Digital-Based MSME Empowerment Strategy and Local Economic Strengthening: An SEM Approach in Medan City
DOI:
https://doi.org/10.35870/emt.v10i2.5864Keywords:
MSMEs, Digital Empowerment, Local Economy, Digital Literacy, Digital Marketing StrategyAbstract
Micro, Small, and Medium Enterprises (MSMEs) serve as key pillars of Indonesia’s economic development, significantly contributing to employment, income equity, and Gross Domestic Product (GDP) growth. However, in the digital economy era, many MSMEs continue to struggle with structural barriers such as low digital literacy, inadequate technological infrastructure, limited financing access, and weak digital marketing capabilities. This study aims to examine digital-based empowerment strategies for strengthening the local economy in Medan City. Employing a quantitative research design through a survey method, data were collected from MSME actors and analyzed using Structural Equation Modeling–Partial Least Squares (SEM-PLS). The findings reveal that digital literacy (β = 0.65, p < 0.01), digital infrastructure (β = 0.58, p < 0.01), and policy support (β = 0.60, p < 0.01) significantly influence technology adoption, which subsequently enhances digital marketing strategies (β = 0.62, p < 0.001) and MSME performance (β = 0.72, p < 0.001). Digital marketing strategy emerges as the most influential factor (β = 0.80, p < 0.001), with strong explanatory power (R² = 0.68 for technology adoption; R² = 0.74 for MSME performance). The results indicate that successful MSME digital transformation requires not only technical competence but also an enabling ecosystem involving policy support, infrastructure readiness, and continuous digital training. The study recommends integrated empowerment initiatives through digital literacy education, fiscal incentives, fintech access, QRIS adoption, and e-commerce partnerships to enhance MSME competitiveness and economic resilience in Medan’s digital transformation era.
Downloads
References
Afandi, A., Siregar, B. A., & Nurhayati, R. (2023). Program pelatihan pemasaran digital UMKM binaan Lazismu Kota Medan. Jurnal Pemberdayaan Masyarakat, 5(2), 145–158.
Afthanorhan, A., Awang, Z., Rashid, N., & Foziah, H. (2021). Partial least squares structural equation modeling (PLS-SEM): Guidelines for beginners. International Journal of Academic Research in Business and Social Sciences, 11(1), 1–16.
Agustian, F., Revan, M., Mukhlis, M., & Ichsan, R. N. (2025). The influence of halal certification, brand image, and religious commitment on purchase decision of halal food products in Medan City. MetaJournal of Economics and Business, 1(1), 49–58. https://doi.org/10.47652/mjeb.v1i1.896.
Anggarini, D. (2022). Digitalisasi pembayaran UMKM melalui QRIS. Bank Indonesia Insight, 12(3), 77–89.
Anggarini, D. (2022). Implementasi QRIS dalam mendukung inklusi keuangan dan digitalisasi UMKM di Indonesia. Jurnal Ekonomi dan Keuangan Digital, 4(3), 112–126.
Anggraini, F., Wulandari, D., & Hasanah, N. (2022). Digital marketing strategy and MSMEs performance in post-pandemic era. Jurnal Ekonomi dan Bisnis, 25(4), 215–228.
Anita, R. (2022). Digital transformation opportunities for SMEs. Jurnal Bisnis dan Teknologi, 8(2), 101–118.
Apriani, D., Sari, M., & Rahmawati, N. (2023). Peran pemasaran digital dalam meningkatkan keberlangsungan usaha mikro di era pandemi COVID-19. Jurnal Ekonomi dan Kewirausahaan, 11(2), 87–98.
Aprilia, D., Munandar, A., & Yulianti, D. (2025). SEM approach to digital adoption in SMEs. Journal of Business Research, 14(1), 77–95.
Aprilia, S., Widyo, A., & Rahman, A. (2025). Pengaruh workshop digital marketing terhadap adopsi teknologi UMKM di Jawa Barat. Jurnal Ekonomi Kreatif Indonesia, 7(1), 55–68.
Chairi, M., Kusuma, R., & Hidayat, T. (2022). Kendala UMKM dalam penguasaan teknologi dan akses pasar. Jurnal Ekonomi dan Bisnis, 14(1), 34–45.
Chandrayanti, P. (2022). Analisis SWOT UMKM di era digital. Jurnal Ekonomi Pembangunan Daerah, 7(3), 33–48.
Desembrianita, A., Pratama, D., & Yusuf, R. (2023). Evaluasi validitas dan reliabilitas model SEM-PLS dalam penelitian manajemen. Jurnal Statistika dan Metodologi Penelitian, 4(1), 15–28.
