THE IMPORTANCE OF DIGITALIZATION IN DRIVING INNOVATION, STRATEGY, AND COMPETITIVE ADVANTAGE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)IN BANJARMASIN
Keywords:
digitalization, MSMEs, innovation, business strategy, competitive advantageAbstract
Digitalization has become a crucial catalyst for business transformation in the digital economy era, including for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This research aims to analyze the role of digitalization in encouraging innovation, developing effective business strategies, and achieving competitive advantages for micro and small enterprises (MSMEs). Through a qualitative approach involving literature studies and in-depth interviews with MSME actors across various sectors, it was found that the adoption of digital technologies, such as e-commerce, social media, and digital management systems, can increase operational efficiency, expand market reach and accelerate the process of product and service innovation. However, the study's results also reveal that significant challenges persist, including limited access to technology, low digital literacy, and a lack of employee skills in MSMEs. Therefore, synergy between the government, industry players, and education and training institutions is needed to create an inclusive and sustainable digital ecosystem for MSMEs. In conclusion, digitalization is not only a tool but also a strategic foundation for enhancing the competitiveness of MSMEs in the face of increasingly dynamic global competition.
Downloads
References
Abdullah, S., & Ampauleng, A. (2024). The Micro-Influencers Effect on the Business Sustainability of Small Medium Enterprise: The Marketing Strategy Approach. Quality - Access to Success, 25(199), 319–329. https://doi.org/10.47750/QAS/25.199.35
Alghamdi, O., & Agag, G. (2024). Journal of Retailing and Consumer Services Competitive advantage : A longitudinal analysis of the roles of data-driven innovation capabilities , marketing agility , and market turbulence. Journal of Retailing and Consumer Services, 76(July 2023), 103547. https://doi.org/10.1016/j.jretconser.2023.103547
Ashrafi, A., & Zareravasan, A. (2022). An ambidextrous approach on the business analytics-competitive advantage relationship: Exploring the moderating role of business analytics strategy. Technological Forecasting and Social Change, 179(January), 121665. https://doi.org/10.1016/j.techfore.2022.121665
Cadden, T., Weerawardena, J., Cao, G., Duan, Y., & McIvor, R. (2023). Examining the role of big data and marketing analytics in SMEs innovation and competitive advantage: A knowledge integration perspective. Journal of Business Research, 168(June), 114225. https://doi.org/10.1016/j.jbusres.2023.114225
Dwi Handini, Y., Poernomo, D., Karyadi, H., Ketut Mastika, I., & Ilmu Administrasi Bisnis FISIP Universitas Jember, P. (2023). Pengaruh Orientasi Kewirausahaan terhadap Keunggulan Bersaing yang Dimoderasi Kinerja Bisnis. Jurnal Bisnis & Kewirausahaan, 19(1), 95–104. http://ojs2.pnb.ac.id/index.php/JBK
Hayati, D., Akimas, H. N., & Rahmawati, R. (2024). The Impact of Leader-Member-Exchange and Competency on Performance with Organizational Citizenship Behavior as a Mediation Variable for Academic Staff of Private Universities In Kalimantan Region. Asian Journal of Management, Entrepreneurship and Social Science, 4(02), 1585-1600.
Hayati, D., & Rifani, A. (2025). Employee Engagement And Leader-Member Exchange
Form Organizational Commitment And Organizational Citizenship Behavior. Can It Be Achieved For Employees Who Work While Studying?. Journal of Ecohumanism, 4(1), 594-605.
Hidayat, T., Mohdari, M., & Hayati, D. (2024). Edukasi Kewirausahaan Dengan Lomba Business Model Campas. JCSE: Journal of Community Service and Empowerment, 5(2), 162-170.
Kurdi, B. Al, Alzoubi, H. M., Alshurideh, M. T., Alquqa, E. K., & Hamadneh, S. (2023). Impact of supply chain 4.0 and supply chain risk on organizational performance: An empirical evidence from the UAE food manufacturing industry. Uncertain Supply Chain Management, 11(1), 111–118. https://doi.org/10.5267/j.uscm.2022.11.004
Nadiri, H., & Tanova, C. (2010). Jurnal Internasional Manajemen Perhotelan kewargaan organisasional di industri perhotelan. 29, 33–41. https://doi.org/10.1016/j.ijhm.2009.05.001
Octavina, L. A., & Rita, M. R. (2021). dan kinerja keuangan : Studi pada masa pandemi Covid-19. STIE Perbanas Press 2021, 11, 73–92. https://doi.org/10.14414/jbb.v11i1.2552
Rakib, M., Azis, M., Najib, M., & Isma, A. (2023). Impact of Digital Literacy, Business Innovation, Competitive Advantage on the Existence of SMEs: A quantitative study in Makassar City, Indonesia. Quality-Access to Success, 25(198), 277–283. https://doi.org/10.47750/qas/25.198.30
Rawan, I. I., & Ghonisyah, G. A. A. (2023). Strategi Digitalisasi Pada UMKM di Bidang Kuliner pada Masa Pandemi Covid-19 di Kota Tasikmalaya. Jurnal Bisnis Dan Kewirusahaan, 19(01), 43–49.
Saribanon, E., Yuliantini, Y., Wiwaha, A., Sari, M., Sihombing, S., Ruminda, M., Keke, Y., Gultom, S., Chairuddin, I., Yulihapsari, I. U., & Endri, E. (2024). Supply chain strategy and supplier environment on competitive advantage: The moderating role of environmental uncertainty. Uncertain Supply Chain Management, 12(1), 323–332. https://doi.org/10.5267/j.uscm.2023.9.018
Seema, Choudhary, V., & Saini, G. (2021). Effect of Job Satisfaction on Moonlighting Intentions: Mediating Effect of Organizational Commitment. European Research on Management and Business Economics, 27(1), 100137. https://doi.org/10.1016/j.iedeen.2020.100137
Sherlywati, S., & Simangunsong, E. (2023). Willingness To Embed Social Sustainability: a Case of Gen Y and Gen Z Entrepreneurs in Indonesia. Jurnal Manajemen Dan Kewirausahaan, 25(1), 25–40. https://doi.org/10.9744/jmk.25.1.25-40
Srisathan, W. A., Ketkaew, C., & Naruetharadhol, P. (2023). Assessing the effectiveness of open innovation implementation strategies in the promotion of ambidextrous innovation in Thai small and medium-sized enterprises. Journal of Innovation and Knowledge, 8(4). https://doi.org/10.1016/j.jik.2023.100418
Tajeddini, K., Gamage, T. C., Tajdini, J., Qalati, S. A., & Siddiqui, F. (2023). Achieving sustained competitive advantage in retail and consumer service firms: The role of entrepreneurial orientation and entrepreneurial bricolage. Journal of Retailing and Consumer Services, 75(July), 103495. https://doi.org/10.1016/j.jretconser.2023.103495
Wang, M., Armstrong, S. J., Li, Y., Li, W., & Hu, X. (2023). Acta Psychologica The
influence of leader-follower cognitive style congruence on organizational citizenship behaviors and the mediating role of trust. Acta Psychologica, 238(June), 103964. https://doi.org/10.1016/j.actpsy.2023.103964
Wongsansukcharoen, J., & Thaweepaiboonwong, J. (2023). Effect of innovations in human resource practices, innovation capabilities, and competitive advantage on small and medium enterprises’ performance in Thailand. European Research on Management and Business Economics, 29(1), 100210. https://doi.org/10.1016/j.iedeen.2022.100210
