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All Journal Binus Business Review Journal of Economic, Bussines and Accounting (COSTING) Management Studies and Entrepreneurship Journal (MSEJ) GANDRUNG: Jurnal Pengabdian Kepada Masyarakat Jurnal Pengabdian Masyarakat (ABDIRA) Journal of Economics, Entrepreneurship, Management Business and Accounting Mount Hope Global Economic Journal Jurnal Ekonomi, Manajemen, Akuntansi Jurnal Pengabdian Kepada Masyarakat Teknologi Informasi dan Komunikasi
Esther Praja Anggriany Panggabean
Faculty Of Economics, Universitas Prima Indonesia, Indonesia
Aerospace Engineering Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Languange, Linguistic, Communication & Media Nursing Physics Social Sciences Other

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Digital Transformation and MSME Performance in Medan: The Roles of Digital Marketing, E-Commerce, Fintech, and Digital Literacy Dede Ansyari Guci; Esther Praja Anggriany Panggabean; Jamaluddin Jamaluddin
Journal of Economics, Entrepreneurship, Management Business and Accounting Vol 4 No 5 (2026): Volume 4, Issue 5, September 2026
Publisher : CV. Sakura Digital Nusantara

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61255/jeemba.v4i5.1274

Abstract

Purpose – This investigation evaluates how digital marketing, e-commerce adoption, fintech usage, and digital literacy—as four distinct dimensions of digital transformation—affect the performance of Micro, Small, and Medium Enterprises (MSMEs) based in Medan, with self-reported MSME performance serving as an operational indicator of short- to medium-term business outcomes. Design/methodology/approach – A quantitative research design was executed using empirical data collected through a structured quota-purposive sampling procedure from 200 digitally active MSME operators across five major industrial sectors in Medan. Structural Equation Modeling–Partial Least Squares (SEM-PLS) via SmartPLS 4 was used to evaluate measurement validity, structural path relationships, control variable impacts, and out-of-sample predictive performance using PLSpredict. Finding/Results – The empirical structural evaluation indicates that digital marketing (β = 0.232, p < 0.001), e-commerce adoption (β = 0.185, p < 0.001), fintech usage (β = 0.142, p < 0.001), and digital literacy (β = 0.364, p < 0.001) exhibit positive and statistically significant associations with MSME performance. Inclusion of control variables (firm age, owner education, sector) confirmed the robustness of these baseline relationships. PLSpredict analysis verified the model's out-of-sample predictive capabilities. Originality/Value – The novelty of this study lies in its comparative empirical assessment of four key digital-transformation dimensions as parallel direct predictors within a unified variance-based structural framework among digitally engaged regional MSMEs. Grounded in entrepreneurship theory, the findings emphasize that while external digital platforms provide necessary market access and transactional tools, internal human capabilities (digital literacy) carry the largest relative association with performance outcomes.
Co-Authors Andi Syahputra Beby Astri Tarigan Charmelinda Aritonang Dede Ansyari Guci Egianta Ginting Evta Indra Faisal Akbar Ferry Salim Fransiska Yang Isna Asdiani Nasution Jamaluddin Jamaluddin Khairunnisa Abd Samad Lidya Natalia Pasaribu Maisara Batubara Nurul Wardani Lubis Owen De Pinto Simanjuntak Purba, Mas Intan Siregar, Ina Namora Putri Susanna Silvia Sembiring Tampubolon, Lasma Ria Tantri Octora Dwi Syah Putri Tarisa Stevani Anggreini Lumbantobing Winda Sri Astuti Doloksaribu Yan Raja David Hamonangan Damanik