The Impact of Digital Technology and Product Innovation on the Competitiveness of MSMEs in the Digital Economy Era Ni Komang Wiantri, Inggrid Anleani Putri, Erdiyansyah, Nasrullah, Munari
Administrasi Publik,Fakultas Ilmu Sosial Dan Ilmu Politik,Universitas Tadulako
Abstract
ABSTRACT
This study examines how digital technologyand product innovation affect the competitiveness of MSMEs in the digital economy era.A quantitative research designwas used with a Likert scale questionnaire distributed toMSME entrepreneurs. The digital technology variable (X1) was measured through two dimensions: Perceived Ease of Use (ease of using technology) and Attitude TowardUsing (positive attitude toward technology), with indicators such as the ability touse technology without difficulty and satisfaction when using it. The product innovation variable(X2) includes technical innovation. The MSME competitiveness variable (Y) is measured through three main dimensions: competitive pricing (appropriate quality and affordability), product quality(durability and attractive appearance), and consumer loyalty (repeat purchasesand recommendations). The combination of these two variables is able to explain most of thevariation in MSME competitiveness. The questionnaire was developed based on a predetermined theoretical framework to ensure accurate measurement of the variables. Respondents were selected throughpurposive sampling with a focus on MSME entrepreneurs todetermine the competitiveness of MSMEs in the researcher^s vicinity. The variables weredigital technology (X1) and product innovation(X2) on the competitiveness of MSMEs (Y).
Keywords: : Digital Technology, Product Innovation, Competitiveness, UMKM
