Inclusive Digital Innovation in Indonesian MSMEs: Social Media Management as a Pathway to Sustainable Entrepreneurial Transformation in ASEAN Contexts

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Masyithoh Annisaush Sholihah

Abstract

Micro, Small, and Medium Enterprises (MSMEs) form the backbone of ASEAN economies, yet many continue to operate with limited digital capability and informal managerial systems. While regional transformation agendas emphasize digital innovation, accessible and scalable pathways for resource-constrained MSMEs remain underexplored. Drawing on qualitative evidence from 36 Indonesian MSMEs participating in a university–industry collaboration initiative, this study conceptualizes structured social media management as a form of inclusive digital innovation. Specifically, the research examines how the integration of branding, brand guidelines, Customer Relationship Management (CRM), and Key Performance Indicators (KPI) reshapes managerial and relational practices. Using thematic analysis, the findings identify four interconnected innovation dimensions: process innovation through structured content planning, organizational innovation via brand consistency, relational innovation through systematic customer engagement, and cognitive innovation reflected in data-driven decision-making. The results demonstrate a transition from ad hoc social media usage toward integrated management systems that enhance customer trust, strategic clarity, and business resilience. MSME owners perceive these structured practices as practical and sustainable within their operational constraints. While empirically grounded in Indonesia, the findings offer conceptual insights into inclusive digital upgrading mechanisms relevant to MSMEs operating across ASEAN contexts. The study concludes that integrated social media management represents a low-cost digital innovation pathway supporting sustainable entrepreneurial transformation.

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