Development of a Sustainable Entrepreneurship Ecosystem Model Based on Digital Technology: Strategic Management Approach to Optimize UMKM Performance

Authors

  • Ayu Permata Sari Universitas Widyatama

Keywords:

sustainable entrepreneurship ecosystem, digital technologies, strategic management, optimizing the performance of MSMEs, Digital Transformation

Abstract

The era of digital transformation has presented significant opportunities for the development of a sustainable entrepreneurship ecosystem, especially in optimizing the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. This research aims to develop a model of a sustainable entrepreneurship ecosystem based on digital technology with a strategic management approach to optimize the performance of MSMEs. The research method uses a qualitative approach with a literature study that analyzes scientific publications for the period 2021-2025 from reputable international databases. The data analysis technique applies content analysis and thematic analysis with triangulation of sources to ensure the validity of the findings. The results of the study identified six key elements of MSME digital transformation including digital literacy, resource planning, process redesign, budgeting, partnership implementation, and sustainable implementation. The developed model shows that the integration of social media platforms can increase operational efficiency by up to 40% and effectively expand market reach. Multi-stakeholder collaboration between the government, communities, and business actors is the main foundation of a sustainable ecosystem. The optimization of MSME performance shows a significant increase in the economic dimension through increasing sales and cost efficiency, the social dimension through strengthening community cohesion, and the environmental dimension through the implementation of circular economy principles. Comprehensive environmental scanning in strategic management is a critical prerequisite for successful implementation, although it is still a major challenge. This research makes a theoretical contribution to the development of an integrated framework that synergizes digital technology, sustainability, and strategic management to achieve the Sustainable Development Goals.

Downloads

Download data is not yet available.

References

Abdillah, F. (2024). The Impact of the Digital Economy on Economic Growth in Indonesia. Benefit: Journal of Bussiness, Economics, and Finance, 2(1), 27–35. https://doi.org/10.37985/benefit.v2i1.335
Adlini, M., Dinda, A., Yulinda, S., Chotimah, O., & Merliyana, S. (2022). Qualitative Research Methods for Literature Studies. Edumaspul: Journal of Education, 6, 974–980. https://doi.org/10.33487/edumaspul.v6i1.3394
Akapip, N. (2023). Government and Community Collaboration in Building a Sustainable Marine Tourism Entrepreneurship Ecosystem in Hukurila, Ambon City. 18(1), 50–64.
Akapip, N., & Kissya, V. (2023). Government and Community Collaboration in Building a Sustainable Marine Tourism Entrepreneurship Ecosystem in Hukurila Country, Ambon City. 18(1), 50–64.
Albort-morant, G., Ariza-montes, A., Leal-rodríguez, A., & Giorgi, G. (2020). How does positive work-related stress affect the degree of innovation development? International Journal of Environmental Research and Public Health, 17(2). https://doi.org/10.3390/ijerph17020520
Ariyati, I. M., Ismawati, A. F., Rizqillah, A. I., Wulandari, S. S., & Susanti, S. (2024). MSMEs Marketing Strategies Through The Use Of Social Media: A Systematic Literature Review. IQTISHADUNA: Scientific Journal of Our Economy, 13(1), 65–84. https://doi.org/10.46367/iqtishaduna.v13i1.1817
Chaudhary, S., Kaur, P., Alofaysan, H., Halberstadt, J., & Dhir, A. (2023). Connecting the dots? Entrepreneurial ecosystems and sustainable entrepreneurship as pathways to sustainability. Business Strategy and the Environment, 32(8), 5935–5951. https://doi.org/10.1002/bse.3466
Fadoli, M. I., Faedlulloh, D., Simbolon, K., & Frasetya, V. (2024). Strategic Management in Enhancing Reputable International Journal Publications at the Faculty of Social and Political Sciences, Universitas Lampung. 15(2), 15–28. https://doi.org/10.23960/administratio.v15i2.385
Komalasari, E., Nurmasari, Munaya, R. Al, & Melati, R. G. (2025). Digital Transformation of MSMEs: Information Communication Technology Capabilities and Digital Finance Capabilities in Improving Business Performance in Pekanbaru City Culinary Businesses. 380–393.
Maihani, S., & Nur, T. M. (2024). Development of MSMEs in the era of digitalized society. 7(2), 103–108. https://ojs.serambimekkah.ac.id/jnkti/article/view/7518/pdf
Muhammad Hasan, Dzakiyyah, A., Kumalasari, D. A., Safira, N., & Aini, S. N. (2021). Digital Transformation of MSMEs in the Culinary Sector in Jatinegara Village, East Jakarta. Journal of Business and Entrepreneurship, 17(2), 135–150. https://doi.org/10.31940/jbk.v17i2.2529
Nurislaminingsih, R., & Heriyanto. (2024). Qualitative research for beginners in data analysis techniques (Issue March). www.cvintisharpublishing.com
Pratamansyah, S. R. (2024). Digital Transformation and MSME Growth: An Analysis of the Impact of Technology on the Performance of Small and Medium Enterprises in Indonesia. Journal of Accounting, Management, and Policy Planning, 2(2), 1–17.
Safrianti, S., Puspita, V., Shinta, S. D., & Afriyeni. (2022). The level of financial technology on improving the performance of MSMEs with the intervening variable of financial inclusion in MSME actors in Bengkulu City. 6(2), 212–227.
Sungkawati, E. (2024). Sustainable Entrepreneurship : Innovative Solutions for Achieving SDGs in Indonesia 2030. 2(December).
Takacs, F., Brunner, D., & Frankenberger, K. (2022). Barriers to a circular economy in small- and medium-sized enterprises and their integration in a sustainable strategic management framework. Journal of Cleaner Production, 362(August 2021), 132227. https://doi.org/10.1016/j.jclepro.2022.132227
Theodoraki, C., Dana, L.-P., & Caputo, A. (2021). Building sustainable entrepreneurial ecosystems: A holistic approach. Journal of Business Research, 140. https://doi.org/10.1016/j.jbusres.2021.11.005
Volkmann, C., Fichter, K., Klofsten, M., & Audretsch, D. B. (2021). Sustainable entrepreneurial ecosystems: an emerging field of research. Small Business Economics, 56(3), 1047–1055. https://doi.org/10.1007/s11187-019-00253-7
World Economic Forum. (2022). How digitalization is transforming Indonesia's MSMEs. World Economic Forum Digital Transformation Initiative, 1-25.
Yuniarti, N. A., Sunarka, P. S., Mahesa, D., & Pamudya, R. A. (2024). Human Resources Quality and Financial Literacy in MSMEs in the Digitalization Era: Systematic Literature Review. 5(2), 278–287.

Downloads

Published

2025-07-31

Issue

Section

Articles

How to Cite

Development of a Sustainable Entrepreneurship Ecosystem Model Based on Digital Technology: Strategic Management Approach to Optimize UMKM Performance. (2025). Proceeding of International Conference on Economics, Technology, Management, Accounting, Education, and Social Science (ICETEA), 1, 371-385. https://conference.unita.ac.id/index.php/icetea/article/view/386

Similar Articles

61-66 of 66

You may also start an advanced similarity search for this article.