Analyzing The Performance of MSMEs After Adopting Digital Technology

By using digital technology, this research will analyze how Micro, Small, and Medium Enterprises (MSMEs) function. This research is conducted to thoroughly assess the performance of MSMEs following their implementation of Digital Technology. This research analyzes seven variables: Trust, Satisfaction, External Variables, Actual System Use, Perceived Usefulness, Perceived Ease of Use, and Intention to Use Digital Technology. From the results of data collection, a total of 290 data have been collected. Respondents from this questionnaires are MSMEs owners, and MSMEs managers, who are domiciled in the JABODETABEK area, data collection was carried out for 2 months since January. Empirical data in this inquiry were procured through a purposive sampling strategy—deliberately curated to align with the research objectives—while the hypothesis validation process was architected through the application of Structural Equation Modeling (SEM), operationalized via the SmartPLS4 platform as the analytical engine. This analysis corroborates all of the hypotheses, which means that these elements impact the performance of MSMEs after they embrace digital technology. The results highlight that each individual’s assessment of a digital system’s usability and functional importance, its perceived dependability, and the level of satisfaction experienced from using it plays a critical role on both behavioral intention and actual engagement with technological platforms. All in all, the results suggest that integrating digital technologies can markedly improve MSMEs’ performance.