MSME Business Transformation in the Digital Era: Digital Innovation as a Driver of Inclusive Business Models in Indonesia

Fang Ming Sheng; Wing-Keung Wong; Virginia Amelia Supranta; Eko Hariyadi; Sahilali Saiyed

doi:10.33830/osc.v3i1.7858

Authors

Fang Ming Sheng Asia University
Wing-Keung Wong Asia University, China Medical University Hospital, The Hang Seng University of Hong Kong
Virginia Amelia Supranta Asia University
Eko Hariyadi Asia University
Sahilali Saiyed Chaoyang University of Technology

DOI:

https://doi.org/10.33830/osc.v3i1.7858

Keywords:

Digital Innovation, Digital Transformation, Inclusive Business Models, Indonesia, MSMEs

Abstract

The digital transformation of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia represents a crucial driver of economic growth and innovation in the country's evolving business landscape. This research examines the role of new technologies in promoting inclusive practices by Indonesian MSMEs, with an emphasis on their current adoption, the difficulties they face, and the opportunities ahead. Using a combination of systematic literature review, case study analysis, and an examination of current policy efforts, this study looks at the present situation of digital transformation among Indonesian MSMEs and discovers what helps them develop inclusive business models. The study shows that while adopting digital technology helps MSMEs expand their market, work more efficiently, and make better profits, these small businesses have to handle substantial challenges, such as limited resources, not having the technical skills required, and insufficient infrastructure. It is explained that with government help, working with other types of businesses and sharing resources, MSMEs are able to use technology to become more competitive and encourage inclusive growth. This study contributes to understanding the intersection of digital innovation and inclusive business models in the context of Indonesia's economic development priorities.

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