Analysis of Sharia-Based Governance in The Takaful Industry: A Review of Contemporary Literature

Abstract

The development of digital technology has brought significant changes to business competition patterns, including in the Micro, Small, and Medium Enterprises (MSMEs) sector. MSMEs in the culinary sector are required to be able to carry out digital-based business innovations to maintain business continuity and increase competitive advantage. This study aims to analyze the digital-based business innovation strategies implemented by MSMEs in the culinary sector at the Lhokseumawe City Sunday Festival and identify supporting factors and obstacles in the digital transformation process. This study uses a qualitative approach with a case study method. Research informants consisted of culinary MSMEs, Festival Ahad managers, local government, and consumers. Data collection techniques were carried out through interviews, observation, and documentation. The results show that the digital business innovation strategies implemented by culinary MSMEs at the Sunday Festival include utilizing social media as a marketing tool, using digital payments, strengthening digital branding, product packaging innovation, and increasing customer interaction through digital platforms. The implementation of these strategies has a positive impact on market expansion, improving services, and strengthening the competitive position of MSMEs. However, the study also found several obstacles such as limited digital literacy, human resource capabilities, and limited capital in technology development. This study concludes that digital-based business innovation is a crucial strategy for culinary MSMEs in facing modern business competition. Support from the government, universities, and the business community is needed to accelerate the sustainable digital transformation of MSMEs.