This study selects primary data collected by a survey in the Malang area (Malang City, Malang Regency, and Batu City). The total sample size was 43 business owners, selected through the purposive sampling method from June to July 2024. They participated in an SME training program conducted by the local government agency and local incubator business in the Malang Area.

The primary data are focused on identifying and collecting several indicators. The indicators involve (a) the determinant factors and the objectives of digital business transformation for SMEs following several theories consisting of the resource-based view (RBV), the Technology Acceptance Model (TAM), and the Technology-Organization-Environment (TOE) framework and (b) the actors which play a significant role in SMEs training program in Malang area.

The determinant factors of digital business transformation in the Malang area cover digital literacy, digital inclusion, transaction cost, digital infrastructure, government programs and incentives, incubators/consultants for SMEs, market segmentation, digital culture, and digital security. Besides, the objectives of digital business transformation consist of sales/profit orientation, market segmentation, local economy, digital literacy and inclusion, cashless transactions, and local employment. Meanwhile, the actors in digital business transformation for SMEs are local government agencies for SMEs and trade, business associations of SMEs, business incubators/consultants, financial institutions, and universities.

The AHP procedures have been employed to ascertain the priority factors determining digital business transformation for SMEs in the Malang area. The initial procedure is the construction of a pairwise comparison. This pairwise comparison represents a subjective assessment of the relative importance of two factors pertinent to the digital transformation process. Respondents' perceptions of the pair of digital literacy and digital inclusion factors are represented on a scale of 4 for digital inclusion and 0.25 for digital literacy. This level of perception indicates that small and medium-sized enterprise (SME) owners have attempted to integrate digital technology more extensively into their business processes. The next stage is to enhance their knowledge and understanding of digital technology. A thorough account of the specifics of each pair of factors can be found in Table 1.

Table 2 presents the results of the AHP analysis of the priority factors affecting digital business transformation in SMEs in the Malang area. The table explains that the primary objective of digital transformation is digital inclusion, with a value of 0.250. This value illustrates that the proprietors of SMEs attach greater importance to utilising digital technology, particularly in marketing, than other considerations. This condition indicates that businesses must act promptly to ensure continuity in the digital age.

The second priority factor is digital infrastructure, which has a value of 0.205. The development of digital infrastructure facilitates more extensive and improved access to digital technology. The higher quality of digital infrastructure engenders a better quality of digital business transformation. Suppose small and medium-sized enterprises face a dearth of adequate and widely accessible infrastructure. In that case, digital business transformation cannot be achieved with precision and optimal efficacy.

Incubators/consultants for SMEs occupy the third priority regarding value, with a value of 0.169, in the ranking of forms of digital business transformation. Business incubators are defined as institutions that implement incubation and have been regulated in the Presidential Regulation of the Republic of Indonesia Number 27 of 2013 concerning the Development of Entrepreneurial Incubators and the Republic of Indonesia Government Regulation Number 7 of 2021 concerning Facilitation, Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises. Article 1, number 1 of Presidential Regulation 27/2013 defines an entrepreneurial incubator as "an intermediation institution that carries out the incubation process for Incubation Participants (Tenants)". 

The subsequent finding is that the two lowest-ranking determinants of digital transformation for SMEs include transaction costs and digital literacy. The AHP values for these two factors are 0.035 and 0.029, respectively. This condition suggests that owners of SMEs do not consider the costs as the main factor associated with digital business transactions when undergoing digital transformation. In addition, they pay less attention to digital literacy as a concept of digital technology, which they must learn and comprehend as part of the digital transformation process. The apparent neglect of digital technology literacy among SME owners may be attributed to the perceived necessity of practical experience with digital technology, which is of greater importance than the theoretical understanding of digital technology itself.

Moreover, this study analyses several objectives and actors (stakeholders) involved in the digital business transformation process for SMEs in the Malang area. The MACTOR method was employed to elucidate the function of objectives and the interconnections between these actors. The digital business transformation goals for SMEs can be broadly categorised as follows: (a) sales/profit, (b) market segmentation, (c) local economy, (d) digital literacy and inclusion, (e) cashless transaction, and (f) local employment.

