The role of digitalization driving transformation and perlaformance growth of MSMes in the digital economy era

Abstrak

Digitalization has emerged as a key driver of economic transformation and innovation
among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This study aims to
analyze the role of digitalization in improving MSME performance through a systematic
literature review (SLR) of national academic publications over the past five years. A total
of 10 SINTA-indexed journal articles were reviewed to identify the main factors
influencing MSME digital transformation, including digital literacy, ecosystem readiness,
entrepreneurial orientation, and policy support. The findings reveal that digitalization
significantly enhances business performance through the adoption of e-commerce,
financial technology, and digital marketing strategies that improve operational efficiency,
productivity, and market competitiveness. Furthermore, collaboration between
government, academia, and industry—aligned with the Triple Helix Model—plays a
crucial role in strengthening the digital ecosystem. However, challenges such as low
digital literacy and uneven technological infrastructure remain barriers to inclusive
transformation. This study concludes that digitalization is not only a technological shift but
also a comprehensive strategy involving managerial, social, and cultural adaptation to
achieve sustainable MSME growth in the digital era.