Digital Economy: Reinforcing Competitive Economy of Smart Cities, A Fuzzy-AHP Approach

This research addresses the urgency of developing a digital economy model for the competitive economy of smart cities. This study employs the Fuzzy Analytical Hierarchy Process (Fuzzy-AHP) method. It involved 30 experts in the digital economy and smart cities in 6 cities in Indonesia: Jakarta, Bandung, Semarang, Surabaya, Banyuwangi, and Makassar. The study has successfully uncovered four important objectives, i.e., digital economy frameworks for smart cities, digital economy actors of smart cities, criteria of the competitive economy for smart cities, and the digital economy strategies for the competitive economy of smart cities. The study found digital services to be a critical factor in the digital economy, and city government, together with the national government, play a crucial role in the digital economy of smart cities. Human resources and innovative capability are the two most important criteria for a competitive economy of smart cities. Moreover, infrastructure & applications supported by digital government and policies and economic collaboration are the essential digital strategies for the competitive economy of smart cities. This research provides significant insight and knowledge for government and digital economy players to plan and optimize digital economy collaboration across all stakeholders effectively.

I. Introduction

Economic changes' speed, unpredictability, and dynamic nature have made it harder to maintain control over economic factors [1]. The digital economy is continuously enhanced and improved with fundamental technological advancements due to the rapid expansion of information and communication technology (ICT), where data is the primary production factor. Specific economic factors, such as digital technology, networks, services, and models, are business models established by certain economies [2].