Exploring the Role of Digital Transformation in Enhancing the Competitiveness of Micro, Small, and Medium Enterprises (MSMEs)

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Herty Ramayanti Sinaga

Abstract

This research investigates the role of digital transformation in enhancing the competitiveness of Micro, Small, and Medium Enterprises (MSMEs). It explores how digital technologies, organizational factors, and competitiveness indicators are interconnected within the context of MSMEs. The study employs quantitative methods, including regression and correlation analyses, to examine the relationships between digital transformation adoption, organizational factors such as leadership support and digital skills, and competitiveness indicators such as market share, innovation performance, operational efficiency, and customer satisfaction. The findings highlight the positive impact of digital transformation on MSMEs' competitiveness and underscore the importance of organizational capabilities in leveraging digital technologies effectively. The study contributes valuable insights for MSMEs, policymakers, and stakeholders involved in fostering digital readiness and sustainable growth.

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