Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia

The Fourth Industrial Revolution (IR4) and the COVID-19 pandemic have become triggers for micro, small, and medium enterprises (MSMEs) to conduct digital transformation even though there are many problems that need to be resolved, particularly those related to the readiness of MSMEs in facing digita...

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Main Authors: Lina Anatan, Nur
Format: Article
Language:English
Published: MDPI AG 2023-05-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/11/6/156
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author Lina Anatan
Nur
author_facet Lina Anatan
Nur
author_sort Lina Anatan
collection DOAJ
description The Fourth Industrial Revolution (IR4) and the COVID-19 pandemic have become triggers for micro, small, and medium enterprises (MSMEs) to conduct digital transformation even though there are many problems that need to be resolved, particularly those related to the readiness of MSMEs in facing digitalization. This study aims to investigate Indonesian MSMEs and identify problems and types of knowledge transfer activities. By involving 101 MSMEs selected using convenience sampling and collected through an online survey, the hypotheses testing shows that the perception of higher drivers for IR4 promoting IR4 readiness is supported, while the perception of higher barriers to IR4 decreasing IR4 readiness is not supported. The problems faced by MSMEs in Indonesia are related to financial, human resources, marketing, operational, administrative, and organizational management. To solve these problems and enhance the readiness for digitalization, knowledge transfer activities from universities to MSMEs are needed. This study provides a theoretical contribution to the strategic management literature to fill the lack of studies on MSMEs’ e-readiness in developing countries and a practical contribution to assist decision-makers in formulating strategies to support MSMEs in facing IR4 and solving internal problems through knowledge transfer activities.
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spelling doaj.art-21e90f79894c44b281e9bdbf0dbc522d2023-11-18T10:05:24ZengMDPI AGEconomies2227-70992023-05-0111615610.3390/economies11060156Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in IndonesiaLina Anatan0Nur1Faculty of Business, Maranatha Christian University, Bandung 40164, Jawa Barat, IndonesiaFaculty of Business, Maranatha Christian University, Bandung 40164, Jawa Barat, IndonesiaThe Fourth Industrial Revolution (IR4) and the COVID-19 pandemic have become triggers for micro, small, and medium enterprises (MSMEs) to conduct digital transformation even though there are many problems that need to be resolved, particularly those related to the readiness of MSMEs in facing digitalization. This study aims to investigate Indonesian MSMEs and identify problems and types of knowledge transfer activities. By involving 101 MSMEs selected using convenience sampling and collected through an online survey, the hypotheses testing shows that the perception of higher drivers for IR4 promoting IR4 readiness is supported, while the perception of higher barriers to IR4 decreasing IR4 readiness is not supported. The problems faced by MSMEs in Indonesia are related to financial, human resources, marketing, operational, administrative, and organizational management. To solve these problems and enhance the readiness for digitalization, knowledge transfer activities from universities to MSMEs are needed. This study provides a theoretical contribution to the strategic management literature to fill the lack of studies on MSMEs’ e-readiness in developing countries and a practical contribution to assist decision-makers in formulating strategies to support MSMEs in facing IR4 and solving internal problems through knowledge transfer activities.https://www.mdpi.com/2227-7099/11/6/156MSME readinessIR4digital transformationknowledge transfer
spellingShingle Lina Anatan
Nur
Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia
Economies
MSME readiness
IR4
digital transformation
knowledge transfer
title Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia
title_full Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia
title_fullStr Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia
title_full_unstemmed Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia
title_short Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia
title_sort micro small and medium enterprises readiness for digital transformation in indonesia
topic MSME readiness
IR4
digital transformation
knowledge transfer
url https://www.mdpi.com/2227-7099/11/6/156
work_keys_str_mv AT linaanatan microsmallandmediumenterprisesreadinessfordigitaltransformationinindonesia
AT nur microsmallandmediumenterprisesreadinessfordigitaltransformationinindonesia