The Impact of Digital Technology on the Performance of Micro, Small, and Medium Enterprises (MSMEs) in North Padang Lawas
Keywords:
Digital Technology, MSMEs Performance, Digital Adoption, Business DevelopmentAbstract
Introduction: This study examines the impact of digital technology on the performance of Micro, Small, and Medium Enterprises (MSMEs) in North Padang Lawas.
Objective: This research aims to find
Method: The research uses a quantitative approach to analyze how the use of digital technology influences business performance among MSME actors. Data were collected through structured questionnaires distributed to MSME owners in North Padang Lawas. The sampling technique used was purposive sampling, targeting business owners who have utilized digital technology such as social media, e-commerce platforms, and digital payment systems in their operations. The collected data were analyzed using statistical methods, including descriptive analysis and simple regression analysis, to determine the relationship between digital technology utilization and MSME performance.
Result: The results of the study indicate that the adoption of digital technology has a positive and significant effect on the performance of MSMEs. Businesses that utilize digital platforms tend to experience increased sales, wider market reach, improved customer interaction, and greater operational efficiency.
Implication: However, several challenges remain, including limited digital literacy and inadequate internet infrastructure. Therefore, efforts to improve digital skills and technological access are necessary to maximize the benefits of digital technology for MSME development and to support sustainable economic growth in North Padang Lawas.
Keywords: Digital Technology; MSMEs Performance; Digital Adoption; Business Development
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