Empowering Small and Micro Enterprises through Digital Literacy and Economic Actor Capacity: Insights from the MCC MSMEs Clinic Model in Malang City, East Java

Dyah Dyah Hariyono, Thomas Soseco, Sri Handayani

Abstract


Small and Micro Enterprises (SMEs) play a strategic role as the backbone of
the local economy, yet they continue to face significant challenges in adopting digital
technologies and strengthening the capacity of business actors. This study aims to analyze
the influence of digital literacy and economic actor capacity on SME empowerment
through a case study of the MCC SME Clinic in Malang City. Employing a mixed
methods approach, this research combines qualitative analysis through in-depth
interviews and quantitative surveys involving 100 SME actors. The findings indicate that
digital literacy, economic actor capacity, and SME participation have a significant and
positive effect on empowerment. Furthermore, SME participation moderates the
relationship between digital literacy and empowerment, showing that SMEs actively
engaged in the clinic program experience greater benefits. The MCC SME Clinic has
proven to be an effective empowerment model that integrates consultative, educational,
and mentoring services with digital technology tailored to local needs. These results
reinforce the relevance of the Resource-Based View and Dynamic Capabilities theories,
which highlight the importance of strengthening internal resources and adaptive capacity
to achieve sustainable competitiveness. This study recommends that similar models be
institutionalized as strategic policies for inclusive, innovative, and sustainable SME
development.

Keywords: SMEs, digital literacy, economic actor capacity, empowerment, MCC SME
Clinic, Malang

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