Fundamental and Applied Management Journal
Vol. 4 No. 3 (2026): September

Human-Centered Digital Transformation in MSMEs: How Digital Capability Shapes Employee Digital Well-Being through Psychological Burden

Anita (Universitas Muhammadiyah Palopo, Indonesia)
Salju (Universitas Muhammadiyah Palopo, Indonesia)
Andi Nadirah (Universitas Muhammadiyah Palopo, Indonesia)
Indrawan (Universitas Muhammadiyah Palopo, Indonesia)



Article Info

Publish Date
30 Aug 2026

Abstract

This study examines how digital capability, represented by digital literacy and technology use, influences employee digital well-being through psychological burden in MSMEs. Using a quantitative cross-sectional design, data were collected from 506 MSME employees in South Sulawesi, Indonesia, and analyzed using Partial Least Squares Structural Equation Modeling. Digital literacy and technology use significantly improve employee digital well-being (DL → DWB: β = 0.312, p < 0.001; TU → DWB: β = 0.139, p = 0.002) and positively influence psychological burden. Psychological burden also significantly enhances digital well-being (PB → DWB: β = 0.238, p < 0.001) and mediates the relationships between digital capability and employee well-being (DL → PB → DWB: β = 0.067, p < 0.001; TU → PB → DWB: β = 0.065, p < 0.001). The study highlights psychological burden as an adaptive mechanism supporting employee resilience during digital transformation.

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Journal Info

Abbrev

FAMJ

Publisher

Subject

Economics, Econometrics & Finance Social Sciences

Description

Strategic and Operations Management, addressing strategic decision-making, operational excellence, supply chain, process improvement, and performance management. Business and International Management, covering global strategy, cross-border operations, internationalization, and comparative management ...