Digital Economy and MSMEs’ Revenue: Moderating Role of Internet Literacy

Authors

  • Imam Andrianto Al Muffarriddin Department of Islamic Banking, Universitas Islam Negeri Mataram, Indonesia, Indonesia
  • Lalu Ahmad Ramadani Department of Islamic Banking, Universitas Islam Negeri Mataram, Indonesia, Indonesia
  • Muhammad Muhajir Aminy Department of Islamic Banking, Universitas Islam Negeri Mataram, Indonesia, Indonesia

DOI:

https://doi.org/10.30863/al-tsarwah.v7i1.6955

Keywords:

digital economy, MSMEs, internet literacy, revenue growth, moderating variable

Abstract

The research investigates the influence of the digital economy on MSMEs’ revenue growth with internet literacy as the moderating variable. This study employed data from 100 MSMEs through Random Sampling and analysis with SPSS software version 26. The results highlight a significant positive correlation between the digital economy and revenue increase, showcasing its role in expanding product marketing through online platforms like e-commerce and facilitating online payments, thus enhancing business efficiency, customer service, and communication. Moreover, the digital economy streamlines sales data recording and analysis, enabling targeted product innovation to directly boost revenue. Notably, internet literacy moderates this relationship, emphasizing the importance of sharing information and knowledge to maximize the benefits of digital tools like online marketing and e-commerce. This underscores the critical need for accessible and affordable internet infrastructure to support SMEs in leveraging digital technologies effectively. The practical implications suggest fostering internet literacy among SMEs and prioritizing initiatives to enhance internet accessibility can significantly contribute to revenue growth, bolstering their competitiveness and sustainability. Policymakers and stakeholders should thus prioritize efforts to provide necessary support and training programs aimed at empowering SMEs to harness the potential of the digital economy for sustained growth and development.

References

Armiani, A., Basuki, B., & Suwarno, N. (2021). Teknologi Digital Memediasi Dampak Strategi Bisnis Terhadap Kinerja UMKM di Nusa Tenggara Barat. Jurnal Ekonomi Dan Keuangan, 5(3). https://doi.org/https://doi.org/10.24034/j25485024.y2021.v5.i3.4892

Atmayanti, T., & Andiana, B. D. L. (2021). Strategi Pengembangan Home Industry Era New Normal Pandemi Covid 19 Dalam Meningkatkan Pendapatan (Studi Kasus Kelompok Usaha Bersama (KUBE) “Arjanjang†Desa Selebung Ketangga, Kabupaten Lombok Timur). JPEK (Jurnal Pendidikan Ekonomi Dan Kewirausahaan), 5(1). https://doi.org/https://doi.org/10.29408/jpek.v5i1.3349

Atmayanti, T., & Cahyani, M. (2019). Analisis Dampak Ekonomi Program Pengembangan Usaha Agribisnis Pedesaan (PUAP) Dalam Pengentasan Kemiskinan : Studi Kasus Gapoktan “Karunia†Desa Pringgasela, Kabupaten Lombok Timur. Jurnal Kompetitif: Media Informasi Ekonomi Pembangunan, Manajemen Dan Akuntansi, 5(2).

Badriati, B. El, Syam, N., & Arifin, S. (2022). Songket Subhanale Weaving Productivity in Forming the Economic Independence of Sasak Women. Jurnal Istinbath, 20(2). https://doi.org/https://doi.org/10.20414/ijhi.v20i2.385

Chaudhuri, A., & Pal, S. (2022). Meaning and Purpose of Survey Sampling. In Indian Statistical Institute Series. https://doi.org/https://doi.org/10.1007/978-981-19-1418-8_1

Cottrell, P. (2018). Research Methods in Quantitative Finance. SSRN Electronic Journal. https://doi.org/https://doi.org/10.2139/ssrn.2794573

Gaytan, J. (2008). Understanding Teaching with the Internet in Business Education. Delta Pi Epsilon Journal, 50(1).

Hafid, A., Bahri, S., Marzuki, S. N., Muis, M., & Idayanti, R. (2024). The Application of Khiyar Principles to E-Commerce Transaction: The Islamic Economy Perspective. Samarah: Jurnal Hukum Keluarga dan Hukum Islam, 8(1), 403-420.

Kamiruddin, K., Hardianti, H., & Farida, I. (2021). Implementation of Islamic Economic Values in Online Transactions. Budapest International Research and Critics Institute (BIRCI-Journal): Humanities and Social Sciences, 4(2), 2234-40.

Karyono, O., & Kamiruddin, K. (2024). Strategy for Building Sharia-Conscious Competitiveness in Small and Medium Enterprises Based on Local Wisdom. Al-Intaj: Jurnal Ekonomi dan Perbankan Syariah, 10(2), 331-344.

Lee, V., & Landers, R. N. (2022). Sampling Strategies for Quantitative and Qualitative Business Research. Oxford Research Encyclopedia of Business and Management. https://doi.org/https://doi.org/10.1093/acrefore/9780190224851.013.216

Lewis, T. . (2023). Digital Economy: The Economics of the Digital Economy. Ubiquity. https://doi.org/https://doi.org/10.1145/3594560

Peters, M. A. (2023). Digital trade, digital economy and the digital economy partnership agreement (DEPA). Educational Philosophy and Theory, 55(7). https://doi.org/https://doi.org/10.1080/00131857.2022.2041413

Purwanti, I., Lailyningsih, D. R. ., & Suyanto, U. Y. (2022). Digital Marketing Capability and MSMEs Performance: Understanding the Moderating Role of Environmental Dynamism. Jurnal Manajemen Teori Dan Terapan | Journal of Theory and Applied Management, 15(3). https://doi.org/https://doi.org/10.20473/jmtt.v15i3.39238

Qaisi, D. . (2023). Investigating the Reality of Using Quantitative Methods in Improving Decisions in a Sample of Public Industrial Sector Companies. International Journal of Professional Business Review, 8(6). https://doi.org/https://doi.org/10.26668/businessreview/2023.v8i6.1533

Taherdoost, H. (2016). Sampling Methods in Research Methodology ; How to Choose a Sampling Technique for. International Journal of Academic Research in Management (IJARM), 5(2).

Wijaya, H., & Nailufaroh, L. (2022). Pengaruh Ekonomi Digital Terhadap Pendapatan UMKM Kota Serang dengan Literasi Digital Sebagai Variabel Moderasi. Fair Value: Jurnal Ilmiah Akuntansi Dan Keuangan, 5(4). https://doi.org/https://doi.org/10.32670/fairvalue.v5i4.2580

Downloads

Published

2024-08-07

How to Cite

Al Muffarriddin, I. A., Ramadani, L. A., & Aminy, M. M. (2024). Digital Economy and MSMEs’ Revenue: Moderating Role of Internet Literacy. Jurnal Ilmiah Al-Tsarwah, 7(1), 1–8. https://doi.org/10.30863/al-tsarwah.v7i1.6955

Issue

Vol. 7 No. 1 (2024)

Section

Articles

Citation Check

License

Authors who publish with Jurnal Ilmiah Al-Tsarwah agree to the following terms:

1. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.

2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.

3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.