Algorithmic Governance, Market Inequality, and MSME Resilience in Indonesia’s Digital Platform Economy: A Qualitative Study
Keywords:
Algorithmic Governance, Collective Resilience, Digital Platform Economy, Market Inequality, MSMEs
Abstract
Background: Indonesia’s digital platform economy has expanded market access for micro, small, and medium enterprises (MSMEs), yet prior studies have not sufficiently examined how algorithmic opacity interacts with capital constraints to produce differential visibility outcomes for MSMEs. Purpose: This study explores how algorithmic governance shapes MSME fragility and resilience in Indonesia’s digital platform economy by examining visibility dependence, unequal platform literacy, capital-based exposure, and collaborative adaptation.
Method: Using a qualitative exploratory case-study design, this study draws on semi-structured interviews with MSME owners/managers operating on major Indonesian e-commerce platforms. The data were analyzed through iterative thematic coding, constant comparison, and source triangulation across participant accounts and supporting contextual documents.
Results: The findings reveal five major themes: algorithmic opacity as a source of visibility fragility, cognitive stratification in MSME adaptation, capital fragility and unequal platform exposure, collaboration as collective resilience, and the need for fair platform governance and inclusive digital policy. These findings indicate that MSME resilience is not determined merely by access to digital platforms, but by sellers’ capacity to interpret algorithmic signals, mobilize resources, participate in collaborative networks, and operate within transparent and accountable platform ecosystems.
Conclusion: The study shows that MSME resilience is shaped not only by digital adoption but also by sellers’ capacity to interpret algorithmic signals, mobilize resources, and participate in collaborative networks. This study contributes by positioning cognitive stratification as an analytical lens explaining how unequal platform literacy mediates algorithmic governance and MSME vulnerability.
References
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Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The Influence of E-Payment and E-Commerce Services on Supply Chain Performance: Implications of Open Innovation and Solutions for the Digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 119. https://doi.org/10.3390/joitmc8030119
Kordzadeh, N., & Ghasemaghaei, M. (2022). Algorithmic bias: review, synthesis, and future research directions. European Journal of Information Systems, 31(3), 388–409. https://doi.org/10.1080/0960085X.2021.1927212
Lehmann, C. A., Haubitz, C. B., Fügener, A., & Thonemann, U. W. (2022). The risk of algorithm transparency: How algorithm complexity drives the effects on the use of advice. Production and Operations Management, 31(9), 3419–3434. https://doi.org/10.1111/poms.13770
Malik, F. S., & Terzidis, O. (2026). The metamorphosis of organizational resilience: a strategic roadmap for SMEs in the digital age. Review of Managerial Science. https://doi.org/10.1007/s11846-026-01002-3
Mochklas, M., Panggayudi, D. S., & Nurhayati, A. (2025). Barriers to e-commerce adoption for MSMEs in LAZISMU East Java. Jurnal Manajemen, 29(1), 202–226. https://doi.org/10.24912/jm.v29i1.2484
Patma, T. S., Wardana, L. W., Wibowo, A., Narmaditya, B. S., & Akbarina, F. (2021). The impact of social media marketing for Indonesian SMEs sustainability: Lesson from Covid-19 pandemic. Cogent Business & Management, 8(1). https://doi.org/10.1080/23311975.2021.1953679
Priya, A. (2021). Case Study Methodology of Qualitative Research: Key Attributes and Navigating the Conundrums in Its Application. Sociological Bulletin, 70(1), 94–110. https://doi.org/10.1177/0038022920970318
Quansah, E., Hartz, D. E., & Salipante, P. (2022). Adaptive practices in SMEs: leveraging dynamic capabilities for strategic adaptation. Journal of Small Business and Enterprise Development, 29(7), 1130–1148. https://doi.org/10.1108/JSBED-07-2021-0269
Rashid, Y., Rashid, A., Warraich, M. A., Sabir, S. S., & Waseem, A. (2019). Case Study Method: A Step-by-Step Guide for Business Researchers. International Journal of Qualitative Methods, 18. https://doi.org/10.1177/1609406919862424
Sagala, G. H., & Őri, D. (2025). Exploring digital transformation strategy to achieve SMEs resilience and antifragility: a systematic literature review. Journal of Small Business & Entrepreneurship, 37(3), 495–524. https://doi.org/10.1080/08276331.2024.2392080
