Digital Service Ecosystem for Rural SME Competitiveness Through Smart Agribusiness Transformation
DOI:
https://doi.org/10.34306/ijcitsm.v6i2.281Keywords:
Rural Entrepreneurial Ecosystem, SME Competitiveness, Digital Transformation, Smart Farming, AgribusinessAbstract
Rural Small and Medium-sized Enterprises (SMEs) increasingly face a structural gap between established production capabilities and limited digital capacity to capture market value directly. In rural agribusiness settings, this challenge is compounded by intermediary dependence, uneven digital literacy, and fragmented institutional support. This study examines how a rural entrepreneurial ecosystem can strengthen SME competitiveness through the integration of smart farming, village institutions, market connectivity, and digital transformation in Desa Cibodas, West Java, Indonesia. A sequential explanatory mixed-methods design was employed, combining a survey of 95 agricultural SME actors with qualitative case study analysis based on interviews with 14 key informants and documentary evidence. The findings show that digital adoption readiness, institutional support, and smart farming capability jointly contribute to SME competitiveness, with digital capability emerging as the strongest predictor. Qualitative findings further identify five interconnected themes and show how BUMDes, smart farming, packaging infrastructure, and emerging digital marketplace initiatives interact within a four-layer rural entrepreneurial ecosystem. The study contributes by conceptualizing digital transformation as a connecting ecosystem-level capability that links production and institutional strengths with market-oriented competitiveness. The findings highlight the need for integrated digital marketplace development, stronger BUMDes coordination, and targeted digital capacity building to improve rural SMEs' market autonomy and competitiveness.
References
[1] H. Ibrahim and N. Fatema, “The role of fintech on digital lending in the sustainable growth of data-driven micro, small, and medium enterprises,” in 3rd International Postgraduate Research Symposium (INPOS) 2024, 2024, p. 250.
[2] H. D. Yahaya, “Enhancing firm performance through the integration of a service-learning framework in nigeria,” Multidisciplinary Science Journal, 2025.
[3] K. Dhanushkodi and S. Thejas, “Ai enabled threat detection: Leveraging artificial intelligence for advanced security and cyber threat mitigation,” IEEE access, vol. 12, pp. 173 127–173 136, 2024.
[4] E. Andoko, B. D. A. Nugroho, M. Expert, and B. Hutomo, “Policy, innovation, and entrepreneurship in agriculture: Driving indonesia’s food system transformation policy, innovation, and entrepreneurship in agriculture: Driving indonesia’s food system transformation,” FFTC Agricultural Policy Platform (FFTCAP), 2025.
[5] O. Kolomytseva, L. Vasylchenko, and S. Pepchuk, “Digital marketing ecosystem of agribusiness: Enterprise readiness and bridging the digital divide,” Baltic Journal of Economic Studies, vol. 11, no. 5, pp. 425–433, 2025.
[6] R. Ahli, M. F. Hilmi, and A. Abudaqa, “The influence of leadership dynamics and workplace stress on employee performance in the entrepreneurial sector and the moderating role of organizational support,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 3, pp. 300–313, 2024.
[7] M. V. Ciasullo, M. Savastano, A. Douglas, M. Ferrara, S. Fiorentino et al., “How sustainable is smart farming? the contribution of service platforms to innovate italian agribusinesses,” Sinergie, vol. 42, no. 1, pp. 45–69, 2024.
[8] R. G. Munthe, M. Susan, and B. M. Sulungbudi, “The role of internal marketing in building organizational commitment and reducing turnover intention affecting the improved performance of life insurance agents in indonesia,” Aptisi Transactions on Technopreneurship (ATT), vol. 6, no. 1, pp. 56–71, 2024.
[9] A. D. Dumiadi, S. IP, M. Fin, R. M. Ramli, M. Mulyadi, A. P. D. I. Gunawan, V. Hajad et al., Green Policy: Building A Humane And Environmentally Friendly Governance Paradigm. CV. AZKA PUSTAKA, 2026.
[10] T. Hariguna, B. B. Madon, and U. Rahardja, “User’intention to adopt blockchain certificate authentication technology towards education,” in Proceedings of the 1st International Conference on Frontier of Digital Technology Towards a Sustainable Society, vol. 2808, no. 1. AIP Publishing LLC, 2023, p. 070001.
[11] R. Purbasari and S. J. Raharja, “Bridging connections: The effect of solidarity entrepreneurial ecosystems, collaborative networks and digital transformation on business performance of west java cooperative,” Review of Integrative Business and Economics Research, vol. 15, no. 3, pp. 509–523, 2026.
[12] Q. Aini, E. Sediyono, K. D. Hartomo, D. Manongga, U. Rahardja, I. Sembiring, and N. A. Santoso, “Relationship quality analysis using technology in the business sector,” in 2023 11th International Conference on Cyber and IT Service Management (CITSM). IEEE, 2023, pp. 1–6.
[13] R. Alexandro, “Strategic human resource management in the digital economy era: an empirical study of challenges and opportunities among msmes and startups in indonesia,” Cogent Business & Management, vol. 12, no. 1, p. 2528436, 2025.
[14] K. Shaleh, F. Sukmawati, S. Abas, F. R. Mulyawan, and D. A. Arwaty, “Synthesis of village assets, social aspects and natural resources to drive rural economic sustainability,” New Applied Studies in Management, Economics & Accounting, vol. 7, no. 4, pp. 90–106, 2024.
[15] H. Safitri, S. Audiah, and D. Edmond, “Digital marketing strategy in digital business to enhance msme competitiveness,” Startupreneur Business Digital (SABDA Journal), vol. 5, no. 1, pp. 78–87, 2026.
