When MSMEs Transform Digitally: The Influence of Literacy, Marketplace Quality, and Transaction Security on the Decision to Use E-Commerce in Jambi City (A Conceptual Study)

Digital transformation has become a significant phenomenon in the development of Micro, Small, and Medium Enterprises (MSMEs), particularly in the utilization of e-commerce platforms as a marketing and transaction tool. This conceptual study aims to analyze the influence of digital literacy, marketplace application quality, and transaction security on the decision to use e-commerce by MSMEs in Jambi City. This study uses a qualitative descriptive approach with a library research method, namely through the search and critical analysis of various literature, previous research results, and theories relevant to the topic of digital transformation and e-commerce usage behavior by MSMEs. Theoretically, digital literacy is the basis for business actors' ability to understand, manage, and utilize digital technology effectively. The quality of marketplace applications includes aspects of ease of use, reliability, and user experience that influence the perception of transaction convenience. Meanwhile, transaction security plays a role in building user trust in online buying and selling activities. Through the synthesis of the results of the literature review, it is understood that these three factors interact in shaping MSMEs' decisions to use e-commerce as a digital business strategy. These conceptual findings are expected to enrich the theoretical foundation for further empirical research and provide policy direction for improving MSMEs' digital readiness in the technology-based economy era.