Simonofski, A., Vallé, T., Serral, E., & Wautelet, Y. (2021). Investigating context factors in citizen participation strategies: A comparative analysis of Swedish and Belgian smart cities. International Journal of Information Management, 56, 102011. https://doi.org/https://doi.org/10.1016/j.ijinfomgt.2019.09.007
Suna, H. E., Özer, M., & Perc, M. (2024). Artificial Intelligence Bias and the Amplification of Inequalities in the Labor Market. Journal of Economy Culture and Society, 69, 159–168. https://doi.org/10.26650/JECS2023-1415085
Tama, I. P., Nugroho, W. S., Mahmudy, W. F., & Purnami, P. (2022). The Evaluation of Technology Startup Role on Indonesian SMEs Industry 4.0 Adoption Using CLD-ABM Integrated Model. In Sustainability (Vol. 14, Issue 14, p. 8462). https://doi.org/10.3390/su14148462
Vatamanu, A. F., & Tofan, M. (2025). Integrating Artificial Intelligence into Public Administration: Challenges and Vulnerabilities. In Administrative Sciences (Vol. 15, Issue 4, p. 149). https://doi.org/10.3390/admsci15040149
Zajko, M. (2022). Artificial intelligence, algorithms, and social inequality: Sociological contributions to contemporary debates. Sociology Compass, 16(3), e12962. https://doi.org/10.1111/soc4.12962
Anatan, L., & Nur. (2023). Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia. Economies, 11(6), 156. https://doi.org/10.3390/economies11060156
Andjarwati, T., & Wulan, V. R. (2021). Technology transformation: Promoting sustainable Indonesia MSMEs and cooperative by digitalization. JEJAK: Jurnal Ekonomi Dan Kebijakan, 14(2), 364–383. https://doi.org/10.15294/jejak.v14i2.31662
Ballerini, J., Herhausen, D., & Ferraris, A. (2023). How commitment and platform adoption drive the e-commerce performance of SMEs: A mixed-method inquiry into e-commerce affordances. International Journal of Information Management, 72, 102649. https://doi.org/https://doi.org/10.1016/j.ijinfomgt.2023.102649
Bening, S. A., Dachyar, M., Pratama, N. R., Park, J., & Chang, Y. (2023). E-Commerce Technologies Adoption Strategy Selection in Indonesian SMEs Using the Decision-Makers, Technological, Organizational and Environmental (DTOE) Framework. Sustainability, 15(12), 9361. https://doi.org/10.3390/su15129361
Braun, V., & Clarke, V. (2021). One size fits all? What counts as quality practice in (reflexive) thematic analysis? Qualitative Research in Psychology, 18(3), 328–352. https://doi.org/10.1080/14780887.2020.1769238
Cadden, T., Weerawardena, J., Cao, G., Duan, Y., & McIvor, R. (2023). Examining the role of big data and marketing analytics in SMEs innovation and competitive advantage: A knowledge integration perspective. Journal of Business Research, 168, 114225. https://doi.org/https://doi.org/10.1016/j.jbusres.2023.114225
Chen, P., Elsner, W., & Pyka, A. (2024). Routledge International Handbook of Complexity Economics. Routledge. https://doi.org/10.4324/9781003119128
Costa, J., & Castro, R. (2021). SMEs Must Go Online—E-Commerce as an Escape Hatch for Resilience and Survivability. In Journal of Theoretical and Applied Electronic Commerce Research (Vol. 16, Issue 7, pp. 3043–3062). https://doi.org/10.3390/jtaer16070166
Creswell, J. W., & Creswell, J. D. (2022). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches. SAGE Publications. https://books.google.co.id/books?id=Pr2VEAAAQBAJ
Cutolo, D., & Kenney, M. (2021). Platform-Dependent Entrepreneurs: Power Asymmetries, Risks, and Strategies in the Platform Economy. Academy of Management Perspectives, 35(4), 584–605. https://doi.org/10.5465/amp.2019.0103
Denicolai, S., Zucchella, A., & Magnani, G. (2021). Internationalization, digitalization, and sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths. Technological Forecasting and Social Change, 166, 120650. https://doi.org/https://doi.org/10.1016/j.techfore.2021.120650
Di Porto, F., & Zuppetta, M. (2021). Co-regulating algorithmic disclosure for digital platforms. Policy and Society, 40(2), 272–293. https://doi.org/10.1080/14494035.2020.1809052
Fagiolo, G., Moneta, A., & Windrum, P. (2007). A Critical Guide to Empirical Validation of Agent-Based Models in Economics: Methodologies, Procedures, and Open Problems. Computational Economics, 30(3), 195–226. https://doi.org/10.1007/s10614-007-9104-4
Faiz, F., Le, V., & Masli, E. K. (2024). Determinants of digital technology adoption in innovative SMEs. Journal of Innovation & Knowledge, 9(4), 100610. https://doi.org/https://doi.org/10.1016/j.jik.2024.100610
Gritsenko, D., & Wood, M. (2022). Algorithmic governance: A modes of governance approach. Regulation and Governance, 16(1), 45–62. https://doi.org/10.1111/rego.12367
