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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.