MSMEs In Indonesia Research Articles

Examining the Impact of Knowledge Management Use and Innovation on Business Performance of MSMEs in the Digital Age. Case Study MSMEs in Indonesia

Examining the Impact of Knowledge Management Use and Innovation on Business Performance of MSMEs in the Digital Age. Case Study MSMEs in Indonesia

Bridging Theory and Practice: Applying Vrio and Pest to Foster Digital Transformation in Kadin Bandung City Msmes

ABSTRACT The data indicates that approximately 70% of MSMEs in Indonesia operate within the food and beverage sector, with 99.5% falling under the MSME classification. Despite being perceived as having numerous advantages, MSMEs face several limitations that hinder their ability to enhance competitiveness and growth. The PKM program is designed to equip participants with relevant knowledge and skills, aiming to improve product quality, expand market access, and implement effective digital strategies. The approach employed involved direct counseling and mentoring sessions for 20 women-led MSMEs supported by KADIN Bandung City. The most notable improvement was observed in participants' understanding of the benefits of digital transformation, along with a strong motivation to apply it within their business practices. Overall, the counseling and mentoring activities demonstrated their effectiveness in enhancing participants' comprehension and motivation to implement the three concepts presented in a practical business context. Keywords: PEST Analysis, VRIO Analysis, Digital Transformation

Strategi Pemasaran UMKM di Era Digital: Studi Kasus Gamis Hijab Terbaru Riskirich Menggunakan Aplikasi TikTok Shop

This article discusses the digital marketing strategy used by Riskirich, an MSME operating in the Muslim fashion industry, especially robes and hijabs. The main focus of this research is the use of TikTok Shop as the main marketing and sales platform. This study aims to analyze the effectiveness of TikTok Shop in increasing brand recognition and product sales, as well as identifying the challenges and opportunities faced by Riskirich's newest hijab gamis in developing its digital marketing strategy. MSMEs in Indonesia face many challenges in marketing the products they sell, due to the COVID pandemic – 19 which occurred in 2019 to 2021 changed everything to become completely digital, so that all MSMEs in Indonesia inevitably had to market their products online. This research uses a qualitative approach with a case study method and data collection through interviews, observation and social media analysis. The research results show that using TikTok Shop significantly increases product visibility and interaction with customers, but there are challenges in terms of content management and adaptation to the platform's algorithms.

Digitalisation Empowerment of Business to Digital Innovation in the Achievement of SDGs: A Survey on Creative Msme Actors in Indonesia

Objective: This study aims to test and analyse the relationship patterns of digital business-based training, empowerment of MSME actors, digital self-efficacy and digital innovation in creative MSMEs for the achievement of SDGs in MSMEs in West Java and Banten Provinces, Indonesia. Theoretical Framework: Digital literacy is needed so that a person has the ability to access information related to digital-based media. MSMEs are required to have renewable digital-based business methods in order to provide optimal and satisfying services. When MSMEs have high digital literacy through digital-based training, they could increase high self-efficacy. Empowering MSMEs based on digital business is very necessary in the digital era. Human resources in the organisation is expected to have digital competencies (skills, knowledge, attitude). Also, employees are expected to increase digital self-efficacy in order to increase digital innovation and MSME performance in the long term. Method: This study uses quantitative method by distributing questionnaires to 250 natural colour batik MSMEs in West Java and Banten Provinces. 207 questionnaires are filled in completely and then processed with Partial Least Square statistical techniques. Results and Discussion: This study finds that digital-based business training has a significant positive impact on the empowerment of MSME actors, and digital self-efficacy of MSME actors. In addition, empowerment of MSME players has significant positive impact on digital innovation and digital self-efficacy. On the other hand, digital self-efficacy of MSME actors has significant positive impact on digital innovation and is able to mediate the effect of business digital-based training on digital innovation. However, empowerment of MSME actors cannot mediate the effect of business digital-based training on digital innovation. Research Implications: This study provide guidance for the government and MSME empowerment organisations to design more targeted digital-based training. In addition, this study highlights the importance of supporting technological infrastructure and providing wider access to digital technology, especially for creative MSMEs in Indonesia. This study also enriches the literature on the role of digital training on digital empowerment and digital self-efficacy. Likewise, it provides implications for the role of digital empowerment and digital self-efficacy in encouraging digital innovation. Originality/Value: This study offers a business digitalisation empowerment model for creative MSMEs in order to increase digital innovation for creative MSMEs in achieving SDGs in Indonesia. The research model considers digital-based business training, empowerment of MSME players, and digital self-efficacy.