Harini, S., Pranitasari, D., Said, M., & Endri, E. (2023). Determinants of SME performance: Evidence from Indonesia. Problems and Perspectives in Management, 21(1), 471–481. https://doi.org/10.21511/ppm.21(1).2023.40
Hokmabadi, H., Rezvani, S. M. H. S., & de Matos, C. A. (2024). Business Resilience for Small and Medium Enterprises and Startups by Digital Transformation and the Role of Marketing Capabilities—A Systematic Review. In Systems (Vol. 12, Issue 6, p. 220). https://doi.org/10.3390/systems12060220
Kilay, A. L., Simamora, B. H., & Putra, D. P. (2022). The Influence of E-Payment and E-Commerce Services on Supply Chain Performance: Implications of Open Innovation and Solutions for the Digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Journal of Open Innovation: Technology, Market, and Complexity, 8(3), 119. https://doi.org/10.3390/joitmc8030119
Kordzadeh, N., & Ghasemaghaei, M. (2022). Algorithmic bias: review, synthesis, and future research directions. European Journal of Information Systems, 31(3), 388–409. https://doi.org/10.1080/0960085X.2021.1927212
Lehmann, C. A., Haubitz, C. B., Fügener, A., & Thonemann, U. W. (2022). The risk of algorithm transparency: How algorithm complexity drives the effects on the use of advice. Production and Operations Management, 31(9), 3419–3434. https://doi.org/10.1111/poms.13770
Malik, F. S., & Terzidis, O. (2026). The metamorphosis of organizational resilience: a strategic roadmap for SMEs in the digital age. Review of Managerial Science. https://doi.org/10.1007/s11846-026-01002-3
Mochklas, M., Panggayudi, D. S., & Nurhayati, A. (2025). Barriers to e-commerce adoption for MSMEs in LAZISMU East Java. Jurnal Manajemen, 29(1), 202–226. https://doi.org/10.24912/jm.v29i1.2484
Patma, T. S., Wardana, L. W., Wibowo, A., Narmaditya, B. S., & Akbarina, F. (2021). The impact of social media marketing for Indonesian SMEs sustainability: Lesson from Covid-19 pandemic. Cogent Business & Management, 8(1). https://doi.org/10.1080/23311975.2021.1953679
Priya, A. (2021). Case Study Methodology of Qualitative Research: Key Attributes and Navigating the Conundrums in Its Application. Sociological Bulletin, 70(1), 94–110. https://doi.org/10.1177/0038022920970318
Quansah, E., Hartz, D. E., & Salipante, P. (2022). Adaptive practices in SMEs: leveraging dynamic capabilities for strategic adaptation. Journal of Small Business and Enterprise Development, 29(7), 1130–1148. https://doi.org/10.1108/JSBED-07-2021-0269
Rashid, Y., Rashid, A., Warraich, M. A., Sabir, S. S., & Waseem, A. (2019). Case Study Method: A Step-by-Step Guide for Business Researchers. International Journal of Qualitative Methods, 18. https://doi.org/10.1177/1609406919862424
Sagala, G. H., & Őri, D. (2025). Exploring digital transformation strategy to achieve SMEs resilience and antifragility: a systematic literature review. Journal of Small Business & Entrepreneurship, 37(3), 495–524. https://doi.org/10.1080/08276331.2024.2392080
Simonofski, A., Vallé, T., Serral, E., & Wautelet, Y. (2021). Investigating context factors in citizen participation strategies: A comparative analysis of Swedish and Belgian smart cities. International Journal of Information Management, 56, 102011. https://doi.org/https://doi.org/10.1016/j.ijinfomgt.2019.09.007
Suna, H. E., Özer, M., & Perc, M. (2024). Artificial Intelligence Bias and the Amplification of Inequalities in the Labor Market. Journal of Economy Culture and Society, 69, 159–168. https://doi.org/10.26650/JECS2023-1415085
Tama, I. P., Nugroho, W. S., Mahmudy, W. F., & Purnami, P. (2022). The Evaluation of Technology Startup Role on Indonesian SMEs Industry 4.0 Adoption Using CLD-ABM Integrated Model. In Sustainability (Vol. 14, Issue 14, p. 8462). https://doi.org/10.3390/su14148462
Vatamanu, A. F., & Tofan, M. (2025). Integrating Artificial Intelligence into Public Administration: Challenges and Vulnerabilities. In Administrative Sciences (Vol. 15, Issue 4, p. 149). https://doi.org/10.3390/admsci15040149
Zajko, M. (2022). Artificial intelligence, algorithms, and social inequality: Sociological contributions to contemporary debates. Sociology Compass, 16(3), e12962. https://doi.org/10.1111/soc4.12962
Published
2026-02-16
How to Cite
Nurul Ulin Nuha, M., & Azizah Rahmat, D. (2026). Algorithmic Governance, Market Inequality, and MSME Resilience in Indonesia’s Digital Platform Economy: A Qualitative Study. Sharia Economic and Management Business Journal (SEMBJ), 7(2), 261-274. https://doi.org/10.62159/sembj.v7i2.2371
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Copyright (c) 2026 Mohammad Nurul Ulin Nuha, Dana Azizah Rahmat
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