ANALYSIS OF KEY FACTORS OF DIGITAL TRANSFORMATION IN SMALL AND MEDIUM ENTERPRISES IN SALAMAN DISTRICT OF MAGELANG REGENCY, INDONESIA

Abstract

The purpose of this study is to identify and analyze key factors of digital transformation of MSMEs in Magelang Regency Province using a prospective structured analysis approach. This research design is quantitative descriptive research. The type of data in this research uses primary data. The data source was obtained from Focus Group Discussion (FGD). The analysis method used prospective structural analysis techniques. The structural analysis was arranged in three stages, the first two stages were carried out during FGD and the third stage used MICMAC software. The variables that influence/determine (key drivers) the digital transformation of MSMEs in Magelang Regency are the key variables or factors of digital infrastructure, digital customer preferences, leadership and management and capital allocation. Transition variables include the innovation environment, technological mastery, environmental conditions and requirements, and human resources. Meanwhile, organizational culture is the dependent variable and company digital culture is an excluded variable. The digital infrastructure, innovation environment, and mastery of technology are the most influential variables, both directly between variables and indirect interactions.

Keywords

• digital transformation
• infrastructure
• transition
• sme