Figure 2 illustrates the distribution of perceptions of SME owners regarding each objective. The objective of digital transformation is perceived to have the most significant impact on sales/profit. This condition shows that the primary objective of digital business transformation for SME owners is to increase sales and profits. The following level of perception is observed in the context of market segmentation. These two findings are mutually reinforcing, as attaining elevated sales/profit levels can be facilitated by implementing targeted and sustainable market segmentation strategies. Moreover, the digital transformation of SMEs in Indonesia has the potential to serve as a model for cashless transactions and a cashless society.

The level of perception of SME owners towards each digital business transformation goal can be quantified through the net distance indicators. The following findings are presented concerning the level of net distances between objectives ( Figure 3): (a) The longest net distances occur between sales/profit (S/P) and market segmentation (MS); (b) long net distances occur between sales/profit (S/P) and cashless transaction (CT), and MS and CT; and (c) short net distances occur between S/P and local economy (LE), S/P and digital literacy-inclusion (DLI), DLI and LE, MS and DLI, DLI and CT, LE and CT, and LE and local employment (LP).

The results of the MACTOR analysis also reveal the extent of convergence between the various actors. The level of convergence explains the degree of proximity and the velocity of interaction between actors involved in the digital business transformation process for SMEs. Figure 4 delineates several findings on the level of convergence between actors, as follows: (a) the strongest convergence was observed between local government agencies for SMEs and Trade (LGSMET) and financial institutions (FI); (b) moderate convergence was noted between LGSMET and business incubator (BI), and LGSMET and university (U); and (c) weak convergence was identified between BI and FI, and business association of SMEs (BA) and LGSMET.

The MACTOR analysis enables the measurement of the degree of divergence between actors, as illustrated in Figure 5. The figure describes the following findings: (a) the strongest divergences are observed between universities (U) and financial institutions (FI), as well as between FI and business incubators (BI); (b) moderate divergence is evident between U and local government agency for SMEs and trade (LGSMET); and (c) the weakest divergences are observed between LGSMET and BI, as well as between LGSMET and business associations of SMEs (BA).

Figure 6 presents the degree of net distances between actors in the digital business transformation of SMEs. The findings of the MACTOR are as follows: (a) the longest net distance is observed between LGSMET and FI; (b) a moderate net distance is evident between LGSMET and BI; and (c) a weak net distances are noted between LGSMET and U, and BI and BA.

This study demonstrates that the extent of digital transformation is contingent upon the level of digital inclusion, the quality of digital infrastructure, and the availability of SME incubators and consultants. This condition means that the findings stimulate all parties in digital business transformation for SMEs to increase the collaboration level and contribution. Moreover, the advent of digital business transformation presents both an opportunity and a challenge for developing small and medium-sized enterprises (SMEs) in the Malang area. Digital transformation objectives are to encompass sales/ profit, market segmentation, local economic development, digital literacy and inclusion, cashless transactions, and local employment. Two entities that exhibit the most significant degree of convergence are local government agencies for SMEs and trade with financial institutions.

The process and benefits of digital business transformation for SMEs have been the subject of considerable discussion in the literature. For example, (Phiet, 2024) posits that digital transformation is integral to SME development. In addition, technological capability, organisational factors, environmental elements, government regulations, and competitive pressure have been identified as key drivers of digital transformation among 380 SMEs in the Central Highlands region of Vietnam. (Feng et al., 2024) discovered that digital transformation presents opportunities for businesses to advance towards the higher echelons of the global value chain, facilitated by factors such as innovation synergy, cost reduction and industrial integration. This condition was observed in China between 2007 and 2016. The extant literature indicates that digital transformation is conducive to enhanced innovation, productivity and resource utilisation. Nevertheless, these studies have not succeeded in elucidating the role of stakeholders (actors) in the digital transformation process. In light of the above, the findings of this study provide a valuable contribution to the development of the literature on the digital transformation of SMEs. In particular, this current study fills the empirical gaps from previous literature on the relationship and contribution among parties to stimulate digital transformation for SMEs in Malang area.

