MSME digitalization: How are social capital factors in encouraging the use of digital applications?

This research explores the impact of social capital on the adoption of digital applications within Micro, Small, and Medium Enterprises (MSMEs). In the current competitive environment, embracing digitalization is essential for improving the competitiveness of MSMEs; however, challenges such as...

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Main Authors: Made Setini, Putu Ngurah Suyatna Yasa, Ni Wayan Sitiari
Format: Article
Language:English
Published: Growing Science 2025-01-01
Series:International Journal of Data and Network Science
Online Access:http://www.growingscience.com/ijds/Vol9/ijdns_2024_196.pdf
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author Made Setini
Putu Ngurah Suyatna Yasa
Ni Wayan Sitiari
author_facet Made Setini
Putu Ngurah Suyatna Yasa
Ni Wayan Sitiari
author_sort Made Setini
collection DOAJ
description This research explores the impact of social capital on the adoption of digital applications within Micro, Small, and Medium Enterprises (MSMEs). In the current competitive environment, embracing digitalization is essential for improving the competitiveness of MSMEs; however, challenges such as weak social networks can impede technology uptake. Utilizing a quantitative approach, the study distributed questionnaires to 160 MSME participants, with data analysed through path analysis using SmartPLS. The findings indicate that social capital—which includes relationships, networks, and trust among business stakeholders—plays a critical role in facilitating access to and adoption of digital applications. Results suggest that MSMEs with strong social networks are more adept at integrating digital technologies, fostering innovation, and improving overall business performance. The study recommends initiatives to enhance collaboration and strengthen social networks among MSMEs to support their digitalization efforts. Ultimately, this research deepens the understanding of social capital's influence on MSME digitalization and offers practical strategies for stakeholders to increase the utilization of digital applications in this sector.
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spelling doaj-art-5e588f47a05041ae8c1fa207faf2eb212025-08-20T02:36:31ZengGrowing ScienceInternational Journal of Data and Network Science2561-81482561-81562025-01-0191475610.5267/j.ijdns.2024.10.007MSME digitalization: How are social capital factors in encouraging the use of digital applications?Made SetiniPutu Ngurah Suyatna YasaNi Wayan Sitiari This research explores the impact of social capital on the adoption of digital applications within Micro, Small, and Medium Enterprises (MSMEs). In the current competitive environment, embracing digitalization is essential for improving the competitiveness of MSMEs; however, challenges such as weak social networks can impede technology uptake. Utilizing a quantitative approach, the study distributed questionnaires to 160 MSME participants, with data analysed through path analysis using SmartPLS. The findings indicate that social capital—which includes relationships, networks, and trust among business stakeholders—plays a critical role in facilitating access to and adoption of digital applications. Results suggest that MSMEs with strong social networks are more adept at integrating digital technologies, fostering innovation, and improving overall business performance. The study recommends initiatives to enhance collaboration and strengthen social networks among MSMEs to support their digitalization efforts. Ultimately, this research deepens the understanding of social capital's influence on MSME digitalization and offers practical strategies for stakeholders to increase the utilization of digital applications in this sector.http://www.growingscience.com/ijds/Vol9/ijdns_2024_196.pdf
spellingShingle Made Setini
Putu Ngurah Suyatna Yasa
Ni Wayan Sitiari
MSME digitalization: How are social capital factors in encouraging the use of digital applications?
International Journal of Data and Network Science
title MSME digitalization: How are social capital factors in encouraging the use of digital applications?
title_full MSME digitalization: How are social capital factors in encouraging the use of digital applications?
title_fullStr MSME digitalization: How are social capital factors in encouraging the use of digital applications?
title_full_unstemmed MSME digitalization: How are social capital factors in encouraging the use of digital applications?
title_short MSME digitalization: How are social capital factors in encouraging the use of digital applications?
title_sort msme digitalization how are social capital factors in encouraging the use of digital applications
url http://www.growingscience.com/ijds/Vol9/ijdns_2024_196.pdf
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