A digital village model for supply chain management capabilities development in micro-small-medium enterprise in South Sumatra

The rapid growth of information technology has greatly impacted economic development in urban and rural Indonesia, with MSMEs playing a crucial role. This study proposes a digital village model to strengthen supply chain management (SCM) among MSMEs in South Sumatra, focusing on three key areas: SCM interactions, information sharing, and internet infrastructure. Using a quantitative approach and Structural Equation Modeling (SEM), data were gathered from MSMEs across the region. Findings highlight that strong internet infrastructure enhances SCM efficiency, product accessibility, and economic inclusion. Effective information sharing—through quality data, competitive services, and market agility—proves vital. Digital tools like e-commerce, mobile apps, video calls, and social media strengthen stakeholder relationships. The study concludes that integrating IT into SCM significantly boosts MSME performance, supporting rural economic growth and sustainability.