Digitalization, AI Adoption, and MSME Productivity: An Ibn Khaldunian Perspective
Micro, Small, and Medium Enterprises (MSMEs) in Indonesia face persistent challenges in improving labor productivity amid rapid digital transformation and the expansion of artificial intelligence (AI). Although digitalization has increased substantially, its productivity effects remain uneven across provinces and are influenced by institutional, cultural, and religious contexts. Grounded in Ibn Khaldun’s concepts of asabiyyah and tadbir al-‘umran, this study examines the relationship between digitalization, AI a…
Provincial panel analysis for 2020-2023 found digitalization significantly increased labor productivity for micro, small and medium enterprises in Indonesia.
High religiosity marginally weakens the positive link between digitalization and MSME labor productivity, reflecting transitional adaptation frictions in highly normative environments.
Evidence
- Peer-reviewedShare: Jurnal Ekonomi dan Keuangan Islam2026-06-03
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Truvace Impact Record TRV-2026-0165, v1: “Digitalization, AI Adoption, and MSME Productivity: An Ibn Khaldunian Perspective.” Truvace, 2026-07-13. /record/TRV-2026-0165 (accessed at citation time). sha256 88e44075ff6c1c69…
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