Unlocking Inclusive Growth: The Mediating Role of E-Commerce in MSME Digitalization for Economic Development and SDGs’ Achievement in Jambi Province, Indonesia

Although Micro, Small and Medium Enterprises (MSMEs) are the backbone of economic activity and inclusive growth in Indonesia, and recent data from Jambi Province reveal a disconnect between robust post-pandemic recovery and meaningful poverty reduction. While regional GDP climbed from 0.99% to 6% between 2020 and 2024, poverty declined only slightly, highlighting persistent inequality. This study addresses this gap by examining, for the first time in the context of Jambi Province, how e-commerce adoption mediates the link between Micro, Small and Medium Enterprises’ (MSMEs’) quality and the achievement of economic growth, innovation, and Sustainable Development Goals (SDGs) 1 and 9. Using Structural Equation Modeling–Partial Least Squares (SEM-PLS) on data from 250 Micro, Small and Medium Enterprises (MSMEs), the findings reveal that improvements in Micro, Small and Medium Enterprises’ (MSMEs’) quality alone do not drive growth or reduce poverty unless they are accompanied by the effective adoption of e-commerce. This integrated approach, combining Micro, Small and Medium Enterprises’ (MSMEs’) capacity, digital transformation and regional Sustainable Development Goal outcomes, offers new empirical evidence and practical recommendations for emerging economies. Despite a sectoral and regional focus, the framework and results are generalizable to similar contexts. Future research should expand into additional sectors and regions, and adopt longitudinal analysis to validate and enrich these findings.