Assessing the Impact of Digital Transformation on Small and Medium Enterprises (SMEs) Performance in Indonesia: A Quantitative Analysis of Productivity, Profitability, and Innovation
Keywords:
Digital Transformation, Small and Medium Enterprises (SMEs), ProductivityAbstract
Purpose: This study examines the impact of digital transformation on the performance of Small and Medium Enterprises (SMEs) in Indonesia, focusing on productivity, profitability, and innovation.
Subjects and Methods: A quantitative research approach was employed, using a survey of 285 SME owners and managers across various industries and regions in Indonesia.
Results: The findings revealed that digital transformation, including the adoption of tools such as e-commerce, cloud computing, and big data analytics, had a significant positive impact on SME performance. Specifically, digital transformation was found to enhance productivity, increase profitability, and foster innovation within SMEs. The study emphasizes the importance of not only adopting digital tools but also integrating them into business processes to achieve optimal results.
Conclusions: The results provide valuable insights for SME managers seeking to leverage digital technologies for improved performance and competitiveness, as well as for policymakers aiming to support digital transformation initiatives in Indonesia’s SME sector.
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