Production efficiency and product innovation in the digital era: Challenges and adaptive strategies for MSMEs
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Abstract
Digital transformation has become a demand for MSMEs in increasing production efficiency and encouraging product innovation. This study aims to analyze the challenges and adaptive strategies faced by MSMEs in the digitalization era. The method used is a literature study with a qualitative approach, through tracing and analyzing scientific sources related to MSME digitalization, production efficiency, and product innovation. The results of the study show that digitalization provides great opportunities for MSMEs in expanding markets, saving operational costs, and increasing competitiveness. However, MSMEs still face various obstacles such as low digital literacy, limited access to technology, and resistance to change. The adaptive strategies identified include digital literacy training, the use of social media and e-commerce for marketing, and collaboration between MSMEs, the government, and technology providers. The conclusion of this study emphasizes the importance of synergy between increasing human resource capacity, technology infrastructure support, and pro-digital policies to create a resilient and sustainable MSME business ecosystem in the digital era.
Keywords: MSME digitalization, production efficiency, product innovation, adaptive strategy
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