Analisis Strategi Pengembangan Bisnis Jasa Boga Menggunakan Analisis Swot dengan Analytic Hierarchy Process

The existence of MSMEs in Indonesia has spread in various regions, one of which is the Cikarang area. Food Service Company is one of the businesses with high opportunities in Cikarang, PT Buana Boga Catering is a food service business in Cikarang that focuses on running catering for industrial employees, because this company prioritizes target consumers who are in the area around the Cikarang Industrial Estate. PT Buana Boga Catering must continue to innovate in order to survive from existing competitors. The purpose of this study is to analyze the company's development strategy and provide recommendations for new business strategies to create new value that can help PT Buana Boga Catering maintain its business. In this study the authors used the Mix Method research method, namely, utilizing qualitative methods together with quantitative methods, using SWOT analysis and Analytic Hierarchy Process to evaluate it. Based on the research conducted, the results show that there are several alternative business development strategies with the main priority being the use of alternative raw materials that are more suitable in terms of price and availability so as to maintain production costs and increase profits.

Linking psychological capital, technology readiness and entrepreneurial orientation to entrepreneurs’ financial performance: a study of women MSMEs in Indonesia

Linking psychological capital, technology readiness and entrepreneurial orientation to entrepreneurs’ financial performance: a study of women MSMEs in Indonesia

Have MSMEs in Indonesia Focused on Business Sustainability? The Influence of Environmental Orientation, Technology Implementation, Green Marketing, and Innovation Capability

The aim of this study is to determine the factors that impact MSMEs' sustainability practices and the degree to which they concentrate on business sustainability in Indonesia. This study used a quantitative research approach and collected survey data from MSMEs in Indonesia operating in various industries totaling 350 samples. Partial Least Squares Structural Equation Modeling (PLS-SEM) was used for data analysis to assess the relationship between variables. The study discovered that a focus on the environment, the application of technology, and green marketing greatly improve an organization's capacity for innovation, which in turn has a favorable impact on the sustainability of the firm. MSMEs are more likely to develop and maintain their business practices over time if they invest in green marketing techniques, use cutting-edge technologies, and give priority to environmental issues. In order to attain sustainability, MSMEs should include technology, marketing, and environmental initiatives into their fundamental business operations, according to the research. It is recommended that policymakers provide incentives, subsidies, and training programs to MSMEs in order to encourage the adoption of technology and green marketing. Support like this can encourage sustainable practices throughout the industry and close the digital divide. This study offers insightful information about the combined effects of environmental orientation, technology adoption, and green marketing on MSMEs in Indonesia's capacity for innovation and long-term viability of their businesses. It gives helpful suggestions for boosting MSMEs' sustainability and emphasizes the crucial role that innovation plays in converting these elements into sustainable business practices.

AKUMULASI MODAL DESAINER GRAFIS DI TENGAH PERTUMBUHAN EKONOMI: TANTANGAN ATAU ANCAMAN (?)

Economic growth indicates a demand for design needs, specifically to support MSMEs in Indonesia. This paper aims to explain and understand how capital accumulation is conducted by graphic designers to exist and survive in the Indonesian graphic design arena. The paper attempts to explore the strategies of graphic designers with various starting points. It borrows Bourdieu's perspective related to cultural intermediaries and capital. Graphic designers without a design background try to accumulate cultural capital from self-taught knowledge obtained from tutorials on various digital media platforms. The accumulation of social capital begins within the nearest accessible environment, such as friendship circles. Different from other graphic designers, Bli Putu Angga, who is a fine arts graduate and also a content creator, possesses cultural capital from his branding activities. Social capital enables him to engage in various collaborations, including endorsements. Symbolic capital comes from the number of followers and the blue check mark on his Instagram, which signifies professionalism and quality as a graphic designer. The capital accumulation conducted by graphic designers indicates a desire to exist and climb the social ladder in the graphic design world.

