Digital Business Transformation of SMEs: Tracing Determinant Factors and Actors
DOI:
https://doi.org/10.23917/jep.v26i2.8957Keywords:
Digital transformation, SMEs, AHP, MACTORAbstract
This study seeks to identify the principal factors and actors that determine the digital business transformation of small and medium-sized enterprises (SMEs) in the Malang area (Malang City, Batu City, and Malang Regency). The sample size is 43 SME owners who are actively engaged in digitalisation activities within the context of a business incubator and a local government mentoring programme. The sampling method employed was purposive sampling, which was conducted between June and July 2024. The data analysis method comprised the use of AHP and MACTOR. The findings reveal that the three principal factors affecting SME digital business transformation are digital inclusion, digital infrastructure, and the role of SME incubators/consultants. In addition, the three primary objectives of implementing digital transformation are to increase sales/profits, to better market segmentation, and to facilitate non-cash transactions. The actors under the strongest level of
convergence are the Local Government of SME and Trade with Financial Institutions (providers of SME business capital), while the moderate level of convergence is observed between the Local Government of SME and Trade with business incubators/consultants. Therefore, this paper suggests that the parties should increase a collaboration level to guarantee digital business transformation for SMEs.
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Copyright (c) 2025 Malik Cahyadin, Emi Widiyanti, Nidyah Widyamurti, Arief Iman Santoso, Ratna Endah Santoso, Basem Ertimi
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