Analysis of Challenges and Opportunities for Micro, Small, and Medium Enterprises (MSMEs) in the Digital Era in a Systematic Literature Review
Abstract
This Systematic Literature Review explores the challenges and opportunities faced by Micro, Small, and Medium Enterprises (MSMEs) in the era of digital technology. This review aims to identify and analyse the challenges and opportunities of Micro, Small, and Medium Enterprises (MSMEs) in the digital era. The research method used was a thorough search of relevant literature using predetermined search criteria, resulting in 320 articles that met these criteria. These articles were further screened based on their relevance to the research questions, and finally, 58 articles were selected for analysis. The results show that the digital era offers significant opportunities for MSMEs, especially in terms of increased access to markets, resources and information. However, MSMEs also face various challenges, including a lack of digital literacy, limited resources, and intense competition. This study highlights the need for MSMEs to embrace digital technology and develop strategies to overcome these challenges. Overall, this systematic literature review provides valuable insights into the challenges and opportunities for MSMEs in the digital era and emphasises the importance of adapting to the changing business landscape. The findings of this research have practical implications for policymakers, MSMEs and other stakeholders interested in MSME development in the digital era.
References
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Digitalisation and SMEs: A Literature Review. Journal of Open Innovation: Technology, Markets, and Complexity, 6(4), 1-19.
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Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard business review, 92(11), 64-88.
Putra, A. A., & Ria, N. (2019). Challenges and Opportunities for MSMEs in the Digitalisation Era. Journal of Economics and Business, 4(2), 132-144.
Radovic-Markovic, M., & Stanisic, N. (2021). The Impact of Digitalisation on the Competitiveness of SMEs: Opportunities and Challenges. Economic Annals, 66(228), 99-126.
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Schäfer, B., Gasparon, M., & Storm, P. (2020). European Raw Materials Alliance-A new initiative to increase raw material resilience for a greener Europe. Mineral Economics, 33(3), 415-416.
Sebastian, I., Ross, J., Beath, C., Mocker, M., Moloney, K., & Fonstad, N. (2017). How big old companies navigate digital transformation. MIS quarterly executive, 16(3), 197-213.
Setiawan, A., & Apriani, R. (2021). The Support Role of Government and Financial Institutions in the Development of Micro, Small and Medium Enterprises (MSMEs) in the Digital Era. Journal of Accounting and Finance Research, 9(1), 60-68.
Straková, J., KorauÅ¡, A., Váchal, J., Pollák, F., ÄŒernák, F., TalÃÅ™, M., & Kollmann, J. (2021). Sustainable Development Economics of Enterprises in the Services Sector Based on Effective Manerament of Value Streams. Sustainability, 13(16), 8978.
Susanto, D. (2021). MSME Development Strategy in the Digitalisation Era. Journal of Business Manerament and Entrepreneurship, 8(1), 1-
10.
Tan, C. T., Lai, L. M., & Chua, B. L. (2021).
Exploring the Challenges and Opportunities of Digitalisation among SMEs in Malaysia. Journal of Asian Finance, Economics and Business, 8(6), 765-775.
Tapscott, D., & Williams, A. D. (2010). Innovating the 21st-century university: It's time. Educause review, 45(1), 16-29.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3), 172-194.
Venkatraman, N. (1994). IT-enabled business transformation: from automation to business scope redefinition. Sloan manerament review, 35, 73-73.
Vidmar, D., Marolt, M., & Pucihar, A. (2021). Information technology for business sustainability: a literature review with automated content analysis. sustainability, 13(3), 1192.
West, S., Mueller-Csernetzky, P., Kuenzli, M., Huonder, M., & Granata, T. (2018). Ecosystems innovation for smart connected services. In 25th International EurOMA Conference.
Westerman, G., Calméjane, C., Bonnet, D., Ferraris, P., & McAfee, A. (2011). Digital Transformation: A roadmap for billion- dollar organisations. MIT Centre for digital business and capgemini consulting, 1, 1-68.
Aripin, A., & Sarumpaet, S. (2020). SMEs Readiness towards Industry 4.0: Opportunities and Challenges in Developing Countries. Journal of Open Innovation: Technology, Market, and Complexity, 6(1), 1-22.
Brynjolfsson, E., & McAfee, A. (2014). The second machine era: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & Company.
Brynjolfsson, E., McAfee, A., & Spence, M. (2014). New world order: labour, capital, and ideas in the power law economy. Foreign Affairs, 93(4), 44-53.
Castells, M. (1996). The information era: Economy, society and culture (3 volumes). Blackwell, Oxford, 1997, 1998.
