The Influence of Technology-Based Digital Transformation 5.0 on the Competitiveness of MSMEs in the Digital Economy Era in Surabaya City

Abstract

This study aims to explore the influence of digital transformation based on technology 5.0 on the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Surabaya City. This study identifies key factors that influence the successful adoption of this technology, including the readiness of human resources and digital infrastructure. Using a descriptive quantitative approach, secondary data were collected from documentation reports available on the internet, including articles, official publications, and statistics related to MSMEs and the implementation of technology 5.0. The findings indicate significant challenges, such as limited financial resources and low levels of technological literacy among MSME actors, and reveal opportunities for increasing operational efficiency and expanding the market. This study concludes that the adoption of technology 5.0 can effectively increase the competitiveness of MSMEs in the digital economy era. Practical recommendations are provided to help MSMEs overcome challenges and take advantage of existing opportunities for sustainable growth in the future