July 2026

VOLUME 05 ISSUE 07 July 2026
Revitalising Indonesian MSME Competitiveness in the Digital Economy: A Thematic Synthesis of Digital Marketing Strategy, Digital Literacy, And Innovation Capability
1Bangun Prajadi Cipto Utomo, 2Siti Asri Muthmainah
1Universitas Duta Bangsa Surakarta, Indonesia
2Akademi Kebidanan Bhakti Nusantara Indonesia, Indonesia
DOI : https://doi.org/10.58806/ijsshmr.2026.v5i7n25

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ABSTRACT

Indonesian micro, small, and medium-sized enterprises (MSMEs) are widely recognised as pillars of economic resilience, employment creation, and community-based entrepreneurship. Yet many MSMEs still struggle to convert digital adoption into sustained competitiveness. Digital presence can increase visibility, but it does not automatically resolve capability gaps in market learning, digital interpretation, innovation routines, and ecosystem access. This study develops a qualitative thematic synthesis explaining how digital marketing strategy, digital literacy, innovation capability, and ecosystem support collectively revitalise the competitiveness of Indonesian MSMEs in the digital economy. The final synthesis used 48 cited sources, consisting of recent peer-reviewed literature, foundational theoretical works, and official Indonesian policy documents. The analysis was guided by the resource-based view, dynamic capability theory, and diffusion of innovation theory. Five interrelated themes were identified: digital marketing as a market-sensing and customer-relationship capability; digital literacy as a managerial foundation for meaningful technology use; innovation capability as the mechanism that converts digital interaction into value creation; ecosystem support as an enabling condition; and strategic integration as the basis of sustainable competitiveness. The findings show that MSME competitiveness is not strengthened by technology adoption alone. It is revitalised when entrepreneurs are digitally literate, marketing is strategically designed, customer information is converted into innovation, and institutional support addresses capability gaps rather than merely encouraging platform onboarding.

KEYWORDS:

digital marketing strategy; digital literacy; innovation capability; MSME competitiveness; qualitative thematic synthesis; Indonesia; digital transformation

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Cite this Article: Utomo, B. P. C., & Muthmainah, S. A. (2026). Revitalising Indonesian MSME Competitiveness in the Digital Economy: A Thematic Synthesis of Digital Marketing Strategy, Digital Literacy, And Innovation Capability. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE HUMANITY & MANAGEMENT RESEARCHS, 5(7), 2066-2078. https://doi.org/10.58806/ijsshmr.2026.v5i7n25

VOLUME 05 ISSUE 07 July 2026

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