Economic Transformation through Digitalization: Case Study of SMEs and E-Commerce Platforms
DOI:
https://doi.org/10.62007/joumi.v3i2.465Keywords:
economic digitalization, MSMEs, e-commerce, business transformation, digital inclusionAbstract
This research examines the economic transformation process occurring within Micro, Small, and Medium Enterprises (MSMEs) through integration with e-commerce platforms in Indonesia. Using a case study method involving 5 MSMEs in East Java, this research analyzes changes in business models, revenue growth, market expansion, and operational adaptations experienced by MSME actors after joining e-commerce platforms. The findings indicate that digitalization through e-commerce platforms provides an average revenue increase of 45%, expansion of market reach to international markets, and business operational efficiency. However, several obstacles such as digital literacy gaps, uneven infrastructure, and intensifying competition were also identified. This research contributes to understanding the dynamics of digital transformation in MSMEs and provides strategic recommendations for business actors and policymakers to optimize the utilization of e-commerce platforms in local economic development.
References
Bank Indonesia. (2022). Laporan Perekonomian Indonesia 2022. Bank Indonesia.
Braun, V., & Clarke, V. (2019). Reflecting on reflexive thematic analysis. Qualitative Research in Sport, Exercise and Health, 11(4), 589-597.
Hardjono, B., & Maulana, A. (2021). Barriers to digital transformation for MSMEs in Indonesia: A case study approach. Journal of Small Business and Enterprise Development, 28(3), 450-467.
Hartono, H., Suryanto, T., & Koesrindartoto, D. P. (2022). Digital value chain transformation: Evidence from Indonesian MSMEs. Business Process Management Journal, 28(1), 22-39.
Kementerian Koperasi dan UKM. (2023). Perkembangan Data Usaha Mikro, Kecil, Menengah (UMKM) dan Usaha Besar (UB) Tahun 2022-2023. Kementerian Koperasi dan UKM Republik Indonesia.
Kurniawan, R., & Anggoro, Y. (2023). Adaptive capabilities and digital transformation success factors for Indonesian SMEs. International Journal of Emerging Markets, 18(2), 234-253.
Laudon, K. C., & Traver, C. G. (2021). E-Commerce 2021: Business, Technology, Society (17th ed.). Pearson.
Nugroho, A., & Cahyono, H. (2022). Digital transformation as a catalyst for inclusive economic growth: The case of Indonesian MSMEs. Journal of Asian Business Studies, 16(3), 322-341.
Osterwalder, A., & Pigneur, Y. (2020). Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. John Wiley & Sons.
Pramono, R., Sondakh, L. W., & Bernarto, I. (2021). Determinants of the small and medium enterprises progress: A case study of SME entrepreneurs in Indonesia. The Journal of Asian Finance, Economics and Business, 8(1), 881-889.
Purwanto, E., & Suhardi, D. (2022). Digital business models for Indonesian SMEs: Typology and performance analysis. Asian Journal of Technology Innovation, 30(1), 68-92.
Rachinger, M., Rauter, R., Müller, C., Vorraber, W., & Schirgi, E. (2019). Digitalization and its influence on business model innovation. Journal of Manufacturing Technology Management, 30(8), 1143-1160.
Rahayu, R., & Day, J. (2017). E-commerce adoption by SMEs in developing countries: Evidence from Indonesia. Eurasian Business Review, 7, 25-41.
Sari, P. K., & Haryanto, R. (2021). Digital transformation readiness of Indonesian MSMEs: Current state and future directions. Journal of Small Business Management, 59(sup1), S164-S187.
Schwab, K. (2016). The Fourth Industrial Revolution. World Economic Forum.
Tambunan, T. (2019). Recent evidence of the development of micro, small and medium enterprises in Indonesia. Journal of Global Entrepreneurship Research, 9(1), 1-15.
Wardhana, A. (2020). Information technology adoption and the growth of small and medium enterprises (SMEs) in Indonesia. Journal of Entrepreneurship Education, 23(1), 1-10.
Wijaya, S. W., & Darma, G. S. (2020). The impact of e-commerce adoption on business performance: An empirical study of SMEs in Indonesia. International Journal of Science and Research, 9(7), 756-764.
Yin, R. K. (2018). Case Study Research and Applications: Design and Methods (6th ed.). Sage Publications.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Albertus Maria Setyastanto, Syaiful Syaiful
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
