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FORMOSA NEWS - MEDAN, Indonesia – Formosa News – Digital leadership is emerging as a critical factor in helping micro, small, and medium enterprises (MSMEs) adapt to technological change and achieve long-term sustainability. A recent international community engagement project led by Junita Putri Rajana Harahap and colleagues from Universitas Muslim Nusantara Al Washliyah (UMN Al Washliyah), Indonesia, in collaboration with Universiti Teknologi Mara (UiTM) Kelantan, Malaysia, demonstrated that digital leadership training significantly improved participants’ understanding of innovation, business sustainability, and digital transformation. The program was published in 2026 in the International Journal of Management and Business Intelligence (IJBMI) and highlights how international knowledge-sharing initiatives can strengthen MSME resilience in the digital economy.

The initiative focused on empowering MSME owners through a Knowledge Transfer Program (KTP) designed to equip participants with practical digital leadership skills and sustainability-oriented business strategies. The project involved Nordin Batik Sdn. Bhd, a traditional batik producer in Kelantan, Malaysia, as the primary partner organization.

Traditional Businesses Face Growing Digital Challenges

Across Southeast Asia, MSMEs play a crucial role in economic development, job creation, and community empowerment. However, many small businesses continue to struggle with technological adaptation, financial management, innovation, and long-term business sustainability.

Nordin Batik Sdn. Bhd, known for producing traditional batik products that reflect the cultural heritage of Kelantan, faces challenges similar to many traditional enterprises. While the company possesses strong cultural value and market potential, adapting to digital transformation and maintaining competitiveness in modern markets remain significant concerns.

According to the authors, these challenges highlight the need for stronger digital leadership capabilities among business owners and managers. Digital leadership enables organizations to utilize technology strategically, improve collaboration, encourage innovation, and respond effectively to changing market conditions.

International Collaboration Drives Knowledge Exchange

The Knowledge Transfer Program was developed through a partnership between Universitas Muslim Nusantara Al Washliyah in Indonesia and Universiti Teknologi Mara (UiTM) Cawangan Kelantan in Malaysia.

Rather than relying solely on classroom-style instruction, the program combined several activities, including:

  • Digital leadership training
  • Business sustainability workshops
  • Innovation development sessions
  • Practical mentoring and coaching
  • Interactive discussions and evaluations

Participants received guidance on financial literacy, leadership development, digital transformation strategies, sustainable business practices, and technology utilization for business growth.

The program adopted both group-based and individual mentoring approaches, allowing participants to apply concepts directly to their business operations.

Participants Report Stronger Digital Leadership Skills

The results indicate that the program successfully improved participants’ understanding and practical application of digital leadership principles.

Among the most important outcomes were:

  • Increased awareness of the importance of digital leadership in modern business.
  • Improved innovation capabilities among MSME participants.
  • Enhanced professionalism in business management.
  • Greater readiness to respond to technological and market changes.
  • Stronger understanding of sustainability-oriented business practices.
  • Increased confidence in using digital platforms for communication, marketing, and operations.
  • Improved ability to make technology-based business decisions.
  • Better collaboration and organizational communication skills.

Participants also demonstrated stronger adaptability and preparedness to compete in increasingly digital and global business environments.

Digital Leadership Supports Long-Term Sustainability

One of the central findings of the project is that digital leadership extends beyond technology adoption. It also involves creating a mindset that encourages innovation, collaboration, ethical decision-making, and long-term strategic thinking.

According to Junita Putri Rajana Harahap and the research team, sustainable leadership helps organizations balance economic performance with social responsibility and community empowerment. Businesses that integrate sustainability into their leadership practices are more likely to remain resilient during periods of economic uncertainty and technological disruption.

The study further shows that digital leadership can help MSMEs improve organizational resilience by enabling faster adaptation to market shifts and consumer behavior changes.

Benefits for Communities and Local Economies

The impact of the Knowledge Transfer Program extended beyond individual participants.

By strengthening digital leadership competencies, the program contributed to:

  • Greater business efficiency.
  • Expanded market access through digital platforms.
  • Improved organizational resilience.
  • Increased opportunities for sustainable economic growth.
  • Stronger connections between MSMEs, investors, and stakeholders.
  • Enhanced community empowerment through entrepreneurship development.

The authors emphasize that digital leadership training can serve as an effective strategy for supporting sustainable development goals, particularly those related to quality education, economic growth, innovation, and sustainable communities.

International Partnerships Create Lasting Value

Another important contribution of the program was the strengthening of academic and community partnerships between Indonesia and Malaysia.

Cross-border collaboration enabled participants to exchange experiences, learn from different cultural perspectives, and gain broader insights into digital transformation and sustainable business development.

The researchers note that international cooperation plays an increasingly important role in addressing global economic and technological challenges. By combining academic expertise with practical business experience, institutions can help communities build stronger and more sustainable enterprises.

Recommendations for Future Programs

While the program achieved positive outcomes, the authors acknowledge several limitations. The initiative focused primarily on a single MSME partner and was conducted over a relatively short period.

Future programs are encouraged to involve a larger number of MSMEs from different industries and regions. The researchers also recommend long-term mentoring and continuous training to maximize the impact of digital leadership development on business sustainability and organizational performance.

Author Profiles

Junita Putri Rajana Harahap is a researcher and academic at Universitas Muslim Nusantara Al Washliyah (UMN Al Washliyah), Indonesia, specializing in digital leadership, community empowerment, organizational development, and sustainable business practices.

The study was conducted in collaboration with:

  • Anggia Sari Lubis, University of North Sumatra, Indonesia.
  • Herlina Hanum Harahap, Universitas Muslim Nusantara Al Washliyah, Indonesia.
  • Zuhal Hussein, Universiti Teknologi Mara (UiTM) Kelantan, Malaysia.
  • Revandi Dewanta Tarigan, Universitas Muslim Nusantara Al Washliyah, Indonesia.
  • Cindy Chairunnisa Dalimunthe, Universitas Muslim Nusantara Al Washliyah, Indonesia.

Research Source

Article Title: Innovate & Inspire: Bridging Communities Through Digital Leadership for Sustainability

Authors: Junita Putri Rajana Harahap, Anggia Sari Lubis, Herlina Hanum Harahap, Zuhal Hussein, Revandi Dewanta Tarigan, Cindy Chairunnisa Dalimunthe

Journal: International Journal of Management and Business Intelligence (IJBMI)

Volume and Issue: Vol. 4 No. 3 (2026)

Pages: 465–474

DOI: 10.59890/ijmbi.v4i3.6

Journal Website: https://journalijmbi.my.id/index.php/ijmbi