<![CDATA[The purpose of this research is to analyze microeconomic concepts and theories that are relevant to the productivity and efficiency of MSMEs, as well as to identify and review the results of previous research that examine the determinants of productivity and efficiency of MSMEs in the digital era, and analyze the influence of digitalization on cost structure, production functions, and decision-making behavior in MSMEs. The research method used is literature review. Literature review is a term used to refer to a specific research methodology or research and development carried out to collect and evaluate research related to the focus of a particular topic. The results of this Literature Review are. Digitalization has great potential to increase the productivity and efficiency of MSMEs through technology improvement mechanisms (), reduction of transaction and distribution costs, and increased labor effectiveness (L). However, these positive impacts are highly dependent on the internal readiness of MSMEs (capital, skills, culture), external infrastructure (technology, logistics, regulations), and adaptive business strategies. To maximize this potential, integrated policies are needed, including training, technology financing, digital infrastructure, and MSME assistance, in addition to further research that is more in-depth in microeconomics]]>
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