DIGITAL REVOLUTION IN INDONESIA: EVALUATING MSMES READINESS FOR INDUSTRY 4.0 WITH DELPHI METHOD

Abstract The digital revolution and the emergence of Industry 4.0 have profoundly reshaped the landscape of business and organizational management, particularly for Micro, Small, and Medium Enterprises (MSMEs) in developing economies. This study aims to evaluate the readiness of MSMEs in Indonesia—focusing on the coastal tourism sector in North Sulawesi—to embrace digital transformation and align with Industry 4.0 demands. Anchored in a qualitative research design, the study employed the Delphi method to engage a panel of experts representing the penta helix elements: academia, business, government, community, and media. The research followed a six-stage Delphi process, beginning with issue identification, expert consultation, thematic synthesis, feedback iteration, and convergence of expert opinions. The findings reveal that the majority of MSMEs in the region demonstrate low-to-moderate levels of readiness, primarily hindered by limited digital infrastructure, insufficient technical expertise, financial constraints, and lack of strategic digital orientation. However, the study also uncovers critical enablers that may accelerate MSMEs’ transformation—particularly government-backed digital capacity-building, inter-organizational collaboration, digital marketing competence, and leadership vision aligned with technological innovation. The implications of this study point to the urgent need for integrated policy frameworks and targeted interventions to improve MSME adaptability to digital disruption. Furthermore, it contributes methodologically by demonstrating the applicability of Delphi in mapping expert consensus in complex socio-technological environments. The study offers a research-based foundation for future longitudinal investigations across wider geographies and sectors, and proposes a roadmap for digital transformation tailored to MSME realities in developing nations.