DIGITAL SUPPLY CHAIN AGILITY: STRATEGIES TO IMPROVE MSME EFFICIENCY AND PERFORMANCE IN THE DIGITAL ERA

Sutarmin Sutarmin; Siti Badiatul Umroh; Sugeng Rianto; Tria Putri Yani; Khairun Nisa Ambary

doi:10.20884/2.procicma.2025.1.1.20974

Sutarmin Sutarmin Department of Management, Faculty of Economics And Business, Peradaban University, Paguyangan, 52276, Central Java, Indonesia
Siti Badiatul Umroh Department of Management, Faculty of Economics And Business, Peradaban University, Paguyangan, 52276, Central Java, Indonesia
Sugeng Rianto Department of Management, Faculty of Economics And Business, Peradaban University, Paguyangan, 52276, Central Java, Indonesia
Tria Putri Yani Department of Management, Faculty of Economics And Business, Peradaban University, Paguyangan, 52276, Central Java, Indonesia
Khairun Nisa Ambary Department of Management, Faculty of Economics And Business, Peradaban University, Paguyangan, 52276, Central Java, Indonesia

DOI: https://doi.org/10.20884/2.procicma.2025.1.1.20974

Abstract

Digital transformation has become a strategic necessity for Micro, Small, and Medium Enterprises (MSMEs) to increase competitiveness in the digital economy era. This study aims to analyze the effect of digital supply chain adoption on efficiency, digital supply chain agility, and organizational performance of MSMEs. In addition, this study also examines the mediating role of digital supply chain efficiency and agility in this relationship. The study was conducted on MSMEs in Banyumas Regency that have adopted digital technology, using a quantitative method using the Structural Equation Modelling (SEM) approach assisted by AMOS software. The results show that digital supply chain adoption has a positive and significant effect on efficiency, digital supply chain agility, and organizational performance. Digital supply chain efficiency and agility are also proven to have a positive effect on organizational performance, while also acting as mediating variables that strengthen the relationship between digital supply chain adoption and organizational performance. These findings emphasize the importance of strengthening digital-based supply chain agility and efficiency to create resilient, adaptive, and competitive MSMEs in the era of digital transformation.