Key Factors Influencing the Success of MSMEs in the Digital Era: A Study in Jakarta City
Keywords:
MSMEs, Digital Era, Technology Adoption, Digital Marketing, Operational EfficiencyAbstract
In the digital era, Micro, Small, and Medium Enterprises (MSMEs) play a critical role in Jakarta's economy, significantly contributing to GDP and employment. Despite this, MSMEs face challenges such as limited access to technology, high adoption costs, resistance to change, and funding difficulties. This study aims to identify critical factors influencing MSMEs' success in this context. Utilizing a mixed-methods approach, the research combines quantitative surveys of 150 MSMEs and qualitative interviews with 10 MSME owners to analyze technology adoption, digital marketing strategies, operational management, and government support. The results reveal that operational efficiency (β = 0.38), technology adoption (β = 0.35), and digital marketing strategies (β = 0.28) significantly impact MSMEs' success, with government support (β = 0.20) also playing a vital role. The regression model explains 56% of the variance in MSME success (R² = 0.56). Qualitative findings highlight that successful MSMEs report significant improvements in operational efficiency and market access through technology adoption despite challenges such as high costs and the need for digital skills. This study provides practical recommendations to enhance MSMEs' competitiveness in Jakarta, including increasing digital literacy, facilitating access to technology, and improving government policies to support digital transformation. MSMEs can achieve better performance and sustainability in an increasingly digitalized market environment by effectively leveraging digital tools and strategies.
References
Abdullahi, A., Bamidele, A. H., & Oladimeji, A. B. (2023). POVERTY AND YOUTH ENGAGEMENT IN CYBERCRIME IN NIGERIA: AN OVERVIEW OF ITS EFFECT ON NATIONAL SECURITY.
Aslam, J., Saleem, A., Khan, N. T., & Kim, Y. B. (2021). Factors influencing blockchain adoption in supply chain management practices: A study based on the oil industry. Journal of Innovation & Knowledge, 6(2), 124–134.
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13(3), 319–340.
Emiliaty, A. (2024). Blockchain Technology: Revolutionizing Data Integrity and Security in Digital Environments. Journal of Advanced Technological Innovations, 1(1), 1–8.
Ghosh, U., Das, D., Chatterjee, P., & Shetty, S. (2023). Quantum-Enabled Blockchain for Data Processing and Management in Smart Cities. 2023 IEEE 24th International Symposium on a World of Wireless, Mobile and Multimedia Networks (WoWMoM), 425–430.
Halfiani, S., Nur, M. R. A., Kusumoraharjo, W., & Silitonga, I. M. (2024). SmartPLS Analysis: Interdisciplinary Insights for Sustainable Urban Development in Smart Cities and Emerging Technologies. Journal of Advanced Technological Innovations, 1(1), 9–18.
Khong, I., Pangilinan, G. A., Abelar, Y. J., Yadav, N., & Mariano, E. P. (2024). Mapping Cybersecurity Literature: Insights from VOS Viewer Analysis. Journal of Advanced Technological Innovations, 1(1), 35–41.
Noor, Q., Multazam, A., Riyadi, S. G., Pratama, R., & Maulana, A. (2024). Large-Scale Ethereum Network Performance Analysis: Case Study and Implications. Journal of Advanced Technological Innovations, 1(1), 26–34.
Rahayu, R., & Day, J. (2017). E-commerce adoption by SMEs in developing countries: evidence from Indonesia. Eurasian Business Review, 7, 25–41.
Rogers, E. M. (2003). Diffusion of Innovations (5th (ed.)). Free Press.
Sulistiana, I. (2024). Navigating the Evolving Landscape of Cyber Threats in the Digital Age. Journal of Advanced Technological Innovations, 1(1), 19–25.
