The Influence of Digital Transformation in Speeding Up the Empowerment of the Muslim Women’s Economy to Improve the Performance of Micro, Small, and Medium Enterprises (MSMEs) in Ponorogo

This research aims to analyze the modeling of the impact of digital transformation in accelerating the empowerment of the Muslimah economy to enhance the performance of micro, small, and medium enterprises (MSMEs) in Ponorogo. This study used a mixed-method approach, namely quantitative and qualitative. This study involves 269 MSMEs in Ponorogo that women manage as members of Islamic organizations and have food, beverages, medicine (including herbal medicine), and cosmetic products. The model used is based on the APKM theory (Access, Participation, Control, and Benefits) in the gender approach to determine the effect of digital transformation on women’s empowerment and the Resource-based View (RBV) theory to determine the improvement of MSME performance with a partial least square structural equation model as a data analysis tool and using a Phenomenological Approach to explore experiences by interviewing around 10% of respondents who represent all sample data. The study proved that digital transformation has a positive relationship with economic empowerment managed by Muslim women who are members of Islamic organizations. Overall, this signifies that the implementation of digital transformation positively affects women’s economic empowerment and can improve the performance of micro, small, and medium enterprises (MSMEs). The practical implication of this research is that by analyzing the modeling and influence of digital transformation on women’s economic empowerment and the performance of micro, small, and medium enterprises (MSMEs), managers may realize the significant role of digital transformation in influencing women’s economic empowerment and impacting operational and financial performance. It will attract more MSMEs to transform digitally to open up new and profitable business opportunities for MSMEs. It also empirically confirms that digital transformation can influence women’s economic empowerment and improve the performance of MSMEs. Based on this research, we suggest advocating for the Ponorogo regional government to continue to review and control the use of digitization in MSMEs, as the implementation of tracking and reevaluation has so far been limited. Reevaluation so far is still limited. In addition, strict supervision should be accompanied by transparency, accountability, and engagement of various stakeholders, including Islamic organizations, business associations, and civil society.