Analysis of E-Commerce Based Economic Development in Medan City

This study analyzes the role of digital economic transformation on SMEs in Medan. The focus is on the development of e-commerce-based SMEs. The study uses variables X, namely opportunity, economic transaction, social media, and technology. Variable Y is Electronic Markets (Electronic Markets) and Digitalization of SME Development. The approach used is quantitative. The population is 1,260 respondents. Purposive random sampling allowed us to take samples from 258 SME actors. We collected data using a Likert scale questionnaire. We used SmartPLS 4.0 for data analysis. The results of the study show several important findings. Opportunity has no effect on electronic markets but has a significant effect on SME digitalization. Economy transactions and social media have a significant effect on electronic markets and SME digitalization. Technology has no effect on electronic markets but is significant for SME digitalization. Electronic markets have no direct effect on SME digitalization. The mediating role of Electronic Markets also varies. Electronic Markets does not significantly mediate the influence of Opportunity and Social Media. However, Electronic Markets significantly mediates the influence of economy, transaction, and technology on SME digitalization. These results show that economic transactions and social media play a crucial role. Technology also plays a big role in the digitalization of SMEs. However, Electronic Markets has not been able to become a strong link for all variables. Digital transformation remains crucial for the progress of SMEs in Medan.