Utilization Of Digital Platforms In Realizing SDG 8.3 Entrepreneurship In Msmes With The 9F Model Approach: A Study On The Hijab Fashion Business In Sidoarjo District, East Java.

The utilization of digital platforms has become a key strategy to increase the competitiveness of MSMEs in Indonesia, particularly in the hijab fashion sector. This study aims to analyze the impact of digital platforms and the implementation of the 9F Entrepreneurship Model on MSMEs in Sidoarjo District, as well as its contribution to achieving Sustainable Development Goal (SDG) 8.3, which focuses on promoting economic productivity and entrepreneurship. This qualitative research employs a case study method involving five MSMEs in the hijab fashion industry, selected through purposive sampling. Data were collected through in-depth interviews and direct observations of business owners. The findings indicate that integrating digital platforms such as Instagram, WhatsApp, Facebook, Shopee, and TikTok with the 9F model significantly enhances innovation, visibility, and flexibility in MSMEs’ responses to market changes. Among the 169 MSMEs in the fashion sector in Sidoarjo, 26 focus on hijab fashion, with five MSMEs participating in this research. These MSMEs reported improvements in market reach and operational efficiency through digital platforms. Additionally, the integration of digital strategies supports economic growth aligned with SDG 8.3. This approach shows that the combination of digital platforms and the 9F Entrepreneurship Model can be an essential strategy for developing MSMEs in the hijab fashion sector, contributing to local economic growth and government efforts to achieve SDG 8.3.

Exploring the impact of consumer behavior and innovation orientation on business strategy and firm performance: Insights from MSMEs in Indonesia

The purpose of this research is to examine and analyse the influence of consumer behaviour and innovation orientation on firm performance through business strategy, impacting the performance of MSMEs in Karanganyar, Indonesia. The study utilizes a quantitative approach, collecting data through questionnaires and semi-structured interviews with 80 owners of Mbangun Makhutoromo MSMEs Cluster in Karanganyar, Indonesia. The collection data were analysed using linear regression and path analysis with SPSS 24 software. The results indicate that consumer behaviour and innovation orientation significantly impact business strategy. Consumer behaviour has both direct and indirect effects on firm performance through business strategy. On the other hand, innovation orientation affects company performance indirectly through business strategy rather than directly. Enhancing company performance is more effective through direct consumer behaviour analysis. Additionally, well-formulated business strategies can leverage innovation orientation to achieve indirect improvement. For MSMEs to improve performance, a focus on understanding and analysing consumer behaviour is crucial. Business strategies should indirectly employ innovation orientation. This approach requires careful adaptation to environmental changes, consumer preferences, and market trends to ensure sustained business growth and competitiveness.

Marketing and IT capability as mediators: The role of digital marketing and orientation on SMEs marketing performance

The aim of this research is to examine the correlation linking digital marketing and the digital sphere orientation on marketing performance of MSMEs in Indonesia. Then, how information technology capabilities and marketing capabilities can be mediating variables between these three variables. This research uses a quantitative approach. This research falls under the category of exploratory research. The population in this study was 2,766; the research sample came from 338 MSMEs that are Go-Food partners spread across 4 districts on the island of Madura, Indonesia. The findings of the study indicate that digital marketing and digital orientation significantly influence the marketing performance of MSMEs. Information technology and marketing capabilities can be mediating and are variables that support other variables. The impact of this research is practical for Small and Medium Enterprises because, by improving marketing performance, they can maximize and develop their marketing capabilities. Information technology and marketing capability are widely used in research involving large companies. This research brings information technology capability within the scope of MSMEs because digital marketing has been widely applied to improve marketing performance. Then, this research has a practical implication to contribute to the role of information technology and marketing capability to answer how digital marketing impacts marketing performance.

