Digital Adaptation Strategies for MSMEs in the Vuca Era: A Study of SMEs in Sukabumi City

  • Rizky Maulana Universitas Linggabuana PGRI Sukabumi, Indonesia
  • Alhidayatullah Universitas Muhammadiyah Sukabumi, Indonesia
  • Sandi Setiadi Universitas Linggabuana PGRI Sukabumi, Indonesia
DOI: https://doi.org/10.54783/ijsoc.v7i3.1521
Keywords: Digital Marketing, Product Innovation, Competitiveness, Sustainability.

Abstract

This study aims to analyze in depth the influence of digital marketing and product innovation on the competitiveness and sustainability of MSMEs in Sukabumi City in facing the challenges of the VUCA (Volatility, Uncertainty, Complexity, Ambiguity) era. The research method used a mixed method, where a quantitative approach with Structural Equation Modeling-Partial Least Square (SEM-PLS) analysis techniques was reinforced by qualitative interviews to explore the practical perspectives of business actors. The results show that digital marketing plays an important role in expanding market reach, enhancing brand image, and building consumer loyalty as the foundation for business sustainability. Product innovation has also been proven to be significant in creating differentiation, maintaining relevance to dynamic market needs, and increasing added value for consumers. However, competitiveness does not function as a significant mediating variable between digital marketing and product innovation on business sustainability. These findings contribute theoretically by enriching the literature on the dynamic capabilities of MSMEs, while challenging the traditional view that competitiveness is the only major factor in business sustainability. Practically, the results emphasize the importance of consistent innovation, the use of digital technology, and the support of an integrated business ecosystem in maintaining the sustainability of MSMEs amid the uncertainty of the VUCA era.

References

Ahmed, A., Ayentimi, D. T., & Sandow, J. N. (2024). Organisational creativity on product innovation performance of SMEs: exploring mechanisms and boundary conditions. Innovation, ahead-of-p(ahead-of-print), 1–21. https://doi.org/10.1080/14479338.2024.2389898

Alonso-Ubieta, S., Leiva, J. C., & Mora-Esquivel, R. (2020). The competitive efficiency of Costa Rican small and medium-sized businesses: a data envelopment analysis approach. Competitiveness Review: An International Business Journal, 31(3), 420–438. https://doi.org/10.1108/cr-12-2019-0142

Anand, A., Offergelt, F., & Anand, P. (2021). Knowledge hiding – a systematic review and research agenda. Journal of Knowledge Management, 26(6). https://doi.org/10.1108/jkm-04-2021-0336

Awad, J. A. R., & Martín-Rojas, R. (2024). Digital transformation influence on organisational resilience through organisational learning and innovation. Journal of Innovation and Entrepreneurship, 13(1). https://doi.org/10.1186/s13731-024-00405-4

Bening, S. A., Park, J., Chang, Y., Dachyar, M., & Pratama, N. R. (2023). E-Commerce Technologies Adoption Strategy Selection in Indonesian SMEs Using the Decision-Makers, Technological, Organizational and Environmental (DTOE) Framework. Sustainability, 15(12), 9361. https://doi.org/10.3390/su15129361

Bhatti, S. H., Wamba, S. F., Ahmed, A., Ferraris, A., & Hirwani Wan Hussain, W. M. (2022). Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities. Annals of Operations Research. https://doi.org/10.1007/s10479-022-05002-w

Biemans, W. (2023). The impact of digital tools on sales-marketing interactions and perceptions. Industrial Marketing Management, 115, 395–407. https://doi.org/10.1016/j.indmarman.2023.10.015

Carlsson, R., & Nevzorova, T. (2024). Measuring sustainable transformation of small and medium‐sized enterprises using management systems standards. Business Strategy and the Environment, 34(1), 708–723. https://doi.org/10.1002/bse.3995

Chen, L., Li, S., Wang, M., & Cui, L. (2020). Experience base, strategy‐by‐doing and new product performance. Strategic Management Journal, 42(7), 1379–1398. https://doi.org/10.1002/smj.3262

