ESC
Web of Science

Listed in Journal Citation Reports (JCR) and is ranked in Q3 (199/301) of Category BUSINESS by Journal Citation Indicator (JCI)

Clarivate

 
Source: Journal Citation ReportsTM from ClarivateTM 2022

Entrepreneurship and Sustainability Issues Open access
Journal Impact FactorTM (2022) 1.7
Journal Citation IndicatorTM (2022) 0.42
Enter to ENTREPRENEURSHIP AND
SUSTAINABILITY CENTER page

Enter to INSIGHTS INTO REGIONAL
DEVELOPMENT page

Navigation

Membership:

Crossref

OASPA

iThenticate

Recommended tools:

Get Mendeley Web Importer: Mendeley

Register for an ORCID iD (for authors and reviewers): ORCID

Join a global community of researchers using Kudos: Kudos

Get Adobe Acrobat Reader

Share: Facebook LinkedIn Twitter Add this article to your Mendeley library
HTML PDF
DOI 10.9770/jesi.2021.9.2(21)
Reference to this article should be made as follows:
Kurniawati, E.; Idris, I.; Handayati, P.; Osman, S. 2021. Digital transformation of MSMEs in Indonesia during the pandemic, Entrepreneurship and Sustainability Issues 9(2): 316-331. https://doi.org/10.9770/jesi.2021.9.2(21)
Received: 2021-08-15  |  Accepted: 2021-10-27  |  Published: 2021-12-30

Title

Digital transformation of MSMEs in Indonesia during the pandemic

Abstract

Digital transformation is a new trend in Industrial Era 4.0, leading to a new business pattern called the digital economy exacerbated by the crisis due to the Covid-19 pandemic. However, Indonesian Micro, Small, and Medium Enterprises (MSMEs) actors face obstacles in carrying out the business transformation process, as 90% of Indonesian MSMEs are still run conventionally. Therefore, the problem regarding resource unreadiness became the background of this research. This research aimed to find out the following aspects of MSME actors: (1) innovation priority during the Covid-19 pandemic, (2) acceptance of e-commerce, (3) levels of technology adoption, (4) difficulty levels in changing and adapting to technology, and (5) digital transformation in developing businesses due to the Covid-19 pandemic. This research employed a descriptive-quantitative approach in which the data were collected by distributing questionnaires to MSME actors in several cities in Indonesia. The results showed that (1) marketing innovation is the priority of MSMEs, (2) the majority of MSME actors are very receptive to the e-commerce, (3) the digital technology of e-commerce is major needed in MSMEs, (4) MSME actors find difficulties and obstacles in adaptation process, and (5) the combination of offline and online marketing methods became MSME actors’ choice as a survival strategy during the Covid-19 pandemic.

Keywords

digital transformation management, e-commerce, MSME, pandemic

JEL classifications

O30 , O32

URI

http://jssidoi.org/jesi/article/917

DOI

DOI 10.9770/jesi.2021.9.2(21)

Pages

316-331

Funding

This study was supported of the Ministry of Education and Culture. We also thank by the Research and Community Services Department and the Social Science Faculty of the Universitas Negeri Malang, Indonesia.

This is an open access issue and all published articles are licensed under a
Creative Commons Attribution 4.0 International License

Authors

Kurniawati, Elya
State University of Malang, Malang, Indonesia https://um.ac.id
Articles by this author in: CrossRef |  Google Scholar
Idris, Idris
State University of Malang, Malang, Indonesia https://um.ac.id
Articles by this author in: CrossRef |  Google Scholar
Handayati, Puji
State University of Malang, Malang, Indonesia https://um.ac.id
Articles by this author in: CrossRef |  Google Scholar
Osman, Sharina
Universiti Kuala Lumpur Business School, Kuala Lumpur, Malaysia https://bis.unikl.edu.my
Articles by this author in: CrossRef |  Google Scholar

Journal title

Entrepreneurship and Sustainability Issues

Volume

9

Number

2

Issue date

December 2021

Issue DOI

DOI 10.9770/jesi.2021.9.2

ISSN

ISSN 2345-0282 (online)

