Digital Capabilities, Environment, And Business Strategy For Msmes Performance In Sidoarjo District
Keywords:
Environmental Factor, Business Strategy, Digital Literacy, Digital Skill, Performance
Abstract
This research aims to test and prove the influence of environmental factors, business strategy, digital literacy, and digital skills on the performance of MSMEs. Quantitative research is a type of research that uses primary data. Questionnaires are used to collect data. The population of this research is MSMEs in Sidoarjo Regency, according to data from the Department of Cooperatives and Micro Enterprises (Ditakopum). The sampling technique used purposive sampling, and 162 business actors or MSME owners were respondents whose data could be processed. The variant-based Structural Equation Modeling (SEM) or Partial Least Square (PLS) model was used to analyze the data via SmartPLS version 4.0 software. The results of this research explain that business strategy, digital literacy, and digital skills influence the performance of MSMEs. However, environmental factors do not influence the performance of MSMEs. This indicates that in the current digital era, digital skills and the ability to create business strategies are very important for MSMEs. The implication is that the government can further intensify digital training for MSME owners as a business strategy to achieve MSME sustainability.
References
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Suriyanti, L. H., & Binangkit, I. D. (2019). The Role of Government Policy in Moderating the Effect of Business Strategy on Business Performance. Journal of Accounting and Economics. http://ejurnal.umri.ac.id/index.php/jae/article/view/1340
Tasya, S. R., Ramli, A. M., Permata, R. R., Ramadayanti, E., & Fauzi, R. (2020). Legal Aspects of E-Commerce Platform in the Era of Digital Transformation Legal Aspects of E-Commerce Platform of Digital Transformation Era. Journal of Communication and Media Studies, 24(2), 119-136. https://doi.org/10.31445/jskm.2020.3295
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Teng, X., Wu, Z., & Yang, F. (2022). Research on the Relationship between Digital Transformation and Performance of SMEs. Sustainability (Switzerland), 14(10), 1-17. https://doi.org/10.3390/su14106012
United Nations Conference on Trade and Development (UNCTAD), & ASEAN Secretariat. (2022). ASEAN Investment Report 2022 Pandemic Recovery and Investment Facilitation. October, 42. https://unctad.org/publication/asean-investment-report-2022
Widnyani, N. M., Astitiani, N. L. P. S., & Putri, B. C. L. (2021). Implementation of Digital Transformation in SMEs during the Covid-19 Pandemic in Denpasar City. Scientific Journal of Management and Business, 6(1), 79-87. https://doi.org/10.38043/jimb.v6i1.3093
Aulia, M. R. (2023). Digital Competencies and Experience in Partnership Program on SMEs Performance. Journal Research of Social Science, Economics, and Management, 2(07), 1416-1425. https://doi.org/10.59141/jrssem.v2i07.385
Diana, D., Hakim, L., & Fahmi, M. (2022). Analysis of Factors Affecting Umkm Performance in South Tangerang. Journal of Muhammadiyah Business Management, 3(2), 67. https://doi.org/10.24853/jmmb.3.2.67-74
Diptyana, P., Rokhmania, N., & Herlina, E. (2022). Financial Literacy, Digital Literacy and Financing Preferences Role to Micro and Small Enterprises' Performance. IJEBD (International Journal of Entrepreneurship and Business Development), 5(2), 346-358. https://doi.org/10.29138/ijebd.v5i2.1785
Firmansyah, D., Saepuloh, D., & Dede. (2022). Competitiveness: Digital Literacy and Digital Transformation. Journal of Finance and Business Digital, 1(3), 237-250. https://doi.org/10.55927/jfbd.v1i3.1348
Ghozali, I. (2021).Structural Equation Modeling with Partial Least Square (PLS) Alternative Methods. 5th ed. Semarang: Diponegoro University Publishing Agency.
