MANAGEMENT OF ISLAMIC MSME DIGITALIZATION IN KERINCI REGENCY: CHALLENGES, ADAPTATION STRATEGIES, AND IMPLICATIONS FOR LOCAL COMPETITIVENESS
Keywords:
Digitalization management, MSMEs, adaptation strategy, local competitiveness, Kerinci
Abstract
Digital transformation has become an urgent need for Micro, Small, and Medium Enterprises (MSMEs) in the Industry 4.0 era, particularly in facing technological disruption and shifting consumer behavior. This study aims to construct the concept of MSME Digitalization Management in Kerinci Regency by examining challenges, adaptation strategies, and their implications for local competitiveness. The research method employed is a qualitative descriptive approach with data collection techniques including in-depth interviews, observation, and documentary studies. The results indicate that the implementation of digitalization still faces significant hurdles regarding digital literacy, limited infrastructure, and social resistance to change. Nevertheless, several MSMEs have successfully adapted through digital innovations such as online marketing, the use of e-commerce platforms, and collaboration among local business actors. The implementation of digitalization management is proven to have a positive impact on increasing operational efficiency, expanding market reach, and ensuring business sustainability. This study recommends strengthening the digital ecosystem through synergy between local governments, educational institutions, and business actors to achieve inclusive and sustainable digitalization. Thus, the findings of this study offer a theoretical contribution to the development of locally based digital management models as well as practical implications for enhancing regional economic competitiveness.References
Aboelmaged, M. (2018). Technology adoption in SMEs: A digital transformation perspective. Journal of Small Business and Enterprise Development, 25(3), 546–561. https://doi.org/10.1108/JSBED-03-2018-0103
Al-Kwifi, O. S., Ahmed, Z. U., & Yafi, E. (2020). Digital transformation and the challenge of technology adoption in developing countries. International Journal of Innovation Management, 24(8), 2050074. https://doi.org/10.1142/S1363919620500742
Bappenas. (2021). Peta Jalan Transformasi Digital dan Inklusi Ekonomi Daerah. Jakarta: Kementerian PPN/Bappenas.
Bohari, A. M., Hin, C. W., & Fuad, N. (2017). The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Geografia: Malaysian Journal of Society and Space, 13(1), 1–14.
Creswell, J. W., & Poth, C. N. (2018). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (4th ed.). Thousand Oaks, CA: SAGE Publications.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Thousand Oaks, CA: SAGE Publications.
Hamdani, N., & Rahman, M. (2019). Digital business model of SMEs: Literature review and future research directions. International Journal of Entrepreneurship and Small Business, 37(3), 286–306. https://doi.org/10.1504/IJESB.2019.099894
Kementerian Koperasi dan UKM RI. (2022). Laporan Tahunan: Perkembangan UMKM Digital di Indonesia 2022. Jakarta: Kemenkop UKM.
Miles, M. B., & Huberman, A. M. (2014). Qualitative Data Analysis: An Expanded Sourcebook (3rd ed.). Thousand Oaks, CA: Sage Publications.
Rahmawati, N. (2021). Inovasi halal dan transformasi digital dalam penguatan daya saing UMKM syariah di Indonesia. Jurnal Ekonomi dan Bisnis Islam, 7(2), 134–148. https://doi.org/10.20885/jebi.vol7.iss2.art3
Sari, D. P. (2022). Pemasaran digital berbasis nilai-nilai Islam dalam memperkuat keberlanjutan usaha kecil dan menengah. Al-Iqtishad: Journal of Islamic Economics, 14(1), 55–70. https://doi.org/10.15408/aiq.v14i1.24483
Sugiyono. (2019). Metode Penelitian Kualitatif, Kuantitatif dan R&D. Bandung: Alfabeta.
Syafruddin, M., & Rahmat, A. (2020). Digital transformation and SMEs’ competitiveness: A conceptual framework from an Islamic perspective. Journal of Islamic Marketing, 11(6), 1395–1410. https://doi.org/10.1108/JIMA-04-2019-0088
World Bank. (2021). World Development Report 2021: Data for Better Lives. Washington, DC: World Bank.
Zain, M., & Alwi, M. (2023). Integrating Maqashid Syariah and digital innovation for sustainable Islamic business models. Journal of Islamic Accounting and Business Research, 14(2), 188–205. https://doi.org/10.1108/JIABR-08-2021-0192
Al-Kwifi, O. S., Ahmed, Z. U., & Yafi, E. (2020). Digital transformation and the challenge of technology adoption in developing countries. International Journal of Innovation Management, 24(8), 2050074. https://doi.org/10.1142/S1363919620500742
Bappenas. (2021). Peta Jalan Transformasi Digital dan Inklusi Ekonomi Daerah. Jakarta: Kementerian PPN/Bappenas.
Bohari, A. M., Hin, C. W., & Fuad, N. (2017). The competitiveness of halal food industry in Malaysia: A SWOT-ICT analysis. Geografia: Malaysian Journal of Society and Space, 13(1), 1–14.
Creswell, J. W., & Poth, C. N. (2018). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (4th ed.). Thousand Oaks, CA: SAGE Publications.
Hair, J. F., Hult, G. T. M., Ringle, C., & Sarstedt, M. (2021). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). Thousand Oaks, CA: SAGE Publications.
Hamdani, N., & Rahman, M. (2019). Digital business model of SMEs: Literature review and future research directions. International Journal of Entrepreneurship and Small Business, 37(3), 286–306. https://doi.org/10.1504/IJESB.2019.099894
Kementerian Koperasi dan UKM RI. (2022). Laporan Tahunan: Perkembangan UMKM Digital di Indonesia 2022. Jakarta: Kemenkop UKM.
Miles, M. B., & Huberman, A. M. (2014). Qualitative Data Analysis: An Expanded Sourcebook (3rd ed.). Thousand Oaks, CA: Sage Publications.
Rahmawati, N. (2021). Inovasi halal dan transformasi digital dalam penguatan daya saing UMKM syariah di Indonesia. Jurnal Ekonomi dan Bisnis Islam, 7(2), 134–148. https://doi.org/10.20885/jebi.vol7.iss2.art3
Sari, D. P. (2022). Pemasaran digital berbasis nilai-nilai Islam dalam memperkuat keberlanjutan usaha kecil dan menengah. Al-Iqtishad: Journal of Islamic Economics, 14(1), 55–70. https://doi.org/10.15408/aiq.v14i1.24483
Sugiyono. (2019). Metode Penelitian Kualitatif, Kuantitatif dan R&D. Bandung: Alfabeta.
Syafruddin, M., & Rahmat, A. (2020). Digital transformation and SMEs’ competitiveness: A conceptual framework from an Islamic perspective. Journal of Islamic Marketing, 11(6), 1395–1410. https://doi.org/10.1108/JIMA-04-2019-0088
World Bank. (2021). World Development Report 2021: Data for Better Lives. Washington, DC: World Bank.
Zain, M., & Alwi, M. (2023). Integrating Maqashid Syariah and digital innovation for sustainable Islamic business models. Journal of Islamic Accounting and Business Research, 14(2), 188–205. https://doi.org/10.1108/JIABR-08-2021-0192
