Empowering MSMEs in South Sumatra: The role of digital transformation

https://doi.org/10.35912/ahrmr.v5i1.2854
Published: Jun 12, 2025

Abstract:

Purpose: This study aimed to examine the relationship between resilience and sustainability of culinary MSEs through digital transformation in South Sumatra Province.

Research Methodology: Sample selection with criteria, namely respondent had been having business for at least 5 years, had passed fluctuating conditions such as surviving covid conditions, rising inflation, monetary policy and so on. The number of samples was 130 MSEs, which were local culinary businesses. Knowing the relationship of each variable X to variable Y was tested using structural equation Modelling (SEM-PLS) analysis.

Results: This study found a resilience relationship with digital transformation of 0.834 and a sustainability relationship with digital transformation of 0.400. The relationship between resilience and digital transformation was stronger than that between sustainability and digital transformation. The main cause was that MSEs lacked long-term commitment, and it was difficult for them to grow in dynamic environmental and social conditions while also focusing on profits. Digital transformation in MSEs was defensive rather than supporting holistic sustainability, limited sustainable resources simultaneously, and integrated with digital transformation. Therefore, MSE actors need to be educated, trained, and given guidance in changing mindset and social behavior for the long-term sustainability of MSEs.

Limitations: The study was limited to culinary MSEs in South Sumatra and used non-probability sampling, which may have affected generalizability.

Contribution: This study revealed that resilience had a stronger influence than sustainability in driving digital transformation among culinary MSEs.

Novelty: This study offers a novel perspective by integrating resilience and sustainability in analyzing digital transformation within culinary MSEs.

