Digital Transformation and Business Incubation on SME Performance in Indonesia

Alif Ringga Persada; Hari Mulyadi; A. Jajang Warya Mahri; Chairul Furqon

doi:10.37641/jimkes.v13i4.3441

Authors

Alif Ringga Persada Universitas Pendidikan Indonesia, Indonesia
Hari Mulyadi Universitas Pendidikan Indonesia, Indonesia
A. Jajang Warya Mahri Universitas Pendidikan Indonesia, Indonesia
Chairul Furqon Universitas Pendidikan Indonesia, Indonesia

DOI:

https://doi.org/10.37641/jimkes.v13i4.3441

Keywords:

Business Incubation, Business Performance, Digital Transformation, SMEs

Abstract

In this rapidly evolving digital era, digital transformation and business incubation have been identified as key determinants in driving improved performance SMEs in Indonesia. A quantitative study, using an explanatory approach, specifically investigated how these two aspects affect 200 SMEs in Indonesia that have actively adopted digital technology and participated in incubation programs. The information for the study was collected through an extensive survey and analyzed in depth using multiple linear regression methods. The findings suggest that digital transformation possesses a significant and positive impact on SME business performance. This impact is mainly manifested through the utilization of strategies such as the use of e-commerce, the implementation of an efficient digital management system, and the optimization of social media, which collectively contribute to increased operational efficiency and expanded market reach. Furthermore, incubation programs have also been shown to play a crucial role in improving performance, by providing relevant training, expert mentoring, and vital access to business networks. Overall, this study confirms that the synergy between digital transformation and business incubation substantially improves SME performance.

Downloads

Download data is not yet available.

References

Alawi, M., Rashid, N., Al-Shami, S. A., & Al-Lamy, H. A. (2018). The determinants of E-commerce quality on small business performance in Iraq case study from ceramic industry. Journal of Advanced Research in Dynamical and Control Systems, 10(2), 70-74.

Ausat, A. M. A., Astuti, E. S., & Wilopo. (2022). Analysis Of Factors That Influence On E-Commerce Adoption And Their Impacts For Sme Performance In Subang District. Jurnal Teknologi Informasi Dan Ilmu Komputer (JTIIK), 9(2), 30-45.

Barney, J. (1991). Firm Resources and Sustained Competitive Advantage. Journal of Management, 17(1), 121-131.

Bergek, A., & Norrman, C. (2008). Incubator best practice: A framework. Technovation, 28(1-2), 20-28.

Chibelushi, C., & Costello, P. (2009). Challenges facing W. Midlands ICT-oriented SMEs. Journal of Small Business and Enterprise Development, 16(2), 202-220.

Chiu, W., & Cho, H. (2019). E-commerce brand: The effect of perceived brand leadership on consumers’ satisfaction and repurchase intention on e-commerce websites. Asia Pacific Journal of Marketing and Logistics, 33(6), 333-343.

Esses, D., Csete, M. S., & Németh, B. (2021). Sustainability and digital transformation in the visegrad group of central european countries. Sustainability (Switzerland), 13(11), 151-162.

Ghozali, I. (2017). Aplikasi analisis multivariate dengan program IBM SPSS 23. [Multivariate analysis application with the IBM SPSS 23 program]. Semarang: Badan Penerbit Universitas Diponegoro(2016).[in Bahasa Indonesia]. R/PPM/2017 dated May 22nd.

Hackett, S. M., & Dilts, D. M. (2004). A Systematic Review of Business Incubation Research. The Journal of Technology Transfer, 29(1), 152-163.

Hamdi, K., Yadewani, D., & Wijaya, R. (2021). Media Sosial Instagram Dalam Mendukung Promosi Usaha Sebagai Sebuah Pilihan Atau Paksaan. Jurnal Pustaka Mitra (Pusat Akses Kajian Mengabdi Terhadap Masyarakat), 1(2), 41-56.

Hess, T., Benlian, A., Matt, C., & Wiesböck, F. (2016). Options for formulating a digital transformation strategy. MIS Quarterly Executive, 15(2), 345-355.

Johnson, H., Roberts, O., & Wilson, G. (2024). Exploring the Economic Resilience of Small and Medium Enterprises (SMEs) During Financial Crises. Jurnal…,6(2), 32-42.

Kowerdziej, R., Parka, J., Krupka, J., Olifierczuk, M., Nowinowski-Kruszelnicki, E., Jaroszewicz, L., & Chojnowska, O. (2013). Dielectric properties of highly anisotropic nematic liquid crystals for tunable microwave components. Applied Physics Letters, 103(17), 151-177.

Kraus, S., Palmer, C., Kailer, N., Kallinger, F. L., & Spitzer, J. (2019). Digital entrepreneurship: A research agenda on new business models for the twenty-first century. International Journal of Entrepreneurial Behavior & Research, 25(2), 353-375.

Liu, D. Y., Chen, S. W., & Chou, T. C. (2011). Resource fit in digital transformation: Lessons learned from the CBC Bank global e-banking project. Management Decision, 49(10), 171-181.

Matt, C., Hess, T., & Benlian, A. (2015). Digital transformation strategies. Business & Information Systems Engineering, 57, 339–343.

Matt, D. T., & Rauch, E. (2020). SME 4.0: The role of small-and medium-sized enterprises in the digital transformation. In Industry 4.0 for SMEs: Challenges, opportunities and requirements (pp. 3-36). Cham: Springer International Publishing.