Publisher

VšĮ Entrepreneurship and Sustainability Center, Vilnius, Lithuania

Cited

Google Scholar

Article views & downloads

HTML views: 2806  |  PDF downloads: 1022

References

Anugrah, R. J. (2020). The effectiveness of the Implementation of the Strategy of Online Marketing by SMES In the Social Restrictions of Large-Scale (PSBB) Corona Viruses Disease 2019 (Covid-19). Jurnal Manajemen Dan Inovasi (MANOVA), 3(2), 55–65. https://doi.org/10.15642/manova.v3i2.302

Search via ReFindit

Argilés-Bosch, J. M., Ravenda, D., & Garcia-Blandón, J. (2020). E-commerce and labour tax avoidance. Critical Perspectives on Accounting, 102202. https://doi.org/10.1016/j.cpa.2020.102202

Search via ReFindit

Asmara, A. Y., & Rahayu, A. Y. S. (2020). Innovation in Delivering Public Health Service: Practice in Banyuwangi Regency – Indonesia (SSRN Scholarly Paper No. ID 3551065). Rochester, NY: Social Science Research Network. Social Science Research Network website: https://papers.ssrn.com/abstract=3551065

Search via ReFindit

Baase, S. (2008). A gift of fire: Social, legal, and ethical issues for computing and the Internet. Upper Saddle River, NJ: Pearson Prentice Hall.

Search via ReFindit

Baldacchino, G., & Bertram, G. (2009). The Beak of the Finch: Insights into the Economic Development of Small Economies. The Round Table, 98(401), 141–160. https://doi.org/10.1080/00358530902757867

Search via ReFindit

Bédard-Maltais, P.-O. (2017). Industry 4.0: The New Industrial Revolution: Are Canadian Manufacturers Ready? Business Development Bank of Canada.

Search via ReFindit

CGI. (2017). CGI Voice of Our Clients. Retrieved August 23, 2021, from https://www.cgi.com/en/voice-of-our-clients

Search via ReFindit

Cunningham, L. F., Gerlach, J. H., Harper, M. D., & Young, C. E. (2005). Perceived risk and the consumer buying process: Internet airline reservations. International Journal of Service Industry Management, 16(4), 357–372. https://doi.org/10.1108/09564230510614004

Search via ReFindit

Dhahir, D. F. (2020). The draft strategy of communications in an effort to reduce the digital divide. Jurnal Pikom (Penelitian Komunikasi dan Pembangunan), 20(2), 71–86. https://doi.org/10.31346/jpikom.v20i2.2235

Search via ReFindit

East Java statistical center. (2017). The Analysis of The Economic Census 2016 Results Listings of The Economic Potential Of East Java. https://jatim.bps.go.id/

Search via ReFindit

Fardani, A., & Surendro, K. (2011). Strategy The Adoption of Information Technology Based on Cloud Computing. 6.

Search via ReFindit

G20 - China 2016. (2016). G20 Digital Economy Development and Cooperation Initiative. http://www.g20chn.org/English/Documents/Current/index.html

Search via ReFindit

Gaffar, V., Rahayu, A., Adi Wibowo, L., & Tjahjono, B. (2021). The Adoption of Circular Economy Principles in the Hotel Industry (SSRN Scholarly Paper No. ID 3874443). Rochester, NY: Social Science Research Network. Social Science Research Network website: https://papers.ssrn.com/abstract=3874443

Search via ReFindit

Hamid, A. R. A. H. (2020). Social responsibility of medical journal: A concern for COVID-19 pandemic. Medical Journal of Indonesia, 29(1), 1–3.

Search via ReFindit

Hong, S., Kim, D., Ha, M., Bae, S., Park, S. J., Jung, W., & Kim, J. (2010). SNAIL: An IP-based wireless sensor network approach to the internet of things. IEEE Wireless Communications, 17(6), 34–42. https://doi.org/10.1109/MWC.2010.5675776

Search via ReFindit

Hood, J., Brandy, A., & Dhanasri, R. (2016). Industry 4.0 engages customers: The digital manufacturing enterprise powers the customer life cycle. Deloitte Insights.

