Navigating Challenges and Overcoming Barriers: A Qualitative Study on Digital Transformation Practices Among Indonesian MSMEs

DOI

10.2991/978-2-38476-483-9_18How to use a DOI?

Keywords

digital transformation; barriers; challenges; MSMEs

Abstract

The rapid advancement of technology necessitates micro, small, and medium enterprises (MSMEs) to embrace digital transformation in their business processes. However, the readiness of MSMEs, particularly in adopting digital sales functions, remains a critical factor in achieving successful transformation. This study investigates the challenges and barriers food and beverage MSMEs face in implementing digital transformation. Using a qualitative descriptive approach, data were collected through in-depth interviews with 12 MSMEs in this sector. The data were validated using triangulation of sources, methods, and theories.

The findings reveal several key challenges, including limited human resource capacity due to insufficient digital literacy and lack of technological training, restricted access to technology caused by inadequate infrastructure, and over-reliance on third-party platforms such as e-commerce marketplaces. Moreover, ineffective digital strategies hinder progress, such as unstructured customer data management and suboptimal digital promotion. Identified barriers include internal constraints, such as limited capital for technology implementation, traditional organizational mindsets, and external factors such as unsupportive government regulations and competition with larger enterprises. Technological barriers, such as dependency on third-party platforms and low awareness of data privacy, further complicate the transformation process.

Among the 12 MSMEs studied, only a small fraction demonstrated successful digital transformation, primarily those with prior exposure to digital tools, access to financial resources, and proactive strategic planning. This study highlights the pressing need for strategic interventions, including capacity building, investment in infrastructure, and tailored policy support, to enable MSMEs to navigate the complexities of digital transformation successfully.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Melindya Ayu Tiara
AU  - M. Maisaroh
AU  - Gefni Yasrionengsih
AU  - Tri Lestari Wahyuning Utami
AU  - Masyithoh Annisaush Sholihah
AU  - Khoirina Noor Anindya
PY  - 2025
DA  - 2025/11/17
TI  - Navigating Challenges and Overcoming Barriers: A Qualitative Study on Digital Transformation Practices Among Indonesian MSMEs
BT  - Proceedings of the Jepara International Conference on Education and Social Science 2024 (JIC 2024)
PB  - Atlantis Press
SP  - 135
EP  - 142
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-483-9_18
DO  - 10.2991/978-2-38476-483-9_18
ID  - Tiara2025
ER  -