Digital Transformation Strategy Model To Improve The Competitiveness Of Msmes: A Systematic Literature Review-Based Analysis
Keywords:
Digital Transformation; MSMEs; Competitiveness; Systematic Literature Review; Bibliometric Analysis; Indonesia; Dynamic Capabilities
Abstract
This study aims to analyze digital transformation strategy models for enhancing corporate competitiveness, focusing on MSMEs in Indonesia. Using a Systematic Literature Review (SLR) method combined with bibliometric analysis, this study analyzed 67 articles published between 2018 and 2024 from the Scopus and Web of Science databases. The results reveal that an effective digital transformation strategy is multidimensional, synergistically integrating aspects of technology, human resources, business strategy, and organizational culture. The bibliometric analysis identified three main research clusters: the impact of the COVID-19 pandemic on digital acceleration, the specific context of Indonesian MSMEs, and the relationship between digital transformation and performance and strategic roles. Key findings indicate that successful digital transformation depends not only on technology adoption but also on the ability to build dynamic capabilities, digital leadership, and cultural adaptation. This research contributes to the development of an integrative model that integrates sustainability, resilience, and local wisdom in the digital transformation strategy of Indonesian MSMEs, while also identifying research gaps for further study.
References
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Rizkita, M. A., Winarno, A., Suwono, H., & Malek, N. A. N. N. (2025). Integrating cultural adaptation in digital marketing strategies: Enhancing competitiveness and sustainability in MSMEs of Java, Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 100609. https://doi.org/10.1016/j.joitmc.2025.100609
Rojas-García, J. A., Elias-Giordano, C., Quiroz-Flores, J. C., & Nallusamy, S. (2024). Profitability enhancement by digital transformation and canvas digital model on strategic processes in post-Covid-19 in logistics SMEs. Social Sciences & Humanities Open, 9, 100777. https://doi.org/10.1016/j.ssaho.2023.100777
Rupeika-Apoga, R., Petrovska, K., & Bule, L. (2022). The effect of digital orientation and digital capability on digital transformation of SMEs during the COVID-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), 669-685. https://doi.org/10.3390/jtaer17020035
Samputra, P. L., & Alfarizi, M. (2025). Can advanced society 5.0 technology create economic and social value for millennial and generation Z MSMEs in Surabaya, Indonesia? An economic resilience perspective. Asia Pacific Management Review, 100355. https://doi.org/10.1016/j.apmrv.2025.100355
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic management journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640
Tomás, G. C., José-Antonio, C. A., Julennys-Carolina, C. M., & Alejandro, D. P. (2025). Linking environmental sustainability, digital transformation, and innovation: Evidence from micro-enterprises and SMEs. Journal of Innovation & Knowledge, 10(6), 100849. https://doi.org/10.1016/j.jik.2025.100849
Torrent-Sellens, J., Enache-Zegheru, M., & Ficapal-Cusí, P. (2025). Twin transitions or a meeting of strangers? Unravelling the effects of AI and innovations on economic, social and environmental MSMEs sustainability. Technology in Society, 81, 102866. https://doi.org/10.1016/j.techsoc.2025.102866
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Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing digital transformation, 13-66. https://doi.org/10.1016/j.jsis.2019.01.003
Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long range planning, 52(3), 326-349. https://doi.org/10.1016/j.lrp.2018.12.001
Wijaya, L. I., Zunairoh, Z., Izharuddin, M., & Rianawati, A. (2025). Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 11(1), 100459. https://doi.org/10.1016/j.joitmc.2024.100459
Yulianti, G., Pramono, S., & Santoso, S. Inovasi Strategi Pemasaran Berbasis Digital untuk Meningkatkan Daya Saing Perusahaan. https://doi.org/10.55606/optimal.v5i2.5809
Yunus, E. N., Ernawati, E., Nuraini, E., & Yuniarti, K. (2025). Post-Crisis Growth: Resource Orchestration, Innovation, and Diversification in MSMEs. Journal of Open Innovation: Technology, Market, and Complexity, 100570. https://doi.org/10.1016/j.joitmc.2025.100570
Zuñiga-Collazos, A., Galvez-Albarracin, E. J., Vera-Jaramillo, F., & Patiño-Giraldo, L. V. (2025). Digitalization, innovation, sustainability and performance: A causal analysis applied to tourism MSMEs. International Journal of Innovation Studies, 9(1), 46-59. https://doi.org/10.1016/j.ijis.2024.12.001.