Search via ReFindit

Husaini, Pirzada, K., Saiful, (2020). Risk Management, Sustainable Governance Impact on Corporate Performance. Journal of Security and Sustainability Issues, 9(3), 993-1004. https://doi.org/10.9770/jssi.2020.9.3(23)

Search via ReFindit

Javaria, K., Masood, O., & Garcia, F. (2020). Strategies to manage the risks faced by consumers in developing e-commerce. Insights into Regional Development, 2(4), 774–783. https://doi.org/10.9770/IRD.2020.2.4(4)

Search via ReFindit

Jong, J. D., & Wennekers, S. (2008). Conceptualizing entrepreneurial employee behaviour. Zoetermeer: SCALES (SCientific AnaLysis of Entrepreneurship and SMEs),

Search via ReFindit

Kala'lembang, A. (2020). The adoption of E-Commerce in Supporting the Development of Micro, Small and Medium enterprises (SMES) In the Pandemic Covid-19. CAPITAL: Jurnal Ekonomi dan Manajemen, 4(1), 54–65. https://doi.org/10.25273/capital.v4i1.7358

Search via ReFindit

Koch, V., Kuge, S., Geissbauer, R., & Schrauf, S. (2014). Industry 4.0: Opportunities and challenges of the industrial internet. Strategy & PwC, 5–50.

Search via ReFindit

Kurniawati, E. (2020). The decision of the Women Owners of SMES in East Java to Adopt E-Commerce. Jurnal Sosiologi Pendidikan Humanis, 4(2), 94–102.

Search via ReFindit

Kurniawati, E., & Setiawan, A. (2019, June). The Role of Indonesian Micro, Small, and Medium Enterprises Owners in Choosing E-Commerce Strategy in the Global Market. 191–194. Atlantis Press. https://doi.org/10.2991/icskse-18.2019.37

Search via ReFindit

Kurniawati, E., & Siddiq, I. H. A. (2020). Indonesian MSME E-Commerce among the Covid-19 Pandemic. GATR Global Journal of Business and Social Science Review, 8(4), 267 – 277.

Search via ReFindit

Kurniawati, E., Al Siddiq, I. H., & Idris, I. (2020). E-Commerce Opportunities in the 4.0 Era Innovative Entrepreneurship Management Development. Polish Journal of Management Studies, 21(1), 199–210. https://doi.org/10.17512/pjms.2020.21.1.15

Search via ReFindit

Kurniawati, E., Chrissendy, M., & Saputra, D. (2019). Behavioral factor influencing Indonesian micro, small and medium (msme’s) owners’ decision-making in adopting e-commerce. Journal of Entrepreneurship, Business and Economics, 7(1), 92–105.

Search via ReFindit

Kwilinski, A., Vyshnevskyi, O., & Dzwigol, H. (2020). Digitalization of the EU Economies and People at Risk of Poverty or Social Exclusion. Journal of Risk and Financial Management, 13(7), 142. https://doi.org/10.3390/jrfm13070142

Search via ReFindit

Lin, J., Li, L., Luo, X. (Robert), & Benitez, J. (2020). How do agribusinesses thrive through complexity? The pivotal role of e-commerce capability and business agility. Decision Support Systems, 135, 113342. https://doi.org/10.1016/j.dss.2020.113342

Search via ReFindit

Lopez-Gonzalez, J., & Box, S. (2017). The Future of Technology: Opportunities for ASEAN in the Digital Economy. Global Megatrends: Implications for the ASEAN Economic Community, edited by S. Tay and J. Tijaja. Jakarta: ASEAN Secretariat and Singapore Institute of International Affairs.

