Digital Transformation of MSMES: Adaptation Strategies in the Era of Economy 4.0

Victor Rumere; Ted M. Suruan

doi:10.61255/jeemba.v4i5.1735

Authors

Victor Rumere Universitas Papua
Ted M. Suruan Universitas Papua

DOI:

https://doi.org/10.61255/jeemba.v4i5.1735

Keywords:

MSMEs, Digital Transformation, Adaptation Strategy, Economy 4.0, Digital

Abstract

Purpose – This study examines how micro, small, and medium enterprises (MSMEs) adapt to digital transformation in the Economy 4.0 era and identifies the conditions under which digital adoption is associated with competitiveness and business resilience.

Methodology – The study uses a systematic integrative literature review reported against PRISMA 2020 principles. A fresh structured search conducted on 27 August 2026 retrieved 62 records through publisher-indexed searches across Elsevier/ScienceDirect, Springer Nature, Emerald, Taylor & Francis, and Wiley/SAGE/MDPI, with 14 additional records identified through backward citation checking. After duplicate removal, publication-window filtering (2020–2025), and title/abstract screening, 35 primary empirical studies were retained. The studies were appraised using MMAT-informed design-specific methodological domains, followed by structured data extraction and thematic synthesis.

Findings – Digital transformation outcomes are conditional rather than automatic. Digital resources, employee capabilities, managerial commitment, organizational agility, business networks, and ecosystem support jointly shape adoption. Digital technologies may support market access, process efficiency, business-model innovation, and resilience, but these outcomes depend on capability development, business-model reconfiguration, digital maturity, and contextual conditions. Persistent constraints include financing, digital skills, infrastructure, organizational resistance, and cybersecurity requirements.

Originality – The review advances an integrative framework linking external pressures and ecosystem support, internal readiness, staged digital adoption, dynamic capability development, business-model reconfiguration, and performance/resilience outcomes. It also explicitly incorporates boundary conditions such as firm size, sector, location, ownership, and digital maturity.

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