Public Resource Innovation Management and Excellence (PRIME)
February 2025 , Volume 2 Number 1

The Impact of Digitalization on Labor Productivity in the MSME Sector in Makassar City

Ashar, Andi Idham Danal (Unknown)
Sose, Andi Tenry (Unknown)
Manda, Darmawati (Unknown)
Surianti, Surianti (Unknown)



Article Info

Publish Date
24 Feb 2025

Abstract

Digitalization has become a major factor in increasing labor efficiency and productivity, including in the Micro, Small, and Medium Enterprises (MSMEs) sector. This study aims to analyze the impact of digitalization on labor productivity in the MSME sector in Makassar City. The research method used is a quantitative approach with data collection through a survey of MSME actors who have adopted digital technology, such as the use of e-commerce, social media, digital financial applications, and business management software. The results of the study show that digitalization has a positive and significant impact on labor productivity, especially in terms of operational efficiency, increasing market access, and financial management. However, challenges such as limited access to technology, lack of digital skills, and implementation costs are still obstacles for some MSMEs. Therefore, support is needed from the government and related parties in the form of training, access to financing, and better technology infrastructure so that digital transformation can be optimized in increasing the competitiveness of MSMEs in Makassar City.

Copyrights © 2025






Journal Info

Abbrev

PRIME

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences Other

Description

Public Resource Innovation Management and Excellence (PRIME) is a peer-reviewed, open-access journal dedicated to advancing the knowledge and practice of public resource management. Our mission is to provide a platform for researchers, scholars, and practitioners to share cutting-edge research, ...