The Effect of Digitalization on Food Sector Smes' Competitiveness and Product Quality in Attracting Global Markets

SMEs in the food sector, with the trend of intense competition in the global food business, Micro, Small, and Medium Enterprises (MSMEs) face huge pressure to produce healthier, quality, and sustainable food products that markets call for. Poor access to resources and finance constrains the innovation and uptake of digital technology by MSMEs to become more competitive. This research aims to evaluate how digitalization may help SMEs in the food sector increase competitiveness, efficiency, and product quality of food industry SMEs. This study utilizes a quantitative approach with the survey method of MSMEs who utilize digital technology in marketing and operations. The results of research show that marketing facilities, proper management of raw materials, and enhancing the quality of products have a positive impact on digitalization. Digitalization has been found to assist in enhancing market access through e-commerce as well as enhancing the ability of MSMEs to compete in the global market.