Digital Technology Transformation of SMEs: Indonesian Case Study

Abstract

The transition to the industry 4.0 era has forced businesses worldwide, including Indonesia, to adapt to digital transformation. The problem faced by small and medium-sized businesses is the readiness to adopt digital technology. It is necessary to study the readiness of Small Medium Sized Enterprises (SMEs) to face changes so that information and needs from SMEs can be obtained to adapt to this new era. This paper aims to analyze SMEs’ technological readiness to carry out digital transformation in Indonesia. The research method is quantitative, involving 150 SMEs in Manado City. North Sulawesi Province, Indonesia online. Data analysis with multiple regression. The research findings reveal the readiness of SMEs to carry out digital technology transformation in Indonesia. The implication of this research is to serve as a guide for the government, universities, and the industrial world so that SMEs in Indonesia can successfully transform digital technology.

Digital Transformation SMEs by Analysis SWOT

“…Digital transformation is a radical process / external standard involving your power, including utilizing existing digital technologies moment That For produces external organization for new experiences [9]. term transformation refers to a change in an organization that significantly influences the structure of organization Alone [4]. Digital transformation is changes caused by technology caused by digital business.…”

“…Companies must develop by building connections through connection to get access to ability digitization and to source power. As for the Source power that can be accessed externally, this can influence performance companies [4]. Not only must big companies react to the transformation from traditional going to digitization business micro, small and medium enterprises (MSMEs) also participate.…”