MANAGERIAL ECONOMY IN THE DIGITAL ERA: SURVIVAL AND GROWTH STRATEGIES FOR INDONESIAN MSMES AMID DIGITAL PLATFORM COMPETITION
DOI:
https://doi.org/10.58174/ijimes.v1i7.117Keywords:
managerial economics; SME digitalization; marketplace platform; pricing strategyAbstract
This research aims to understand and analyze the application of managerial economics principles in the context of Indonesian SME digital business amid intense marketplace platform competition. Using literature review and integrated case study analysis methods, the research analyzes 20 recent academic sources and case studies from various digital platforms and SMEs that have undergone digital transformation. Research findings identify six major findings: (1) the relevance of managerial economics for rational and evidence-based technology investment decision-making, with 23-35 percent operational performance improvement; (2) the importance of demand analysis and pricing strategy based on demand elasticity; (3) SMEs' weakness in cost accounting and cost tracking causing suboptimal pricing; (4) the critical role of institutional support ecosystem; (5) intense competitive landscape requiring rapid experimentation; and (6) success factors depend on integrated application of various managerial economics principles. This research emphasizes the urgency to increase managerial economics literacy among Indonesian SMEs through systematic training, ecosystem support development, and supportive policies so that SMEs can survive and grow sustainably in the digital era.
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