Technology Acceptance Model of Financial Technology in Micro, Small, and Medium Enterprises (MSME) in Indonesia

PURNAMASARI, Pupung,PRAMONO, Irena Paramita,HARYATININGSIH, Ria,ISMAIL, Shahifol Arbi,SHAFIE, Rohami Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.10

Seeing the existence of MSME needs that have still not been met although this sector is undeniably important in Indonesian economy, changes in community behaviour and the intensity of the use of technology in the community, financial technology (fintech) has a lot of potentials to become a part of the solution of the problem commonly faced by MSMEs. Therefore this research needs to be done to observe the potential of fintech in integrating MSMEs in terms of the application of technology and knowledge from the community related to fintech. By using Technology Acceptance Model, this research tries to understand the determinant factors of the fintech application used by MSME. Based on the research framework and model, path analysis method used in this research. This research uses primary data gathered by the questioner, which was distributed to MSME. From the analysis conducted, we can conclude that the external factors tested in this research could have an effect on the behaviour intention through perceived usefulness in MSME practice of financial technology. Large variation in MSME educational background, busineess age and size would become a challenge in promoting fintech application, therefore this finding suggests that fintech should be promoted by highlighting what benefits can be obtained by using fintech application.

Ambidexterity and Leadership Agility in Micro, Small and Medium Enterprises (MSME)’s Performance: An Empirical Study in Indonesia

Gatot KUSTYADJI,Windijarto WINDIJARTO,Ari WIJAYANI 한국유통과학회 2021 The Journal of Asian Finance, Economics and Busine Vol.8 No.7

Ambidexterity and leadership agility have become the most researched topics to analyze their application in companies, especially in this dynamic era. Several researchers have analyzed it in large companies. However, only a few have discussed the two topics simultaneously and at the MSME level. This study aims to analyze the relationship between ambidexterity and leadership agility and innovation capability and performance at MSMEs in Yogyakarta and East Java, Indonesia. This study is analyzed by using quantitative methods with SEM (Structural Equation Model) methods. The data in this study is primary data that is obtained through distributing 230 questionnaires to MSME managers in Yogyakarta and East Java, Indonesia. From 230 questionnaires distributed, 200 questionnaires are returned and completed, so the response rate in this study is 86%. The results in this study indicate that ambidexterity and leadership agility have a significant effect on innovation capability and MSME performance. This study also proved that innovation capability has a significant effect on MSME performance. Therefore, it is recommended for MSME managers to develop ambidexterity and leadership agility so they can create innovation and good performance. In the end, this study has provided findings related to the combination of ambidexterity and leadership agility variables.

소상공인 경영자의 리더십 유형과 지식경영이 경영성과에 미치는 영향

엄천섭(Chun-Sub Um),정헌수(Heon-soo Jeong),안성숙(Sung-Sook Ahn) 한국데이터전략학회 2023 Journal of information technology applications & m Vol.30 No.1

The purpose of this study is to derive practical implications by verifying the influence of MSME owners leadership type and management performance on knowledge management. In addition, we tried to verify the mediating role of knowledge management between the leadership type and management performance of MSME owners. Leadership types were divided into transformational leadership and transactional leadership. Transformational leadership consisted of charisma and inspirational motivation, while transactional leadership consisted of situational rewards and management by exception. For data collection, we conducted a survey targeting workers in small businesses. After excluding insincere data that were inappropriate for analysis, we used the remaining 243 samples for empirical analysis. To test the hypothesis, we adopted regression analysis and three-step mediated regression analysis as analysis methods. As a result of the empirical analysis, all seven hypotheses derived were supported, and the main results are summarized as follows. First, we found that MSME owners transformational leadership and transactional leadership had a positive effect on knowledge management and management performance. Second, we found that knowledge management of MSME owners had a positive effect on business performance. Third, both transformational leadership and transactional leadership of MSME owners were found to be partially mediated by knowledge management in relation to management performance. Based on these research results, we derived practical implications for MSME owners.

