The Influence of Digital Transformation and Product Innovation on The Performance of SMES in Medan Tuntungan District

Abstract

The creative industry in Medan has undergone a remarkable evolution, becoming a dynamic contributor to economic development and cultural enrichment.  Small and Medium Enterprises (SMEs) play a crucial role in shaping this dynamic industrial landscape, driving innovation and driving economic growth.  The purpose of the research is to determine the Influence of Digital Transformation and Product Innovation on the Performance of SMEs in Medan Tuntungan District. This research method is a descriptive research on the Influence of Digital Transformation and Product Innovation on the Performance of SMEs in Medan Tuntungan District, Descriptive research is carried out by collecting data based on factors that support the research object, then analyzing these factors to find their role. Sampling in this study used the Slovin Method from the calculation results with the number of samples obtained was 226. In sampling, accidental sampling is used, namely sampling by random means. The results of the Research on Digital Transformation and Product Innovation Variables directly have a significant positive influence on SME Performance, Digital Transformation Variables directly have a positive and significant influence on SME Performance variables, Product Innovation Variables directly have a positive and significant influence on SME Performance variables.