The Impact of Social Commerce Restriction Legislation on the Growth of MSMEs in Indonesia

The Impact of Social Commerce Restriction Legislation on the Growth of MSMEs in Indonesia

Improving Customer Engagement of Food and Beverage Small and Medium Enterprises (MSMEs) Through E-Commerce and Content Marketing Training

Over the past five years, the rapid growth of MSMEs in Indonesia has also resulted in many MSMEs going bankrupt. However, this rapid growth of MSMEs is also accompanied by many MSMEs going bankrupt due to mismanagement and low competitiveness caused by the lack of adaptability to business digitalization through e-commerce and product promotion strategies through digital media. Similar problems are also experienced by Food and Beverage MSMEs in Ketintang Village, Surabaya. This drives the importance of increasing competitiveness with more effective business management and digital marketing strategies through community service programs in this area. This community service-based research consists of online store design training activities in e-commerce marketplaces and content marketing with outputs in the form of scientific publications in indexed international journals, publications in the mass media, increasing community understanding and skills, and YouTube videos aimed at improving customer engagement in e-commerce marketplaces. Using the experimental method, this study concluded that SMEs showed a positive perception of the importance of e-commerce in increasing market reach and sales and insight into digital marketing in compiling content marketing that can increase customer engagement for food and beverage products.

Prioritizing Islamic Financial Literacy for MSMEs in Indonesia

Islamic financial literacy in Indonesia is still quite low, when compared to financial literacy in general. This study aims to determine the priority of Islamic financial literacy in MSMEs in Indonesia. The method used in this research is Delphi, with research data coming from interviews with academics, practitioners and regulators of finance and Islamic economics in general, totaling 11 respondents. The results of the analysis found that there are 14 variables of Islamic financial literacy problems of MSMEs in Indonesia, and all variables have been agreed upon by economic experts. From the results of the calculation using the Delphi method, there are 3 main priorities for Islamic financial literacy of MSMEs in Indonesia, namely increasing the involvement of MSMEs as agents of Shariah financial literacy, expanding MSME access to the Islamic Financial Institutions (IFIs) sector, and encouraging IFI to develop simple and affordable products.

The Role of Islamic Bank Financing in Increasing the Productivity of MSMEs in Indonesia

The Role of Islamic Bank Financing in Increasing the Productivity of MSMEs in Indonesia

Legal Framework for Trademark Manifestation as Collateral Financing to Enhance the Capacity of MSMEs in Indonesia

Legal Framework for Trademark Manifestation as Collateral Financing to Enhance the Capacity of MSMEs in Indonesia

THE ROLE OF ENTREPRENEURSHIP ORIENTATION IN THE EFFECT OF DIGITAL MARKETING THROUGH SOCIAL MEDIA ON THE PERFORMANCE OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMEs) IN INDONESIA

This research contributes to formulating policies and programs related to MSMEs, especially digital marketing in Indonesia. This research examines the role of entrepreneurial orientation on the influence of digital marketing via social media on MSMEs in Indonesia. Although several studies have examined the relationship between the use of social media (Technology Acceptance Model, TAM) and company business performance, the existence of inconsistencies in previous research results opens up obstacles for this research to develop theory and strengthen weaknesses. Previous research, as well as complementing the growing digital marketing literature. This research involved 500 MSME owners in Indonesia, where an online survey of MSME owners was the data collection instrument. The data has been analysed using SEM (Structural Equation Modeling) via AMOS (Analysis of Moment Structure) software. Results showed that perceived ease of use positively affected attitudes towards using social media. The benefits of using social media and attitudes towards using social media have a positive effect on attitudes towards using social media. The use of social media has a positive impact on the performance of MSMEs. Then, entrepreneurial orientation has a positive effect on the performance of MSMEs. Furthermore, entrepreneurial orientation moderates the influence of social media use on MSME's performance, meaning that entrepreneurial orientation strengthens the influence of social media use on MSME's performance. The research implication is that it contributes to the TAM literature, where all tests support the TAM theory. Future research is encouraged to replicate the moderation model developed in this study as applicable to other countries and regions for better generalisation. Future research can add control variables such as age, education, and experience to the relationship between social media use and MSME performance. From a practical point of view, the government needs to intervene to improve the business performance of MSMEs. One of them is providing reliable and affordable internet connectivity, equal distribution of internet infrastructure, especially in rural and remote areas, providing digital literacy and training among business owners and employees. Then, MSME players must be oriented towards entrepreneurship by producing innovative new products and more modern marketing innovations digitally through social media.