The Role of Government Expenditure and Investment for MSME Growth: Empirical Study in Indonesia

PRASETYO, P. Eko Korea Distribution Science Association 2020 The Journal of Asian Finance, Economics and Busine Vol.7 No.10

In Indonesia, micro-, small- and medium-sized enterprises (MSMEs) are introduced to increase income by providing many easier jobs to improve economic growth. They have also been reported to be generally supportive of the local industry. The government policies on investment and expenditure have the ability to promote MSMEs and economic growth. Therefore, this research was conducted to analyze the theoretical background and empirical study to investigate government's role to promote MSMEs growth in Indonesia. The secondary data after the 2008 global financial crisis recorded quarterly from 2009 to 2019 Q3 were analyzed using the Ordinary Least Square (OLS) regression model. The results showed government expenditure has a positive and significant contribution to small- and medium-sized enterprises, but the effect was not significant for micro-businesses. Meanwhile, the investment sector was discovered to have a positive and significant effect on MSMEs. The policy implications of the Indonesian government are expected to focus on its expenditure's role as the most important factor for "social-economic protection of the community" through micro-enterprises, which are numerous and more attached to the real community economic-social life. Therefore, the existence of micro-businesses is very helpful for the lower classes despite their high vulnerability to crisis.

Technology Adoption Issues and Challenges for Micro, Small and Medium Enterprises: A Case Study of the Food and Beverage Sub-Sector in Indonesia*

Nika PRANATA,Muhammad SOEKARNI,Erla MYCHELISDA,Rio NOVANDRA,Agus Eko NUGROHO,Bahtiar RIFAI,Pihri BUHAERAH,Muhammad ZULHAMDANI,Retno Rizki Dini YULIANA 한국유통과학회 2022 The Journal of Asian Finance, Economics and Busine Vol.9 No.3

MSMEs in the food and beverage industry play a critical role in the Indonesian economy since they account for the majority of the manufacturing sector’s GDP. Despite its importance, it is unable to compete on a worldwide scale due to a lack of technological adoption. As a result, the purpose of this study is to look into the concerns and challenges that F&B MSMEs have when it comes to technology adoption. An online survey of 626 MSMEs and in-depth interviews as well as focus groups with diverse stakeholders from four provinces, namely West Java, East Java, South Sulawesi, and North Sumatera, provided the data for this study. To be thorough, the approach used in the study is based on the Technology, Organization, and Environment (TOE) framework. According to the findings, the majority of MSMEs use technology for marketing and sales, mainly through e-commerce. Meanwhile, for a variety of reasons, most of them continue to rely on traditional and semi-automatic technologies for production. According to the TOE framework, MSMEs lack those three parts of the technology adoption framework, particularly the environmental aspect, which is mostly due to a lack of cooperation among stakeholders. Finally, as a policy proposal, we offer a comprehensive technology adoption strategy based on the findings through an integrated MSMEs development information system including many important stakeholders.

Strategies for MSMEs to Achieve Sustainable Competitive Advantage: The SWOT Analysis Method

JATMIKO, Bambang,UDIN, Udin,RAHARTI, Rini,LARAS, Titi,ARDHI, Kholifah Fil Korea Distribution Science Association 2021 The Journal of Asian Finance, Economics and Busine Vol.8 No.3

The essential purpose of this study is to propose strategies for developing micro-, small-, and medium-sized enterprises (MSMEs) to realize sustainable competitive advantage by applying the SWOT analysis method. Thus, the main problems investigated in this study are: a) around 60-70% of MSMEs in Kulonprogo regency do not yet have access or financing from banks; b) lack of knowledge of production technology; c) in general, MSMEs business actors are still incorporated legal entities; d) MSMEs do not have a good financial administration and management system; e) coordination between MSMEs stakeholders has not been integrated; f) limited facilities and infrastructure of MSMEs, primarily related to technological tools; and g) limited access to raw materials so that MSMEs often get low-quality raw materials. This study employed a survey method with questionnaires and interviews. By using the Slovin tools sampling technique, the number of samples was 39 MSMEs in Kulonprogo Regency, Yogyakarta, Indonesia. The results of this study confirmed that the Kulonprogo MSMEs should pay attention to seven aspects of business management to achieve sustainable competitive advantage. The seven aspects are: 1) business strategy; 2) human resources; 3) information technology; 4) products; 5) promotion; 6) cooperation; and 7) corporate social responsibility (CSR).

