The Impact of Digital Technology and Product Innovation on the Competitiveness of MSMEs in the Digital Economy Era
Keywords:
Digital Technology; Product Innovation; Competitiveness; Market; UMKMAbstract
This study examines the influence of digital technology and product innovation on the competitiveness of micro, small, and medium enterprises (MSMEs) in the current digital economy era. A quantitative research method was applied using a Likert-scale questionnaire distributed to local business owners. The digital technology variable (X1) was measured through two dimensions: perceived ease of use, which describes how easily business owners can operate digital tools, and attitude toward use, which reflects their positive feelings and satisfaction when interacting with technology. The product innovation variable (X2) focused on technical innovation related to product development. Competitiveness (Y) was assessed through three main dimensions: competitive pricing, which includes affordability and value; product quality, which covers durability and visual appeal; and consumer loyalty, reflected in repeat purchases and customer recommendations. All questionnaire items were developed based on a structured theoretical framework to ensure measurement accuracy. Respondents were selected using purposive sampling to capture real competitiveness conditions among MSMEs in the surrounding area. The findings reveal that neither digital technology (X1) nor product innovation (X2) shows a statistically significant influence on MSME competitiveness (Y). With an R-square value of 19.2%, the study indicates that these two variables are not yet the main determinants of competitiveness in the sampled MSMEs. The remaining 80.8% of competitiveness variation is explained by other factors outside the research model.
References
Alamin, Z., Lukman, L., Missouri, R., Annafi, N., Sutriawan, S., & Khairunnas, K. (2022). Penguatan Daya Saing Umkm Melalui Pelatihan Keterampilan Teknologi Di Era Society 5.0. Taroa: Jurnal Pengabdian Masyarakat, 1(2), 112–126. Https://Doi.Org/10.52266/Taroa.V1i2.1235
Arjang, A., Wadu, R. M. B., & Kraugusteeliana, K. (2025). Mengakselerasi Daya Saing Umkm Melalui Inovasi Teknologi: Peran Strategis Literasi Digital Masyarakat Dalam Mewujudkan Ekosistem Ekonomi Berbasis Platform. Jurnal Minfo Polgan, 14(2), 1608–1618. Https://Doi.Org/10.33395/Jmp.V14i2.15190
Arjang, A., Yani, A., & Suparwata, D. O. (2025). Peran Strategis Sistem Informasi Bisnis Dalam Sinkronisasi Pengelolaan Talenta, Penguatan Branding, Inovasi Layanan, Dan Peningkatan Daya Saing Umkm Di Era Ekonomi Digital. Jurnal Minfo Polgan, 14(1), 665–675. Https://Doi.Org/10.33395/Jmp.V14i1.14839
Azhari, F., & Ali, H. (2024). Peran Inovasi Produk, Strategi Pemasaran, Dan Kualitas Layanan Terhadap Peningkatan Kinerja Perusahaan. Jurnal Manajemen Dan Pemasaran Digital, 2(2), 72–81. Https://Doi.Org/10.38035/Jmpd.V2i2.146
Kaharuddin Kaharuddin, Yurdi Maulidani, Mihani Mihani, Saiful Saiful, & Nuridha Matiin. (2024). Implementasi Pelatihan Digital Marketing Bagi Pelaku Umkm Di Kecamatan Sanggatta Utara,Kalimantan Timur. Kolaborasi?: Jurnal Hasil Kegiatan Kolaborasi Pengabdian Masyarakat, 2(2), 56–71. Https://Doi.Org/10.62383/Kolaborasi.V2i2.141
Nazar, M. & Tertia Salsabila. (2024). Pemanfaatan Potensi E-Commerce Pada Peningkatan Keragaman Bisnis Lokal Di Sulawesi Selatan; Perspektif Transformasi Digital. Giat?: Teknologi Untuk Masyarakat, 3(1), 25–37. Https://Doi.Org/10.24002/Giat.V3i1.9152
