SMEs In Indonesia Research Articles

IMPROVING GREEN INNOVATION PERFORMANCE BY SMES IN INDONESIA

This article aims at improving the performance of green innovation by SMEs in Indonesia. It describes new environmental issues that have received significant interest in the green operation, based on the great interest in the topic, explicitly on green innovation practices in SMEs in Indonesia, enabling the current study proposes the evaluation of green innovation practices focusing on human resource management and government regulation and innovation processes in green marketing orientation. Using an empirical interpretation designed under a quantitative method with hypothesis testing using the partial least squares structural equation modeling (PLS-SEM) method with a total sample of 163 SMEs, the authors describe the obtained results that green marketing orientation, government regulation, and human resource management significantly and positively affect the green innovation platform of SDGs in SMEs in Indonesia. Government regulation mediated the relationship between green marketing orientation and human resource management in Indonesian SMEs’ green innovation. The authors illustrate that the proposed green innovation by SMEs in Indonesia makes it possible to improve that women significantly contribute to pushing the economic 86 respondents (52,8%), with young age respondents 90 (55.2%). The new method effectiveness evaluation confirmed by the calculations with the Directorate General of Treasury, Ministry of Finance RI data showed women managed 95% of SMEs of 64 million SME owners since 2021. New research results indicate that green innovation is expected to be a transformation of the re-establishment of global developments beneficial for future generations and can be used for SMEs, also playing a prominent role in maintaining economic stability. Novelty and scientific contribution of 61.1% as a pillar of national economic growth to accelerate the sustainable development progress.

Dashboard Visualisasi Data UMK Sebagai Alat Pengambilan Keputusan Menggunakan Microsoft Power BI

SME empowerment will directly increase productivity, increase people's per capita income, and provide jobs more evenly. Small Micro Enterprises contributed Rp 2,121.3 trillion to Gross Domestic Product from base Rp 335.1 trillion in previous year with a percentage of 53.6%. SMEs are currently faced with a very high product competitiveness era, relatively short product life cycles following market trends, and relatively fast product innovation capabilities. The lack of sources of capital is the main problem currently facing SMEs in Indonesia. By looking at the opportunities, challenges, and threats faced by MSEs in Indonesia, it is necessary to design a system that functions as a decision-making tool for interested parties. So the purpose is to design a dashboard using Business Intelligence as a decision-making tool. The method used to design this dashboard is ADDIE using Microsoft Power BI. The design result is a visualization dashboard for MSEs in Indonesia based on the number of businesses in the green economy sector, the number of businesses in all sectors, the number of workers, the amount of income, and the amount of expenditure. The results of this visualization dashboard can be a reference for investors to give funds to increase SME’s size and competitiveness.

Central Governance Policy and Local Governance Participation: Risk Mitigation of Indonesia Smes Covid-19 Affected

: The Covid-19 pandemic has a significant impact on the economy, one of the most affected business scales is micro and small businesses. Regarding this potential problem, the central government issued a policy package in the form of financial incentives for various sectors of tourism, aviation and property services, as well as additional subsidies and tax cuts. The author uses a quantitative approach, where data sources are obtained by spreading questionnaires in the Central Java region. Then the results are processed using the SPSS program. Based on this, this study aims to explore how much effectiveness in terms of policy implementation and how the level of local government participation in the policy. The results showed that of the five policies for MSMEs, the provision of working capital incentives has the highest percentage index, this shows that in the short term, the provision of working capital incentives in the form of cash assistance will have a direct impact on MSME. Keywords: Governance Policy, Governance Participation, SMEs Sustainability, Pandemic Covid-19 Abstrak : Pandemi Covid-19 berdampak signifikan terhadap perekonomian, salah satu skala usaha yang paling terdampak adalah usaha mikro dan kecil. Terkait potensi permasalahan tersebut, pemerintah pusat mengeluarkan paket kebijakan berupa insentif keuangan untuk berbagai sektor pariwisata, penerbangan dan jasa properti, serta tambahan subsidi dan pemotongan pajak. Penulis menggunakan pendekatan kuantitatif, dimana diperoleh sumber data dengan menyebarkan kuesioner di wilayah Jawa Tengah. Kemudian hasilnya diolah menggunakan program SPSS. Berdasarkan hal tersebut, penelitian ini bertujuan untuk menggali seberapa besar efektivitas dalam hal implementasi kebijakan dan bagaimana tingkat partisipasi pemerintah daerah dalam kebijakan tersebut. Hasil penelitian menunjukkan bahwa dari kelima kebijakan untuk UMKM tersebut, pemberian insentif modal kerja memiliki indeks persentase tertinggi, hal ini menunjukkan bahwa dalam jangka pendek, pemberian insentif modal kerja berupa bantuan tunai akan berdampak langsung terhadap UMKM. Kata Kunci: Kebijakan Tata Kelola, Partisipasi Tata Kelola, Keberlanjutan UKM, Pandemi Covid-19