The digital transformation process comprises four principal components and three dimensions (Tungpantong et al., 2022). These four principal components cover (a) strategy, (b) process, and (c) product/service. Meanwhile, these three dimensions, namely: (a) externally, with a focus on the creation of a digital experience for customers; (b) internally, affecting business operations, decision-making and organisational structure; and (c) holistically, encompassing all parts and functions of the affected organisation. (Wahid & Zulkifli, 2021) argued that digital transformation can assist small and medium-sized enterprise (SME) proprietors optimise technology deployment. The determining factors for digital transformation can be broadly categorised as competitive pressure, technological advancement, cost minimisation and environmental influence.

The current study provides new evidence of digital business transformation both determinant factors and actors for SMEs in Malang area. The findings are supported by previous literature regarding the beneficial impact of determinant factors and actors in transforming digital business. For example, digital transformation can facilitate enhanced production efficiency and green sustainable development (Yang et al., 2024) Digital transformation can have implications for the potential to attract foreign investment. (Ko et al., 2022) have investigated the relationship between the level of success (innovation) of digital transformation and the role of information technology and organisational management commitment in Hungary. They revealed that the level of digital innovation within an organisation is contingent upon the degree of commitment demonstrated by its management. In other words, information technology's success is contingent upon company management's commitment.

In particular, (Zou et al., 2024) discovered that younger CEOs demonstrated a greater proclivity to engage in digital transformation for Chinese listed firms between 2007 and 2022. Additionally, younger CEOs tend to exhibit greater proactive engagement in pursuing corporate digital transformation initiatives. Moreover, (Kusuma et al., 2024) illustrated that sales directors play a pivotal role in digital transformation to ensure sales achievement. The leadership models, organisational citizenship behaviour (OCB), and sales management control have been demonstrated to influence digital transformation positively. The aforementioned studies support this study's findings regarding each actor's role in the digital business transformation process for SMEs in the Malang area.

A review of recent literature reveals the identification of factors determining digital transformation and the involvement of stakeholders. For instance, (Liu et al., 2024) asserted that digital transformation exerts influence on the establishment of prices or returns on financial asset portfolios. Furthermore, the process of digital transformation enhances business resilience to external shocks. Specifically, (Malewska et al., 2024) explained that digital transformation in SMEs requires appropriate and dynamic business model innovation to reduce the risk of digital transformation failure. As posited by (Astanto et al., 2022), company size exerts a detrimental effect on business inefficiency, export orientation within specific industrial sectors, and import intensity, which has a tendency to adversely impact corporate performance. The impact of digital transformation on SME performance can also be applied to business operations, marketing, and finance (Putri et al., 2022).

In their (Yang et al., 2024) hypothesised that digital transformation can be linked to decision-making and allocation processes, as theorised by agency and decentralisation models. (Chen et al., 2024) posited that digital transformation has the potential to engender a range of benefits enhancing organisational performance and innovation. (Merín-Rodrigáñez et al., 2024) observed that innovation business models function as effective mediators in the relationship between digital transformation and company performance. Besides, the innovation model has the potential to generate opportunities for the enhancement of investment by SMEs. (Liao et al., 2024) emphasised that the development of digital transformation adopted green digital transformation innovation. (Kao et al., 2024) noted that digital transformation investments are susceptible to failure due to the inaccuracy of the determination of components or dimensions. The condition is imperative that a number of factors are given due consideration, including the consumer experience, training, resource allocation and organisational operations.

As (Panchal et al., 2024) argued, digital transformation in SMEs delivered the quality of company performance. The digital transformation is directed towards integrated technology digitalization. Within the broader context of industrial resource factors, the discrepancy between education levels and job opportunities within the industry is identified as a key impediment to the industry's optimal development (Khoiruddin et al., 2024). This condition is also the cause of the SME digital transformation process not being achieved significantly.

The several previous literatures that were elaborated in previous paragraph emphasized the issues and findings on the determinant factors and models of digital transformation for SMEs. However, the literatures were ignoring the relationship and contribution among parties in digital transformation process for SMEs. Therefore, this current study reveals the relationship and contribution the main parties using MACTOR. In particular, the findings stimulates the parties (actors) to enhance the collaboration level in guarantying digital business transformation for SMEs in Malang area.