Harfie, A. P., & Lastiati, A. (2022). Adoption of E-Commerce Use on MSME Performance (In Micro, Small and Medium Enterprises in DKI Jakarta). Journal of Accounting and Finance, 11(1), 21. https://doi.org/10.36080/jak.v11i1.1700
Hussain, A., Shahzad, A., & Hassan, R. (2020). Organizational and environmental factors with the mediating role of e-commerce and SME performance. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 1-21. https://doi.org/10.3390/joitmc6040196
Jr, J. F. H., Hult, G. T. M., Sarstedt, C. M. R. M., Danks, N. P., & Ray, S. (2021). Partial Least Squares Structural Equation Modeling (PLS-SEM) Using R: A Workbook. In Structural Equation Modeling: A Multidisciplinary Journal (Vol. 30, Issue 1). https://doi.org/10.1080/10705511.2022.2108813
Karinayah, D. (2019). Empowerment of Micro, Small and Medium Enterprises (MSMEs) in Sidoarjo Regency. State Administration Science Study Program, FISIP, Airlangga University, 1(1), 1-13. https://repository.unair.ac.id/74627/3/JURNAL_Fis.AN.61 18 Sup p.pdf
Kusumawati, D. A., & Saputri, P. L. (2023). Digital Transformation: The Role of Digital Skills and E-Readiness in MSMEs. Performance Journal of Personnel Financial Operations Marketing and Information Systems, 30, 81-92. https://doi.org/10.32424/1.jp.2023.30.1.7849
Martini, M., Setiawan, D., Suryandari, R. T., Brahmana, R. K., & Asrihapsari, A. (2023). Determinants of Digital Innovation in Micro and Small Industries. Economies, 11(6), 1-17. https://doi.org/10.3390/economies11060172
Prasetyo, E., & Farida, F. (2022). The Effect of E-Commerce, Accounting Knowledge, Organizational Culture and Financial Literacy on MSME Performance. National Multidisciplinary Sciences, 1(3), 370-383. https://doi.org/10.32528/nms.v1i3.102
Pudjihastuti, S. H., & Kurdaningsih, D. M. (2018). The mediating role of competitive advantage in the determinants of SME business performance in batik weaving centers in Central Java Introduction. 22(2), 111-131. https://doi.org/10.20885/jsb.vol22.iss2.art1
Rosifa, E., & Chayono, T. D. (2024). The influence of digital literacy, financial literacy, and financial behavior in facing the industrial revolution 5.0 era in sumbawa and west sumbawa districts. 103-112. https://conference.uts.ac.id/index.php/Student/article/view/979
Sarwar, Z., Khan, M. A., Yang, Z., Khan, A., Haseeb, M., & Sarwar, A. (2021). An Investigation of Entrepreneurial SMEs' Network Capability and Social Capital to Accomplish Innovativeness: A Dynamic Capability Perspective. SAGE Open, 11(3). https://doi.org/10.1177/21582440211036089
Selfia Bintariningtyas, Tri Mulyaningsih, & Ratwianingsih, L. (2021). E-commerce and Digital Literacy of MSMEs in Madiun Regency during the COVID-19 Pandemic. Journal of Management, Creative Economic Sciences and Business, 10(1), 20-26. https://doi.org/10.33319/jeko.v10i1.79
Sentiago, B., & Hidayatulloh, A. (2019). Analysis of External Factors Against Internal Factors and Their Impact on SME Performance in the Special Region of Yogyakarta. Journal of Management and Finance, 8(2), 123-134. https://doi.org/10.33059/jmk.v8i2.1638
Sugiyono. (2019). Quantitative, Qualitative and R&D Research Methods. Bandung: Alfabeta.
Supartoyo, Y. H. (2022). Digital Literacy Supports Competitiveness and Digital Transformation Towards Society 5.0 Era. Journal of Abdimas Adpi Social and Humanities, 3(3), 387-391. https://doi.org/10.47841/jsoshum.v3i3.207
Suriyanti, L. H., & Binangkit, I. D. (2019). The Role of Government Policy in Moderating the Effect of Business Strategy on Business Performance. Journal of Accounting and Economics. http://ejurnal.umri.ac.id/index.php/jae/article/view/1340
Tasya, S. R., Ramli, A. M., Permata, R. R., Ramadayanti, E., & Fauzi, R. (2020). Legal Aspects of E-Commerce Platform in the Era of Digital Transformation Legal Aspects of E-Commerce Platform of Digital Transformation Era. Journal of Communication and Media Studies, 24(2), 119-136. https://doi.org/10.31445/jskm.2020.3295
Taufik, M. (2023, August 10). Regent Gus Muhdlor asks MSMEs in Sidoarjo to maintain quality if they want to continue to grow. Surabaya Tribunnews. Regent Gus Muhdlor asks MSMEs in Sidoarjo to maintain quality if they want to grow - Surya.co.id (tribunnews.com)
Taufik, M. (2023, November 24). One Hundred MSME Players in Sidoarjo Receive Digital Marketing Training. Surabaya Tribunnews. One Hundred MSME Players in Sidoarjo Receive Digital Marketing Training - Surya.co.id (tribunnews.com)
Teng, X., Wu, Z., & Yang, F. (2022). Research on the Relationship between Digital Transformation and Performance of SMEs. Sustainability (Switzerland), 14(10), 1-17. https://doi.org/10.3390/su14106012
United Nations Conference on Trade and Development (UNCTAD), & ASEAN Secretariat. (2022). ASEAN Investment Report 2022 Pandemic Recovery and Investment Facilitation. October, 42. https://unctad.org/publication/asean-investment-report-2022
Widnyani, N. M., Astitiani, N. L. P. S., & Putri, B. C. L. (2021). Implementation of Digital Transformation in SMEs during the Covid-19 Pandemic in Denpasar City. Scientific Journal of Management and Business, 6(1), 79-87. https://doi.org/10.38043/jimb.v6i1.3093
Published
2024-07-07
Section
Articles
Copyright (c) 2024 Deby Andriani Jumaroh, Diah Hari Suryaningrum
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
