Analysis of the Role of Information and Communication Tech-nology (ICT) in Enhancing the Managerial Capacity of SMEs for Achieving Local Economic Sustainability


  • Ahmad Yani Sekolah Tinggi Manajemen LABORA



ICT, SMEs, Local Economy


Small and Medium Enterprises (SMEs) play a significant role in driving the local economy in many countries. SMEs contribute significantly to job creation, increasing per capita income, and reducing economic disparities. This research aims to examine the role of ICT in enhancing the managerial capacity of SMEs for achieving local economic sustainability. The research methodology employed in this study is a qualitative literature review that draws data from Google Scholar for the period 2012-2024. The study findings indicate that ICT has great potential in transforming the business paradigm of SMEs. Through appropriate adoption and adequate support, ICT enables SMEs to enhance operational efficiency, expand market reach, improve access to information and resources, and foster innovation and collaboration within the local business ecosystem.


Abdurohim, D. (2023). ANALYSIS OF MSME CHALLENGES AND OPPORTUNITIES IN THE DIGITAL ERA. International Journal of Economic Literature, 1(3), 285–292.

Anatan, L., & Nur. (2023). Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia. Economies, 11(6), 156.

Arjang, A., Sutrisno, S., Permana, R. M., Kusumastuti, R., & Ausat, A. M. A. (2023). Strategies for Improving the Competitiveness of MSMEs through the Utilisation of Information and Communication Technology. Al-Buhuts, 19(1), 462–478.

Ausat, A. M. A., & Peirisal, T. (2021). Determinants of E-commerce Adoption on Business Performance : A Study of MSMEs in Malang City , Indonesia. Journal On Optimizations Of Systems At Industries, 20(2), 104–114.

Ausat, A. M. A., Siti Astuti, E., & Wilopo. (2022). Analisis Faktor Yang Berpengaruh Pada Adopsi E-commerce Dan Dampaknya Bagi Kinerja UKM Di Kabupaten Subang. Jurnal Teknologi Informasi Dan Ilmu Komputer (JTIIK), 9(2), 333–346.

Ausat, A. M. A., & Suherlan, S. (2021). Obstacles and Solutions of MSMEs in Electronic Commerce during Covid-19 Pandemic: Evidence from Indonesia. BASKARA: Journal of Business and Entrepreneurship, 4(1), 11–19.

Bagdadi, Y., Harfouche, A., & Musso, M. (2020). ICT for an Inclusive World (Y. Baghdadi, A. Harfouche, & M. Musso, Eds.; Vol. 35). Springer International Publishing.

Fahrati, E., Kusno, H. S., & Safitri, E. (2024). Navigating the Business Landscape: The Influence of Infrastruc-ture, Financial Inclusion, Innovation, and Government Policy on Indonesian MSMEs. International Jour-nal of Business, Law, and Education, 5(1), 566–580.

Gherghina, Ștefan C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and Medium-Sized En-terprises (SMEs): The Engine of Economic Growth through Investments and Innovation. Sustainability, 12(1), 347.

Hendrawaty, E., Joan, K., & Adzie, D. (2021). The Role of Information Communication Technology (ICT) in Shifting Informal MSMES to Formal MSMES in Indonesia: The Initial Trigger Model. Proceedings of the First International Conference of Economics, Business & Entrepreneurship, ICEBE 2020, 1st October 2020, Tan-gerang, Indonesia, 1–11.

Kamar, K., Lewaherilla, N. C., Ausat, A. M. A., Ukar, K., & Gadzali, S. S. (2022). The Influence of Information Technology and Human Resource Management Capabilities on SMEs Performance. International Journal of Artificial Intelligence Research, 6(1.2), 1.

Kuleh, Y., Kadafi, M. A., & Ilmi, Z. (2023). Prospects of Digitalization of MSMEs Business Expansion in Sepa-kat Village. International Journal of Social Science and Business, 7(3), 769–782.

