Optimizing the Performance and Governance of MSMEs in the Special Region of Yogyakarta Through Digitalization
DOI:
https://doi.org/10.61476/b0n48c40Keywords:
E-Commerce, MSMEs Governance, Digital Expertise and PerformanceAbstract
A significant feature of technology is its capacity to change the routines and behavior of business players, especially MSMEs actors. MSMEs players in the Special Area have been impacted by the Covid-19 outbreak and are now looking to the MSMEs sector for business opportunities. It is necessary to overcome the difficulty of attaining the digitization of MSMEs. The fact that the MSMEs actors are not fundamentally and mentally equipped is another problem. The study's objective is to evaluate the effectiveness of using digital literacy, e-commerce, and skills as a tactic to enhance MSMEs governance and performance. The main sources of data for the study were imaginative MSMEs Daerah Istimewa Yogyakarta actors. The analytical unit of the study is the manager or owner of MSMEs in Daerah Istimewa Yogyakarta. In this study, primary data are gathered by a questionnaire. The sample size was established using a simple proportionate random sampling approach. The AMOS SEM analysis tool and a sample of 20% of all MSMEs in each district and city of the Daerah Istimewa Yogyakarta are used to achieve this. According to the study's findings, E-Commerce affects the MSMEs Governance, Digital Expertise affects MSMEs Governance and Performance, MSMEs Governance the performance of MSMEs. However, E-Commerce has no effect on the performance of MSMEs.
References
Adella, L. and Rio, M. (2021) ‘dan kinerja keuangan : Studi pada masa pandemi Covid-19’, STIE Perbanas Press 2021, 11, pp. 73–92. doi: 10.14414/jbb.v11i1.2552.
Agyekum, F. K. et al. (2021) ‘Does technological inclusion promote financial inclusion among SMEs? Evidence from South-East Asian (SEA) countries’, Global Finance Journal, (September 2020), p. 100618. doi: 10.1016/j.gfj.2021.100618.
Amaral, A. and Peças, P. (2021) ‘SMEs and Industry 4.0: Two case studies of digitalization for a smoother integration’, Computers in Industry, 125. doi: 10.1016/j.compind.2020.103333.
Ardito, L. et al. (2021) ‘The duality of digital and environmental orientations in the context of SMEs: Implications for innovation performance’, Journal of Business Research, 123(February 2020), pp. 44–56. doi: 10.1016/j.jbusres.2020.09.022.
Arianto, B. (2020) ‘Pengembangan UMKM Digital di Masa Pandemi Covid-19’, ATRABIS: Jurnal Administrasi Bisnis (e-Journal), 6(2), pp. 233–247. Available at: https://www.jurnal.plb.ac.id/index.php/atrabis/article/view/512.
Basco, R., Hernández-Perlines, F. and Rodríguez-García, M. (2020) ‘The effect of entrepreneurial orientation on firm performance: A multigroup analysis comparing China, Mexico, and Spain’, Journal of Business Research, 113(May), pp. 409–421. doi: 10.1016/j.jbusres.2019.09.020.
Briozzo, A., Albanese, D. and Santolíquido, D. (2017) ‘Gobierno corporativo, financiamiento y género: un estudio de las pymes emisoras de títulos en los mercados de valores argentinos’, Contaduria y Administracion, 62(2), pp. 358–376. doi: 10.1016/j.cya.2017.03.002.
Budiarto, D. S., Vivianti, E. and Diansari, R. E. (2021) ‘Maintaining the Performance and Sustainability of MSMEs with E-Commerce: Research during the Covid-19 Pandemic’, Journal of Economics, Business, & Accountancy Ventura, 23(3). doi: 10.14414/jebav.v23i3.2463.
Chatterjee, S., Dutta Gupta, S. and Upadhyay, P. (2020) ‘Technology adoption and entrepreneurial orientation for rural women: Evidence from India’, Technological Forecasting and Social Change, 160(August 2019), p. 120236. doi: 10.1016/j.techfore.2020.120236.
Ciampi, F. et al. (2021) ‘Exploring the impact of big data analytics capabilities on business model innovation: The mediating role of entrepreneurial orientation’, Journal of Business Research, 123(October 2020), pp. 1–13. doi: 10.1016/j.jbusres.2020.09.023.
Covin, J. G. et al. (2020) ‘Individual and team entrepreneurial orientation: Scale development and configurations for success’, Journal of Business Research, 112(February), pp. 1–12. doi: 10.1016/j.jbusres.2020.02.023.
