Digital Transformation and Economic Productivity: Systematic Review of Global Trends in the Industry 4.0 Era

Evi Aulia Rachma; Norida Canda Sakti; Waspodo Tjipto Subroto

doi:10.18535/ijsrm/v14i01.em03

Abstract

Digital transformation is a key driver of macroeconomic productivity in the Industry 4.0 era, particularly in developing countries like Indonesia. This study uses a Systematic Literature Review (SLR) approach to identify and analyze 12 relevant scientific articles published between 2015 and 2025 to understand the link between digitalization and economic growth. The results show that the adoption of digital technologies such as artificial intelligence, big data, and the Internet of Things contributes to increased Total Factor Productivity (TFP), production efficiency, and national competitiveness. However, these benefits are not evenly distributed due to structural challenges such as the digital divide, limited infrastructure, and low digital literacy. The study highlights that the success of digital transformation is largely determined by institutional readiness, human resource investment, and public policy alignment. Furthermore, there is a significant gap between the focus of global research which is beginning to emphasize digital sustainability (green productivity, carbon emissions) and national policies that still focus solely on industrial efficiency. Therefore, integrating the sustainability agenda into Indonesia's digital transformation strategy is necessary to promote inclusive and sustainable economic growth.

Keywords

Digital TransformationMacroeconomic ProductivityIndustri 40

References

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[refR-2] Annur, M. F., Liliana, S., Suprihatiningsih, S., & Rizki, K. R. (2025). Knowledge Mapping of Deep Learning in Mathematics Instruction: A Bibliometric Study. Journal of Mathematics Education, 11(2), 159–176. https://doi.org/10.30595/alphamath.v11i2.27981DOI ↗Google Scholar ↗

[refR-3] Chenic, A. Ștefania, Burlacu, A., Dobrea, R. C., Tescan, L., Creţu, A. I., Stanef-Puica, M. R., Godeanu, T. N., Manole, A. M., Virjan, D., & Moroianu, N. (2023). The Impact of Digitalization on Macroeconomic Indicators in the New Industrial Age. Electronics (Switzerland), 12(7), 1–18. https://doi.org/10.3390/electronics12071612DOI ↗Google Scholar ↗

[refR-4] Costa, A. da, Ilmy, N., Oktavianty, & Agit, A. (2024). Technology in Digital Economy: How Effective Technology Enhance Sectoral Contributions in Indonesia? International Conference on Economics and Business (IECON), 352–1362.Google Scholar ↗

[refR-5] Depari, G. S. (2024). How is the Implementation of Business Analytics in Asia? Indonesian Journal of Business Analytics (IJBA), 4(6), 2142–2159. https://doi.org/10.55927/ijba.v4i6.12872DOI ↗Google Scholar ↗

[refR-6] Dewi, G. S., Sahabuddin, Z. A., & Purwantoro, S. A. (2023). Digital Transformation Of Micro, Small And Medium Enterprises (MSMES) In Realizing Indonesia’s Economic Independence In The Era Of Industry 4.0. International Journal of Social Science, 2(5), 2093–2106. https://doi.org/10.53625/ijss.v2i5.4817DOI ↗Google Scholar ↗

[refR-7] Djunaedi, A. Z. (2021). Digitalization Impact On Growth & Human Capital: Indonesia Broadband Plan Case Study. Review of Business, Accounting & Finance, 3, 299–309.Google Scholar ↗

[refR-8] Goh, T. S., Martinez, S., Sitorus, S. L., & Anita, T. L. (2025). Adaptive Strategic Approaches and Their Impact on Economic Growth in Dynamic Markets. Startupreneur Business Digital (SABDA Journal), 4(2), 174–183. https://doi.org/10.33050/sabda.v4i2.898DOI ↗Google Scholar ↗

[refR-9] Goubran, S., & Mohareb, N. (2025). Editorial: Data-driven urban dynamics: sustainable urbanization and mobility in peripheral areas. Frontiers in Built Environment, 11, 1–4. https://doi.org/10.3389/fbuil.2025.1736961DOI ↗Google Scholar ↗

[refR-10] Hapiz, M., Septia, L. P., Aprilianti, D., Aprilianto, D., Maulida, I., Muhammad, F., Shaafia, A., Hilman Maulana, M., & Herdiana, D. (2025). Analisis Kebijakan Pengembangan UMKM Digital di Indonesia: Tantangan dan Peluang. Madani: Jurnal Ilmiah Multidisipline, 3(5), 36–44. https://doi.org/10.5281/zenodo.15538100DOI ↗Google Scholar ↗

[refR-11] Kaprata, G., & Kume, A. (2025). The Garden City as an Urban Paradigm for a Sustainable Economic Model: The Case of Albania in the Fourth Post-Communist Decade. International Journal of Innovative Technology and Interdisciplinary Sciences, 8(4), 994–1020. https://doi.org/10.15157/IJITIS.2025.8.4.994-1020DOI ↗Google Scholar ↗

[refR-12] Khadik, M. V., Purwantini, A. H., & Farida, F. (2025). Self-Efficacy And Digital Vision in Cloud Accounting Adoption for MSME Sustainability Performance. Sustainable : Jurnal Akuntansi, 5(2), 320–337. https://doi.org/10.30651/stb.v5i2.28669DOI ↗Google Scholar ↗

