Digital technology opens up opportunities for small- and medium-sized enterprises (MSMEs) to penetrate the market and increase their access to middlemen and even to final consumers. This chapter is based on a quantitative study of MSME actors, including millennials from West Bandung District in West Java. The study used secondary data to examine the varying levels of digital competency among MSME actors from different generations. The results show a significant relationship between digital competence and the education levels of Generation X and millennial MSME actors: higher education levels among MSME actors from these two generations lead to higher digital competencies. This study also found that millennials with higher education have better digital competency levels in the areas of information management, collaboration, content and knowledge creation, and technical operation. Among MSME actors from Generation X, the tendency was for those with higher education levels to have better digital competency only in the area of information management. Due to the limited number of samples from baby boomers and Generation Z, this paper cannot make any conclusions about their digital competence.

INTRODUCTION

The rapid development of digital technology has increasingly driven interactions and transactions in the online space. The ability to use digital technology brings several essential benefits and conveniences, such as searching for information, communicating, transacting and accessing public services (Choi and Whinston 2000; Hanna, Rohm, and Crittenden 2011; Graham 2014). Digital technology has been adopted widely in various user environments. This tendency to use technology is closely related to motivation and skills (Gyr, Friedman, and Gyr 2010; Hanna et al. 2011; Deursen and Dijk 2011). Having physical access to devices like computers or laptops as well as other resources, such as software and an Internet subscription, is necessary to maintain connectivity and achieve adequate skills.

Various studies have indicated that despite the availability of infrastructure and access to digital technology, individual or organizational gaps in digital utilization are not solely attributed to physical access but also to skills and competencies (Livingstone 2003; Deursen and Dijk 2011; Dijk 2012). Users require adequate skills in utilizing digital technologies, particularly for productive purposes. The digital divide has shifted from inequality in the possession of information and communications technology (ICT) devices to skills and usage (Deursen and Dijk 2011; Dijk 2012).