BIG DATA ANALYTICS AND DIGITAL TRANSFORMATION AND GROWTH IN INDONESIAN MSMES: A NARRATIVE REVIEW
DOI:
https://doi.org/10.55197/qjssh.v7i3.880Keywords:
big data, MSMEs, data analytics, digital transformation, business decisionAbstract
Research on Big Data Analytics (BDA) as a vehicle for digital transformation is particularly pertinent for Micro, Small, and Medium Enterprises (MSMEs), which continue to struggle in recovering from the COVID-19 pandemic. However, scholarly investigations addressing the utilization of BDA and potential solutions to the challenges faced by Indonesian MSMEs remain scarce. This study seeks to examine the role and impact of BDA adoption and to identify effective strategies for fostering MSME development in Indonesia. Employing a narrative review approach, the study provides a comprehensive understanding of how BDA enhances business processes, drives innovation, and generates both economic and social value for MSMEs. The findings demonstrate that the application of BDA enables MSMEs to make more informed decisions by offering deep insights into market trends, customer preferences, and operational efficiency. This, in turn, strengthens competitive advantage, fosters customer loyalty, and improves marketing effectiveness. Nevertheless, the adoption of BDA is hindered by several critical challenges, including knowledge gaps, limited IT infrastructure, financial constraints, and insufficient managerial support. Technical complexities, as well as concerns related to data security and privacy, further impede implementation. To address these barriers, MSMEs are advised to conduct thorough evaluations of their internal capacities, invest in training and education, and initiate small-scale BDA projects that may subsequently be scaled up. External support, including collaboration with service providers and consultants, together with government interventions in the form of financial incentives and the establishment of ethical data governance frameworks, is likewise essential to facilitate effective digital transformation. Overall, the strategic utilization of BDA constitutes a vital mechanism for enhancing competitiveness and promoting the sustainable growth of MSMEs in the digital era.
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