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Digital Transformation as a Catalyst for SMEs Productivity and Profitability in the Digital Era Titis Sri Wulan; Reni; Rezty Arizta Putri; Dewi Agustina Solihin
Journal of Economic Education and Entrepreneurship Studies Vol. 5 No. 4 (2024): VOL. 5, NO. 4 (2024): JE3S, DESEMBER 2024
Publisher : Department of Economics Education, Faculty of Economics, Universitas Negeri Makassar

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.62794/je3s.v5i4.4543

Abstract

The issue in research regarding the impact of digital transformation on SME productivity and profitability often relates to the gap in access to technology. This study aims to analyze the influence of digital transformation on the productivity and profitability of Small and Medium Enterprises (SMEs). Using a qualitative literature review approach, the research explores various previous studies and compares their results to understand how digital technology can help SMEs improve operational efficiency and competitiveness in the global market. Based on previous findings, it was discovered that the adoption of technologies such as e-commerce, cloud-based inventory management, and digital marketing can increase SME productivity by up to 30% and profitability by an average of 35%. However, SMEs in Indonesia still face significant challenges, including limited technological infrastructure and low digital literacy. In addressing the challenges of the Fourth Industrial Revolution, support from the government and the private sector is crucial, particularly in providing digital training and access to technological infrastructure. This research also adopts the Theory of Technological Innovation, Resource-Based Theory, and Transaction Cost Economics Theory to understand the factors influencing digital transformation in SMEs. In conclusion, although there are many challenges in the digitalization process of SMEs, technology adoption can have a significant positive impact on productivity and profitability if supported by appropriate policies and infrastructure.
Pemberdayaan Umkm Dan Penguatan Kohesi Sosial Melalui Program Kkn Tematik Di Kelurahan Samangraya, Kota Cilegon: Pengabdian Dewi Agustina Solihin; Putri Ayu Permata Devi; Roihan Aldi Pratama
Jurnal Pengabdian Masyarakat dan Riset Pendidikan Vol. 4 No. 2 (2025): Jurnal Pengabdian Masyarakat dan Riset Pendidikan Volume 4 Nomor 2 (October 202
Publisher : Lembaga Penelitian dan Pengabdian Masyarakat

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31004/jerkin.v4i2.3436

Abstract

Community service is one of the pillars of the Tri Dharma of Higher Education, aimed at applying knowledge to provide solutions to societal problems. This service research was carried out in Samangraya Village, Citangkil District, Cilegon City, which has the potential for Micro, Small, and Medium Enterprises (MSMEs), but faces challenges in business organization, promotion, and branding. Additionally, social challenges, such as low youth participation, are also a concern. The method used in this program is Participatory Action Research (PAR), where students collaborate actively with the community to identify problems, design, and implement programs. This activity took place from July 21 to August 25, 2025, and included several main programs: shop layout redesign, promotional media design (banners), product logo creation, MSME seminars, and participation in social activities such as the commemoration of Indonesia’s 80th Independence Day. he results of this activity showed significant positive impacts, including an increase in visual appeal and store comfort, the creation of a product’s visual identity through logos and banners, expanded marketing knowledge for MSME actors, and strengthened community solidarity. This program proves that thematic Community Service (KKN) with a participatory approach is effective in empowering the local economy while also strengthening social cohesion within the community.
The Effect of Digital Marketing and Product Innovation on MSME Sales Performance in the Digital Economy Era Titis Sri Wulan; Dewi Agustina Solihin; Putri Ayu Permata Devi; Saida Zainurossalamia ZA; Asnawati
Daengku: Journal of Humanities and Social Sciences Innovation Vol. 5 No. 6 (2025)
Publisher : PT Mattawang Mediatama Solution

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.35877/454RI.daengku4604

Abstract

This study investigates the effects of digital marketing capability and product innovation capability on sales performance among Indonesian micro, small, and medium enterprises (MSMEs) in the digital economy era. Using a quantitative, explanatory design, data were collected through a structured survey of MSME owners/managers and analyzed using ordinary least squares (OLS) regression in EViews. Sales performance was operationalized as a sales-oriented metric suitable for econometric estimation, while digital marketing and product innovation were measured as composite indices derived from Likert-scale items capturing routine execution and renewal intensity. Classical assumption diagnostics were conducted to support valid inference, including residual normality, heteroskedasticity, and multicollinearity checks; where needed, White robust standard errors were applied to address heteroskedasticity. The results demonstrate that both digital marketing capability and product innovation capability have positive and statistically significant relationships with MSME sales performance. Digital marketing capability shows a slightly stronger estimated effect, indicating that consistent digital routines—such as channel orchestration, content discipline, responsive customer interaction, and basic performance monitoring—are closely linked to improved sales outcomes. Product innovation capability also contributes significantly, suggesting that continuous renewal through quality improvement, new variants, and packaging/design enhancements strengthens differentiation and supports sales growth. The findings imply that MSME competitiveness in digital markets is best supported by integrating market-facing execution (digital marketing) with value reinforcement (product innovation), rather than relying on platform adoption alone. Practically, MSMEs should institutionalize measurable digital marketing processes while embedding structured innovation cycles that convert market feedback into product renewal. Policymakers and support institutions should prioritize capability-building programs tied to measurable performance outcomes. Future research may extend this model using longitudinal data and sector-specific moderators to capture delayed innovation effects and sustainability of sales gains. Keywords: digital marketing capability; product innovation capability; sales performance; MSMEs; digital economy; Indonesia.