Analysis of Digital Transformation and Economic Resilience of MSMEs in Ambon City
DOI:
https://doi.org/10.24256/kharaj.v8i3.12106Keywords:
Operational Digitalization; Digital Literacy; Digital Payments; Digital Marketing; Economic Resilience of MSMEsAbstract
This study analyzes the influence of digital transformation on the economic resilience of Micro, Small, and Medium Enterprises (MSMEs) in Ambon City. Digital transformation is measured through four variables, namely Operational Digitalization, Digital Literacy, Digital Payments, and Digital Marketing. The study used an explanatory quantitative approach with a cross-sectional survey design. Data was obtained from 190 MSME owners or managers and analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) through the SmartPLS application. The results of the evaluation of the measurement model showed that all indicators met the convergent validity and reliability of the construct. The validity of the discriminant based on the Fornell-Larcker criteria and cross loadings was also met. However, the HTMT value between Digital Payments and Digital Marketing of 0.911 indicates a potential empirical overlap between the two constructs. An R² value of 0.650 indicates that the four independent variables are able to explain 65 percent of the variation in MSME Economic Resilience. Operational Digitalization has a positive and significant effect on the Economic Resilience of MSMEs with a coefficient of 0.492, while Digital Literacy has a positive and significant effect with a coefficient of 0.287. In contrast, Digital Payments and Digital Marketing have a positive, but not significant, direction of influence. These findings confirm that digital application ownership alone is not enough without adequate integration, competencies, strategies, and sustainable business management. The research concludes that the economic resilience of MSMEs is more determined by the integration of technology in operational activities and the ability of business actors to utilize technology appropriately.
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Copyright (c) 2026 Sherly Ferdinandus, Andre Sapthu, Ventje J Kuhuparuw, Amin, William G.M. Louhenapessy
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