ABSTRACT

Innovation serves as a vital driver of economic development in rural areas, with one notable advancement being the digitalisation of economic activities within Village-Owned Enterprises (VOEs). This study aims to identify the current implementation of economic digitalisation in VOEs, design a suitable digitalisation model, and analyse strategies to strengthen digital transformation in VOEs. A mixed-methods approach with a descriptive-analytic study was employed. The findings reveal that economic digitalisation in VOEs remains limited, primarily involving basic internet usage and simple applications that are not fully integrated into the entire business process. Comprehensive digitalisation across all stages of VOE operations can significantly contribute to achieving Sustainable Development Goal (SDG) 8, which promotes inclusive and sustainable economic growth at the local village level. Furthermore, advancing VOEs‘ economic digital transformation through innovation and enhanced digital infrastructure aligns with the objectives of SDG 9, which focuses on fostering industry, innovation, and infrastructure.