The Role of Digital Transformation in Resilience of MSMEs Post-Pandemic: A Literature Review

Abstract

Micro, Small, and Medium Enterprises (MSMEs) have an important role in the Indonesian economy because they absorb a large number of workers and contribute significantly to the Gross Domestic Product (GDP). However, the COVID-19 pandemic has had a serious impact on the sustainability of MSMEs, with a decline in turnover, distribution disruptions, and limited capital that threatens business resilience. Digital transformation is a key strategy to increase the competitiveness and resilience of MSMEs after the pandemic. This study uses the literature review method by examining journal articles, books, government reports, and relevant scientific publications in the last five to ten years. The results of the study show that the use of e-commerce, social media, digital payment systems, big data, and business management applications is able to expand market reach, increase operational efficiency, and strengthen the adaptability of MSMEs to market changes. However, digital transformation also faces various challenges such as low digital literacy, limited infrastructure, lack of capital, and fierce competition in the digital ecosystem. Therefore, comprehensive support from the government, financial institutions, and other strategic partners is needed to encourage the acceleration of MSME.