This study aims to see the innovation model of local government in an effort to provide public services online licensing field in Kabupaten Sragen, Central Java Province. Online-based licensing service implemented by the local government of Kabupaten Sragen is part of the government's efforts in realizing Smart City. The effort to realize Smart City in Kabupaten Sragen is the result of the synergy of all stakeholders, from the government, the public, the private sector and the international community. Therefore, this research tries to give an idea about ideal model of Smart City realization especially in the field of licensing service with dynamic system method approach. This methodology focuses on the modeling of local government innovations in viewing the behavior of problems and strategic issues of licensing services dynamically, so that later this model can serve as a grand design for the development of other areas in Indonesia that are heading towards the realization of Smart City. INTISARI Kajian ini bertujuan untuk melihat model inovasi pemerintah daerah dalam upaya pemberian pelayanan publik bidang perizinan yang berbasis online di Kabupaten Sragen, Provinsi Jawa Tengah. Pelayanan perizinan berbasis online yang diterapkan oleh pemerintah daerah Kabupaten Sragen merupakan sebagian upaya dari pemerintah dalam mewujudkan Smart City. Upaya perwujudan Smart City di Kabupaten Sragen merupakan hasil kinerja dari sinergi semua stakeholder, mulai dari pemerintah, masyarakat, sektor swasta maupun dari pihak internasional. Oleh karenanya penelitian ini berusaha untuk memberikan gambaran mengenai model ideal perwujudan Smart City khususnya bidang pelayanan perizinan dengan pendekatan metode sistem dinamik. Metodologi ini dititikberatkan pada pemodelan inovasi pemerintah daerah dalam melihat tingkah laku permasalahan dan isu strategis pelayanan perizinan secara dinamik, sehingga nantinya model ini dapat dijadikan sebuah grand design bagi pengembangan daerah lainnya di Indonesia yang sedang menuju arah perwujudan Smart City.

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Smart Kampung program is a program that is applied throughout the village within the scope of the Banyuwangi Regency Government. The program utilizes Information Technology (IT) to make it easier for people to get public services. This research aims to describe and analyze the implementation of services, especially in terms of population administration through the Smart Kampung program in Wringinrejo Village. Qualitative descriptive methods became the most rational choice in research, and data analysis was conducted with the interactive models of Miles, Huberman and Saldana. Data collection is done by observation, interview and documentation.The simple conclusion of this study shows that the implementation of public services through the Smart Kampung program is still not optimal given the lack of education to the community about the ease of the public service process through Smart Kampung, and the lack of details of budget utilization.

The new normal era during the COVID-19 pandemic has presented opportunities and challenges for SMEs. This study aimed to determine the effects of absorptive capacity and innovation capability on business performance. The research involved 189 creative SMEs owners in Malang City. The sampling technique uses proportional random sampling. Data were collected by distributing questionnaires to respondents. The data analysis used partial least squares using high-order construction. The results showed that absorptive capacity significantly affects business performance, and absorptive capacity significantly affects innovation capability. However, innovation capability had no significant effect on business performance. Innovation capability has also not been proven to influence Absorptive Capacity and Business Performance indirectly. The practical implication is that SMEs owners should develop the absorptive capacity to reach, assimilate, and acquire new knowledge to achieve better SMEs performance. Simultaneously, innovation capability does not automatically improve SMEs' performance. SMEs need extra effort to produce innovations that are rare, unique, and difficult to imitate to survive the new normal era. JEL : D81, M13, O31.ABSTRAKEra new normal di masa pandemi COVID-19 menghadirkan peluang dan tantangan bagi UMKM. Penelitian ini bertujuan untuk menguji pengaruh absorptive capacity dan innovation capability terhadap business performance. Penelitian ini melibatkan 189 pemilik UMKM kreatif di Kota Malang. Teknik pengambilan sampel menggunakan proportional random sampling. Pengumpulan data dilakukan dengan menyebarkan kuesioner kepada responden. Analisis data menggunakan partial least squares using high-order construction. Hasil penelitian menunjukkan bahwa absorptive capacity berpengaruh signifikan terhadap business performance, dan business performance berpengaruh signifikan terhadap innovation capability. Namun, innovation capability tidak berpengaruh signifikan terhadap business performance. Innovation capability juga belum terbukti mempengaruhi absorptive capacity dan business performance secara tidak langsung. Implikasi praktisnya, pemilik UMKM harus mengembangkan absorptive capacity untuk menjangkau, mengasimilasi, dan memperoleh pengetahuan baru untuk mencapai kinerja UMKM yang lebih baik. Secara bersamaan, innovation capability tidak secara otomatis meningkatkan kinerja UMKM. UMKM membutuhkan upaya ekstra untuk menghasilkan inovasi yang langka, unik, dan sulit ditiru untuk bertahan di era normal yang baru.Kata Kunci : absorptive capacity, innovation capability, business performance, SMEs, new normal.