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All Journal AGRARIS: Journal of Agribusiness and Rural Development Research
Ahrisa, Dwi
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Agriculture, Biological Sciences & Forestry Economics, Econometrics & Finance Social Sciences

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Examining the Readiness of Micro, Small, and Medium Agribusiness Enterprises for the Digital Economy: A Lesson from West Sulawesi, Indonesia Fitri; Halik, Rizky Ariesty Fachrysa; Arhim, Muhammad; Ahrisa, Dwi
AGRARIS: Journal of Agribusiness and Rural Development Research Vol. 12 No. 1: January-June 2026
Publisher : Universitas Muhammadiyah Yogyakarta

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.18196/agraris.v12i1.686

Abstract

The rapid advancement of the digital economy presents both opportunities and challenges for micro, small, and medium enterprises (MSMEs), particularly in the agribusiness sector. The study examined the extent of the readiness of agribusiness MSMEs to face the digital economy and investigated the effect of driving and barrier factors on the digital economy readiness of agribusiness MSMEs. A quantitative approach was employed, with data from 124 MSMEs analyzed using descriptive statistics and PLS-SEM. The findings indicated that the highest readiness score was observed in digital literacy and skills, representing the people indicator. However, financial constraints and inadequate digital infrastructure remained significant barriers. Furthermore, consumer pressure and top management support were identified as critical drivers of digital readiness. The study enriches the existing literature on digital readiness in the agribusiness MSME sector by providing empirical insights from West Sulawesi, an underdeveloped province often overlooked in academic discourse. To support the digital transformation of agribusiness MSMEs, policies should prioritize practical capacity-building, expand access to reliable digital infrastructure, and ensure that inclusive financial services reach even the most remote business actors.
Co-Authors Fitri Muh. Arhim Rizky Ariesty Fachrysa Halik