Ananda, I. (2021). Literatur review: Implementasi strategi transformasi digital pada organisasi internasional. Computer Based Information System Journal, 9(1), 1-13. https://doi.org/10.33884/cbis.v9i1.2473
Clemente-Almendros, J. A., Pelaez, A. D., Quispe, G. C., & Molina, J. F. V. (2025). Emerging countries could be different for MSMES: Digitalization and the mediation effects of innovation confronted to environmental practices. International Journal of Innovation Studies. https://doi.org/10.1016/j.ijis.2025.08.001
Cuevas-Vargas, H., Armendáriz-Esparza, D. A., del Carmen González-Vega, A. M., & Cossio-Vargas, E. (2024). Digitalization strategies and sustainability benefits in Mexican SMEs: Unveiling the mediating role of innovation. Procedia Computer Science, 242, 1299-1306. https://doi.org/10.1016/j.procs.2024.08.135
Febriani, A., Sopha, B. M., & Wibisono, M. A. (2025). Dynamic capabilities for omnichannel transformation in MSMEs: A comparative case study of fashion and furniture sectors. Journal of Open Innovation: Technology, Market, and Complexity, 11(1), 100498. https://doi.org/10.1016/j.joitmc.2025.100498
Gustiawan, W. D., Pramana, A. C., Widyaningrum, S., Hermawan, A., & Handayati, P. (2025). The Role of Leadership and Organizational Culture in Driving Digital Transformation in indonesia SMEs: A Systematic. RISK, 6(01). https://doi.org/10.30737/risk.v6i1.6898
Guo, H., Yang, Z., Huang, R., & Guo, A. (2020). The digitalization and public crisis responses of small and medium enterprises: Implications from the COVID-19 pandemic. Journal of Small Business Management. https://doi.org/10.1186/s11782-020-00087-1
Hanelt, A., Bohnsack, R., Marz, D., & Antunes Marante, C. (2021). A systematic review of the literature on digital transformation: Insights and implications for strategy and organizational change. Journal of management studies, 58(5), 1159-1197. https://doi.org/10.1111/joms.12639
Kitchenham, B., & Charters, S. (2007). Guidelines for performing systematic literature reviews in software engineering. EBSE Technical Report. https://doi.org/10.1016/j.infsof.2008.09.009
Kraus, S., Durst, S., Ferreira, J. J., Veiga, P., Kailer, N., & Weinmann, A. (2021). Digital transformation in business and management research: An overview of the current status quo. International Journal of Information Management, 102466. https://doi.org/10.1016/j.ijinfomgt.2021.102466
Kumar Sahoo, S., Mohanty, A., & Mohanty, P. P. (2025). Strategies for enhancements of MSME resilience and sustainability in the post-COVID-19 era. Social Sciences & Humanities Open, 11, 101223. https://doi.org/10.1016/j.ssaho.2024.101223
Kurniawati, E., Idris, I., Handayati, P., & Osman, S. (2021). Digital transformation of MSMEs in Indonesia during the pandemic. Entrepreneurship and Sustainability Issues, 9(2), 316. https://doi.org/10.9770/jesi.2021.9.2(21)
Lupiyoadi, R., Pramesti, M., Ikhsan, R. B., Usman, L. H., Games, D., & Fakhrorazi, A. (2025). Extending UTAUT with perceived intelligence for the adoption of artificial intelligence in MSMEs and Startups in Indonesia: A multi-group analysis. Journal of Open Innovation: Technology, Market, and Complexity, 100673. https://doi.org/10.1016/j.joitmc.2025.100673
Marinelli, L., Crupi, A., Del Sarto, N., & Lepore, D. (2024). Unveiling knowledge ecosystem dimensions for MSMEs’ digital transformation, toward a location-based brokerage. Technovation, 136, 103086. https://doi.org/10.1016/j.technovation.2024.103086
Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & information systems engineering, 57(5), 339-343. https://doi.org/10.1007/s12599-015-0401-5
Moher, D., Liberati, A., Tetzlaff, J., & Altman, D. G. (2009). Preferred reporting items for systematic reviews and meta-analyses: The PRISMA statement. PLoS Med, 6(7). https://doi.org/10.1016/j.jclinepi.2009.06.005
Nefianto, T. (2025). Strategi Transformasi Digital Untuk Penguatan Manajemen Organisasi. Jurnal Sosial Teknologi, 5(10), 4026-4031. https://doi.org/10.59188/jurnalsostech.v5i10.32469
Nugraha, M. F., Santosa, H., & Fitriani, L. K. (2024). SYSTEMATIC LITERATURE REVIEW PENGARUH TRANSFORMASIONAL LEADERSHIP TERHADAP ADAPTASI DIGITAL UMKM INDONESIA: TINJAUAN LITERATUR SISTEMATIS. Jurnal Humaniora, 8(7), 18-35. https://jurnalhost.com/index.php/jhm/article/view/1505
Priyono, A., Moin, A., & Putri, V. N. A. O. (2020). Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 104. https://doi.org/10.3390/joitmc6040104
Probohudono, A. N., Suhardjanto, D., Aligarh, F., Chayati, N., & Putra, A. A. (2025). Navigating MSMEs' performance through innovation and digital IT capabilities in business strategy. Social Sciences & Humanities Open, 12, 101810. https://doi.org/10.1016/j.ssaho.2025.101810
