The Effect of Digital Literacy and Technology Use on the Performance of Micro, Small and Medium Enterprises (MSMEs)

Abstract

This study aims to examine the impact of digital literacy and technology implementation on the performance of micro, small and medium enterprises (MSMEs) in the digital transformation era. The method used in this research is a quantitative approach by conducting a survey of 35 randomly selected MSME players. Data were collected through a closed questionnaire and analyzed by multiple linear regression with the help of SPSS. The findings of this study indicate that digital literacy and technology implementation have a significant positive influence on MSME performance, increasing operational efficiency, expanding markets, and increasing revenue. These results emphasize the importance of digital competency as a strategy to improve MSME competitiveness. This study provides the latest empirical data on the relationship between digital literacy, technology and MSME performance in Indonesia, and highlights the importance of continuous digital literacy training and technological infrastructure support to strengthen MSME competitiveness in the digital era.