Digital Transformation in Local Trade: A Study of Perceptions among E-Commerce Sellers and Consumers

Ana Andania; Irmawati Irmawati; Nasaruddin Nasaruddin; Andi Wahyuni  Syam; Anugrahwati Anugrahwati

doi:10.47747/ijmhrr.v6i3.2899

Authors

Ana Andania Universitas Cahaya Prima
Irmawati Universitas Cahaya Prima, Bone, Sulawesi Selatan
Nasaruddin Universitas Cahaya Prima, Bone, Sulawesi Selatan
Andi Wahyuni Syam Universitas Cahaya Prima, Bone, Sulawesi Selatan
Anugrahwati Universitas Cahaya Prima, Bone, Sulawesi Selatan

DOI:

https://doi.org/10.47747/ijmhrr.v6i3.2899

Keywords:

Digital Transformation, MSMEs, E-Commerce, Consumer Empowerment, Local Trade

Abstract

Digital transformation has brought significant changes to the local trade ecosystem in Indonesia, including Bone Regency. This study aims to explore the readiness of MSME sellers and consumer perceptions of empowerment features in e-commerce platforms, using a phenomenological qualitative approach. A total of 10 sellers and 10 consumers who are active on the Shopee, Tokopedia, and TikTok Shop platforms were interviewed in depth, supported by virtual observation and document analysis. The results of the study indicate that the digital readiness of sellers is influenced not only by the availability of devices and networks but also by digital literacy, innovative promotional strategies, self-learning, and support from family and community. Sellers who can adapt creatively and actively across platforms are more likely to thrive in the competitive digital market. On the consumer side, features such as promotions, free shipping, ratings, reviews, and ease of returns are key factors in empowering and building trust. A preference for local products also grows stronger when supported by a good digital reputation and responsive customer service. However, there are challenges in the form of unequal access to digital training and the need for platform policy innovations that are more friendly to local MSMEs. This study emphasizes the importance of strengthening digital literacy, cross-actor collaboration, and inclusive strategies to ensure that digital transformation is effective, inclusive, and sustainable at the local level.

References

Akpe, O. E., Mgbame, A. C., Ogbuefi, E., Abayomi, A. A., & Adeyelu, O. O. (2023). Technology acceptance and digital readiness in underserved small business sectors. Journal of Frontiers in Multidisciplinary Research, 4(1), 252–268. https://doi.org/10.54660/.IJFMR.2023.4.1.252-268

Ananda, Y. P. (2022). Building and communicating brand by micro, small and medium enterprises (MSMEs). Jees: Journal Of Economic Empowerment Strategy, 5(2), 68–81. https://doi.org/10.23969/jees.v5i2.5403

Arjang, A., Ausat, A. M. A., & Prasetya, Y. B. (2025). Optimalisasi sistem informasi dalam meningkatkan daya saing UMKM: Analisis sinergi inovasi digital dan fenomena FOMO dalam dinamika pasar. Jurnal Minfo Polgan, 14(1), 68–76. https://doi.org/10.33395/jmp.v14i1.14629

Basu, R., Lim, W. M., Kumar, A., & Kumar, S. (2023). Marketing analytics: The bridge between customer psychology and marketing decision‐making. Psychology & Marketing, 40(12), 2588–2611. https://doi.org/10.1002/mar.21908

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa

Carreras, C., & Frago, L. (2022). Could a retail-less city be sustainable? The digitalization of the urban economy against the city. Sustainability, 14(8), 4641. https://doi.org/10.3390/su14084641

Chellappa, R. K., & Pavlou, P. A. (2002). Perceived information security, financial liability and consumer trust in electronic commerce transactions. Logistics Information Management, 15(5/6), 358–368. https://doi.org/10.1108/09576050210447046

Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th Editio). SAGE Publications.

Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 319–340. https://doi.org/10.2307/249008

Demestichas, K., & Daskalakis, E. (2020). Information and communication technology solutions for the circular economy. Sustainability, 12(18), 7272. https://doi.org/10.3390/su12187272

Dwiyanti, A. A. R., MR, S. A., & Misnawati, M. (2024). Integration of digital technology in the empowerment of Songkok Recca micro, small, and medium enterprises (MSMEs). Journal of Education, Humaniora and Social Sciences (JEHSS), 7(2), 432–441. https://doi.org/10.34007/jehss.v7i2.2373

Fitra R, A. M. A. (2023). Pemberdayaan usaha mikro kecil dan menengah (UMKM) kerajinan Songkok Recca melalui pembinaan langsung oleh Dinas Koperasi Dan Usaha Kecil Menengah Kabupaten Bone [Skripsi]. Institut Pemerintahan Dalam Negeri.

Gao, J., Siddik, A. B., Khawar Abbas, S., Hamayun, M., Masukujjaman, M., & Alam, S. S. (2023). Impact of E-commerce and digital marketing adoption on the financial and sustainability performance of MSMEs during the COVID-19 pandemic: An empirical study. Sustainability, 15(2), 1594. https://doi.org/10.3390/su15021594

Hartatik, H., Rukmana, A. Y., Efitra, E., Mukhlis, I. R., Aksenta, A., Ratnaningrum, L. P. R. A., & Efdison, Z. (2023). Tren technopreneurship: Strategi & inovasi pengembangan bisnis kekinian dengan teknologi digital. PT. Sonpedia Publishing Indonesia.

