Mapping Digital Strategy in SMEs in Indonesia: Opportunities, Challenges, and Managerial Implications

Abstract

Digitalization has become a vital strategy for Small and Medium Enterprises (SMEs) in responding to the rapid and competitive changes in the business environment. This article aims to map the digital strategies adopted by SMEs in Indonesia, identify the opportunities and challenges they face, and formulate relevant managerial implications. This study employs a Systematic Literature Review (SLR) approach, analyzing selected scholarly articles from national. The findings reveal that digital strategies implemented by Indonesian SMEs primarily involve digital marketing, e-commerce, integration of social media platforms, and the use of cloud-based technologies. On the opportunity side, digitalization enhances operational efficiency, market reach, and customer relationships. However, SMEs face significant challenges such as limited resources, low levels of digital literacy, and inadequate technological infrastructure. The resulting managerial implications highlight the need for digital capacity development, the strengthening of strategic collaborations, and the enhancement of supportive policies from government and financial institutions.