Digital transformation challenges and opportunities for micro, small and medium herbal enterprises: A case study of east java, Indonesia
Main Article Content
Keywords
Digital transformation, MSMHEs, herbal enterprises, East Java, digital marketing strategies, MSME development
Abstract
Background: Micro-, small-, and medium-sized herbal enterprises (MSMHEs) play a crucial role in Indonesia’s economy, particularly in East Java. As digital technologies reshape market dynamics, enterprises face pressure to adopt digital marketing strategies. However, the unique challenges and opportunities encountered in this digital transformation process remain understudied. Objective: This study aimed to explore the challenges and opportunities in implementing digital marketing strategies among MSMHEs in East Java, focusing on the perspectives of owners and managers across different enterprise scales. Methods: A qualitative approach was employed involving in-depth interviews with 17 participants from MSMHEs across seven cities in East Java. Participants included owners, technical managers, and those with dual roles. The data were analyzed using thematic analysis to identify the key themes and subcategories. Results: The study revealed varying levels of digital marketing adoption across enterprise scales. Key challenges include limited digital literacy, lack of financial resources, and inadequate infrastructure. Opportunities were identified in the form of a strong desire for training and a curiosity about digital marketing strategies. The perceived necessity of digital transformation varied among the participants and was associated with age, education level, and personal exposure to digital technologies. Conclusion: The findings highlight the need for tailored support mechanisms to address the diverse challenges faced by MSMHEs during their digital transformation journey. This study provides a foundation for developing targeted interventions and policies to support the digital growth of the herbal MSMHE sector in East Java, thereby contributing to the broader economic development of the region.
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