Digitalizing Rural MSMEs in a Tourism Village: An Ecosystem-Based Strategy from Tondok Bakaru Village, Indonesia

Abstract

Digital transformation has become increasingly important for strengthening Micro, Small, and Medium Enterprises (MSMEs) and supporting creative economic development in rural tourism destinations. This study provides qualitative evidence of how stakeholders perceive and experience digitalization within an emerging rural tourism ecosystem. Rather than demonstrating measurable economic effects, the study identifies the mechanisms, opportunities, and enabling conditions through which digitalization may support MSME and tourism development. It further identifies ecosystem-based strategies for strengthening MSME digitalization based on stakeholder experiences and contextual evidence. A qualitative case study approach was employed involving 12 informants comprising village government officials, MSME actors, tourism/BUMDes managers, local communities, and tourists. Data were collected through in-depth interviews, observation, and documentation, and analyzed using the Miles, Huberman, and Saldaña interactive model. The findings suggest that digitalization creates opportunities for broader product and destination visibility, customer engagement, product innovation, access to tourism information, and stakeholder collaboration, while selected tourists reported that digital information facilitated destination discovery and local product consumption. Digitalization contributes to expanding product and destination promotion, increasing market access, encouraging product innovation, improving tourist experiences, and strengthening stakeholder collaboration. The study contributes a context-sensitive ecosystem perspective on rural MSME digitalization by showing that digital transformation depends not only on technology adoption but also on digital capabilities, infrastructure, strategic digital marketing, multi-stakeholder collaboration, and local product innovation.