Chi, Z., Wang, F., Liu, Z., & Osmani, M. (2023). Driving Circular Economy through Digital Technologies: Current Research Status and Future Directions. Sustainability, 15(24), 16608. https://doi.org/10.3390/su152416608

Corvello, V., Verteramo, S., Nocella, I., & Ammirato, S. (2022). Thrive During a Crisis: The Role of Digital Technologies in Fostering Antifragility in Small and Medium-Sized Enterprises. Journal of Ambient Intelligence and Humanized Computing, 14(11), 14681–14693. https://doi.org/10.1007/s12652-022-03816-x

Dallocchio, M., Lambri, M., Sironi, E., & Teti, E. (2024). The Role of Digitalization in Cross-Border E-Commerce Performance of Italian SMEs. Sustainability, 16(2), 508. https://doi.org/10.3390/su16020508

De La Torre, A., & De La Vega, I. (2025). Dynamic capabilities and digital innovation: pathways to competitive advantage through responsible innovation. Journal of Responsible Innovation, 12(1). https://doi.org/10.1080/23299460.2025.2500154

De, T., Singh, S., Verma, P., Nibhanupudi Siva Bhaskar, A., Kumar, V., Mahlawat, S., & Gangaraju, P. K. (2024). Exploring the synergistic effects of circular economy, Industry 4.0 technology, and green human resource management practices on sustainable performance: Empirical evidence from Indian companies. Business Strategy & Development, 7(3). https://doi.org/10.1002/bsd2.70002

Díaz-Arancibia, J., Arango-López, J., Bustamante-Mora, A., Hochstetter-Diez, J., Albayay, I., & Sepúlveda-Cuevas, S. (2024). Navigating Digital Transformation and Technology Adoption: A Literature Review from Small and Medium-Sized Enterprises in Developing Countries. Sustainability, 16(14), 5946. https://doi.org/10.3390/su16145946

Ding, K. (2022). Creating New Jewellery with precious metals recovered from electronic waste. Taylor & Francis.

Edu, A. S., Gyamfi, B. A., Ofosuhene, E., Agozie, D. Q., & Asongu, S. A. (2025). Optimizing Sustainable Resource Efficiency: A Fuzzy‐Set Qualitative Comparative Analysis of Sustainable Practices in SMEs. Business Strategy and the Environment, 34(3), 2799–2812. https://doi.org/10.1002/bse.4125

El Chaarani, H., El Abiad, Z., Vrontis, P. D., & El Nemar, S. (2021). The impact of strategic competitive innovation on the financial performance of SMEs during COVID-19 pandemic period. Competitiveness Review: An International Business Journal, 32(3), 282–301. https://doi.org/10.1108/cr-02-2021-0024

Hang, Y., Sarfraz, M., Khalid, R., Ozturk, I., & Tariq, J. (2022). Does corporate social responsibility and green product innovation boost organizational performance? a moderated mediation model of competitive advantage and green trust. Economic Research-Ekonomska Istraživanja, 35(1), 5379–5399. https://doi.org/10.1080/1331677x.2022.2026243

Hojnik, B. B., & Huđek, I. (2023). Small and Medium-Sized Enterprises in the Digital Age: Understanding Characteristics and Essential Demands. Information, 14(11), 606. https://doi.org/10.3390/info14110606

Hu, B. (2023). Wayfinding for modern healthcare: A participatory approach to designing a wayfinding system in a Chinese Hospital Setting. Taylor & Francis.

Jayawardena, N. S., Raman, R., Nedungadi, P., Behl, A., & Jones, P. (2024). Integration of Technology and Marketing Activities Among Service SMEs in Emerging Economies. Journal of Global Information Management, 32(1), 1–27. https://doi.org/10.4018/jgim.356380

Kallmuenzer, A., Czakon, W., Chelaru, M., & Mikhaylov, A. (2024). Adoption and performance outcome of digitalization in small and medium-sized enterprises. Review of Managerial Science. https://doi.org/10.1007/s11846-024-00744-2

Kraetzig, E. R. S., Sálvia, A. L., Bichueti, R. S., Brandli, L. L., & Ávila, L. V. (2024). Opportunities and Challenges of Sustainable Innovation for Climate Change Mitigation in Companies: A Systematic Literature Review. Environmental Quality Management, 34(1). https://doi.org/10.1002/tqem.22284