[16] L. Limajatini, S. Suhendra, G. A. Pangilinan, and M. G. Ilham, “Integration of artificial intelligence in the financial sector innovation, risks and opportunities,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 5, no. 1, pp. 58–70, 2025.
[17] H. Hetilaniar, I. Zulaeha, H. B. Mardikantoro, T. Yuniawan, and N. Lachlan, “Phonological variation technology integration for indonesia cultural preservation and edupreneurship,” Aptisi Transactions on Technopreneurship (ATT), vol. 7, no. 1, pp. 158–168, 2025.
[18] T. R. P. Dewi, E. Anggraeni, and D. Soetanto, “Open innovation for agro-smes in indonesia: Enhancing competitiveness through digital knowledge exchange and collaboration.” Journal of Agroindustrial Technology/Jurnal Teknologi Industri Pertanian, vol. 36, no. 1, p. 57, 2026.
[19] S. M. Bello, “Digital transformation in agribusiness and agripreneurship,” in Agripreneurship and the dynamic agribusiness value chain. Springer, 2024, pp. 103–116.
[20] E. R. Rahayu, A. Aprillia, R. Z. Ikhsan, A. Adiwijaya, A. Kumara et al., “Cybersecurity in the age of iot and developing frameworks for securing smart devices and networks,” Journal of Computer Science and Technology Application, vol. 2, no. 1, pp. 46–54, 2025.
[21] K. Diantoro, D. Supriyanti, Y. P. A. Sanjaya, S. Watini et al., “Implications of distributed energy development in blockchain-based institutional environment,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 209–220, 2023.
[22] J. J. McIntyre-Mills, P. V. Lethole, M. Makaulule, R. Wirawan, I. Widianingsih, and N. R. Romm, “Exploring lessons on re-generative living with a community of practice in south africa and indonesia,” in Affirmative intervention to support multispecies relationships. Springer, 2024, pp. 441–473.
[23] L. Nguyen-Thi-Thuy, P. Bui-Thi-Thu, A. A. Shah, A. Dao-Mong, Q. Pham-Ngoc-Huong, L. Pham-Thi, H. Nguyen-Thi-Lan et al., “Livelihood adaptation strategies of farming households to land acquisition: A case study in vietnam,” Journal of Water and Land Development, no. 63, pp. 78–85, 2024.
[24] A. Arwin, S. Iska, E. Siregar, and A. E. Hader, “Lopo culture, islamic social capital, and the sustainable development of the mandailing coffee micro, small, and medium enterprise ecosystem,” Journal of Islamic Economics Lariba, vol. 12, no. 2, 2026.
[25] E. Achara and A. Nelson, “The impact of industry 4.0 digital technologies in the agro-allied sector: A systemic review of barriers to smart farming in small and medium scale enterprise,” SSRN eLibrary, 2025.
[26] M. K. T. Thaka and G. R. Bhaskar, “Digital transformation of rural msmes through grassroots innovation ecosystems,” Researchgate, 2026.
[27] B. Sun, J. Yu, S. I. Khattak, S. Tariq, and M. Zahid, “Digital innovation, business models transformations, and agricultural smes: A prisma-based review of challenges and prospects,” Systems, vol. 13, no. 8, p. 673, 2025.
[28] I. C. Kawi and W. Pontjoharyo, “Integrating buddhist principles into management control systems: A cattari ariya saccani approach,” Aptisi Transactions on Technopreneurship (ATT), vol. 5, no. 2sp, pp. 146–161, 2023.
[29] I. Y. Mukti, D. R. Firdausy, A. Aldea, and M. E. Iacob, “Architecting rural smartness: A collaborative platform design for rural digital business ecosystem,” The Electronic Journal of Information Systems in Developing Countries, vol. 89, no. 1, p. e12236, 2023.
[30] J. F. Satyadharma and E. Sulistyaningrum, “Solution or illusion? the distributional impact of minimum wage on household food security in java, indonesia,” Food Security, pp. 1–26, 2026.
[31] O. Rushchitskaya, E. Kulikova, E. Kot, and T. Kruzhkova, “Sustainable practices and technological innovations transforming agribusiness dynamics,” in E3S web of conferences, vol. 542. EDP Sciences, 2024, p. 03003.
[32] A. Nagy, J. Tumiwa, F. Arie, E. L´aszl´o, A. R. Alsoud, and M. Al-Dalahmeh, “A meta-analysis of the impact of toe adoption on smart agriculture smes performance,” PLoS One, vol. 20, no. 2, p. e0310105, 2025.
[33] A. Firasati, F. Azzahra, S. R. P. Junaedi, A. Evans, M. Madani, and F. P. Oganda, “The role information technology in increasing the effectiveness accounting information systems and employee performance,” International Journal of Cyber and IT Service Management (IJCITSM), vol. 4, no. 2, pp. 114–121, 2024.
[34] R. Cannas, “Exploring digital transformation and dynamic capabilities in agrifood smes,” Journal of Small Business Management, vol. 61, no. 4, pp. 1611–1637, 2023.
[35] M. V. Ciasullo, M. Ferrara, and W. M. Lim, “Dynamic capabilities and data-driven culture for digital transformation: evidence from agri-food smes,” British Food Journal, vol. 128, no. 8, pp. 3377–3393, 2026.
[36] P. Chueasawathi, “The success of agricultural small and medium-sized enterprises (smes) in the digital era: A case study of northeastern thailand,” International Journal of Sociologies and Anthropologies Science Reviews, vol. 5, no. 5, pp. 1167–1184, 2025.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Dindin Abdurohim, Yanti Susila Tresnawati, Abdullah Arif Kamal
This work is licensed under a Creative Commons Attribution 4.0 International License.
Article usage
- 9Abstract views
- 6Downloads
OJS usage statistics, updated daily