Denicolai, S., Zucchella, A. and Magnani, G. (2021) ‘Internationalization, digitalization, and sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths’, Technological Forecasting and Social Change, 166(March 2020), p. 120650. doi: 10.1016/j.techfore.2021.120650.
Dogan, N. (2015) ‘The Intersection of Entrepreneurship and Strategic Management: Strategic Entrepreneurship’, Procedia - Social and Behavioral Sciences, 195, pp. 1288–1294. doi: 10.1016/j.sbspro.2015.06.290.
Donbesuur, F., Boso, N. and Hultman, M. (2020) ‘The effect of entrepreneurial orientation on new venture performance: Contingency roles of entrepreneurial actions’, Journal of Business Research, 118(November 2019), pp. 150–161. doi: 10.1016/j.jbusres.2020.06.042.
Gavrila Gavrila, S. and de Lucas Ancillo, A. (2021) ‘Spanish SMEs’ digitalization enablers: E-Receipt applications to the offline retail market’, Technological Forecasting and Social Change, 162(October 2020), p. 120381. doi: 10.1016/j.techfore.2020.120381.
Ghozali, Imam. (2016). Aplikasi Analisis Multivariete Dengan Program IBM SPSS 23 (Edisi 8). Cetakan ke VIII. Semarang : Badan Penerbit Universitas Diponegoro
Ginting, G. (2015) ‘Open Innovation Model: Empowering Entrepreneurial Orientation and Utilizing Network Resources as Determinant for Internationalization Performance of Small Medium Agroindustry’, Agriculture and Agricultural Science Procedia, 3, pp. 56–61. doi: 10.1016/j.aaspro.2015.01.013.
Gölgeci, I., Larimo, J. and Arslan, A. (2017) ‘Institutions and dynamic capabilities: Theoretical insights and research agenda for strategic entrepreneurship’, Scandinavian Journal of Management, 33(4), pp. 243–252. doi: 10.1016/j.scaman.2017.08.003.
Hunt, R. A. (2021) ‘Entrepreneurial orientation and the fate of corporate acquisitions’, Journal of Business Research, 122(August 2019), pp. 241–255. doi: 10.1016/j.jbusres.2020.09.002
Jaswadi, Iqbal, M. and Sumiadji (2015) ‘SME Governance in Indonesia – A Survey and Insight from Private Companies’, Procedia Economics and Finance, 31(15), pp. 387–398. doi: 10.1016/s2212-5671(15)01214-9.
Kabanda, S. and Brown, I. (2017) ‘A structuration analysis of Small and Medium Enterprise (SME) adoption of E-Commerce: The case of Tanzania’, Telematics and Informatics, 34(4), pp. 118–132. doi: 10.1016/j.tele.2017.01.002.
Kohtamäki, M. et al. (2020) ‘Strategic agility in innovation: Unpacking the interaction between entrepreneurial orientation and absorptive capacity by using practice theory’, Journal of Business Research, 118(October 2019), pp. 12–25. doi: 10.1016/j.jbusres.2020.06.029.
Kurnia, S. et al. (2015) ‘E-commerce technology adoption: A Malaysian grocery SME retail sector study’, Journal of Business Research, 68(9), pp. 1906–1918. doi: 10.1016/j.jbusres.2014.12.010.
Lee, V. H. et al. (2016) ‘Can competitive advantage be achieved through knowledge management? A case study on SMEs’, Expert Systems with Applications, 65, pp. 136–151. doi: 10.1016/j.eswa.2016.08.042.
Liu, J., Nandhakumar, J. and Zachariadis, M. (2018) ‘When guanxi meets structural holes: Exploring the guanxi networks of Chinese entrepreneurs on digital platforms’, Journal of Strategic Information Systems, 27(4), pp. 311–334. doi: 10.1016/j.jsis.2018.10.003.
Matarazzo, M. et al. (2021) ‘Digital transformation and customer value creation in Made in Italy SMEs: A dynamic capabilities perspective’, Journal of Business Research, 123(February 2020), pp. 642–656. doi: 10.1016/j.jbusres.2020.10.033.
Munir, A., Lim, M. K. and Knight, L. (2011) ‘Sustaining competitive advantage in SMEs’, Procedia - Social and Behavioral Sciences, 25(2011), pp. 408–412. doi: 10.1016/j.sbspro.2012.02.052.