Kurniawati, A., Sunaryo, I., Wiratmadja, I. I., & Irianto, D. (2022). Sustainability-Oriented Open Innovation: A Small and Medium-Sized Enterprises Perspective. Journal of Open Innovation Technology Market and Complexity, 8(2), 69. https://doi.org/10.3390/joitmc8020069

Laldin, M. A., & Furqani, H. (2016). Innovation versus Replication: Some Notes on the Approaches in Defining Shariah Compliance in Islamic Finance. Al-Jami’ah: Journal of Islamic Studies, 54(2), 249. https://doi.org/10.14421/ajis.2016.542.249-272

Linina, I., Vevere, V., & Zvirgzdina, R. (2023). Strategy Development for use of Influencers in Communication of Small and Medium-Sized Enterprises (SMEs) with Consumers. WSEAS TRANSACTIONS ON BUSINESS AND ECONOMICS, 20, 1607–1614. https://doi.org/10.37394/23207.2023.20.141

Ma, K. (2024). Development of an extended TAM model for enabling online social experience with smart home displays for older adults. Taylor & Francis.

Mackey, A., & Mackey, T. B. (2023). Seinfeld on Resources: Causal Ambiguity, the Perils of Imitable Resources, and the Durability of Resource-Based Advantages. Management Teaching Review, 10(1), 76–84. https://doi.org/10.1177/23792981231216457

Magableh, I. K., Mahrouq, M. H., Riyadh, H. A., & Ta’Amnha, M. A. (2024). The Role of Marketing Artificial Intelligence in Enhancing Sustainable Financial Performance of Medium-Sized Enterprises Through Customer Engagement and Data-Driven Decision-Making. Sustainability, 16(24), 11279. https://doi.org/10.3390/su162411279

Marshall, A., Singh, R. R., Ikeda, K., & Lipp, A. (2020). Ecosystems boost revenues from innovation initiatives. Strategy & Leadership, 48(4), 17–27. https://doi.org/10.1108/sl-04-2020-0055

Maulana, M. I., & Suyono, E. (2023). Pengaruh Litersi Keuangan Dan Literasi Digital Terhadap Keberlanjutan Bisnis Pelaku Umkm Berbasis Syariah. Jurnal Ilmiah Ekonomi Islam, 9(3), 4256. https://doi.org/10.29040/jiei.v9i3.10856

Maulana Prasetya, D., Ladiqi, S., & Salleh, M. A. (2024). Back to the past: The roots of Indonesian middlepowermanship. Asian Journal of Comparative Politics, 10(2), 97–112. https://doi.org/10.1177/20578911241236518

Minh Sang, N. (2023). The influence of social media marketing on brand loyalty and intention to use among young Vietnamese consumers of digital banking. Innovative Marketing, 19(4), 1–13. https://doi.org/10.21511/im.19(4).2023.01

Mohamed Salleh, S. (2021). A New Model of the Framework for the Influence of the Internet of Things (IoT) Usage on the Grassroots Innovators’ Sustainability. ASM Science Journal, 14, 1–15. https://doi.org/10.32802/asmscj.2020.763

Muis, I., Kamalia, R. F., & Adhi, T. M. (2024). The Impact of Digital Marketing and Innovation on Marketing Performance is Influenced through the Development of a Competitive Advantage. Revista de Gestão Social e Ambiental, 18(8), e6182. https://doi.org/10.24857/rgsa.v18n8-081

Navaia, E., Moreira, A., & Ribau, C. (2023). Differentiation Strategy and Export Performance in Emerging Countries: Mediating Effects of Positional Advantage among Mozambican Firms. Economies, 11(2), 44. https://doi.org/10.3390/economies11020044

Nazir, M. A., Rizwan, H., & Zhu, X. (2024). A thematic analysis of factors influencing small and medium enterprise adoption of social media marketing: a TOE framework perspective. Qualitative Market Research: An International Journal, 28(1). https://doi.org/10.1108/qmr-10-2023-0143