USER INVOLVEMENT IN INFORMATION SYSTEM QUALITY

system is the effectiveness of a user to understand the information system and implement the use of technology. One of the factors that can affect the quality of accounting information systems is user involvement, which will be the independent variable in this study. The purpose of this study was to examine and analyze the effect of user involvement on the quality of information systems in SMEs in Indonesia. The primary data used in this study was obtained by distributing questionnaires to 78 SMEs who participated in filling out the questionnaire. In this study, the data were analyzed using the structural equation model-PLS. The results showed that user involvement has a significant effect on the quality of information systems.

Strategic Partnership between SME Retailers and Modern Suppliers in Indonesia: A Relationship Marketing Approach


 
 
 This study aimed to analyze the business marketing relationship between modern suppliers and SME retailers to empower and strengthen SMEs in Indonesia. The theoretical framework is the relationship marketing model developed by Morgan and Hunt (1994). This framework is based on trust and commitment as the two key mediating variables. The study surveyed 250 SME retailers as respondents selected using purposive sampling. Furthermore, hypotheses were tested using path analysis. The findings showed that trust and commitment to business partnerships mediate the effect of influence strategy on loyalty to business partners and economic performance. The influence strategy significantly affects the business performance of the involved parties. Therefore, strategic business partnerships with modern suppliers improve SME retailers’ business performance.
 
 

Comparison Analysis of Accounting Standards for Entities Without Public Accountability and Financial Standards for Private Entities of SMEs in Indonesia

IFRS SME establishes standards that serve as recommendations for preparing financial reports for small and medium-sized businesses. SME IFRS originates from all IFRS simplifications intended to simplify financial reporting and cost-benefit analysis for SME clients. The Financial Accounting Standards for Organizations Without Public Accountability (SAK ETAP), established on May 19, 2009, continues to oversee private businesses' financial accounts. However, SAK ETAP does not give advice to private firms on the explanation of gross revenue that is directly relevant to taxes determination. As a consequence, Indonesia has established a new SAK for private firms known as the SAK EP. The use of SAK EP in the preparation of financial statements for micro, small, and medium-sized enterprises (MSME) can simplify the use of international accounting standards, lowering the higher costs associated with full IFRS implementation and the emergence of numerous new accounts and changes in financial statement presentation. New accounts include accounts for current tax, deferred tax, employee benefit duties, and post-employment benefit liabilities, as well as revised accounts for accruing costs, equity, and comprehensive income (expenses).

Internationalization of SMES Sarong Samarinda in the Industrial Revolution Era 4.0

The existence of SMEs Sarong Samarinda has become one of the pillars of the economy of some Samarinda people. From raw material suppliers, weavers, business owners, and souvenir shops to online store activists, all are involved and feel the economic impact of the existence of the Samarinda Sarong Center. Like SMEs in Indonesia, Samarinda Sarong centers also experience many problems and obstacles in the sustainability of their business, especially in marketing Samarinda sarong products to the international market. This article examines how to maintain and develop the Samarinda Sarong SMEs in the 4.0 era, which is full of challenges to export. Case study research methods with field research, observation, and interviews. The study results show that the biggest problem currently experienced by weavers is product marketing and the weavers' mindset toward the importance of implementing management on a simple scale. So far, SMEs Sarong Samarinda has only focused on the domestic market, while opportunities to penetrate the export market are wide open.

THE EFFECT OF COOPERATION AND INNOVATION CAPABILITY ON INNOVATION TYPE OF THE EXPORT ORIENTED SME’S IN INDONESIA

The unit of analysis is export-oriented SMEs located in Bali, Jakarta, West Java, East Java and Central Java. The SMEs in question are not differentiated based on the type or production sector, because the authors are of the view that the factors examined in this study can apply in general to all SMEs. The research observation unit is the manager of each SME’s. The manager in question is the top manager or top manager of the company. Furthermore, the number of samples in the study was calculated from a total population of 317 SMEs. Based on the Slovin formula, 176 samples were obtained. The results of this study are, The innovation capability model for export-oriented SMEs in Indonesia is supported by implementing of cooperation, Cooperation that is implemented by export-oriented SMEs include factors of vertical cooperations and horizontal cooperations. The dominant role is horizontal partnerships, namely partnerships implemented with partners in educational institutions or business incubators, financial institutions, government institutions or related agencies, as well as with associations or industrial communities or exporters, and so forth. Innovation capability in export-oriented SMEs includes the dimensions of strategic capability, network capability, process capability, and learning capability. These four dimensions of capability have an important role for SMEs so that SMEs have the capability to be able to produce types of innovation within their companies. The dominant role is network capability and strategy. The types of innovation produced by export-oriented SMEs include product innovation, marketing innovation, and process innovation. The dominant types of innovation are marketing innovation and process innovation