Mapping the Digital Footprint of Women Entrepreneurs in East Java

This research objective comprehensively analyze characteristics based on East Java female entrepreneurs. The selection of East Java as the research subject stems from being the second province with the highest number of MSMEs in Indonesia. The research gap, examined descriptively and spatially, aims to provide a more comprehensive insight into the digital transformation of female entrepreneurs in East Java and its correlation with the social construction perspective through an in-depth literature review. The patterns within the relationship between female entrepreneurship and socio-cultural constructs will contribute novelty to this analytical study. The data utilized in this study are secondary and numeric, obtained through the National Socioeconomic Survey (SUSENAS) in 2022 and have been analyzed in descriptive statistics. The result revealed that from spatial analysis, it is observed that Sumenep, Pamekasan, Bojonegoro, Malang, and Jember are the regions with the highest levels of female entrepreneurship in East Java. Meanwhile, areas with the lowest levels of female entrepreneurship are the cities of Madiun, Pasuruan, Probolinggo, and Mojokerto. The high motivation of female entrepreneurs is for additional income, and they adopt digitalization strategies to optimize their operations and income. Further, there remains a noticeable credit access, usability, and digital usage divide gap among male and female entrepreneurs in East Java. Keywords: women empowerment, SMEs, digitalization, gender equality

Financial literacy, financial technology, and financial inclusion: Effect on the financial management of MSME

This research analyzes the effect of financial literacy, FinTech, and financial inclusion on the financial management of MSMEs in Indonesia, using the Resource-Based View theory and the Technology Acceptance Model. This research uses quantitative methods with a population of 27,162 MSMEs in Badung Regency. The sampling method uses probability sampling with a simple random sampling technique, with a sample of 395 MSMEs. Data was collected through questionnaires in hardcopy form and Google Form. Hypothesis testing was carried out using the Structural Equation Model (SEM) approach based on Partial Least Square (PLS) version 4. The research results show that financial literacy, financial technology and financial inclusion have an influence on financial management. The strongest variable that has an influence on financial management is the financial technology variable. This shows that technology adoption can increase effectiveness in financial management. It was found that the higher the financial literacy and adoption of financial technology, as well as financial inclusion, the wiser MSMEs in Badung manage their finances. They are better prepared to face challenges, increase transparency, and gain access to financing. This research recommends using a wider sample, for example using samples from all districts/cities in the province.

Pendampingan Usaha Mikro dalam Upaya Meningkatkan Penjualan melalui Digitalisasi

MSMEs in Indonesia play an important role in building the country's economy. There are many obstacles in doing business, especially in MSMEs, such as experiencing a decrease in turnover to closing their business. One of the business hurdles faced is the lack of access to large markets and the lack of skills in utilizing digital technology to expand markets and increase income. The method used in this research is a mentoring method in the form of introducing digitalization in MSMEs. The stages of this mentoring activity begin with observation, interviews, and mentoring. Digital-based MSMEs are businesses that use digital technology, not only in the marketing sector but all business processes of these MSMEs. Digital-based MSMEs are a sector that is growing rapidly due to the adoption of information technology and the internet. The conclusion from the discussion above is the importance of assistance to micro businesses (MSMEs) in facing technological advances by using digitalization to increase sales. However, one of the challenges in this assistance is the lack of technological literacy and limited capital.