Interactive Components of Digital MSMEs Ecosystem for Inclusive Digital Economy in Indonesia

Abstract

The study examined the interactive components of digital micro and small medium enterprise (MSMEs) ecosystem for inclusive digital economy, more specifically found ways to put the digital MSMEs ecosystem to work for accelerating the MSMEs digitalization. The multiple cases studies’ findings and discussion supported the model building. The model of digital MSMEs ecosystem was formulated as the surrounding interactive components of ecosystem, enabling digital MSMEs to realize and accelerate toward the digital economy. The novelty of model represented the reality of digital MSMEs ecosystem in Indonesia. There were three main constraints of digital MSMEs ecosystem to work: (i) human capital in digital talent, (ii) socio-technical adaptation, and (iii) government support for MSMEs going digital. Putting the digital MSMEs ecosystem to work needs three ecosystem resolutions: (i) building the MSMEs human capital in digital talent; (ii) acceleration of socio-technical adaptation to the digital application; and (iii) the sustainability of existing government support for MSMEs going digital to create inclusive digital economy. The recommendation for three digital MSMEs ecosystem resolutions needs to consider sectoral and regional characteristics in practices.