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Mixed methods approach shows significant effects of digital literacy and infrastructure on MSME performance.
Introduction: Indonesia faces challenges in strengthening national economic resilience amidst rapid digital transformation. Although micro, small, and medium enterprises (MSMEs) are key drivers of the economy, their performance is hindered by limited digital literacy, inadequate infrastructure, and the need for adaptive regulatory frameworks. A comprehensive integration model is required to address these issues.Objective: This study aims to develop and empirically validate a data-driven Digital Economy Integration Model as a strategic instrument to enhance the resilience and competitiveness of the national economy through MSME digital transformation.Method: A mixed methods design was employed, integrating both quantitative and qualitative approaches. The quantitative phase analyzed survey data from 300 digital MSMEs using Partial Least Squares Structural Equation Modeling (PLS-SEM) via SmartPLS to evaluate measurement validity and structural relationships. The qualitative phase included thematic analysis of stakeholder interviews to gain deeper insights and reinforce the quantitative findings.Results: The quantitative findings demonstrate that digital literacy (β = 0,45, p < 0,001), infrastructure (β = 0,38, p < 0,001), and adaptive regulation (β = 0,33, p < 0,01) have significant positive effects on MSME economic performance and competitiveness. The qualitative results further highlight the importance of multi-actor synergy and inclusive policy frameworks to support digital economy integration.Conclusion: The study confirms that strengthening national economic resilience requires a holistic model that integrates technological capacity, institutional adaptability, and collaborative governance. The proposed model provides empirical evidence of the importance of aligning digital literacy programs, infrastructure investment, and adaptive regulations. Policy implications include accelerating digital infrastructure development, expanding MSME-focused literacy initiatives, and implementing flexible regulatory mechanisms. Overall, the integrated digital economy model presents a replicable framework for promoting sustainable economic growth through digital transformation.
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Mukhlis et al. (2025) studied this question.
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