Nurjanah, S. (2025). Pemanfaatan Teknologi Interaktif Dalam Meningkatkan Penjualan Produk. Jurnal Administrasi Bisnis, 5(1), 28–34. Https://Doi.Org/10.31294/Jab.V5i1.8820
Suarantalla, R., & Rizqi, R. M. (2024). Penerapan Pemasaran Digital Dalam Memfasilitasi Pertumbuhan Usaha Mikro, Kecil Dan Menengah (Umkm) Di Kecamatan Sumbawa. Jiip - Jurnal Ilmiah Ilmu Pendidikan, 7(1), 505–512. Https://Doi.Org/10.54371/Jiip.V7i1.3566
Suhaeni, T. (2018). Pengaruh Strategi Inovasi Terhadap Keunggulan Bersaing Di Industri Kreatif (Studi Kasus Umkm Bidang Kerajinan Tangan Di Kota Bandung). Jurnal Riset Bisnis Dan Investasi, 4(1), 57–74. Https://Doi.Org/10.35313/Jrbi.V4i1.992alamin, Z., Lukman, L., Missouri, R., Annafi, N., Sutriawan, S., & Khairunnas, K. (2022). Penguatan Daya Saing Umkm Melalui Pelatihan Keterampilan Teknologi Di Era Society 5.0. Taroa: Jurnal Pengabdian Masyarakat, 1(2), 112–126. Https://Doi.Org/10.52266/Taroa.V1i2.1235
Arjang, A., Wadu, R. M. B., & Kraugusteeliana, K. (2025). Mengakselerasi Daya Saing Umkm Melalui Inovasi Teknologi: Peran Strategis Literasi Digital Masyarakat Dalam Mewujudkan Ekosistem Ekonomi Berbasis Platform. Jurnal Minfo Polgan, 14(2), 1608–1618. Https://Doi.Org/10.33395/Jmp.V14i2.15190
Arjang, A., Yani, A., & Suparwata, D. O. (2025). Peran Strategis Sistem Informasi Bisnis Dalam Sinkronisasi Pengelolaan Talenta, Penguatan Branding, Inovasi Layanan, Dan Peningkatan Daya Saing Umkm Di Era Ekonomi Digital. Jurnal Minfo Polgan, 14(1), 665–675. Https://Doi.Org/10.33395/Jmp.V14i1.14839
Azhari, F., & Ali, H. (2024). Peran Inovasi Produk, Strategi Pemasaran, Dan Kualitas Layanan Terhadap Peningkatan Kinerja Perusahaan. Jurnal Manajemen Dan Pemasaran Digital, 2(2), 72–81. Https://Doi.Org/10.38035/Jmpd.V2i2.146
Kaharuddin Kaharuddin, Yurdi Maulidani, Mihani Mihani, Saiful Saiful, & Nuridha Matiin. (2024). Implementasi Pelatihan Digital Marketing Bagi Pelaku Umkm Di Kecamatan Sanggatta Utara,Kalimantan Timur. Kolaborasi?: Jurnal Hasil Kegiatan Kolaborasi Pengabdian Masyarakat, 2(2), 56–71. Https://Doi.Org/10.62383/Kolaborasi.V2i2.141
Lutfi, M., Chintya Dewi Buntuang, P., Kornelius, Y., Erdiyansyah, & Hasanuddin, B. (2020). The Impact (Lutfi Et Al., 2020)Of Social Distancing Policy On Small And Medium-Sized Enterprises (Smes) In Indonesia. Problems And Perspectives In Management, 18(3), 492–503. Https://Doi.Org/10.21511/Ppm.18(3).2020.40
Nazar, M. & Tertia Salsabila. (2024). Pemanfaatan Potensi E-Commerce Pada Peningkatan Keragaman Bisnis Lokal Di Sulawesi Selatan; Perspektif Transformasi Digital. Giat?: Teknologi Untuk Masyarakat, 3(1), 25–37. Https://Doi.Org/10.24002/Giat.V3i1.9152
Nurjanah, S. (2025). Pemanfaatan Teknologi Interaktif Dalam Meningkatkan Penjualan Produk. Jurnal Administrasi Bisnis, 5(1), 28–34. Https://Doi.Org/10.31294/Jab.V5i1.8820
Suarantalla, R., & Rizqi, R. M. (2024). Penerapan Pemasaran Digital Dalam Memfasilitasi Pertumbuhan Usaha Mikro, Kecil Dan Menengah (Umkm) Di Kecamatan Sumbawa. Jiip - Jurnal Ilmiah Ilmu Pendidikan, 7(1), 505–512. Https://Doi.Org/10.54371/Jiip.V7i1.3566
Suhaeni, T. (2018). Pengaruh Strategi Inovasi Terhadap Keunggulan Bersaing Di Industri Kreatif (Studi Kasus Umkm Bidang Kerajinan Tangan Di Kota Bandung). Jurnal Riset Bisnis Dan Investasi, 4(1), 57–74. Https://Doi.Org/10.35313/Jrbi.V4i1.992
Resna Napitu, S.E., M.Si, 2025) Bisnis Umkm Di Era Digital.
Sofian Lusa,Dkk. (2024). Peran E-Commerce Dalam Mendukung Ekonomi Digital Indonesia.
Bila bermanfaat silahkan share artikel ini
Berikan Komentar Anda terhadap artikel The Impact of Digital Technology and Product Innovation on the Competitiveness of MSMEs in the Digital Economy Era