Manda HM, & Abidin, A. Z. (2023). The Role of Leadership in Managing Information Technology Change and its Impact on Organisational Human Resources. Technology and Society Perspectives (TACIT), 1(3), 112–121.

Martínez-Peláez, R., Ochoa-Brust, A., Rivera, S., Félix, V. G., Ostos, R., Brito, H., Félix, R. A., & Mena, L. J. (2023). Role of Digital Transformation for Achieving Sustainability: Mediated Role of Stakeholders, Key Capabilities, and Technology. Sustainability, 15(14), 11221.

Ndiege, J. R. A. (2012). Information and communication technologies within small and medium enterprises in developing economies. African Journal of Business Management, 6(10), 3376–3582.

Nurcaya, I. N., Rahyuda, I. K., Giantari, G. A. K., & Ekawati, N. W. (2022). The Effect of Information Technolo-gy on The Performance of MSMEs During the Covid-19 Pandemic. International Journal of Social Science and Business, 6(2), 262–267.

Prastyaningtyas, E. W., Ausat, A. M. A., Muhamad, L. F., Wanof, M. I., & Suherlan, S. (2023). The Role of In-formation Technology in Improving Human Resources Career Development. Jurnal Teknologi Dan Sistem Informasi Bisnis, 5(3), 266–275.

Ridwan Maksum, I., Yayuk Sri Rahayu, A., & Kusumawardhani, D. (2020). A Social Enterprise Approach to Empowering Micro, Small and Medium Enterprises (SMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 6(3), 50.

Rijal, S., & Saranani, F. (2023). The Role of Blockchain Technology in Increasing Economic Transparency and Public Trust. Technology and Society Perspectives (TACIT), 1(2), 56–67.

Saleh, H., Surya, B., Annisa Ahmad, D. N., & Manda, D. (2020). The Role of Natural and Human Resources on Economic Growth and Regional Development: With Discussion of Open Innovation Dynamics. Jour-nal of Open Innovation: Technology, Market, and Complexity, 6(4), 103.

Samara, E., Andronikidis, A., Komninos, N., Bakouros, Y., & Katsoras, E. (2023). The Role of Digital Technol-ogies for Regional Development: a System Dynamics Analysis. Journal of the Knowledge Economy, 14(3), 2215–2237.

Subagja, A. D., Ausat, A. M. A., & Suherlan. (2022). The Role of Social Media Utilization and Innovativeness on SMEs Performance. Jurnal IPTEK-KOM (Jurnal Ilmu Pengetahuan Dan Teknologi Komunikasi), 24(2), 85–102.

Surya, R., Maarif, M. S., & Kuswanto, S. (2020). The Effectiveness of Corporate Management Training on MSME Owners of Dharma Bhakti Astra Foundation Partner. Indonesian Journal of Business and Entrepre-neurship, 6(2), 184–195.

Sutrisno, S. (2023). The Role of Partnerships and Business Networks in the Growth of MSMEs in the Digital Age. Technology and Society Perspectives (TACIT), 1(3), 122–131.

Sutrisno, S., Ausat, A. M. A., Permana, R. M., & Santosa, S. (2023). Effective Marketing Strategies for MSMEs during Ramadan in Indonesia. Community Development Journal: Jurnal Pengabdian Masyarakat, 4(2), 1901–1906.

Sutrisno, S., Permana, R. M., & Junaidi, A. (2023). Education and Training as a Means of Developing MSME Expertise. Journal of Contemporary Administration and Management (ADMAN), 1(3), 137–143.

Yani, A., Suparwata, D. O., & Hamka. (2023). Product and Service Innovation Strategies to Expand MSME Markets. Journal of Contemporary Administration and Management (ADMAN), 1(3), 163–169.




How to Cite

Yani, A. (2024). Analysis of the Role of Information and Communication Tech-nology (ICT) in Enhancing the Managerial Capacity of SMEs for Achieving Local Economic Sustainability. Technology and Society Perspectives (TACIT), 2(1), 143–149.