The Digital Shift: Exploring the Strategic Impact of E-Commerce Trends on MSME Business Performance in Bekasi

Abstract--This study examines the adoption of e-commerce by micro, small, and medium enterprises (MSMEs) in Bekasi as part of the ongoing digital shift shaping contemporary business practices. Using survey data collected from 418 MSME owners who actively utilize e-commerce platforms, this research analyzes how e-commerce adoption contributes to improvements in business performance through the development of strategic digital capabilities. The study emphasizes the strategic role of e-commerce in enhancing competitiveness, operational efficiency, and market positioning of MSMEs in an increasingly digital business environment. Employing a quantitative approach and structural analysis, the findings indicate that effective utilization of e-commerce significantly strengthens MSMEs' strategic digital capabilities, which subsequently have a positive impact on overall business performance. These results underline the importance of viewing e-commerce adoption not merely as a transactional tool, but as a data-driven strategic resource that supports sustainable growth, innovation, and long-term competitiveness of MSMEs in the digital era and emerging markets globally. Keywords— MSME business performance, Strategic digital capability, Digital transformation, MSME business performance