Social Media Marketing and Business Performance of MSMEs During the COVID-19 Pandemic

SYAIFULLAH, Jahid,SYAIFUDIN, Makmun,SUKENDAR, Markus Utomo,JUNAEDI, Junaedi Korea Distribution Science Association 2021 The Journal of Asian Finance, Economics and Busine Vol.8 No.2

This study aims to examine the role of social media marketing on the performance of micro-, small and medium-sized enterprises (MSMEs) during the COVID-19 pandemic. This research method uses a quantitative approach and the analytical tool used is Structural Equation Modeling (SEM) based on Partial Least Square. The sampling technique used purposive sampling and the sample in this study was MSMEs who use social media for marketing. The social media used are Facebook, Instagram, and Whatsapp. The number of samples in this study was 254 MSMEs. Data collection used online questionnaires. The research findings show that the use of social media marketing is influenced by compatibility, perceived usefulness, and perceived ease-of-use. The results of this study indicate that the use of social media for marketing has a positive effect on the performance of MSMEs, especially in increasing sales, customer relationships, productivity, and creativity. This means that the better the management of social media for marketing, the better the performance of MSMEs will be. The theoretical contribution to this research is built on the TAM and UTAUT theories and their impact on social media marketing on MSMEs in developing countries that are living through the COVID-19 pandemic.

ShopUp: Revolutionizing the Retail Sector of Bangladesh

Farhan Istesham,Husnia Khaliqa Sumaita,Phillip Pardo Academy of Asian Business (AAB) 2022 Academy of Asian Business Review Vol.8 No.2

The case study provides an in-depth analysis of how ShopUp has enabled MSMEs to develop and function steadily, creating vast scopes for the retail industry of Bangladesh. Targeting its activities toward the most unorganized retail sector of the Asian market, where small businesses lack technological expertise for e-business management, capital or loan procurement methods, credible sourcing products or active delivery chains, ShopUp has managed to become the top B2B e-commerce platform of the country. Therefore, the case deconstructs the service infrastructure of ShopUp and uncovers how it moved through the development timeline, transforming from a credit provider into a unique and diversified service provider that boosted the lagging retail industry’s performance by integrating f-commerce into its operations. Following this, the study identifies the major turning points in ShopUp's journey and how it converted external challenges into market opportunities. The case then delves into ShopUp’s success factors and highlights how the company’s efficient leadership team fostered relevant partnerships and focused on vertical expansions. The final section examines ShopUp’s existing issues and suggests potential alternatives to overcome the constraints imposed by those challenges. Overall, the case study demonstrates how a company may use innovative technology to expand customer scope and redefine corporate growth.

The Linkages between Entrepreneurial Orientation, Market Orientation toward MSMEs Performances

Ariyani Wahyu Wijayanti,Budi Wahyono,Muhammad Kholid Arif Rozaq People&Global Business Association 2016 Global Business and Finance Review Vol.21 No.2

This paper examines the effect of entrepreneurial orientation on the performance of companies, with market orientation that consists of competitor orientation and customer orientation as the mediating variable. This research uses 100 samples of MSMEs in Sukoharjo Regency, Central Java Indonesia. The hypothesis testing is carried out using Structural Equation Modeling. The result shows that entrepreneurial orientation has a positive effect toward company’s performance and market orientation, which consists of competitor orientation and customer orientation. However, market orientation, both of competitor orientation and customer orientation has no effect on company’s performance. This result indicated that market orientation, either competitor orientation and customer orientation do not mediate the effect of the entrepreneurial orientation toward company’s performance.

시장 표준화 과정에서의 양의 피드백 메커니즘: 중국, 인도네시아, 한국의 Fintech 시장 사례 분석 및 시사점

한종원 ( Han Jong Won ) 한국시스템다이내믹스학회 2020 한국시스템다이내믹스 연구 Vol.21 No.4

Fintech has been one of the most outstanding emerging markets in the world last decade. This integration of IT-based technology and traditional banking is restructuring the individual’s financial activities as well as the banking market itself. Among many forms of fintech, e-Pay among other type of fintech is considered as the leading market player technology with the largest volume of market size, number of companies involved, and usage in the world. With an enormous potential, fintech affects various economies in different ways; use of fintech is being settled in some countries as de facto standards, whereas some countries like Japan and S. Korea are slow to foster it. Given the fact that Korea equips relatively well in terms of telecommunication technology, the related infrastructure, and IT-favoring culture, the slow growth of Fintech market in Korea is rather surprising. By looking into the case studies of the e-Pay markets in China, Indonesia, and Korea, this essay is to provide an macro-level analysis on ‘path-dependence’ related formation of positive feedback in the fintech markets. Then, I will point out that the formation of ‘critical mass’ is the key implication for the fintech market growth strategy in Korea in the aspect of the formation process of de facto standards.