Nica, I., Georgescu, I., & Chiriță, N. (2025). Triple Bottom Line in Sustainable Development: A Comprehensive Bibliometric Analysis. Sustainability, 17(5), 1932. https://doi.org/10.3390/su17051932

Ooi, S. K., & Memon, K. R. (2025). Addressing Resource Scarcity: The Role of Responsible Innovation and Resilience in SMEs’ Competitive Advantage and Sustainability Performance. Corporate Social Responsibility and Environmental Management. https://doi.org/10.1002/csr.70005

Permana, I., Sari, R. P., Hamdani, N. A., & Chochole, T. (2023). Innovation development of small business in Indonesia. Journal of Eastern European and Central Asian Research (JEECAR), 10(6), 888–899. https://doi.org/10.15549/jeecar.v10i6.1511

Petropoulou, A., Angelaki, E., Thanasas, G., Rompogiannakis, I., Garefalakis, A., & Passas, I. (2024). Digital Transformation in SMEs: Pre- and Post-COVID-19 Era: A Comparative Bibliometric Analysis. Sustainability, 16(23), 10536. https://doi.org/10.3390/su162310536

Rashidirad, M., & Salimian, H. (2020). SMEs’ dynamic capabilities and value creation: the mediating role of competitive strategy. European Business Review, 32(4), 591–613. https://doi.org/10.1108/ebr-06-2019-0113

Raza, A., Alavi, A. B., & Asif, L. (2024). Sustainability and financial performance in the banking industry of the United Arab Emirates. Discover Sustainability, 5(1). https://doi.org/10.1007/s43621-024-00414-z

Restrepo-Morales, J. A., Ararat-Herrera, J. A., López-Cadavid, D. A., & Camacho-Vargas, A. (2024). Breaking the digitalization barrier for SMEs: a fuzzy logic approach to overcoming challenges in business transformation. Journal of Innovation and Entrepreneurship, 13(1). https://doi.org/10.1186/s13731-024-00429-w

Riswanto, A. L., Ha, Y., Williady, A., Kim, S., & Kim, H.-S. (2025). How Visual Design in Dairy Packaging Affects Consumer Attention and Decision-Making. Dairy, 6(1), 4. https://doi.org/10.3390/dairy6010004

Robu, D., & Lazar, J. B. (2021). Digital Transformation Designed to Succeed: Fit the Change into the Business Strategy and People. Electronic Journal of Knowledge Management, 19(2), pp133-149. https://doi.org/10.34190/ejkm.19.2.2411

Setiadi, S., Widyastuti, S., Zulkifli, & Darmansyah. (2025). Sustainable nature tourism transformation: The strategic role of green tourism in West Java. Edelweiss Applied Science and Technology, 9(3), 1544–1569. https://doi.org/10.55214/25768484.v9i3.5599

Sharabati, A.-A. A., Alheet, A. F., Mohammad, A. S., Hussein, A. A., Allahham, M. I., & Ali, A. A. A. (2024). The Impact of Digital Marketing on the Performance of SMEs: An Analytical Study in Light of Modern Digital Transformations. Sustainability, 16(19), 8667. https://doi.org/10.3390/su16198667

Sipos, N., Venczel‐Szakó, T., & Bányai, E. (2023). An international empirical study on the relationship between decision‐making information complexity and resource‐based view in small and medium‐sized enterprises. Systems Research and Behavioral Science, 41(3), 453–470. https://doi.org/10.1002/sres.2988

Sufyan, A., Asad, A. I., & Novák, P. (2024). Radical and incremental innovations performance in Eastern European SMEs: An empirical study of developed and emerging economies. Journal of Eastern European and Central Asian Research (JEECAR), 11(3), 537–552. https://doi.org/10.15549/jeecar.v11i3.1604

Suharto, S., Muhdar, H. M., Junaedi, I. W. R., Firmansyah, A., & Sarana, S. (2022). Consumer loyalty of Indonesia e-commerce SMEs: The role of social media marketing and customer satisfaction. International Journal of Data and Network Science, 6(2), 383–390. https://doi.org/10.5267/j.ijdns.2021.12.016

