INDIGENOUS LOCAL WISDOM-DRIVEN SMART VILLAGE ENTREPRENEURSHIP MODEL FOR RURAL MSME DIGITAL TRANSFORMATION
DOI:
https://doi.org/10.47701/g7bka116Keywords:
indigenous local wisdom, Smart Village, rural entrepreneurship;, MSMEs, digital transformationAbstract
Rural micro, small, and medium enterprises (MSMEs) face a dual challenge: they need to exploit digital technologies to expand markets and improve business processes while preserving the cultural legitimacy, social relationships, and locally embedded knowledge that shape rural economic life. Existing Smart Village studies emphasize infrastructure, governance, participation, and rural development, whereas SME digital transformation research emphasizes capabilities, organizational change, and technology adoption. Research on local wisdom, meanwhile, frequently focuses on identity, cultural products, or community participation. These streams remain insufficiently integrated into a single model explaining how indigenous local wisdom can become a foundation for rural MSME digital transformation. This study develops an Indigenous Local Wisdom-Driven Smart Village Entrepreneurship (ILW-SVE) model through an integrative literature synthesis and design-oriented conceptual modeling approach. The proposed architecture consists of five interconnected layers: indigenous local wisdom, Smart Village enablers, entrepreneurial capabilities, digital transformation capabilities, and rural MSME outcomes. Indigenous local wisdom is positioned as a design foundation that informs governance, participation, trust, collaboration, cultural protection, and sustainability. The model further proposes seven relationships for future empirical testing and a five-level maturity pathway for implementation. The contribution is a culturally grounded, capability-oriented framework that links Smart Village development with rural entrepreneurship and MSME digital transformation.
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