Digital Literacy Emerges as Key Driver of MSME Global Expansion, Study Finds
A 2026 study by Achmad Basofitrah, Sudarmiatin, and Heri Pratikto from Universitas Negeri Malang reveals that digital literacy plays a decisive role in helping micro, small, and medium enterprises (MSMEs) expand into international markets. Published in the International Journal of Global Sustainable Research, the research shows that while innovation remains important, digital capability has an even stronger influence on global business growth. The findings matter as MSMEs increasingly face pressure to compete beyond domestic markets in a rapidly digitalizing global economy.
Growing Pressure on MSMEs to Compete Globally
MSMEs are widely recognized as the backbone of economic development, contributing to employment, income distribution, and regional growth. However, the study highlights a critical shift: success is no longer determined solely by local market performance. Instead, the ability to innovate and leverage digital tools has become essential for reaching international markets.
In Indonesia and other developing economies, many MSMEs still struggle to convert local strengths into global opportunities. Common barriers include limited digital skills, weak online marketing strategies, and insufficient access to international market information. As described in the study’s introduction (page 2), even businesses with strong products often fail to scale internationally due to gaps in digital readiness.
How the Study Was Conducted
The research focused on MSMEs affiliated with PT Setera’ Ebumi Sumekar, a company rooted in local economic development. Using a quantitative approach, the authors collected data from 80 business owners, managers, and key decision-makers.
Participants completed structured questionnaires measuring three main factors:
- Innovation (product development, process improvement, business adaptation)
- Digital literacy (ability to use digital tools, access information, and communicate online)
- Internationalization (market expansion beyond domestic boundaries)
The data were analyzed using multiple linear regression to determine how strongly innovation and digital literacy influence international business expansion.
Key Findings: Digital Literacy Outpaces Innovation
The results clearly show that both innovation and digital literacy significantly contribute to MSME internationalization. However, digital literacy has a slightly stronger impact.
Key findings include:
- Innovation has a positive effect on international expansion, helping businesses improve competitiveness and adapt to market demands.
- Digital literacy has a stronger positive effect, enabling MSMEs to access global markets, communicate effectively, and utilize digital platforms.
- Combined impact is substantial, with both factors explaining 58.4% of the variation in MSME internationalization outcomes (page 15).
- The regression analysis shows digital literacy (coefficient 0.421) contributes more than innovation (0.352), indicating its growing importance in modern business environments.
The statistical model confirms that MSMEs with both strong innovation and digital capabilities are significantly more likely to succeed internationally.
Why Digital Skills Matter More Than Ever
The study highlights a crucial insight: innovation alone is not enough. Without digital literacy, businesses struggle to translate new ideas into market access.
As the authors explain, innovation creates value, but digital literacy enables that value to reach customers. This includes:
- Using social media and e-commerce platforms
- Accessing international market data
- Communicating with global partners
- Managing cross-border transactions
In practical terms, a business may develop a high-quality product, but without digital skills, it cannot effectively promote or sell it internationally.
Real-World Implications
The findings carry important implications for multiple stakeholders:
For MSME owners and managers
- Invest in both innovation and digital skills simultaneously
- Adopt digital platforms for marketing, communication, and sales
- Continuously update products to meet global standards
For policymakers
- Develop integrated training programs that combine innovation and digital literacy
- Support MSMEs with access to digital infrastructure and education
- Encourage international market readiness through targeted initiatives
For business support organizations
- Provide mentorship in digital marketing and export strategies
- Facilitate access to global networks and partnerships
The study emphasizes that strengthening only one capability is not enough. Sustainable international growth requires a balanced combination of innovation and digital competence.
Academic Insight
Achmad Basofitrah of Universitas Negeri Malang explains that MSME internationalization depends on internal capabilities rather than external opportunities alone. He notes that digital literacy acts as a strategic mechanism that determines whether innovation can successfully lead to global expansion.
In essence, businesses with higher digital literacy are better equipped to transform innovation into real market outcomes, including export growth and international collaboration.
Author Profiles
- Achmad Basofitrah – Graduate researcher, Universitas Negeri Malang, specializing in MSME development and digital transformation
- Sudarmiatin – Professor, Universitas Negeri Malang, expert in economic education and business development
- Heri Pratikto – Lecturer, Universitas Negeri Malang, specializing in entrepreneurship and management
0 Komentar