Keywords:
1. Digital Transformation
2. Micro and Small Enterprises
3. Resilience
4. Sustainability
Authors:
1 . Lisa Hermawati
Baturaja University, South Sumatra, Indonesia
2 . Ema Pusvita
Baturaja University, South Sumatra, Indonesia
3 . Delta Khairunnisa
Sriwijaya State Polytechnic, South Sumatra, Indonesia
4 . Aning K`usuma Putri
Bangka Belitung University, Indonesia
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How to Cite
Hermawati, L., Pusvita, E., Khairunnisa, D., & Putri, A. K. (2025). Empowering MSMEs in South Sumatra: The role of digital transformation. Annals of Human Resource Management Research, 5(1), 169–182. https://doi.org/10.35912/ahrmr.v5i1.2854
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Vol. 5 No. 1 (2025): March
Articles
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  7. BPS. (2022b). Sumatera Selatan Province in Figures.
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  10. Choshin, M., & Ghaffari, A. (2017). Computers in Human Behavior An investigation of the impact of effective factors on the success of e-commerce in small- and medium-sized companies. Computers in Human Behavior, 66, 67–74. https://doi.org/10.1016/j.chb.2016.09.026
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  14. Donal, I., Manurung, P., & Widodo, E. (2022). Building Resilient Micro-Small Enterprises?: A Case Study of MSEs in The Midst of The Covid-19 Pandemic. 11(September), 1–12.
  15. Elkington, J. (1998). Enter the Triple Bottom Line. 1(1986), 1–16.
  16. Endris, E., & Kassegn, A. (2022). The role of micro , small and medium enterprises ( MSMEs ) to the sustainable development of sub ? Saharan Africa and its challenges?: a systematic review of evidence from Ethiopia. https://doi.org/10.1186/s13731-022-00221-8
  17. Farisi, Salman al, Iqbal fasa muhammad, S. (2022). PERAN UMKM (USAHA MIKRO KECIL MENENGAH) DALAM MENINGKATKAN KESEJAHTERAAN. Dinamika Ekonomi Syariah, 9(1), 73–84.
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  19. Goonawardena, E. D. M. A. A. (2023). Impact of Digital Transformation on Small and Medium Enterprises Performance in The Sri Lankan Apparel Sector. 9(2), 161–180.
  20. Hashem, A. M., Alghamdi, B. S., Algaissi, A. A., Alshehri, F. S., Bukhari, A., Alfaleh, M. A., & Memish, Z. A. (2020). Therapeutic use of chloroquine and hydroxychloroquine in COVID-19 and other viral infections?: A narrative review. Travel Medicine and Infectious Disease, 35(May), 101735. https://doi.org/10.1016/j.tmaid.2020.101735
  21. Hendra, S. P. (2017). Strategy of Enhancement Sony Hendra Permana. Aspirasi, 8(1), 93–103.
  22. Hermawati, L., Pusvita, E., & Jayanti, N. (2025). Technology-Based Financing Increases the Growth of Agribusiness SMEs in Underserved Areas of South Sumatra Indonesia. International Journal of Research and Innovation in Social Science, VIII(IIIS), 6289–6295. https://doi.org/10.47772/IJRISS.2024.803471S
  23. Hermawati, L., Pusvita, E., & Khairani, S. (2024). The Impact of Financial Access on SMES Development in Oku Regency , South Sumatera. 9(12), 706–710.
  24. Hermawati, L., Pusvita, E., Marwa, T., & Yulianita, A. (2025). Analysis of technology adoption and government policy in improving the financial performance of SMEs in the Indonesia agricultural sector. 7(1), 117–132.
  25. Iswanto, A. H., Zainal, A. G., Murodov, A., El-ebiary, Y. A. B., Sattarova, D. G., Jakarta, N. V., Pedagogical, T. S., Abidin, Z., & Dental, T. S. (2022). Studying the role of Islamic religious beliefs on depression during COVID-19 in Malaysia. 1–6.
  26. Jati, H., Rosary, P. E. De, & Makatita, R. F. (2021). THE IMPORTANCE OF FINANCIAL LITERACY AND TECHNOLOGICAL LITERACY FOR THE SUSTAINABILITY OF THE CULINARY BUSINESS IN KOTA KUPANG DURING THE COVID -19. 5(01), 15–41.
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  32. Marsh, H. W., Morin, A. J. S., Parker, P. D., & Kaur, G. (2013). Exploratory Structural Equation Modeling?: An Integration of the Best Features of Exploratory and Confirmatory Factor Analysis. November, 1–26. https://doi.org/10.1146/annurev-clinpsy-032813-153700
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  35. Nurfadilah, D., Samidi, S., & Daryanto, W. M. (2023). Digital readiness of Islamic rural banks in Indonesia?: Lesson from the COVID-19 pandemic Digital readiness of Islamic rural banks in Indonesia?: Lesson from the COVID-19 pandemic. Cogent Business & Management, 10(3). https://doi.org/10.1080/23311975.2023.2259587
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  37. Pablos, P. O. De, & Anshari, M. (2024). SUSTAINABLE DEVELOPMENT.
  38. Putri, A. U., Mirani, D., & Khairunnisyah, T. (2023). Digital Transformation for MSME Resilience in The Era of Society 5 . 0. 154–174.
  39. Putri, A. U., Nasyaya, A., Musdalifah, F. S., & Dwi, A. (2023). Kreativitas , Inovasi dan Transformasi Digital?: Pengabdian Masyarakat kepada Pelaku UMKM. 6, 129–137.
  40. Putritamara, J. A., Hartono, B., Toiba, H., & Utami, H. N. (2023). Do Dynamic Capabilities and Digital Transformation Improve Business Resilience during the COVID-19 Pandemic?? Insights from Beekeeping MSMEs in Indonesia.
  41. Rogers, E. M., Singhal, A., & Quinlan, M. M. (2003). Diffusion of innovations. An Integrated Approach to Communication Theory and Research, Third Edition, December 2016, 415–433. https://doi.org/10.4324/9780203710753-35
  42. Sakuramoto, F. C. – R. M. L. – R. M. C. P. – L. R. – M. (2019). LAW AND ECONOMICS YEARLY. 8(2), 347–380.
  43. Santiago, L., Polezi, I., Pereira, L., & Cristina, A. (2022). ScienceDirect ScienceDirect Assessing the digital maturity of micro and small enterprises?: a focus on an emerging market. Procedia Computer Science, 200(2019), 175–184. https://doi.org/10.1016/j.procs.2022.01.216
  44. Santos, S. C., Liguori, E. W., & Garvey, E. (2023). Technological Forecasting & Social Change How digitalization reinvented entrepreneurial resilience during COVID-19. Technological Forecasting & Social Change, 189(June 2022), 122398. https://doi.org/10.1016/j.techfore.2023.122398
  45. Sarstedt, M., Ringle, C. M., & Hair, J. F. (2017). Treating Unobserved Heterogeneity in PLS-SEM?: A Multi-method Approach. https://doi.org/10.1007/978-3-319-64069-3
  46. Sheffi, Y. (2005). A Supply Chain View of the Resilient Enterprise A Supply Chain View of the Resilient Enterprise. 47(1).
  47. Singh, J., & Steele, K. (2021). Combining the Best of Online and Face-to-Face Learning?: Hybrid and Blended Learning Approach for COVID-19 , Post Vaccine , & Post- Pandemic World. https://doi.org/10.1177/00472395211047865
  48. Siregar, R., & Sudarmanto, E. (2023). Beyond Traditional Boundaries?: Embracing Digital Transformation for Enhanced Management Efficiency at Micro and Small Business Enterprises. 01(06), 267–279.
  49. Sofyan, S. (2017). Peran UMKM ( Usaha Mikro, Kecil, dan Menengah dalam Perekonomian Indonesia). 11(1), 33–64.
  50. Srimulyani, V. A. (2022). Impact of Entrepreneurial Self-Efficacy and Entrepreneurial Motivation on Micro and Small Business Success for Food and Beverage Sector in East Java , Indonesia.
  51. Suardi, I., & Nugroho, A. E. (2024). Strengthening Micro and Small-scale Enterprises ’ ( MSE ’ s ) Resilience and Adaptability to Accelerate Economic Recovery Post-Covid-19 Pandemic in Indonesia. 2024(December 2020), 393–406. https://doi.org/10.18502/kss.v9i21.16740
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