Adoption of digital technologies for micro and small business in Indonesia

Trinugroho, Irwan; Pamungkas, Putra; Wiwoho, Jamal; Damayanti, Sylviana Maya; Pramono, Teddie

doi:10.1016/j.frl.2021.102156

Cited by 70 publications

(69 citation statements)

References 18 publications

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“…In addition, it is important for SMEs to adopt digital technology in the face of limitations during the situation of the pandemic. SMEs that have better access to funding digitally experience an increase in total income [47]. During the pandemic, crowdsourcing financial funding was widely available, allowing collaboration between parties and data integration to overcome pandemic problems through the application of open innovation [48], [49].…”

Section: Discussionmentioning

confidence: 99%

Open Innovation in Organization Through Stakeholder Capability During Pandemic (COVID-19): Indonesian SMEs Perspective

et al. 2022

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This study aims to analyze the role of stakeholders who support the open innovation transition in SMEs. This is important because the innovation process has shifted from closed innovation to open innovation which requires good management of organizational capabilities, especially in managing stakeholders and resources owned by the organization. However, in the current pandemic situation, SMEs have challenges in adopting and implementing these open innovations. In this study, a conceptual research model was compiled and produced which elaborated several previous references, and then tested empirically on respondents, namely in SMEs in Indonesia. The responses involved in this study were 218 SMEs, but the complete response are 206 respondents. Data testing was carried out using the Partial Least Square-Structural Equation Modeling (PLS-SEM) statistical method. The results of hypothesis testing indicate that there are four variables that significantly strengthen the effect of closed innovation on open innovation, namely financial capability, network, knowledge management system, and organizational culture (p < 0.01). The moderating variable with the most dominant influence is financial ability (β = 0.915, p < 0.01). Based on the results of this study, SMEs that have high financial capabilities or have advantages in terms of funding and financial management can make the transition from closed innovation to open innovation better or independently. There is one moderating variable that is not proven to be significant, namely technology. These findings can then be used to formulate appropriate policies to support the adoption of open innovation in the context of developing the ability of SMEs to survive during the pandemic.

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Section: Discussionmentioning

confidence: 99%

Open Innovation in Organization Through Stakeholder Capability During Pandemic (COVID-19): Indonesian SMEs Perspective

et al. 2022

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“…, 2022), rural consumption structure (Yu et al. , 2022), manufacturing servitization (Chen and Zhang, 2021), transformation and upgrading of regional industry and the improvement of total factor productivity (Wang and Fu, 2022; Trinugroho et al. , 2021).…”

Section: Introductionmentioning

confidence: 99%

“…The Digital Finance Research Center of Peking University used the data provided by Ant Financial and Guo et al (2020) constructed the "Digital Financial Inclusion Index" to reflect the development status of Chinese digital finance. Scholars have since widely applied the Digital Financial Inclusion Index in academic research, such as on the impact of digital finance on financing efficiency (Chang et al, 2021), the relationship between digital finance and household consumption (Li et al, 2020), the efficiency of household investments (Guo et al, 2021;Lu et al, 2021a), Chinese household leverage (Wang et al, 2021), the effects of digital finance on pollutants (Wan et al, 2022), rural consumption structure (Yu et al, 2022), manufacturing servitization (Chen and Zhang, 2021), transformation and upgrading of regional industry and the improvement of total factor productivity (Wang and Fu, 2022;Trinugroho et al, 2021). The existing research helps the academic community to further understand how digital finance promotes enterprises' innovation and economic development.…”

Section: Introductionmentioning

confidence: 99%

Research on the impact of digital finance on the innovation performance of enterprises

Jiang

Zhu

2022

EJIM

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PurposeThe purposes of this paper are to analyze whether digital finance can contribute to enterprises' innovation performance and to determine the mediating effect of government subsidies.Design/methodology/approachThis paper empirically examines the impacts of digital finance on enterprises' innovation performance by looking at Chinese companies listed on the SME and GEM boards from 2011 to 2018 to build an econometric model to test our hypotheses. The mediating effect of government subsidies, the moderating effect of financial constraints are examined, as well as shareholding of the largest shareholders in each selected company and the asset-liability ratio.FindingsThe results show that digital finance has a significant promotional effect on firms' innovation performance and that government subsidies play a partial mediating role in digital finance's contribution to firms' innovation performance. In addition, financial constraints and the shareholding of the largest shareholders in each selected company have a negative moderating effect on the relationship between government subsidies and firms' innovation performance. On the contrary, the asset-liability ratio is found to positively affect the relationship.Originality/valueThere has been limited research to date on the relationship between digital finance and firms' innovation performance, particularly with regard to the extent to which digital finance can influence innovation performance and the mechanisms for doing so. Therefore, it is of great significance to examine the relationship between digital finance and enterprises' innovation performance, which can also provide guidance for both the Chinese government and enterprises.

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“…digital payments). These include the low frequency of visits to the physical stores, online payment systems offered by firms with the same products, high number of customers' inquiries regarding the availability of digital payments, younger owners, younger firms, higher education on the part of owners, reliable internet connectivity, and existing availability of funding from the government (Trinugroho et al 2021). In another study, Buer et al (2021) revealed that large enterprises in terms of the number of employees have a higher level of digitalization and organizational information-technology competence relative to small and medium-sized enterprises.…”

Section: Introductionmentioning

confidence: 99%

Digital Payment Adoption during the COVID-19 Pandemic in the Philippines

Acopiado¹,

Sarmiento²,

Romo³

et al. 2022

Philipp J Sci

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In the Philippines, economic recovery in the aftermath of the COVID-19 pandemic necessitates a digital shift for businesses. Through this innovation, their operations can continue under the new normal. The adoption of digital payments is one of the common business recovery options supported by the government. In this study, the factors affecting the adoption of digital payments were examined. From July 2020–January 2021, an online survey was conducted on a sample of 433 respondents with at least supervisory level positions. On average, the firms operated their enterprises for 16.22 years and employed 1.8 workers with 57% being sole proprietors, 54% micro enterprises, and 30% having information technology (IT) infrastructure. A decline in their business performance during the pandemic was observed. Two-thirds of the firms across the country employed digital payment technology, and 55% of these firms started using the technology during the pandemic period. Logit analysis was conducted to analyze the determinants of digital payment adoption. Being relatively younger, operating under a partnership business structure relative to sole proprietors, employing more human resources, having IT facilities, and experiencing business growth before the pandemic were found to be predictive of the adoption of digital payments in the business operations of these firms. While younger firms are more receptive to this new payment technology, digital capacity development programs may further revitalize businesses and industries. Such mechanisms need to be put in place targeting vulnerable enterprises: firms under sole proprietorship, without infrastructure for IT, with relatively fewer employees being relatively smaller organizations, and in decline in terms of business growth even prior to the pandemic.

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Adoption of digital technologies for micro and small business in Indonesia

Cited by 70 publications

References 18 publications

Open Innovation in Organization Through Stakeholder Capability During Pandemic (COVID-19): Indonesian SMEs Perspective

Open Innovation in Organization Through Stakeholder Capability During Pandemic (COVID-19): Indonesian SMEs Perspective

Research on the impact of digital finance on the innovation performance of enterprises

Digital Payment Adoption during the COVID-19 Pandemic in the Philippines

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