This study analyzed the role of Smart Villages as a strategic approach to enhancing rural economic independence in the digital era through a Systematic Literature Review (SLR) of 21 peer-reviewed articles published between 2021 and 2025. The literature was collected from Scopus and Google Scholar databases using the keywords (“Smart Village” OR “Digital Village”) AND (“Economic Empowerment” OR “Digital Economy”), and screened by title and abstract according to inclusion criteria. Data were thematically analyzed based on the Digital Empowerment Theory (DET), which emphasizes five dimensions of digital development: industry, ecology, culture, services, and governance. The findings revealed that Smart Village implementation significantly contributed to improving economic productivity, governance transparency, and community empowerment through structured and sustainable digitalization. In the industrial dimension, digitalization strengthened MSME transformation, supply chain efficiency, and e-commerce market expansion. The ecological dimension highlighted the role of green technologies, spatial information systems, and precision agriculture in promoting resource sustainability. The cultural dimension fostered local identity and creative industries, while the service and governance dimensions enhanced digital literacy, inclusivity, and citizen participation through e-governance and penta-helix collaboration. Overall, the success of rural digital development depends not only on infrastructure availability but also on community innovation capacity and participatory engagement. The study recommends strengthening multi-level policy integration, digital literacy initiatives, and Smart Village models grounded in Digital Empowerment Theory to promote inclusive and sustainable rural transformation in developing countries.
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