Desembrianita, R., Santoso, A., & Kurniawan, B. (2023). Ensuring construct validity and reliability in business digitalization studies. Jurnal Metodologi Penelitian, 7(1), 55–68.
Erlanitasari, D., Fauzi, F., & Suryani, R. (2020). Pengaruh adopsi digital terhadap pendapatan UMKM. Jurnal Ekonomi Digital, 8(2), 101–114.
Erlanitasari, R., Putra, H., & Lestari, W. (2020). Digital marketplace adoption for SMEs. Jurnal Pemasaran Digital, 4(2), 88–102.
Falentina, A., Sari, N., & Prabowo, H. (2020). Internet use and productivity of micro and small enterprises. Small Business Economics, 12(3), 55–70.
Falentina, R., Hidayat, A., & Santosa, S. (2020). Internet use and productivity of SMEs in Indonesia. International Journal of Business and Economic Development, 8(2), 33–48.
Fauzi, F., Aisyah, S., & Marlina, T. (2020). Digital literacy and women entrepreneurship performance. Journal of SME Development, 9(2), 101–118.
Harini, S., Pratama, Y., & Fadilah, M. (2022). Strategi pemasaran digital dan dampaknya terhadap volume penjualan UMKM. Jurnal Bisnis dan Inovasi, 9(3), 121–133.
Hasibuan, D. S. Y., Zulkarnaini, Z., & Ichsan, R. N. (2025). Strategic collaboration between HRM and halal product management in building competitive advantage: Evidence from halal based SMEs in North Sumatra. MetaJournal of Economics and Business, 1(1), 23–34. https://doi.org/10.47652/mjeb.v1i1.894.
Helmalia, H., & Afrinawati, A. (2018). Peran UMKM dalam perekonomian kerakyatan. Jurnal Ekonomi Pembangunan, 16(1), 23–34.
Hendra, R. (2019). Data-driven marketing dalam pengambilan keputusan strategis UMKM di Indonesia. Jurnal Ilmu Manajemen, 7(1), 23–35.
Ikhsan, M., & Hasan, A. (2020). Pemberdayaan UMKM berbasis platform digital. Jurnal Inovasi Ekonomi, 9(4), 222–235.
Ikhsan, M., & Hasan, R. (2020). Pemberdayaan UMKM di era digitalisasi ekonomi. Jurnal Ekonomi dan Pembangunan Daerah, 4(2), 77–88.
Islami, R., Wibowo, T., & Putri, S. (2021). Digital literacy and social media utilization by SMEs. Journal of Digital Economy, 5(2), 78–92.
Karunia, A., Nugroho, R., & Dewi, A. (2021). Resistensi teknologi pada UMKM. Jurnal Psikologi dan Bisnis, 9(2), 144–160.
Karunia, F., Nugroho, R., & Dewi, A. (2021). Analisis resistensi terhadap perubahan dalam adopsi teknologi pada UMKM. Jurnal Teknologi dan Bisnis, 5(2), 145–158.
Khin, S., & Ho, T. (2018). Digital technology, digital capability and organizational performance: A resource-based view. Journal of Management Information Systems, 35(3), 645–682.
Khin, S., & Ho, T. C. F. (2018). Digital orientation and digital capability: Impact on innovation and performance of SMEs. Journal of Strategic Information Systems, 27(1), 65–76.
Kusumawati, A. (2022). Kebijakan pemerintah dalam mendukung ekosistem digital UMKM. Jurnal Kebijakan Ekonomi dan Digitalisasi, 6(2), 101–115.
Kusumawati, D. (2022). Ekosistem inovasi dan kebijakan pro-UMKM. Jurnal Manajemen Pembangunan, 5(3), 56–70.
Lestari, S., Rahman, F., & Gunawan, A. (2022). Digital payment infrastructure and SME growth. Journal of Financial Technology, 3(1), 55–70.
Liang, Y., Chen, P., & Huang, S. (2025). Green innovation adoption and the digital economy: The mediating role of creative enterprises. Journal of Business Innovation, 10(1), 45–59.
Lubis, R. (2024). Cybersecurity challenges in SME digital transformation. Journal of Information Security, 5(1), 55–70.
Lubis, R. (2024). Tantangan keamanan siber dalam digitalisasi UMKM. Jurnal Teknologi dan Keamanan Siber, 3(1), 88–99.
Mawardi, I., & Abizar, R. (2021). Kontribusi UMKM terhadap PDB dan penyerapan tenaga kerja di Indonesia. Jurnal Ekonomi Nasional, 14(1), 25–40.
Mawardi, R., & Abizar, M. (2021). Kontribusi UMKM terhadap PDB Indonesia. Jurnal Ekonomi Nasional, 19(2), 112–124.