Search via ReFindit

Mahmood, I. P. (2018). 7 key challenges for the future of ASEAN. World Economic Forum website: https://www.weforum.org/agenda/2018/08/7-challenges-to-business-in-the-asean-region-and-how-to-solve-them/

Search via ReFindit

Musfiroh, M. F. S., Sabrina, L., & Wuragil, S. (2017). Kontribusi Perbankan Syariah Terhadap Perkembangan Umkm Di Kecamatan Banjarnegara. Manarul Qur’an: Jurnal Ilmiah Studi Islam, 17(1), 136–158. https://doi.org/10.32699/mq.v17i1.928

Search via ReFindit

National Medium Term Development Plan (RPJMN) 2020-2024. (n.d.). https://www.bappenas.go.id/id/berita-dan-siaran-pers/rencana-pembangunan-jangka-menengah-nasional-rpjmn-2020-2024/

Search via ReFindit

Neuman, W. L. (2013). Social Research Methods: Qualitative and Quantitative Approaches. Boston: Pearson.

Search via ReFindit

OECD. (2017). Going Digital: Making the Transformation Work for Growth and Well-Being. OECD Publishing. (Paris). https://www.oecd.org/mcm/documents/C-MIN-2017-4%20EN.pdf

Search via ReFindit

Palinggi, S., & Limbongan, E. C. (2020). Pengaruh Internet Terhadap Industri Ecommerce Dan Regulasi Perlindungan Data Pribadi Pelanggan Di Indonesia. Semnas Ristek (Seminar Nasional Riset Dan Inovasi Teknologi), 4(1). http://www.proceeding.unindra.ac.id/index.php/semnasristek/article/view/2543

Search via ReFindit

Pestean, V. (2021). Didactic Approaches for a Quality Digital Learning. GATR Global J. Bus. Soc. Sci. Review, 9(3), 233 – 241. https://doi.org/10.35609/gjbssr.2021.9.3(5)

Search via ReFindit

Pirzada, K. (2016). Providers and users’ perception of voluntary need of human resource disclosure: A content analysis. Polish Journal of Management Studies, 14(2) 232-242. http://doi.org/10.17512/pjms.2016.14.2.22

Search via ReFindit

Pirzada, K., Mustapha, M. Z. B., & Wickramasinghe, D. (2015). Firm Performance, Institutional Ownership and Capital Structure: A Case of Malaysia. Procedia-Social and Behavioral Sciences, 211, 170-176. doi: 10.1016/j.sbspro.2015.11.025

Search via ReFindit

Prasetyo, R. (2020). Local Government Role in the Digital Transformation Acceleration of Small and Medium Industry. Jurnal Iptekkom (Jurnal Ilmu Pengetahuan & Teknologi Informasi), 22(1), 59–75. https://doi.org/10.33164/iptekkom.22.1.2020.59-75

Search via ReFindit

Rados, T., Simic, S., & Misevic, P. (2019). Digital Transformation - The Implementation Process in The Case of The Croatian Chamber of Economy (Cce). Economic and Social Development 46th International Scientific Conference on Economic and Social Development – “Sustainable Tourist Destinations.”

Search via ReFindit

Saifuddin, M. (2013). Influence of the type of endorser and brand name on the attitude of the top of the ad, attitude of top-brand, and purchase intentions on the product high and low involvement. Jurnal Ekonomi dan Bisnis, (3), 15.

Search via ReFindit

Saifuddin, M. (2020). A Strategy to increase economic social institutions by utilizing the marketing application based on Android (Case study on business unit Kidpreneuer in the foundation of Al Madina Surabaya). JBT (JURNAL BISNIS dan TEKNOLOGI), 7(1), 16–20.

Search via ReFindit

Saputra, N; Herlina, M.G. (2021). Double-sided perspective of business resilience: leading SME rationally and irrationally during COVID-19, J. Mgt. Mkt. Review, 6(2) 125 – 136. https://doi.org/10.35609/jmmr.2021.6.2(4)

Search via ReFindit

Saputra, N., & Herlina, M. G. (2021). Double-sided perspective of business resilience: leading SME rationally and irrationally during Covid-19 (SSRN Scholarly Paper No. ID 3873947). Rochester, NY: Social Science Research Network. Social Science Research Network website: https://papers.ssrn.com/abstract=3873947

Search via ReFindit

Satya, V. E. (2018). Strategi Indonesia Menghadapi Industri 4.0. Info Singkat, 10(9), 6.

