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Leveraging digital technologies for income enhancement: An empirical study of MSMEs in the Malioboro Corridor Yogyakarta city

Year: 2026

Type: article

Abstract: The digitalization transformation of MSMEs is crucial for enhancing both the national and regional economies, as MSMEs significantly contribute to the Gross Regional Domestic Product and play a vital role in employment generation. Prior to the integration of digital technologies, the marketing reach of MSMEs was restricted, which led to a decrease in sales turnover and a corresponding decline in their income. This article examines the impact of digital payment systems, marketing digitalization, and distribution digitalization on the income changes of MSMEs located in Teras Malioboro 1, Yogyakarta City. Data were collected between March–May 2024 through a survey of 90 purposively selected MSME operators in the craft, fashion, and culinary sectors. Logistic regression analysis indicates that digital payments and marketing digitalization significantly increase the likelihood of income enhancement, whereas distribution digitalization exhibits a significant negative impact, believed to stem from high platform commissions and low digital logistics literacy among MSMEs.

Source: Springer Link (Chiba Institute of Technology)

DOI: 10.1051/e3sconf/202668702002/pdf

Authors: Nurul Nur Fauziyah, Erni Ummi Hasanah, Danang Wahyudi, Evi Gravitiani, Ade Riska Ayu Septiani

Institutions: Janabadra University, Sebelas Maret University

Language: English

Topic: SMEs Development and Digital Marketing

Subfield: Demography

Field: Social Sciences

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure, No poverty, Reduced inequalities

Open Access status: green

OpenAlex ID: W7124438515

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