Munandar, A., Pratama, D., & Wahyuni, L. (2025). Digital skills gap in SMEs. Jurnal Pendidikan Vokasi, 6(2), 66–80.
Nayak, R., Patel, D., & Kumar, S. (2025). Digital orientation and innovation performance among SMEs: Evidence from emerging economies. Journal of Small Business and Enterprise Development, 32(2), 301–320.
Nayak, R., Patel, D., & Kumar, S. (2025). Digital platforms and market expansion for SMEs. International Journal of Business Technology, 14(2), 121–139.
Nurhapsari, D., & Sholihah, F. (2022). Fintech integration for SME sustainability. Jurnal Ekonomi Digital, 9(2), 100–115.
Ong, J. W., Tan, B., & Lee, C. (2020). Path analysis of digital adoption factors in SMEs. Journal of Business Research, 12(4), 201–220.
Panggabean, N. R., Hutagalung, S., & Manurung, T. (2024). UMKM dan inovasi lokal dalam pembangunan ekonomi daerah. Jurnal Regional Development, 6(2), 56–72.
Panggabean, T., Sihombing, R., & Aulia, M. (2024). Case study: Digital marketing and risk management at Mie Ayam Mbak Yummi. Jurnal UMKM Kreatif, 12(1), 99–114.
Patria, A., Setiawan, B., & Rahmadani, D. (2023). Literasi digital dan hambatan adopsi teknologi UMKM di Indonesia. Jurnal Ilmu Ekonomi dan Teknologi, 9(2), 89–103.
Patria, Y., Setiawan, B., & Rahmadani, D. (2023). Literasi digital karyawan UMKM dan isu keamanan data. Jurnal Sistem Informasi, 15(1), 75–90.
Putong, I. (2023). Determinant factors of technology adoption among small and medium enterprises. Jurnal Ekonomi dan Bisnis Global, 5(1), 45–59.
Putong, I. (2023). Digitalization perception and adoption in SMEs. Jurnal Ekonomi dan Manajemen, 13(3), 201–219.
Rahmi, H., & Yuzaria, D. (2021). Kebijakan pemerintah dalam pemberdayaan dan digitalisasi UMKM di Indonesia. Jurnal Kebijakan Ekonomi, 9(3), 121–136.
Ramadhan, F., Faisal, M. R., Gazali, A., & Ichsan, R. N. (2025). Integrating Islamic human resource governance with halal product management for sustainable SME development in North Sumatra. MetaJournal of Economics and Business, 1(1), 35–48. https://doi.org/10.47652/mjeb.v1i1.895.
Salahuddin, A. (2021). Desain aplikasi pemasaran produk berbasis kearifan lokal untuk UMKM di Indonesia. Jurnal Inovasi dan Teknologi, 3(2), 77–92.
Salahuddin, S. (2021). Aplikasi pemasaran berbasis kearifan lokal. Jurnal Pemasaran Kreatif, 4(2), 201–215.
Sani, M., Yuliani, T., & Prasetyo, A. (2021). Technology readiness and SME adoption. Journal of Technology Management, 15(2), 55–70.
Santi, M., Hidayat, F., & Mulyadi, T. (2024). Pengaruh penggunaan sistem informasi akuntansi dan e-commerce pada UMKM. Jurnal Akuntansi dan Teknologi Informasi, 13(2), 145–160.
Sari, D., & Adinugraha, R. (2022). QRIS implementation for SME adaptation. Jurnal Pembayaran Digital, 3(2), 34–49.
Sari, R., & Setiyana, A. (2020). Strategi pemasaran digital bagi UMKM di era ekonomi digital. Jurnal Ilmu Ekonomi dan Manajemen, 10(2), 55–70.
Sengaji, A., & Radiansyah, T. (2022). Perceived usefulness dan perceived ease of use dalam niat adopsi teknologi digital oleh UMKM di Indonesia. Jurnal Sistem Informasi dan Teknologi, 14(1), 88–99.
Sengaji, R., & Radiansyah, D. (2022). Perceived ease of use and usefulness in digital technology adoption. Jurnal Sistem Informasi dan Bisnis, 14(2), 134–150.
Sipayung, F. (2025). Transformasi digital dan inovasi produk UMKM. Jurnal Ekonomi Digital, 10(1), 1–15.
Sipayung, J. (2025). Literasi ekonomi digital dan infrastruktur teknologi dalam efektivitas operasional UMKM. Jurnal Ekonomi Digital dan Inovasi, 8(1), 10–22.
Siregar, H. (n.d.). Peran infrastruktur dan pendampingan digital pada UMKM. Unpublished manuscript.