Search via ReFindit

Shevyakova, A., Munsh, E., Arystan, M., & Petrenko, Y. (2021). Competence development for Industry 4.0: Qualification requirements and solutions. Insights into Regional Development, 3(1), 124–135. https://doi.org/10.9770/IRD.2021.3.1(7)

Search via ReFindit

Slamet, R., Nainggolan, B., Roessobiyatno, R., Ramdani, H., Hendriyanto, A., & Ilma, L. L. (2017). Development strategy of SMEs in the digital era of the free market. Jurnal Manajemen Indonesia, 16(2), 136–147. https://doi.org/10.25124/jmi.v16i2.319

Search via ReFindit

Sugiyono. (2012). Research Method Combination (Mixed Methods). Bandung: Alfabeta.

Search via ReFindit

Suryani, A., & Pirzada, K. (2018). Analysis of opportunistic behavior of management to company performance. Polish Journal of Management Studies, 18(1) 379-388. http://doi.org/10.17512/pjms.2018.18.1.28

Search via ReFindit

Teh, S. S., & Kee, D. M. H. (2019). The Readiness of Small and Medium Enterprises for the Industrial Revolution 4.0 (SSRN Scholarly Paper No. ID 3528271). Rochester, NY: Social Science Research Network. Social Science Research Network website: https://papers.ssrn.com/abstract=3528271

Search via ReFindit

The ministry of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia. (2017). The Development of The Data of Micro, Small, And Medium Enterprises (Smes) And Large Businesses (Ub) Of the Year 2016-2017. http://www.depkop.go.id

Search via ReFindit

The ministry of Cooperatives and Small and Medium Enterprises of the Republic of Indonesia. (2019). http://www.depkop.go.id

Search via ReFindit

UN ESCAP. (2019). https://www.unescap.org

Search via ReFindit

UNCTAD. (2019). Digital Economy Report 2019: Value creation and capture–implications for developing countries. Geneva.

Search via ReFindit

United Nations. (2017). https://www.un.org

Search via ReFindit

Victor, V., Fekete Farkas, M., & Lakner, Z. (2019). Consumer attitude and reaction towards personalised pricing in the e-commerce sector (SSRN Scholarly Paper No. ID 3420888). Rochester, NY: Social Science Research Network. Social Science Research Network website: https://papers.ssrn.com/abstract=3420888

Search via ReFindit

Vineles, P. (2017). ASEAN Connectivity: Challenge for an Integrated ASEAN Community. RSIS Commentary: S. Rajaratnam School of International Studies, NTU.

Search via ReFindit

Wahyuni, F., Irwansyah, & Aprilia, M. P. (2019). The process of innovation adoption by the use of e-commerce marketing application. IEEE 4th International Conference on Computer and Communication Systems.

Search via ReFindit

We Are Social. (2020, January 30). Digital 2020: 3.8 billion people use social media. https://wearesocial.com/blog/2020/01/digital-2020-3-8-billion-people-use-social-media

Search via ReFindit

Webster, C. (1995). Marketing culture and marketing effectiveness in service firms. Journal of Services Marketing, 9(2), 6–21. https://doi.org/10.1108/08876049510085973

Search via ReFindit

Wijoyo, H., & Widiyanti, W. (2020). The Digitization of Micro, Small and Medium Enterprises (Smes) In the Era of Pandemic Covid-19. Seminar Nasional Kahuripan, 10–13.

Search via ReFindit

Yunus, N.M; Wahob, N.A. (2021). The technology and knowledge spillover Effects of FDI on labour productivity. J. Bus. Econ. Review, 5(4) 51–58. https://doi.org/10.35609/jber.2021.5.4(5)

Search via ReFindit

SUBMIT YOUR ARTICLE

Browse

RSS FEEDS


Archived in:
CLOCKSS


Recognized by:
National Agency for the Evaluation of Universities and Research Institutes


Flag Counter

qr code