Knowledge Sharing, Organizational Learning Capability, Open Innovation, and Business Performance: Evidence from Food and Beverage SMEs in Indonesia

The Covid 19 pandemic has made the business performance of the food and beverage industry decline. Therefore, innovation becomes very important to improve business performance. This study aims to analyze the effect of knowledge sharing and organizational learning capability on open innovation and its impact on SMEs’ business performance in the Context of the Food and Beverage SMEs. The objects in this study were employees in the food and beverage industry in Bogor. The number of questionnaires collected were 237 questionnaires. Therefore, the samples in the study were 237 Employees. The data analysis technique used is Structural Equation Modeling with the help of Amos software Version 23. The results show that knowledge sharing has a positive and significant effect on organizational learning capability, and knowledge sharing has a positive and significant effect on open innovation. Knowledge sharing and organizational learning capability have a positive and significant effect on open innovation. Knowledge sharing, organizational learning capability, and open innovation have a positive and significant impact on business performance. These findings of the results have important implications in the literature about the antecedent of SMEs’ performance that has not been previously tested. We suggest to the business owner in the Food and Beverage SMEs in Bogor to enhance the knowledge sharing practice, organizational learning capability, and open innovation to achieve good business performance.

CONFIRMATORY FACTOR ANALYSIS ON THE LEGAL ASPECTS OF BUSINESS FUNDING WITH SECURITIES CROWDFUNDING SCHEME ON SMEs IN MEDAN MUNICIPAL CITY

SMEs is one of the important pillars in the national economic development who to date, are still faced with its classical issue in obtaining additional capital funding. The securities crowdfunding concept that was introduced to be the solution for SMEs is yet to reach the 64,2 million SMEs in Indonesia due to SMEs’ difficulties in complying to the regulatory requirements. Therefore, the objective of this research is to analyze the legal factors that may affect SMEs’ interests in obtaining capital funding via the securities crowdfunding concept. This research is conducted by using quantitative approach and analyzed by using the confirmatory factor analysis and descriptive analysis methods based on the primary data collected from 50 SMEs in BPC HIPMI Medan on a purposive sampling basis. Based on the research findings, the implementation of the disclosure principle in POJK 57/2020 are mainly the cause of SMEs’ inability and affecting interests in the securities crowdfunding concept. Therefore, further development of POJK 57/2020 as the regulatory basis of the securities crowdfunding concept are essential in supporting SMEs’ exponential growth in the future.

Exploring Ways In Which Greenwearfair Can Improve Their Digital Marketing

The Covid-19 pandemic, including Indonesia, has an impact on economic instability and one of the affected is Micro, Small and Medium Enterprises (MSMEs) in the fashion sector, which then demands MSME actors in the fashion sector in Indonesia to be creative in marketing their products or services through digital marketing. . This study aims to identify things that need to be improved on Greenwearfair to reach quite a number of customers using digital marketing, determine how to effectively use digital marketing, and describe fashion SMEs in Indonesia using digital marketing to improve marketing. This qualitative research uses a literature study approach. The data collection technique used in this study is documentation in the form of photos that describe digital marketing activities carried out by Greenwearfair and also previous research journals published in 2020-2022 which analyzed the use of digital marketing on MSME actors in Indonesia obtained from Google Scholar and Science. Direct. This study uses a qualitative analysis technique with a deductive approach. The findings of this study indicate that Greenwearfair has marketed its products using digital marketing through social media, namely Instagram and TikTok. However, Greenwearfair must be consistent in posting information about its products, both the consistency of the time and the quality of the postings. We recommend that Greenwearfair make post content more interesting by making video testimonials from influencers so that the target audience is more interested in buying their products.