DÄ…browska, J., Almpanopoulou, A., Brem, A., Chesbrough, H., Cucino, V., Di Minin, A.,
... & Ritala, P. (2022). Digital transformation, for better or worse: a critical multi-level research eranda. R&D Manerament, 52(5), 930-954.
Darmawan, A. (2020). Digitalisation and Opportunities for Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Journal of Development Economics, 18(2), 91-102.
De Wit, H. A., Valinia, S., Weyhenmeyer, G. A., Futter, M. N., Kortelainen, P., Austnes, K., ... & Vuorenmaa, J. (2016). Current browning of surface waters will be further promoted by wetter climate. Environmental Science & Technology Letters, 3(12), 430-
435.
Estensoro, M., Larrea, M., Müller, J. M., & Sisti, E. (2022). A resource-based view on SMEs regarding the transition to more sophisticated steras of Industry 4.0. European Manerament Journal, 40(5), 778-
792.
Gastaldi, L., Radaelli, G., Lettieri, E., Luzzini, D., & Corso, M. (2019). Professionals' use of ICT in hospitals: the interplay between institutional and rational factors. International Journal of Technology Manerament, 80(1-2), 85-106.
Gereffi, G. (2005). The global economy: organisation, governance, and development. The handbook of economic sociology, 2, 160-182.
H. Davenport, T. (2014). How strategists use "big data" to support internal business decisions, discovery and production. Strategy & leadership, 42(4), 45-50.
Harianto, R. A., & Sari, P. N. (2021). Strategic digitalisation of MSME business as an alternative to survive the COVID-19 pandemic. Linguistics and Culture Review, 5(S1), 617-623.
Hooi, L. W., Wong, S. Y., & Tan, K. S. (2020).
Digitalisation and SMEs: A Literature Review. Journal of Open Innovation: Technology, Markets, and Complexity, 6(4), 1-19.
Idah, Y. M., & Pinilih, M. (2020, June). Strategies for developing digitalisation of MSMEs. In Proceedings of LPPM Unsoed National Seminar (Vol. 9, No. 1).
Jacqueline, O., & Verdin, R. (2021). Comparing the digital transformation of welfare delivery in Europe.
Johnson, D. (2020). Small and Medium Enterprises in the Digital Era. European Business Review, 32(6), 811-827.
Kassim, F. M., & Khalid, F. S. (2020). The Challenges and Opportunities of Digitalisation for SMEs in Malaysia. International Journal of Advanced Computer Science and Applications, 11(4), 228-234.
Kaur, J., & Soin, P. (2021). Digitalisation and SME performance: A literature review. Journal of Small Business Manerament, 59(2), 231-
252. doi: 10.1080/00472778.2020.1745536 Khan, N., Bhatt, A. A., Amu, A., & UP, I. (2014).
Role of women in micro, small and medium enterprises (MSME). International Journal, 1(1).
Kitchenham, B. A. (2012, September). Systematic review in software engineering: where we are and where we should be going. In Proceedings of the 2nd international workshop on Evidential assessment of software technologies (pp. 1-2).
KorauÅ¡, A., Gombár, M., Vagaská, A., BaÄÃk, R., Korba, P., & ÄŒernák, F. (2021). Bitcoin price as one of basic cryptocurrencies in relation to the basic stock market's indicators. Entrepreneurship and Sustainability Issues, 9(2), 552.
Kristiadi, J. (2019). Development Strategy of MSMEs in the Digital Era. Journal of Economics and Public Policy, 10(2), 193-
210.
Kurniawan, H., & Natsir, A. S. (2019). Opportunities and Challenges for MSMEs in the Industry 4.0 Era. Journal of Business Manerament and Innovation, 6(2), 194-204.
Kusumo, E., & Nuraini, N. (2020). Opportunities and Challenges of Digitalisation of MSMEs in the Era of Industrial Revolution 4.0. Journal of Manerament Science and Business, 7(2), 152-165.
Liao, Y., Li, Y., & Huang, H. (2021). How digitalisation affects customer experience and customer loyalty: Evidence from Chinese SMEs. Journal of Business Research, 126, 60-70. doi: 10.1016/j.jbusres.2020.12.013
Madichie, N. O., & Ibietan, J. (2019). Digital Entrepreneurship and the Challenges of Micro, Small, and Medium-Sized Enterprises in Nigeria. Journal of Small Business and Enterprise Development, 26(6), 820-839.
MihalÄová, B., KorauÅ¡, A., Prokopenko, O., Hvastová, J., Freňáková, M., Gallo, P., & Balogová, B. (2021). Effective manerament tools for solving the problem of poverty in relation to food waste in the context of integrated manerament of energy. Energies, 14(14), 4245.