Hendrawan, S. A., Chatra, A., Iman, N., Hidayatullah, S., & Suprayitno, D. (2024). Digital transformation in MSMEs: Challenges and opportunities in technology management. Jurnal Informasi Dan Teknologi, 141–149. https://doi.org/10.60083/JIDT.V6I2.551

Indah, S. N., Rusdi, M., Pratiwi, H., & Samiri, M. (2024). The impact of digitalization on traditional markets: Transformation and challenges in the era of e-commerce. Jurnal Studi Ilmu Pemerintahan, 5(1), 117–134. https://doi.org/10.35326/jsip.v5i1.5486

Islam, S. (2024). Impact of online payment systems on customer trust and loyalty in E-commerce analyzing security and convenience. Available at SSRN 5064838. http://dx.doi.org/10.2139/ssrn.5064838

Joshi, Y., & Rahman, Z. (2017). Investigating the determinants of consumers’ sustainable purchase behaviour. Sustainable Production and Consumption, 10, 110–120. https://doi.org/10.1016/j.spc.2017.02.002

Jothimani, U., Mathur, C. S. P., Anand, B., Mahajan, D. A., & Shrivastava, V. (2023). Consumer decision-making in e-commerce: A literature review of factors influencing online purchases. Journal of Harbin Engineering University, 44(7). https://harbinengineeringjournal.com/index.php/journal/article/view/624

Kim, H.-J., & Han, S. M. (2023). Uncovering the reasons behind consumers’ shift from online to offline shopping. Journal of Services Marketing, 37(9), 1201–1217. https://doi.org/10.1108/JSM-02-2023-0060

Kumar, V., Nanda, P., & Tawangar, S. (2022). Social media in business decisions of MSMEs: Practices and challenges. International Journal of Decision Support System Technology (IJDSST), 14(1), 1–12. https://doi.org/10.4018/IJDSST.286686

Labrecque, L. I., vor dem Esche, J., Mathwick, C., Novak, T. P., & Hofacker, C. F. (2013). Consumer power: Evolution in the digital age. Journal of Interactive Marketing, 27(4), 257–269. https://doi.org/10.1016/j.intmar.2013.09.002

Nahiduzzaman, K. M., Holland, M., Sikder, S. K., Shaw, P., Hewage, K., & Sadiq, R. (2021). Urban transformation toward a smart city: an e-commerce–induced path-dependent analysis. Journal of Urban Planning and Development, 147(1), 04020060. https://doi.org/10.1061/(ASCE)UP.1943-5444.0000648

Saba, C. S., Ngepah, N., & Odhiambo, N. M. (2024). Information and communication technology (ICT), growth and development in developing regions: Evidence from a comparative analysis and a new approach. Journal of the Knowledge Economy, 15(3), 14700–14748. https://doi.org/10.1007/s13132-023-01571-8

Santos, V., Augusto, T., Vieira, J., Bacalhau, L., Sousa, B. M., & Pontes, D. (2023). E-commerce: issues, opportunities, challenges, and trends. Promoting Organizational Performance through 5G and Agile Marketing, 224–244. https://doi.org/10.4018/978-1-6684-5523-4.ch012

Saputra, M., Sofyan, S. N., Aulia, A., Ernawati, A., & Oftasari, A. (2024). Implementation of e-commerce system as SME development strategy in the digital era. Bulletin of Information Technology (BIT), 5(3), 195–202. https://doi.org/10.47065/bit.v5i3.1545

Sharma, R., Srivastva, S., & Fatima, S. (2023). E-commerce and digital transformation: Trends, challenges, and implications. Int. J. Multidiscip. Res.(IJFMR), 5, 1–9. https://pdfs.semanticscholar.org/9090/1ca619de45cfc8df70b1804923d497e8058e.pdf

Silva, R. P., Saraiva, C., & Mamede, H. S. (2022). Assessment of organizational readiness for digital transformation in SMEs. Procedia Computer Science, 204, 362–369. https://doi.org/10.1016/j.procs.2022.08.044

Song, Y., Escobar, O., Arzubiaga, U., & De Massis, A. (2022). The digital transformation of a traditional market into an entrepreneurial ecosystem. Review of Managerial Science, 16(1), 65–88. https://doi.org/10.1007/s11846-020-00438-5

Sunarti, L., Hussin, H., Sari, N. F. L., & Haghia, R. S. (2023). Tasikmalaya embroidery during the COVID-19 pandemic: Local entrepreneurs and their wisdom-based resilience. Cogent Arts & Humanities, 10(1), 2264024. https://doi.org/10.1080/23311983.2023.2264024

Sutinen, U., Saarijärvi, H., & Yrjölä, M. (2022). Shop at your own risk? Consumer activities in fashion e‐commerce. International Journal of Consumer Studies, 46(4), 1299–1318. https://doi.org/10.1111/ijcs.12759

Ubogu, C. (2025). Impact of digital technology on economic resilience, innovation, and inclusive growth. Journal of Economics and Environmental Education (JEEE), 9(1), 15–28. https://journals.iafee.org/index.php/jeee/article/download/309/170

Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2022). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478. https://doi.org/10.2307/30036540

Vial, G. (2019). Understanding digital transformation: A review and a research agenda. The Journal of Strategic Information Systems, 28(2), 118–144. https://doi.org/10.1016/j.jsis.2019.01.003

Wysokińska, Z. (2021). A review of the impact of the digital transformation on the global and European economy. Comparative Economic Research. Central and Eastern Europe, 24(3), 75–92. https://www.ceeol.com/search/article-detail?id=982613

Yufriadi, F., Syahriani, F., & Afifi, A. A. (2024). Trade transformation in the digital era: Agency role, opportunities and challenges. AL-IMAM: Journal on Islamic Studies, Civilization and Learning Societies, 5(1), 13–23. https://doi.org/ 10.58764/j.im.2024.5.55