Exploring Ways In Which Greenwearfair Can Improve Their Digital Marketing

The Covid-19 pandemic, including Indonesia, has an impact on economic instability and one of the affected is Micro, Small and Medium Enterprises (MSMEs) in the fashion sector, which then demands MSME actors in the fashion sector in Indonesia to be creative in marketing their products or services through digital marketing. . This study aims to identify things that need to be improved on Greenwearfair to reach quite a number of customers using digital marketing, determine how to effectively use digital marketing, and describe fashion SMEs in Indonesia using digital marketing to improve marketing. This qualitative research uses a literature study approach. The data collection technique used in this study is documentation in the form of photos that describe digital marketing activities carried out by Greenwearfair and also previous research journals published in 2020-2022 which analyzed the use of digital marketing on MSME actors in Indonesia obtained from Google Scholar and Science. Direct. This study uses a qualitative analysis technique with a deductive approach. The findings of this study indicate that Greenwearfair has marketed its products using digital marketing through social media, namely Instagram and TikTok. However, Greenwearfair must be consistent in posting information about its products, both the consistency of the time and the quality of the postings. We recommend that Greenwearfair make post content more interesting by making video testimonials from influencers so that the target audience is more interested in buying their products.

IMPROVING THE PERFORMANCE OF BATIK SMEs IN THE COVID-19 PANDEMIC

The COVID-19 pandemic has made the economy in Indonesia sluggish, especially for SMEs. Whereas the existence of SMEs in Indonesia is very important and considered by the government because SMEs can accommodate many workers and become a source of income for the middle and lower classes of the community. The aims of this research were look at how to improve the performance of SMEs so that they can still exist in the midst of the Covid 19 pandemic. Study was conducted on SMEs in West Java, Indonesia. Based on quantitative approach, this research used survey instrument by delivering questionnaire. The Structural Equation Modeling (SEM) was used to analyze the data. The result showed the significant relationship between Product Characteristics, Market competitive strategy, Price & Product Success Rate on Performance of SME

Analysis of the Application of Dynamic Capabilities Adaptation Phases in Innovation Development (Study on Save and Loan Cooperative Smes in Badung Regency)

SMEs in Indonesia currently make the largest contribution to gross domestic product. Therefore, the performance of MSMEs engaged in the financial sector, especially cooperatives, must always be improved. Improved performance is closely related to the company's business strategy. Strategy is a company's unique way to gain competitive advantage, company performance is a representation of competitive advantage. Strategy formulation and strategy implementation by taking into account technical and non-technical aspects is a way to achieve optimal performance transformation. One of them is the adaptation phases of the dynamic capability approach in the development of innovations in the MSME sector of the Cooperatives. This research was conducted with a qualitative case study approach with the object of research being a savings and loan cooperative located in Badung Regency-Bali. The research was conducted by interview and direct observation to the cooperative. The research method used is a single-case holistic. Data analysis was carried out by means of within-case analysis. The results show that the phases of dynamic capability adaptation play an important role in the innovation development process in Savings and Loans Cooperative SMEs. This study provides implications for the cooperative sector SMEs regarding the steps taken by cooperatives to absorb external knowledge so as to assist in determining the innovation development process. Based on these findings, This research has contributed to the development of the concept of dynamic capability adaptation phases from the results of interviews during the research conducted by the researcher. This study is expected to contribute input in the development of innovation for SMEs in the cooperative sector.

Indonesia Reaps the Benefits of Business Performance SME Manufacturing Industry Technology Revolution

The purpose of this study is to determine the extent to which SMEs in Indonesia apply lean manufacturing and industrial technology 4.0. The results of this study indicate that Indonesian SMEs partially and simultaneously have a positive impact. Lean manufacturing systems have an important relationship with the three pillars of Industry 4.0. Excluding equipment and methods and product design. Respondents in the study were 25 SME owners, directors, managers, and deputy managers, the statements and interview questions were based on all aspects of lean manufacturing. in this study only 3 indicators out of 9 Industry 4.0 indicators, namely, additive manufacturing, augmented reality, and simulation in Indonesian SMEs. This research uses SPSS software version 20.0 and E-Views version 10.0.

PERANCANGAN POLA BARU PEMASARAN USAHA FASHION DI INDONESIA MELALUI FENOMENA CITAYAM FASHION WEEK

The Citayam Fashion Week phenomenon is a phenomenon that in recent months has become a hot topic of conversation among Indonesian people. This phenomenon is a phenomenon where teenagers from Jakarta and the surrounding area gather on Jalan Sudirman to show off their outfits or clothes to the general public. This phenomenon raises the economic potential to develop fashion SMEs in Indonesia. The purpose of this research is to design the concept of marketing and business branding in fashion SMEs in Indonesia. The research method used is descriptive qualitative with a literature and literature study approach. The results of this study are in the form of marketing and branding patterns in fashion SMEs. Not only that, this study also describes the landscape of the marketing and branding ecosystem for fashion SMEs in the era of the Citayam Fashion Week phenomenon

