The effect of cloud technology implementation, employee engagement, digital literacy, and organisational readiness on employee productivity and business sustainability in Indonesian MSMEs in the era of digital transformation

In the context of the digital revolution, this study explores the complex dynamics of cloud technology installation, employee engagement, digital literacy, and organizational readiness in Micro, Small, and Medium-Sized Enterprises (MSMEs) in Indonesia. The study analyzes data from 295 different MSMEs using a quantitative approach and Structural Equation Modeling - Partial Least Squares (SEM-PLS). The findings show a strong correlation between the use of cloud computing and worker productivity as well as the long-term viability of businesses. One important factor that influences cloud technology adoption and the ensuing productivity increases is employee engagement. Cloud technology integration success is also greatly influenced by digital literacy and organizational preparedness. The findings highlight the significance of comprehensive plans that cover workforce engagement, digital skills development, and organizational preparedness and offer MSMEs practical insights for navigating the challenges of digital transformation.