Digital Transformation Readiness: An Empirical Study And Support For MSMES Towards Business 4.0
Keywords:
Digital Transformation Readiness; Empowerment of MSMEs; Digital Literacy; Community-Based Mentoring; Rural Digitalization; Business 4.0Abstract
This community service activity aims to improve digital transformation readiness
for MSMEs in Tanggul Village, Mantup District, Lamongan Regency. The
program was implemented through participatory training and mentoring involving
thirty business actors from the culinary, agricultural, and home industry sectors.
The activity materials included digital literacy, online marketing, digital financial
management, and an introduction to the concept of Business 4.0. The results of the
activity showed an average increase in participants' digital skills of 28 percent and
an increase in business turnover of between 10-15 percent. As many as 60 percent
of participants successfully implemented cashier applications, digital payment
systems, and promotions through online platforms. In addition, the "Digital MSME
Network Lamongan" network was formed as a forum for collaboration and
experience sharing. This activity proves that participation-based training and
mentoring are effective in strengthening digital readiness and fostering a culture of
innovation for rural MSMEs towards the Business 4.0 era.
References
Anatan, L., & Nur, A. (2023). Micro, small, and medium enterprises' readiness for digital transformation in Indonesia. ResearchGate.https://www.researchgate.net/publication/371093840
Berghaus, S., & Back, A. (2016). Stages in digital business transformation: Results of an empirical maturity study. Proceedings of the 10th Mediterranean Conference on Information Systems, 1–17.
Bharadwaj, A., El Sawy, O.A., Pavlou, P.A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471–482.
Etzkowitz, H., & Leydesdorff, L. (2000). The dynamics of innovation: From national systems and “Mode 2” to a triple helix of university–industry–government relations. Research Policy, 29(2), 109–123. https://doi.org/10.1016/S0048-7333(99)00055-4
Hess, T., Matt, C., Benlian, A., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2), 123–139.
Kusnadi, A., & Setyowati, E. (2021). Digital literacy and the readiness of micro, small, and medium enterprises in facing the industrial era 4.0. Journal of Administration and Business, 18(1), 45–56.
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
Science Institute Journal. (2023). Digital transformation and readiness among MSMEs: Challenges and opportunities in Indonesia. Journal of Management Development and Business, 5(2), 101–112.
Performance Journal Unsoed. (2023). Digital skills and e-readiness as determinants of MSME transformation in Indonesia. Performance: Journal of Business and Accounting, 23(1), 33–42.
Rahmawati, E., & Nugroho, D. (2022). A collaborative mentoring model to improve the digital readiness of MSMEs. Journal of Creative Community Service, 6(2), 58–67.
ResearchGate. (2024). The state of digital transformation among Indonesian SMEs: Insights from a systematic review.https://www.researchgate.net/publication/395430783
Susanti, D., Wibowo, H., & Hartono, R. (2023). Factors influencing SMEs' readiness for digital transformation in emerging markets. International Journal of Business and Society, 24(3), 1220–1234.
Tata Consultancy Services. (2018). Business 4.0: Rewiring organizations for digital growth. Mumbai: Tata Consultancy Services Ltd.
Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144.https://doi.org/10.1016/j.jsis.2019.01.003
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
IAPA Proceedings Journal. (2023). Digital transformation for MSME resilience in the era of Society 5.0: Evidence from Palembang City. Proceedings of the Indonesian Association for Public Administration, 4(1), 55–64.
Problems and Perspectives in Management. (2023). Digital transformation to enhance Indonesian SME performance: Exploring the impact of market competition and digital strategy. Problems and Perspectives in Management, 21(1), 300–312. https://doi.org/10.21511/ppm.21(1).2023.23
Al-Hafi Indonesia Journal. (2025). Digital readiness of MSMEs in the Industry 4.0 Era: A study on culinary sector MSMEs in Semarang Regency. Journal of Micro Business Innovation, 7(1), 11–23.
Ilomata Journal of Management. (2024). Organizational readiness as a key factor of digital adoption among Indonesian MSMEs. Ilomata Journal of Management, 5(2), 210–222.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 abid muhtarom, Abdul Ghofur, Yuhronur Efendi, Vicky Dwi Septyawan
This work is licensed under a Creative Commons Attribution 4.0 International License.
