Abstract

Micro, small, and medium-sized enterprises (MSMEs) have a major role in Indonesia’s economy. In order to grow, MSMEs need the capability to conduct marketing in the digital world. The advancements in digital technologies have made it possible for a cost-effective and hassle-free Digital Marketing adoption. However, the number of MSMEs that have adopted Digital Marketing is still low. Therefore, this study aims to find out what factors that affect Digital Marketing adoption and its benefits. This study will also analyze the implementation of Digital Marketing by MSMEs in Indonesia. This study uses literature study method. This study shows that there are various factors affecting Digital Marketing adoption. This study also shows that various research results have shown that Digital Marketing Adoption can improve the performance of MSMEs. In regards to Digital Marketing implementation in Indonesia’s MSMEs, this study shows that training and mentoring activities by Centers for Research and Community Service of various Higher Education Institutions in Indonesia are very beneficial for MSMEs.

Highlights

  • Micro, small, and medium enterprises (MSME) has a significant role in Indonesia’s economy

  • Millennials and Generation Z are tech savvy generations that can be influenced through Digital Marketing

  • The themes used in this study consist of: factors influencing Digital Marketing adoption in Indonesian MSMEs, Digital Marketing Benefit Analysis of MSMEs in Indonesia, and Digital Marketing Implementation Analysis of MSMEs in Indonesia

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Summary

Introduction

Small, and medium enterprises (MSME) has a significant role in Indonesia’s economy. In 2019, MSME accounts for 99.99% of all businesses in Indonesia, employing 96.92% of all workforce, and contributes 60.51% to Indonesia’s GDP (Kementerian Koperasi dan UKM, 2019; Kusuma and Darma, 2020; Pradnyawati and Darma, 2021; Rivaldo et al, 2021; Darma et al, 2019; Yong and Darma, 2020; Ferdiana dan Darma, 2019). This data shows that MSME is the backbone of Indonesia’s economy. Millennials and Generation Z are tech savvy generations that can be influenced through Digital Marketing

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