Digital Transformation As Recovery Strategies of MSMEs To Overcome Economic Impact During Covid 19 Pandemic : A Literature Review Fera Yunita, Vania Nur Rizqi R, Adang Setiawan
Faculty of Economy and Business, Halim Sanusi University
Jl. Garut No 2, Bandung 40271, Indonesia
*ferayunita[at]uhs.ac.id
Abstract
The development of digital technology has provided significant changes to business processes, thereby shifting the trend of conventional business models towards digital-based businesses and increasing the opportunities for various business sectors to reach global market niches. For large-scale companies, this digital transformation is relatively easier to do, however different things happen to Micro, Small, and Medium Enterprises (MSMEs) which are struggling to face these challenges. The limited capacity of MSMEs, both in financing and technological readiness, makes this business group tend to be slow in adapting digital technology. Nevertheless, the occurrence of the Covid-19 pandemic at the beginning of 2020 has brought new urgency to all business sectors to accelerate digital transformation, including MSMEs. The policy that has the most significant impact is the limitation of public activities, which on the other hand turns out to be a catalyst for the digital transformation process. This research aims to analyze how the digital transformation process carried out by MSMEs during the COVID-19 pandemic, and what are the impacts of this activity on business process renewal and business survival during the pandemic. This study is a literature review of available information to recommends digital transformation as recovery strategy of MSMEs business during a COVID-19 outbreak. The results show digital transformation has bring MSMEs into new business process including better supply chain management, wider information access, wider networking and market, business accountability improvement, and several new business strategies. This study contribute towards to the bottom-up scheme of post-pandemic economic recovery.
Keywords: Digital Transformation, Economic recovery,Covid-19, Sustainability