Moher D, Liberati A, Tetzlaff J, Altman DG, The PRISMA Group (2009). Preferred Reporting Items for Systematic Reviews and Meta- Analyses: The PRISMA Statement. PLoS Med 6(7): e1000097.
doi:10.1371/journal.pmed1000097.
Pera MJ, McKenzie JE, Bossuyt PM, et al. The PRISMA 2020 statement: an updated guideline for reporting systematic reviews. BMJ. 2021;372:n71. doi:10.1136/bmj.n71
Peter, M. K., Kraft, C., & Lindeque, J. (2020). Strategic action fields of digital transformation: An exploration of the strategic action fields of Swiss SMEs and large enterprises. Journal of Strategy and Manerament, 13(1), 160-180.
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard business review, 92(11), 64-88.
Putra, A. A., & Ria, N. (2019). Challenges and Opportunities for MSMEs in the Digitalisation Era. Journal of Economics and Business, 4(2), 132-144.
Radovic-Markovic, M., & Stanisic, N. (2021). The Impact of Digitalisation on the Competitiveness of SMEs: Opportunities and Challenges. Economic Annals, 66(228), 99-126.
Raguseo, E., Gastaldi, L., & Neirotti, P. (2016, December). Smart work: Supporting employees' flexibility through ICT, HR practices and office layout. In Evidence- based HRM: a global forum for empirical scholarship. Emerald Group Publishing Limited.
Safitri, R. (2019). The Impact of the Digital Era on Increasing MSME Productivity. Journal of Manerament and Business, 16(2), 186-200.
Schäfer, B., Gasparon, M., & Storm, P. (2020). European Raw Materials Alliance-A new initiative to increase raw material resilience for a greener Europe. Mineral Economics, 33(3), 415-416.
Sebastian, I., Ross, J., Beath, C., Mocker, M., Moloney, K., & Fonstad, N. (2017). How big old companies navigate digital transformation. MIS quarterly executive, 16(3), 197-213.
Setiawan, A., & Apriani, R. (2021). The Support Role of Government and Financial Institutions in the Development of Micro, Small and Medium Enterprises (MSMEs) in the Digital Era. Journal of Accounting and Finance Research, 9(1), 60-68.
Straková, J., KorauÅ¡, A., Váchal, J., Pollák, F., ÄŒernák, F., TalÃÅ™, M., & Kollmann, J. (2021). Sustainable Development Economics of Enterprises in the Services Sector Based on Effective Manerament of Value Streams. Sustainability, 13(16), 8978.
Susanto, D. (2021). MSME Development Strategy in the Digitalisation Era. Journal of Business Manerament and Entrepreneurship, 8(1), 1-
10.
Tan, C. T., Lai, L. M., & Chua, B. L. (2021).
Exploring the Challenges and Opportunities of Digitalisation among SMEs in Malaysia. Journal of Asian Finance, Economics and Business, 8(6), 765-775.
Tapscott, D., & Williams, A. D. (2010). Innovating the 21st-century university: It's time. Educause review, 45(1), 16-29.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2-3), 172-194.
Venkatraman, N. (1994). IT-enabled business transformation: from automation to business scope redefinition. Sloan manerament review, 35, 73-73.
Vidmar, D., Marolt, M., & Pucihar, A. (2021). Information technology for business sustainability: a literature review with automated content analysis. sustainability, 13(3), 1192.
West, S., Mueller-Csernetzky, P., Kuenzli, M., Huonder, M., & Granata, T. (2018). Ecosystems innovation for smart connected services. In 25th International EurOMA Conference.
Westerman, G., Calméjane, C., Bonnet, D., Ferraris, P., & McAfee, A. (2011). Digital Transformation: A roadmap for billion- dollar organisations. MIT Centre for digital business and capgemini consulting, 1, 1-68.
Published
2023-10-24
How to Cite
EVANITA, Susi; FAHMI, Zul.
Analysis of Challenges and Opportunities for Micro, Small, and Medium Enterprises (MSMEs) in the Digital Era in a Systematic Literature Review.
JMK (Jurnal Manajemen dan Kewirausahaan), [S.l.], v. 8, n. 3, p. 227-239, oct. 2023.
ISSN 2656-0771.
Available at: <https://ejournal.uniska-kediri.ac.id/index.php/ManajemenKewirausahaan/article/view/4190>. Date accessed: 05 feb. 2025.
doi: https://doi.org/10.32503/jmk.v8i3.4190.
Section
Artikel Ilmiah
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