Digital Strategies Boosting MSME Growth in Industry 4.0 Transformation

In the Industry 4.0 era, digital transformation is vital for Micro, Small, and Medium-Sized Enterprises (MSMEs) to enhance resilience and competitiveness despite resource constraints. This study aims to evaluate the impact of digital strategies on MSME growth, focusing on digital marketing, e-commerce platforms, and digital financial management tools. Using a quantitative approach, data were collected from 100 MSMEs via structured questionnaires and analyzed with Smart-PLS 3 to assess variable correlations. Results indicate that all three digital strategies positively influence MSME growth, with e-commerce platforms demonstrating the strongest effect, followed by digital financial management tools and digital marketing. The model’s R<sup xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">2</sup> value of 0.694 reveals that these strategies account for 69.4% of the variance in MSME growth. These findings underscore the critical role of digital technologies in expanding market reach, improving operational efficiency, and strengthening financial management for MSMEs. The study highlights the need for MSMEs to prioritize digital skill development to thrive in a competitive digital landscape. Implications include guiding policymakers and MSME owners in adopting digital tools for sustainable growth. Future research should explore additional factors affecting digital adoption and validate these findings across diverse industry contexts. This study provides a robust framework for leveraging digital strategies to foster MSME success in the Industry 4.0 transformation.