Analysis of Challenges and Opportunities in Digital Technology Adoption among MSMEs in Jakarta from a Diffusion of Innovation Perspective Sarah Anistia, Kharisma Azmi Yoningsih
Universitas Terbuka
Abstract
Digital transformation has become an essential requirement, rather than merely an alternative, for Micro, Small, and Medium Enterprises (MSMEs). In the face of pressure, globalization, and evolving consumer behavior, MSMEs must embrace digital technology to endure and remain competitive. This study aims to investigate the challenges and opportunities faced by Micro, Small, and Medium Enterprises (MSMEs) in Jakarta in adopting digital technology, utilizing the Diffusion of Innovation (DOI) theory framework. The methodology is qualitative, using in-depth interviews with 25 MSMEs across diverse sectors. The analysis indicates that relative advantage is the primary motivator, as MSME stakeholders perceive digital technology as a means to enhance market access, operational efficiency, marketing strategies, product innovation, and increase competitiveness and business sustainability, paving the way for accelerated digital adoption. However, the technology^s compatibility with the local work culture is not aligned, indicating that the drive to innovate is stronger. The complexity of technology poses a significant barrier for MSMEs facing limitation in human resources, insufficient funding and infrastructure, competitive marketing, platform integration and efficiency, and digital security issues. The opportunity to evaluate technology through demo versions or complimentary services positively impacts adoption decisions. This study enhances comprehension of the dynamics surrounding digital technology adoption by MSMEs, a social and strategic process shaped by perceptions, organizational readiness, and external environmental support. Policy strategies and technological solutions must be comprehensive and grounded in actual requirements for digital transformation to achieve sustainability.
Keywords: Adoption of digital technology, Jakarta MSMEs, opportunities for MSMEs, challenges faced by MSMEs, Diffusion of Innovations (DOI)
