Digital Marketing Adoption in Service-Based MSMEs: Benefits, Barriers, and Readiness in Emerging Economies

Abstrak

Digital marketing is currently a strategic instrument for MSMEs, but its application in the service sector in developing economies, particularly regarding its benefits and barriers, remains rarely researched. This study uses a qualitative approach to examine the benefits, constraints, readiness, and development plans for digital marketing in service MSMEs in Purworejo Regency, Indonesia. Data was collected through semi-structured interviews with ten business owners using purposive sampling with specific criteria, then analyzed thematically using Nvivo. The analysis identified five main themes. The primary perceived benefits include operational efficiency and geographic market expansion. However, implementation is hampered by limited human resource skills, inadequate infrastructure, and uneven digital readiness, particularly in the financial and time dimensions. Future development plans remain focused on digital platforms, although businesses remain highly dependent on external support in the form of training, capital, and connectivity. This suggests that the implementation of digital marketing in service MSMEs is impacted by multidimensional barriers beyond cost. Time constraints resulting from the dual burden of managing both service and digital content are critical findings that have not been widely discussed in the literature. Therefore, targeted policy interventions are needed to encourage equitable digitalization.