Tiitu, M., Viinikka, A., Ojanen, M., & Saarikoski, H. (2021). Transcending sectoral boundaries? Discovering built-environment indicators through knowledge co-production for enhanced planning for well-being in Finnish cities. Environmental Science & Policy, 126, 177–188. https://doi.org/10.1016/j.envsci.2021.09.028

Tufan, C., & Mert, I. S. (2023). The sequential effect of absorptive capacity, strategic agility, and sustainable competitive advantage on sustainable business performance of SMEs. Environmental Science and Pollution Research, 30(19), 55958–55973. https://doi.org/10.1007/s11356-023-26207-x

Wahyuni, S., Taufik, A. A., & Hui, F. K. P. (2020). Exploring key variables of port competitiveness: evidence from Indonesian ports. Competitiveness Review: An International Business Journal, 30(5), 529–553. https://doi.org/10.1108/cr-11-2018-0077

Wang, H., Tan, Q., & Li, S. (2024). Effect of innovation voucher-based collaboration on high-tech SMEs’ innovation: the moderating role of knowledge stock. Knowledge Management Research & Practice, ahead-of-p(ahead-of-print), 1–14. https://doi.org/10.1080/14778238.2024.2404519

Yanto, H., Baroroh, N., Rahim, N. M., Kiswanto, K., & Hajawiyah, A. (2022). The Roles of Entrepreneurial Skills, Financial Literacy, and Digital Literacy in Maintaining MSMEs during the COVID-19 Pandemic. Asian Economic and Financial Review, 12(7), 504–517. https://doi.org/10.55493/5002.v12i7.4535

Zhang, J., Zhao, H., & Li, H. (2025). The Impact of Digital Transformation on Organizational Resilience: The Role of Innovation Capability and Agile Response. Systems, 13(2), 75. https://doi.org/10.3390/systems13020075

Published
2025-09-20
How to Cite
Maulana, R., Alhidayatullah, & Setiadi, S. (2025). Digital Adaptation Strategies for MSMEs in the Vuca Era: A Study of SMEs in Sukabumi City. International Journal of Science and Society, 7(3), 296-315. https://doi.org/10.54783/ijsoc.v7i3.1521
Issue
Vol 7 No 3 (2025): International Journal of Science and Society (IJSOC)
Section
Articles

Copyright (c) 2025 International Journal of Science and Society

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

Ownership of copyright
The copyright in this website and the material on this website (including without limitation the text, computer code, artwork, photographs, images, music, audio material, video material and audio-visual material on this website) is owned by IJSOC and its licensors.
 
Copyright license
IJSOC grants to you a worldwide non-exclusive royalty-free revocable license to:
   - view this website and the material on this website on a computer or mobile device via a web browser;
   - copy and store this website and the material on this website in your web browser cache memory; and
   - print pages from this website for your  use.
   - All articles published by Academic Journals are licensed under the Creative Commons Attribution 4.0 International License. This permits anyone to copy, redistribute, remix, transmit and adapt the work provided the original work and source is appropriately cited.
IJSOC does not grant you any other rights in relation to this website or the material on this website.   In other words, all other rights are reserved.
For the avoidance of doubt, you must not adapt, edit, change, transform, publish, republish, distribute, redistribute, broadcast, rebroadcast or show or play in public this website or the material on this website (in any form or media) without  appropriately and conspicuously citing the original work and source or ACADEMIC JOURNALS prior written permission.  
 
Permissions
You may request permission to use the copyright materials on this website by writing to compliance@ijsoc.goacademica.com.
 
Enforcement of copyright
IJSOC takes the protection of its copyright very seriously.
 
If IJSOC discovers that you have used its copyright materials in contravention of the license above, IJSOC may bring legal proceedings against you seeking monetary damages and an injunction to stop you using those materials.  You could also be ordered to pay legal costs.
 
If you become aware of any use of IJSOC' copyright materials that contravenes or may contravene the license above, please report this by email to Compliance@ijsoc.goacademica.com.
 
Infringing material
If you become aware of any material on the website that you believe infringes your or any other person's copyright, please report this by email to Compliance@ijsoc.goacademica.com.