Strategy and innovation of home based enterprises for local development in the 4.0 era: a bibliographic study

Abstract

A promotion in entrepreneurship at the household level through efforts in using space at home can lead to Local economic development. By using the house as a place of business, it only needs a limited budget. This type of business contributes to increasing income for households, even in times of crisis. Many studies of Home-Based Enterprises (HBEs) proves that this can contribute to improving household welfare, even on a broader scale that is contributing to local and regional development. HBEs are very adaptive and start using technology. The ability to adapt is inseparable from the strategy and innovation carried out both in terms of ‘software’, namely human resources, or ‘hardware’ readiness, namely technology and or tools that support development including in the Industrial Revolution 4.0 era. The purpose of this paper is to identify the framework of strategy and innovation of HBEs’ development in the Industrial Revolution 4.0 era based on book or articles published in international journals. The importance of the study is in mapping patterns of strategies, and successful innovations produce a strategy model and entrepreneurial innovation. It aims to deconstruct concepts, strategies and innovations related to the development of HBE that contribute to local development in the 4.0 era based on creativity and innovation, and related technology and tools used for development. The results is HBEs can develop through innovations in technology adoption consists of the using of Webite, Social Media, E-Commerce, Mobile Application, and ICT, and the strategies need multi stakeholders namely University and Large Firms to transfer knowledge and technologies; Government to provide supporting laws and regulation, policies and programmes; and the actor of HBEs in increase capacity to adopt new technologies. HBEs will benefit from doing the right strategy and innovation. From these benefits, HBEs will simultaneously improve its local economy, as well as successfully face the challenges of the industrial revolution 4.0.