Soegoto, E. S., Datu, T., & Patalo, M. (2020). Kontribusi UMKM terhadap ekonomi lokal di Manado. Jurnal Ekonomi dan Pembangunan, 11(3), 145–160.
Soegoto, E. S., Nugraha, A., & Hutabarat, T. (2019). Analisis keberhasilan sistem informasi terhadap peningkatan keuntungan UMKM dengan model DeLone dan McLean. Jurnal Sistem Informasi, 15(3), 101–118.
Soegoto, E., Nugraha, A., & Hutabarat, T. (2019). Digital transaction adoption and SME profitability. Jurnal Sistem Informasi, 8(1), 44–57.
Sugina, A., Pranata, H., & Susilo, B. (2024). Digital cooperative model for SME empowerment. Jurnal Ekonomi Rakyat, 14(2), 75–92.
Sugina, D., Pranata, H., & Susilo, B. (2024). Model koperasi digital sebagai solusi pemberdayaan UMKM di Indonesia. Jurnal Kewirausahaan dan Ekonomi Kreatif, 6(1), 91–105.
Sunarso, J., Badrun, F., & Hidayah, R. (2023). Visual content marketing for SMEs. Journal of Marketing 4.0, 5(3), 145–160.
Sunuantari, R., Khairunnisa, I., & Adam, R. (2021). Digital literacy programs and SME growth. Jurnal Pemberdayaan Masyarakat, 5(1), 22–39.
Utami, D. (2022). Social media strategies for SMEs. Jurnal Pemasaran Modern, 6(1), 21–35.
Vinatra, A. (2023). Strategi pemberdayaan UMKM berbasis digital. Jurnal Inovasi dan Teknologi, 7(1), 34–48.
Vrontis, D., Christofi, M., & Czinkota, M. (2022). Entrepreneurial orientation and digital capability: Drivers of innovation in SMEs. Journal of Business Research, 139, 803–815.
Vrontis, D., Christofi, M., & Czinkota, M. (2022). PLS-SEM applications in business digitalization research. Journal of Business Research Methods, 15(2), 45–67.
Widyo, A., Aprilia, S., & Rahman, A. (2023). Pelatihan digital marketing dan dampaknya terhadap transformasi digital UMKM. Jurnal Ekonomi dan Kewirausahaan, 12(3), 77–91.
Widyo, P., Aprilia, D., & Rahman, A. (2023). Digital mentoring models for SMEs. Jurnal Pemberdayaan Ekonomi, 11(1), 55–70.
Wijaya, D., & Nailufaroh, F. (2022). Literasi digital sebagai variabel moderasi pada kinerja UMKM. Jurnal Ekonomi Syariah, 14(2), 200–213.
Wijaya, R., & Nailufaroh, S. (2022). Peran literasi digital terhadap pendapatan UMKM di era digitalisasi ekonomi. Jurnal Ekonomi dan Bisnis Digital, 5(2), 89–104.
Yulianti, D., Munandar, A., & Siregar, H. (2023). PLS-SEM approach for SME empowerment research. Jurnal Metodologi Penelitian, 9(2), 34–49.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Venny Fraya Hartin Nst, Lilis S Gultom, Nazla Rachma Pangabean
This work is licensed under a Creative Commons Attribution 4.0 International License.
Authors who publish with this journal agree to the following terms:
1. Copyright Retention and Open Access License
Authors retain copyright of their work and grant the journal non-exclusive right of first publication under the Creative Commons Attribution 4.0 International License (CC BY 4.0).
This license allows unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
2. Rights Granted Under CC BY 4.0
Under this license, readers are free to:
- Share — copy and redistribute the material in any medium or format
- Adapt — remix, transform, and build upon the material for any purpose, including commercial use
- No additional restrictions — the licensor cannot revoke these freedoms as long as license terms are followed
3. Attribution Requirements
All uses must include:
- Proper citation of the original work
- Link to the Creative Commons license
- Indication if changes were made to the original work
- No suggestion that the licensor endorses the user or their use
4. Additional Distribution Rights
Authors may:
- Deposit the published version in institutional repositories
- Share through academic social networks
- Include in books, monographs, or other publications
- Post on personal or institutional websites
Requirement: All additional distributions must maintain the CC BY 4.0 license and proper attribution.
5. Self-Archiving and Pre-Print Sharing
Authors are encouraged to:
- Share pre-prints and post-prints online
- Deposit in subject-specific repositories (e.g., arXiv, bioRxiv)
- Engage in scholarly communication throughout the publication process
6. Open Access Commitment
This journal provides immediate open access to all content, supporting the global exchange of knowledge without financial, legal, or technical barriers.
