How Can Indonesia Advance Its Economic Potential Through Digital Transformation and Business Resilience in The Local Digital Economy?
印度尼西亚如何通过数字化转型和本土数字经济中的商业韧性来释放其经济潜力？
DOI:
https://doi.org/10.65967/siss.v44i3.148Keywords:
Digital transformation, Business resilience, Local digital economyAbstract
This study examines the role of digital transformation (DT) in enhancing the development of small medium enterprises (SMEs) within Indonesia’s local digital economy (LDE), emphasizing the mediating role of business resilience (BR). Using a quantitative approach, data were collected from 370 SMEs owners across Indonesia through structured questionnaires and analyzed using structural equation modeling (SEM). The results reveal that DT significantly improves LDE performance both directly and indirectly through BR. Firms that integrate digital technologies with adaptive capabilities demonstrate greater ability to manage uncertainty, maintain operational continuity, and sustain long-term competitiveness. These findings extend the literature on digital transformation by integrating dynamic capability and resource-based perspectives, highlighting resilience as a key mechanism that converts digital potential into economic value. The study also offers practical implications for policymakers and small business practitioners seeking to promote resilient digitalization strategies that foster inclusive and sustainable local economic development.
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