The Impact of Digitalization and CSR Of MSMEs on Social Capital Accumulation

Abstract :

This study was conducted to test and understand the impact of digitalization and Corporate Social Responsibility (CSR) of Micro, Small and Medium Enterprises (MSMEs) on the accumulation of social capital in society. The digitalization variable was chosen considering that the business world has begun to enter the industrial era 4.0 massively and on a large scale. The change in business models from conventional to digital has also changed the face of MSMEs in their business operations. Meanwhile, CSR was chosen as part of a business's decision to be involved in creating a sustainable business. Social capital is the dependent variable because social capital is a determining element in how a business can run because the basis of social capital is trust, which is an absolute requirement for a business and economy to run. MSMEs were chosen because they are the business group that interacts the most with the community both in terms of quantity and quality. This study will use a quantitative method through a survey using a social capital questionnaire that has been launched by the World Bank, coupled with interviews with respondents as triangulation. Through this study, the researcher hopes that MSMEs can increasingly adapt to digitalization conditions and participate in sustainability development.