The Role of Digital Innovation in MSME Growth: A Social Economy Perspective for Sustainable Development

Autores/as

DOI:

https://doi.org/10.31637/epsir-2026-1954

Palabras clave:

Digital Innovation, MSME Growth, Social Economy, Financial Inclusion, E-commerce Adoption, Cybersecurity Challenges, Digital Transformation, Policy Recommendations

Resumen

Introduction: The rapid advancement of digital technology has transformed business operations, presenting both opportunities and challenges for Micro, Small, and Medium Enterprises (MSMEs). Digital innovation plays a crucial role in enhancing business growth, financial inclusion, and market competitiveness, particularly within the framework of the social economy. However, MSMEs often face barriers in adopting digital technologies due to financial constraints, lack of technical expertise, cybersecurity risks, and regulatory complexities. This study aims to analyze the impact of digital innovation on MSME growth, identify challenges in digital adoption, explore alignment with social economy principles, and propose policy recommendations to support MSME digital transformation. Methodology: Using a qualitative case study approach, this research collected data through semi-structured interviews with MSME owners, industry experts, and policymakers. Results and discussion: The findings indicate that MSMEs adopting e-commerce platforms, social media marketing, fintech solutions, and cloud-based management tools experience higher revenue growth, broader customer reach, and improved operational efficiency. However, challenges such as limited funding, digital illiteracy, and cybersecurity vulnerabilities hinder widespread adoption. Conclusion: The study concludes that digital transformation is a key enabler of sustainable MSME growth and offers policy and strategic recommendations to support small businesses in overcoming digital barriers.

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Biografía del autor/a

Nur Alifah, Institut Prima Bangsa

The author is an academic and professional specializing in English language studies, translation, and linguistics. With a strong background in the English department, the author have extensive experience in teaching, research, and translation. The author expertise includes language acquisition, literary analysis, and cross-cultural communication. As a translator, the author has worked on various projects, including academic papers, business documents, and literary texts, ensuring accuracy and cultural relevance. The author have published research articles in national and international journals and actively participate in linguistic and translation conferences. Additionally, the author is involved in language education and curriculum development. The author interdisciplinary approach integrates language studies, communication, and translation, contributing to both academic and professional fields. Currently, they are engaged in research on translation strategies and language technology.

Agus Rohmat Hidayat , Universitas Mitra Indonesia

The author is an academic and researcher specializing in business management, digital transformation, and social economy. With a strong background in higher education, the author has experience in teaching, research, and journal editing. The expertise includes micro, small, and medium enterprises (MSMEs), e-commerce, financial inclusion, and innovation strategies. The author has published several articles in national and international journals and has actively participated in academic conferences. Additionally, they have contributed to various community development projects and policy recommendations to support MSME growth. The interdisciplinary approach combines business, technology, and economic sustainability, making significant contributions to the field. Currently, the author is engaged in further research on digital transformation and its impact on business competitiveness and economic development.

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Publicado

2025-12-15

Cómo citar

Alifah, N., & Hidayat , A. R. (2025). The Role of Digital Innovation in MSME Growth: A Social Economy Perspective for Sustainable Development. European Public & Social Innovation Review, 11, 1–20. https://doi.org/10.31637/epsir-2026-1954

Número

Vol. 11 (2026)

Sección

Artículos Portada

Licencia

Derechos de autor 2025 Nur Alifah, Agus Rohmat Hidayat

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