Rahman, A., Kusumadewi, R. A., & Nurzaman, F. (2025). Strategi Pemasaran Digital dalam Meningkatkan Daya Saing Perusahaan di Era Transformasi Teknologi. Idarah: Jurnal Manajemen Pemasaran, 2(1), 8-20. https://doi.org/10.70283/idarah.v2i1.64
Rahman, S., Setyawan, O., Junaedi, A. T., & Renaldo, N. (2025). Digital competitive advantages of MSMEs and the antecedents factor (digital creativity and digital culture). Journal of Open Innovation: Technology, Market, and Complexity, 11(3), 100585. https://doi.org/10.1016/j.joitmc.2025.100585
Rizkita, M. A., Winarno, A., Suwono, H., & Malek, N. A. N. N. (2025). Integrating cultural adaptation in digital marketing strategies: Enhancing competitiveness and sustainability in MSMEs of Java, Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 100609. https://doi.org/10.1016/j.joitmc.2025.100609
Rojas-García, J. A., Elias-Giordano, C., Quiroz-Flores, J. C., & Nallusamy, S. (2024). Profitability enhancement by digital transformation and canvas digital model on strategic processes in post-Covid-19 in logistics SMEs. Social Sciences & Humanities Open, 9, 100777. https://doi.org/10.1016/j.ssaho.2023.100777
Rupeika-Apoga, R., Petrovska, K., & Bule, L. (2022). The effect of digital orientation and digital capability on digital transformation of SMEs during the COVID-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research, 17(2), 669-685. https://doi.org/10.3390/jtaer17020035
Samputra, P. L., & Alfarizi, M. (2025). Can advanced society 5.0 technology create economic and social value for millennial and generation Z MSMEs in Surabaya, Indonesia? An economic resilience perspective. Asia Pacific Management Review, 100355. https://doi.org/10.1016/j.apmrv.2025.100355
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic management journal, 18(7), 509-533. https://doi.org/10.1002/(SICI)1097-0266(199708)18:7%3C509::AID-SMJ882%3E3.0.CO;2-Z
Teece, D. J. (2007). Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic management journal, 28(13), 1319-1350. https://doi.org/10.1002/smj.640
Tomás, G. C., José-Antonio, C. A., Julennys-Carolina, C. M., & Alejandro, D. P. (2025). Linking environmental sustainability, digital transformation, and innovation: Evidence from micro-enterprises and SMEs. Journal of Innovation & Knowledge, 10(6), 100849. https://doi.org/10.1016/j.jik.2025.100849
Torrent-Sellens, J., Enache-Zegheru, M., & Ficapal-Cusí, P. (2025). Twin transitions or a meeting of strangers? Unravelling the effects of AI and innovations on economic, social and environmental MSMEs sustainability. Technology in Society, 81, 102866. https://doi.org/10.1016/j.techsoc.2025.102866
Ueasangkomsate, P., & Bunthungsub, S. (2025). Analyzing the Impact of Digital Technology Challenges on the Sustainability Performance of MSMEs. Procedia CIRP, 136, 9-14. https://doi.org/10.1016/j.procir.2025.08.004
Verhoef, P. C., Broekhuizen, T., Bart, Y., Bhattacharya, A., Dong, J. Q., Fabian, N., & Haenlein, M. (2021). Digital transformation: A multidisciplinary reflection and research agenda. Journal of Business Research, 122, 889-901. https://doi.org/10.1016/j.jbusres.2019.09.022
Vial, G. (2021). Understanding digital transformation: A review and a research agenda. Managing digital transformation, 13-66. https://doi.org/10.1016/j.jsis.2019.01.003
Warner, K. S., & Wäger, M. (2019). Building dynamic capabilities for digital transformation: An ongoing process of strategic renewal. Long range planning, 52(3), 326-349. https://doi.org/10.1016/j.lrp.2018.12.001
Wijaya, L. I., Zunairoh, Z., Izharuddin, M., & Rianawati, A. (2025). Scope of E-Commerce use, innovation capability, and performance: Food sector MSMEs in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 11(1), 100459. https://doi.org/10.1016/j.joitmc.2024.100459
Yulianti, G., Pramono, S., & Santoso, S. Inovasi Strategi Pemasaran Berbasis Digital untuk Meningkatkan Daya Saing Perusahaan. https://doi.org/10.55606/optimal.v5i2.5809
Yunus, E. N., Ernawati, E., Nuraini, E., & Yuniarti, K. (2025). Post-Crisis Growth: Resource Orchestration, Innovation, and Diversification in MSMEs. Journal of Open Innovation: Technology, Market, and Complexity, 100570. https://doi.org/10.1016/j.joitmc.2025.100570
Zuñiga-Collazos, A., Galvez-Albarracin, E. J., Vera-Jaramillo, F., & Patiño-Giraldo, L. V. (2025). Digitalization, innovation, sustainability and performance: A causal analysis applied to tourism MSMEs. International Journal of Innovation Studies, 9(1), 46-59. https://doi.org/10.1016/j.ijis.2024.12.001.
Published
2025-12-17
How to Cite
Fitriadi, A., Sudarmiatin, & Agus Hermawan. (2025). Digital Transformation Strategy Model To Improve The Competitiveness Of Msmes: A Systematic Literature Review-Based Analysis. International Journal of Technology and Education Research, 3(04), 840-862. https://doi.org/10.63922/ijeter.v3i04.2697
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