Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector

Harmina Harmina ; Yuyun Karystin Meilisa Suade ; St Salmah Sharon
Proceeding of the International Conference on Mana... 📅 2025 Vol 2, No 2 🔗 DOI: 10.61132/icmeb.v2i2.242
Abstract
This study explores how resource-constrained small and medium-sized enterprises (SMEs) in Indonesia’s advertising sector adapt digital transformation strategies to achieve sustainable development. Using the case of Roxy Maharewa, an SME in Makassar–Gowa, the research examines strategic trade-offs between investing in advanced digital platforms and operationally transformative physical assets. Guided by the Resource-Based View, Strategic Trade-off Theory, and Contingency Theory, this qualitative case study employs semi-structured interviews with key decision-makers. Findings reveal that prioritizing high-capacity production equipment eliminated structural cost disadvantages from outsourced printing, enabling twice to fourth times potential profit margin gains and strengthening market competitiveness. Rather than adopting a fully digital-first approach, the firm employed a hybrid strategy leveraging low-cost digital tools for internal efficiency while maintaining offline relationship management to align with client preferences and infrastructural realities. This asset-led hybrid model demonstrates how SMEs in emerging markets can integrate selective digital adoption with tangible investments to achieve both rapid returns and long-term sustainability. The paper contributes to the discourse on digital transformation by providing a context-sensitive perspective for policymakers and practitioners, emphasizing that in heterogeneous digital readiness environments, blended strategies can deliver superior economic and social.
Keywords
Digital Transformation; Hybrid Strategy; SMEs; Strategic Trade-Offs; Sustainable Competitiveness
How to Cite

Harmina Harmina, et al. (2025). Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector. Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2). https://doi.org/10.61132/icmeb.v2i2.242

Harmina Harmina; Yuyun Karystin Meilisa Suade; St Salmah Sharon, "Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector," Proceeding of the International Conference on Management, Entrepreneurship, and Business, vol. 2, no. 2, 2025.

Harmina Harmina; Yuyun Karystin Meilisa Suade; St Salmah Sharon. "Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector." Proceeding of the International Conference on Management, Entrepreneurship, and Business, vol. 2, no. 2, 2025.

Harmina Harmina; Yuyun Karystin Meilisa Suade; St Salmah Sharon. "Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector." Proceeding of the International Conference on Management, Entrepreneurship, and Business 2, no. 2 (2025).

Harmina Harmina, et al. (2025) 'Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector', Proceeding of the International Conference on Management, Entrepreneurship, and Business, 2(2). doi: 10.61132/icmeb.v2i2.242.

Harmina Harmina; Yuyun Karystin Meilisa Suade; St Salmah Sharon. Beyond Digital Transformation: Strategic Trade-Offs Between Technology and Operational Advantage In Indonesia’s Advertising Sector. Proceeding of the International Conference on Management, Entrepreneurship, and Business. 2025;2(2).

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