[refR-13] Mahmood, A., Habib, M. A., Ahmad, M., & Baig, S. A. (2025). Assessing Industry 4.0 Readiness and Adoption Barriers in Textile Sector: Strategic Insights for Sustainable Industrial Transformation. IEEE Access, 13, 122698–122725. https://doi.org/10.1109/ACCESS.2025.3586326DOI ↗Google Scholar ↗

[refR-14] Nurhayati, D. A., & Ridwan, R. M. (2025). Analisis Ekonomi Politik Kebijakan Pemerintah Terhadap Pengembangan Sektor Umkm Pada Era Digital Di Indonesia. Jurnal Media Akademik (JMA), 3(11), 1–12. https://doi.org/10.62281Google Scholar ↗

[refR-15] Nuta, F., Mustata Wilson, G., Boateng, G. O., & Nuta, A. C. (2025). Editorial: Environmental degradation, health, and socioeconomic impacts. In Frontiers in Environmental Science (Vol. 13, pp. 1–3). Frontiers Media SA. https://doi.org/10.3389/fenvs.2025.1732268DOI ↗Google Scholar ↗

[refR-16] Page, M. J., McKenzie, J. E., Bossuyt, P. M., Boutron, I., Hoffmann, T. C., Mulrow, C. D., Shamseer, L., Tetzlaff, J. M., Akl, E. A., Brennan, S. E., Chou, R., Glanville, J., Grimshaw, J. M., Hróbjartsson, A., Lalu, M. M., Li, T., Loder, E. W., Mayo-Wilson, E., McDonald, S., … Moher, D. (2021). The PRISMA 2020 statement: An updated guideline for reporting systematic reviews. BMJ, 372, 1–9. https://doi.org/10.1136/bmj.n71DOI ↗Google Scholar ↗

[refR-17] Ramjit, D.-M. (2025). Reconceptualizing Workforce Sustainability Through Multilevel Governance & Network Leadership.Google Scholar ↗

[refR-18] Romer, P. M. (1989). Endocenous Technological Change (Working Paper No. 3210).Google Scholar ↗

[refR-19] Sourav, M. S. A., Asha, , Nurtaz Begum, & Reza, J. (2025). Generative AI in Business Analytics: Opportunities and Risks for National Economic Growth. Journal of Computer Science and Technology Studies, 224–247. https://doi.org/10.32996/jcstsDOI ↗Google Scholar ↗

[refR-20] Sun, Q., & Huang, M. (2025). Firm-level evidence on AI-driven output expansion and productivity in China. Socio-Economic Planning Sciences, 103, 1–15. https://doi.org/10.1016/j.seps.2025.102389DOI ↗Google Scholar ↗

[refR-21] Sutomo, D. A. (2025). The Impact of Digital Transformation on Economic Growth in Developing Countries: A Case Study of Indonesia. 3, 6094–6109.Google Scholar ↗

[refR-22] Tudose, M. B., Georgescu, A., & Avasilcăi, S. (2023). Global Analysis Regarding the Impact of Digital Transformation on Macroeconomic Outcomes. Sustainability (Switzerland), 15(5), 1. https://doi.org/10.3390/su15054583DOI ↗Google Scholar ↗

[refR-23] Usman, H., Rahman, W. A., Maulana, M. I., Abdullah, A. I., Fadilah, M. H., & Ikasa, I. H. (2025). Pembahasan Integrasi Teknologi Ai Dan Big Data Dalam Sistem Informasi Manajemen Untuk Optimalisasi Keputusan UMKM. JORAPI : Journal of Research and Publication Innovation, 3(4), 130–133.Google Scholar ↗

[refR-24] Verma, R., & Dilanchiev, A. (2025). Editorial: Economic visions to mitigate climate change. Frontiers in Environmental Economics, 4, 1. https://doi.org/10.3389/frevc.2025.1719370DOI ↗Google Scholar ↗

[refR-25] Wijayanti, F., & Turgel, I. D. (2021). The Сonsequences of Digitalization of the Labor Market in Developing Countries: Case Study in Indonesia. Proceedings of the XV International Conference “Russian Regions in the Focus of Changes” (ICRRFC 2020), 96–105.Google Scholar ↗

[refR-26] Yan, A., Guo, R., Yin, Q., Dong, R., Wang, X., & Gao, L. (2025). Path to sustainable marine development: Does artificial intelligence development in coastal regions matter for green growth in the marine economy? Evidence from China. Regional Studies in Marine Science, 1–46. https://doi.org/10.1016/j.rsma.2025.104662DOI ↗Google Scholar ↗

[refR-27] Yusuf, A. A. (2021). The impact of Industry 4.0 on the Indonesian economy: A general equilibrium assessment. Regional Science Policy and Practice, 13(6), 1805–1824. https://doi.org/10.1111/rsp3.12463DOI ↗Google Scholar ↗

[refR-28] Ziyabayevna, Y. N. (2025). The Role And Importance Of The Service Sector In The Economy. Journal Of Applied Science And Social Science, 15(11), 297–299. http://www.internationaljournal.co.in/index.php/jasassGoogle Scholar ↗