TRADITIONAL TO DIGITAL MARKETING TRANSFORMATION: AN ANALYSIS OF PRACTICES AND CHALLENGES FOR UMKM

Authors

  • Ami Nurhayati Sekolah Tinggi Ilmu Ekonomi Enam Enam Kendari

Keywords:

digitalization; digital literacy; digital marketing; MSMEs

Abstract

The development of information and communication technology has changed the global business landscape, pushing MSMEs to adopt digital marketing strategies to improve competitiveness. While digitalization offers various opportunities, many MSMEs still face obstacles in implementing digital marketing due to limited resources, low digital literacy, and lack of understanding of digital technology. This research seeks to fill the gap in the related literature by exploring the challenges and best practices in digital marketing transformation for MSMEs in Indonesia. A descriptive qualitative research approach was used with semi-structured interviews with MSME owners, digital marketing experts, marketplace platform representatives, consumers, and government regulators. The results show that although most MSMEs have started to adopt digital marketing, obstacles such as lack of a clear strategy, limited capital, and competition with large businesses are still the main challenges. In addition, low digital literacy means that many MSMEs have not been able to optimize the features available in marketplaces and social media. Therefore, improved digital literacy, assistance in marketing strategies, and more adaptive policy support are needed to accelerate the digital transformation of MSMEs. This research contributes to the development of literature related to digital marketing for MSMEs and provides recommendations for stakeholders in supporting the digitalization of MSMEs more inclusively and sustainably.

References

Chaffey, D., & Smith, P. R. (2022). Digital marketing excellence: Planning, optimizing and integrating online marketing. Routledge. https://doi.org/10.1108/JRIM-05-2022- 0119

Creswell, J. W. (2014). Research design: Qualitative, quantitative, and mixed methods approaches (4th ed.). SAGE Publications.

Grewal, D., Roggeveen, A. L., & Nordfält, J. (2023). The future of retailing. Journal of Business Research, 113(4), 753-765. https://doi.org/10.1016/j.jbusres.2023.1137 54

Hanafizadeh, P., Behboudi, M., & Hashemi, A. (2023). The impact of digitalization on consumer behavior in emerging markets. Journal of Retailing and Consumer Services, 67(3), 103177. https://doi.org/10.1016/j.jretconser.2023.103177

Miles, M. B., & Huberman, A. M. (1994). Qualitative data analysis: An expanded sourcebook. SAGE Publications.

Patton, M. Q. (2002). Qualitative research and evaluation methods (3rd ed.). SAGE Publications.

Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.

Vial, G. (2022). Understanding digital transformation: A review and a research agenda. Journal of Management Studies, 59(4), 12790. https://doi.org/10.1111/joms.12790

Wirtz, B. W., Schilke, O., & Ullrich, S. (2023). Strategic digital transformation in government. Government Information Quarterly, 40(1), 101834. https://doi.org/10.1016/j.giq. 2023.101834

Journal STIE MIFDA. (n.d.). The challenges of MSMEs in facing digital transformation. Journal of Community Service. Retrieved from https://journal.stiemifdasubang.ac. id/index.php/jpm/article/download/21/18/93

Times Indonesia. (2023). Challenges for MSMEs in facing digital transformation. Times Indonesia. Retrieved from https://timesindonesia.co.id/kopi-times/515656/ challenges-umkm-in-facing-digital-transformation

Binus Information Systems. (2023). Challenges and opportunities for digital transformation in micro, small and medium enterprises (MSMEs). BINUS University. Retrieved from https://sis.binus.ac.id/2023/08/30/tantangan-dan-peluang-transformasi- digital-pada- micro-small-and-medium-enterprises-umkm/

Civiliza Journal (2023). Government policies in supporting the digitalization of MSMEs. Journal of Economic and Social Studies. Retrieved from https://journal.civiliza.org/ index.php/jess/article/download/150/150

Indonesian Journal of Management and Business Research. (2023). Digital marketing strategies to improve the competitiveness of MSMEs. Indonesian Journal of Business Management and Research. Retrieved from https://jmrbi.stiembi.ac.id/index.php /lppm/article/view/114

Downloads

Published

2025-01-07