The Effect of Industry 4.0 on the Development of Micro, Small and Medium Enterprises (MSMEs) Banana Chips in Bandar Lampung

*Helmia Adita Fitra scopus  -  Department of Urban and Regional Planning, Institut Teknologi Sumatera, Indonesia
Fran Sinatra scopus  -  Department of Urban and Regional Planning, Institut Teknologi Sumatera, Indonesia
Received: 3 Oct 2019; Published: 31 Aug 2020.
DOI: https://doi.org/10.14710/jwl.8.2.%25p
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License URL: https://creativecommons.org/licenses/by-nc-sa/4.0/

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Section: Research Articles
Language: EN
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Abstract

In the context of regional development, industry 4.0 fosters the local economy to be globalized because of the application of technological innovation and the use of the internet. In Indonesia, MSMEs play a vital role in determining national economic performance. In the era of industry 4.0, MSMEs in Indonesia must adopt the technological changes affected by Industry 4.0; otherwise, their business loses competitiveness in the future. Banana chips are the most well-known commodity of MSMEs in Bandar Lampung, Lampung Province. To win the competitiveness in the era of industry 4.0, Banana chips MSMEs should formulate the strategies which address the technological improvement and innovation on the component of MSMEs development. To do so, a study needs to be conducted to examine the effect of technological changes, as a feature of industry 4.0, on the components of MSMEs developments. This study aims to examine the effect of industry 4.0 on the aspects of MSMEs development pervades: (1) production and infrastructure; (2) networking and financing support; (3) sales and marketing; and (4) human resources. The study executes regression analysis. The findings of this study revealed that only two components of Banana Chips MSMEs development effected by industry 4.0. They are the component of sales and marketing and human resources component.

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Keywords: Ibanana chips; industry 4.0, Lampung; MSMEs; regression

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