Digitalization of Culinary MSMEs and McClelland's Motivation Theory: A Study in Balunijuk and Gabek

Abstract

Digitalization has become a crucial aspect in increasing the sales of culinary MSMEs in the era of the digital economy and Society 5.0, as it enables the expansion of market reach through digital platforms (Idah & Pinilih, 2020: 252). The government also promotes MSME digitalization through Law No. 11 of 2020 on Job Creation. However, not all MSMEs are able to adapt equally. In suburban areas such as Balunijuk, many culinary MSMEs remain stagnant due to limited access to technology and low levels of digital literacy, despite their proximity to urban areas such as Gabek, which have shown more advanced digital adoption. This study employs a qualitative approach through in-depth interviews with seven culinary MSME owners and direct observations. The findings reveal significant differences in the utilization of digitalization. In suburban areas, MSMEs tend to rely solely on WhatsApp for promotion, depend on strategic physical locations, and have limited understanding of digital tools. In contrast, MSMEs in urban areas have adopted e-commerce platforms and digital payment systems such as QRIS. These findings highlight a clear gap in digital adaptation and literacy. Nevertheless, culinary MSMEs continue to play a vital role in the local economy. Therefore, concrete interventions in the form of continuous digital education and online marketing training are necessary to enhance competitiveness and promote inclusive local economic growth.