MSME Transformation in the Digital Era: Optimizing E-Commerce for Competitiveness and Economic Growth

Abstract

The development of digital technology has driven significant transformation in the trade sector, particularly through e-commerce, which plays a crucial role in supporting Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. As the backbone of the national economy, MSMEs are required to adapt to the digital ecosystem to be able to compete in the global market. This study aims to examine the role of e-commerce in MSME development, identify applicable strategies, and analyze the challenges and opportunities that arise in the digital economy era. This study uses a qualitative approach with a literature review method. The data used are secondary data sourced from academic and non-academic literature, including national and international scientific journals, books, research reports, conference articles, official government publications, and statistical data. All literature is critically analyzed to generate a comprehensive understanding of the research issues. The results show that e-commerce makes a significant contribution to strengthening the competitiveness of MSMEs by expanding market access, increasing operational efficiency, and supporting product innovation. However, its implementation still faces various obstacles such as limited digital literacy, technological infrastructure, and access to financing.