Understanding the technology acceptance model in the QRIS usage: Evidence from SMEs in Indonesia

This study aims to examine the Technology Acceptance Model (TAM) for QRIS usage in SMEs in Indonesia. We employed Partial Least Square Structural Equation Modelling (PLS-SEM) with a first-order reflective model to analyze the data. The dataset contains 107 SMEs in Medan, Indonesia (n = 107). There are four constructs in the model in this study, namely: perceived usefulness, perceived ease of use, attitude toward using, and behavioral intention to use. After evaluating measurement models and structural models known to meet the criteria, we can conclude the results of the data analysis. In general, all variables positively affect other variables in this model, although one of them is insignificant. The results indicate that perceived usefulness is positive and significantly affects attitude toward using and behavioral intention to use. At the same time, attitude toward using is also positive and significantly affects behavioral intention to use. Furthermore, perceived ease of use is also shown to have a positive and significant effect on attitude toward using and perceived usefulness. However, perceived ease of use insignificantly affects behavioral intention to use, although it still positively affects the behavioral intention to use. The findings of this study provide some crucial implications for SMEs and the provider of QRIS. Since the results indicate welcoming QRIS usage, the socialization of QRIS needs to be more massive to reach the vast majority of Indonesian SMEs in Indonesia.

Predicting the Adoption of Mobile Business Applications by Culinary SMEs in Indonesia

Objective: This study aims to analyze the adoption of mobile business applications by culinary SMEs in Indonesia using the extended TAM (technology acceptance model). The extended TAM used in this study uses additional variables such as subjective norms, self-efficacy, and facilitating conditions, which the previous study used these variables in the context of technology adoption. Research Design & Methods: The sample used was 424 respondents of culinary SMEs in Indonesia. Data collection was found using an online questionnaire, meanwhile, for data processing using the PLS-SEM method. Findings: The results show that culinary SMEs will use a mobile business application if the application is useful and easy to use. In addition, they also need to be encouraged by social environmental factors (subjective norms), self-confidence to use the application (self-efficacy), and supporting facilities conditions. Implications & Recommendations: Theoretically, this research uses extended TAM which has been used previously but in a different context, namely the adoption of mobile business applications. Practically, this research will provide insight for application development companies to create mobile business applications that can be well adopted by culinary SMEs. Contribution & Value Added: This study is the first to empirically employ the TAM, subjective norms, self-confidence, self-efficacy, and facilitating conditions in analyzing the adoption of mobile business applications by culinary SMEs.

ANALISIS KEUNGGULAN BERSAING PADA UMKM KOTA SURABAYA

Most of the factors that cause the competitiveness of MSMEs are still low, namely the quality of MSME human resources is still low, which is influenced by factors of education and managerial knowledge which play a major role in increasing MSME productivity. This study aims to analyze the competitive advantage of SMEs in Indonesia to support the productivity of SMEs in competitiveness. The respondents of this research are business actors in the city of Surabaya. Most of the business actors are managed by women, most of the culinary sector is in great demand by the community and most of the business actors have taken higher education. In addition, the results of this study indicate that business actors can optimize quality products, access suppliers that produce cheap raw materials and skilled business managers. This is expected to be the advantage of SMEs in being competitive.

An improvement of suppliermanufacture inventory system integrated with stochastic periodic review modeling for SMEs in Indonesia

SME LCR is one of the handicrafts SME in Yogyakarta, Indonesia. This SME produces several handicraft products such as storage baskets with various variants, and furniture. The process of ordering raw materials for SMEs is carried out when there is a demand for incoming products with the order quantity based on the raw material needs in meeting product demand. This study intends to provide recommendations for improving raw material governance to overcome demand fluctuations during the lead time and reduce the total cost of supply chain inventory by implementing an integrated inventory system. To meet the study aim, the EOQ Probabilistic P system (Period Review Method) is utilized. The P inventory model is distinguished into two models namely model P with backorder and model P with lost sales. Next, the Purchase Cost (Ob) and Procurement Costs are applied to the P model. The research method comprises through 3 stages: the pre-field stage, field stage, and the advanced stage (laboratory analysis, data analysis, and reporting). Given the results regarding banana and mendong raw materials supply, it can be observed that for banana raw materials, the reorder time interval that can generate the minimum total inventory cost for banana raw materials is 0.1470 years or 53 days with a total cost of IDR 263,721,081.72. Moreover, it is seen that the suggested model generates the minimum total cost of supply chain inventory compared to the SME policy and the individual model, which justifies the economic feasibility of this model.