Digital Transformation and Business Performance of Indonesian Small and Medium Enterprises
DOI:
https://doi.org/10.63208/21014-648Keywords:
Business Performance, Digital Transformation, Digital Technology, Indonesian SMEs, Strategic IntegrationAbstract
Digital transformation has become increasingly important for the development and performance of small and medium enterprises (SMEs) in Indonesia. This study aims to examine and synthesize previous findings concerning digital transformation and its contribution to SME business performance. The study employed a literature review method based on relevant studies discussing digital transformation, e-commerce adoption, digital payment, social media utilization, organizational readiness, digital business strategy, and business performance among Indonesian SMEs. The findings indicate that digital transformation is a multidimensional process involving changes in business models, marketing activities, transaction systems, customer interaction, and business strategies. E-commerce, social media, and digital payment provide opportunities to expand market access, facilitate transactions, and strengthen customer engagement. However, the effectiveness of digital transformation depends not only on technology adoption but also on organizational readiness, technological capabilities, and strategic integration. Overall, the study concludes that digital transformation can support improved SME business performance when digital technologies are integrated with organizational capabilities and appropriate business strategies.
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