Nguyen, L. T. et al. (2020) ‘Transforming social capital into performance via entrepreneurial orientation’, Australasian Marketing Journal, 28(4), pp. 209–217. doi: 10.1016/j.ausmj.2020.03.001.
Niemand, T. et al. (2021) ‘Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization’, European Management Journal, 39(3), pp. 317–326. doi: 10.1016/j.emj.2020.04.008.
Rahayu, R. and Day, J. (2015) ‘Determinant Factors of E-commerce Adoption by SMEs in Developing Country: Evidence from Indonesia’, Procedia - Social and Behavioral Sciences, 195, pp. 142–150. doi: 10.1016/j.sbspro.2015.06.423.
Sahaym, A., (Avi) Datta, A. and Brooks, S. (2021) ‘Crowdfunding success through social media: Going beyond entrepreneurial orientation in the context of small and medium-sized enterprises’, Journal of Business Research, 125(November 2018), pp. 483–494. doi: 10.1016/j.jbusres.2019.09.026.
Santos, G., Marques, C. S. and Ferreira, J. J. M. (2020) ‘Passion and perseverance as two new dimensions of an Individual Entrepreneurial Orientation scale’, Journal of Business Research, 112(March), pp. 190–199. doi: 10.1016/j.jbusres.2020.03.016.
Santoso, Singgih. (2004). Mengatasi Berbagai Masalah Statistik dengan SPSS Versi 11.5. Jakarta: Elex Media Komputindo
Saridakis, G. et al. (2018) ‘Industry characteristics, stages of E-commerce communications, and entrepreneurs and SMEs revenue growth’, Technological Forecasting and Social Change, 128(September 2017), pp. 56–66. doi: 10.1016/j.techfore.2017.10.017.
Scuotto, V. et al. (2021) ‘A microfoundational perspective on SMEs’ growth in the digital transformation era’, Journal of Business Research, 129(January 2020), pp. 382–392. doi: 10.1016/j.jbusres.2021.01.045.
Ştefănescu, M. V. (2015) ‘The Information Technology Role in the Dynamics and Evolution of SMEs in Timis County, Romania’, Procedia Economics and Finance, 32(15), pp. 1107–1113. doi: 10.1016/s2212-5671(15)01575-0.
Tajeddini, K., Martin, E. and Ali, A. (2020) ‘Enhancing hospitality business performance: The role of entrepreneurial orientation and networking ties in a dynamic environment’, International Journal of Hospitality Management, 90(February), p. 102605. doi: 10.1016/j.ijhm.2020.102605.
Todericiu, R. and Stăniţ, A. (2015) ‘Intellectual Capital – The Key for Sustainable Competitive Advantage for the SME’s Sector’, Procedia Economics and Finance, 27(15), pp. 676–681. doi: 10.1016/s2212-5671(15)01048-5.
Tolstoy, D. et al. (2021) ‘The development of international e-commerce in retail SMEs: An effectuation perspective’, Journal of World Business, 56(3). doi: 10.1016/j.jwb.2020.101165.
Tolstoy, D., Nordman, E. R. and Vu, U. (2021) ‘The indirect effect of online marketing capabilities on the international performance of e-commerce SMEs’, International Business Review, (September), p. 101946. doi: 10.1016/j.ibusrev.2021.101946.
Ulas, D. (2019) ‘Digital Transformation Process and SMEs’, Procedia Computer Science, 158, pp. 662–671. doi: 10.1016/j.procs.2019.09.101.
Vásquez, J. et al. (2021) ‘A sustainability maturity model for micro, small and medium-sized enterprises (MSMEs) based on a data analytics evaluation approach’, Journal of Cleaner Production, 311(May). doi: 10.1016/j.jclepro.2021.127692.
Zhang, J. A., O’Kane, C. and Chen, G. (2020) ‘Business ties, political ties, and innovation performance in Chinese industrial firms: The role of entrepreneurial orientation and environmental dynamism’, Journal of Business Research, 121(February 2019), pp. 254–267. doi: 10.1016/j.jbusres.2020.08.055.
Zhao, E. Y., Ishihara, M. and Jennings, P. D. (2020) ‘Strategic entrepreneurship’s dynamic tensions: Converging (diverging) effects of experience and networks on market entry timing and entrant performance’, Journal of Business Venturing, 35(2), pp. 1–23. doi: 10.1016/j.jbusvent.2019.04.001.
Published
Issue
Section
License
Copyright (c) 2023 Juhari Sasmito Aji, Reza Widhar Pahlevi, Ulung Pribadi, Audita Arifa Fitria (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
