding up digital transformation and changes in consumer behavior toward digital transaction patterns leading to higher turnover, it was determined that digital technology is a significant catalyst for sustainable MSME growth. However, to overcome the different challenges MSMEs encounter, effective digitization necessitates deliberate policy backing and pertinent training initiatives.
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