Mrugalska, B., & Ahmed, J. (2021). Organizational agility in industry 4.0: A systematic literature review. Sustainability (Switzerland), 13(15),12-25.

Mulyadi, M. (2011). Penelitian kuantitatif dan kualitatif serta pemikiran dasar menggabungkannya. Jurnal studi komunikasi dan media, 15(1), 128-137.

Napitu, U., Corry, Sinurat, A., Harianja, T., Ease Arent, Mardiani, Nasution, A. M., & Napitu, H. (2023). Sosialisasi Peran Perguruan Tinggi Dan Akademisi Sebagai Inkubator Bisnis Dalam Penguatan Koperasi Sebagai Lembaga Ekonomi Kerakyatan Menuju Koperasi Modern Bagi Pelaku Ukm Di Sumatera Utara. Jurnal Pengabdian Masyarakat Sapangambei Manoktok Hitei, 2(1), 132-143.

Nazaruddin, I., Utami, E. R., & Rahmawati, E. (2024). Digitalization Challenges for SMEs: A Systematic Literature Review Perspective and Future Research. JBTI: Jurnal Bisnis: Teori Dan Implementasi, 15(1), 15–43.

Opland, L. E., Pappas, I. O., Engesmo, J., & Jaccheri, L. (2022). Employee-driven digital innovation: A systematic review and a research agenda. Journal of Business Research, 143-145.

Phan, P. H., Siegel, D. S., & Wright, M. (2005). Science parks and incubators: Observations, synthesis and future research. Journal of Business Venturing, 20(2), 514-524.

Plekhanov, D., Franke, H., & Netland, T. H. (2023). Digital transformation: A review and research agenda. European Management Journal, 41(6), 414-424.

Prasanna, R. P. I. R., Jayasundara, J. M. S. B., Naradda Gamage, S. K., Ekanayake, E. M. S., Rajapakshe, P. S. K., & Abeyrathne, G. A. K. N. J. (2019). Sustainability of SMEs in the competition: A systemic review on technological challenges and SME performance. Journal of Open Innovation: Technology, Market, and Complexity, 5(4), 100.

Ridhovan, A. R., & Anggarani, A. (2024). Innovative Strategies of Change Management in the Indonesian Banking Industry in an Election Year. Jurnal Ilmiah Manajemen Kesatuan, 12(5), 1899-1906.

Rodrigues, R. I., Lopes, P., & Varela, M. (2021). Factors affecting impulse buying behavior of consumers. Frontiers in Psychology, 12(4), 478-482.

Sari, M., Rachman, H., Juli Astuti, N., Win Afgani, M., & Abdullah Siroj, R. (2022). Explanatory Survey dalam Metode Penelitian Deskriptif Kuantitatif. Jurnal Pendidikan Sains Dan Komputer, 3(01) 87-99.

Sekaran, U. (2016). Research methods for business: A skill building approach. New York: John Wiley & Sons.

Soni, G., Kumar, S., Mahto, R. V., Mangla, S. K., Mittal, M. L., & Lim, W. M. (2022). A decision-making framework for Industry 4.0 technology implementation: The case of FinTech and sustainable supply chain finance for SMEs. Technological Forecasting and Social Change, 4(2), 180-187.

Stephens, S., & Miller, K. (2022). Business incubation as a community of practice: an emergent cultural web. Entrepreneurship & Regional Development, 34(9-10), 890-910.

Sugiyono, P. D. (2018). Quantitative, qualitative, and combination research methods (Mixed methods). Bandung: Alphabeta CV.

Surya, B., Menne, F., Sabhan, H., Suriani, S., Abubakar, H., & Idris, M. (2021). Economic growth, increasing productivity of smes, and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 7(1), 151-165.

Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic capabilities and strategic management. Strategic Management Journal, 18(7), 121-134.

Vial, S. (2019). Being and the screen: How the digital changes perception. Published in one volume with a short treatise on design. Massachusetts: MIT Press.

Westerman, G., Bonnet, D., & McAfee, A. (2014). Leading digital: Turning technology into business transformation. Massachusetts: Harvard Business Press.

White, H. C. (2008). Identity and control: How social formations emerge. New Jersey: Princeton university press.

Widagdo, S., Ratnasari, E., & Mandala, S. (2019). Internal Factor Analysis In Management Control System Design With Organizational Objectives As Intervening Variables In Blood Transfusion Unitpmi Jember. Sinergi: Jurnal Ilmiah Ilmu Manajemen, 9(2), 189-201.

Van Scheers, L. (2016). SMEs and social media opportunities: An organizational outlook. Corporate Ownership & Control, 13(4), 640-648.

Yusuf, M., ‘Ardhuha, J., & Hikmawati, H. (2022). Pengembangan Perangkat Pembelajaran Model Problem Based Learning untuk Meningkatkan Pemahaman Konsep Fisika dan Kemampuan Berpikir Kritis Peserta Didik. Jurnal Ilmiah Profesi Pendidikan, 7(2), 177-188.

Zhou, H., & Zondo, R. W. D. (2023). The Role Of Business Incubation Programmes On The Performance Of Small And Medium Enterprises In South Africa. The Seybold Report, 18(5), 444-458.