Application of Simple Digital Technology in Optimizing Product Distribution for SMEs in Bukit Batu District

Abstract

Small and Medium Enterprises (SMEs) play a crucial role in economic growth, yet many face inefficiencies in product distribution due to reliance on conventional methods. This study analyzes the application of simple digital technologies to optimize product distribution among SMEs in Bukit Batu District. Using a quantitative descriptive approach supported by qualitative data, information was collected through surveys, interviews, and observations with 30 SME owners who use simple digital tools such as WhatsApp, Facebook Marketplace, and Shopee. The results show that 73% of respondents use online communication platforms, 52% utilize marketplaces, and only 18% apply simple digital stock systems. The implementation of these technologies has improved communication efficiency, reduced logistics costs, and expanded market reach, with statistical analysis showing a significant effect (R² = 0.64) on distribution efficiency. These findings support the Diffusion of Innovation and Technology–Organization–Environment (TOE) Framework theories, emphasizing that adoption success depends on ease of use, organizational readiness, and environmental support. However, low digital literacy and infrastructure limitations remain key challenges. Overall, the study concludes that simple digital technologies can effectively enhance SME distribution performance when supported by adequate training and digital infrastructure development.