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.
Copyright Transfer Agreement
Type Copyright Transfer Agreement
  Download (802KB)    Indexing metadata
Open Access Copyright (c) 2020 Jurnal Wilayah dan Lingkungan
License URL:

Citation Format:
Article Info
Section: Research Articles
Language: EN
Statistics: 50

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.

Note: This article has supplementary file(s).

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

Article Metrics:

  1. Adner, R., & Zemsky, P. (2005). Disruptive technologies and the emergence of competition. RAND Journal of Economics, 36(2), 229–254.
  2. BPS Kota Bandar Lampung. (2016). Bandar Lampung dalam Angka.
  3. Cahyanti, M. M., & Anjaningrum, W. D. (2017). Faktor-faktor yang mempengaruhi perkembangan usaha kecil sektor industri pengolahan di Kota Malang. Jurnal Ilmiah Bisnis Dan Ekonomi Asia, 11(2), 73–79.
  4. Cecora, J. (2000). Entrepreneurs and SMEs in regional economies: Policy issues for sustainable development in a globalizing economy. International Review of Sociology, 10(1), 83–100.
  5. Chishakwe, D. B., & Smith, W. (2012). An analysis of the impact of disruptive technology on the success of small and medium enterprises (SMEs) in a developing nation. A case of King Williams Town, South Africa. African Journal of Business Management, 6(36), 10050–10060.
  6. Chittithaworn, C., Islam, M. A., Keawchana, T., & Yusuf, D. H. M. (2011). Factors affecting business success of small & medium enterprises (SMEs) in Thailand. Asian Social Science, 7(5), 180–190.
  7. Fernández-Serrano, J., & Romero, I. (2013). Entrepreneurial quality and regional development: Characterizing SME sectors in low income areas. Papers in Regional Science, 92(3), 495–513.
  8. Festing, M. (2007). Globalisation of SMEs and implications for international human resource management research and practice. International Journal of Globalisation and Small Business, 2(1), 5–18.
  9. Handayani, P. W., & Lisdianingrum, W. (2011). Impact analysis on free online marketing using social network Facebook: Case study SMEs in Indonesia. 2011 International Conference on Advanced Computer Science and Information Systems, 171–176.
  10. Jones, M., & Jain, R. (2002). Technology transfer for SMEs: challenges and barriers. International Journal of Technology Transfer and Commercialisation, 1(1–2), 146–162.
  11. K., S. R. (2011). Developing the framework for coordination in supply chain of SMEs. Business Process Management Journal, 17(4), 619–638.
  12. Kementerian Perindustrian. (2015). Rencana Induk Pembangunan Industri Nasional 2015-2035.
  13. Maresova, P., Soukal, I., Svobodova, L., Hedvicakova, M., Javanmardi, E., Selamat, A., & Krejcar, O. (2018). Consequences of industry 4.0 in business and economics. Economies, 6(3), 46.
  14. Markides, C. (2006). Disruptive innovation: In need of better theory. Journal of Product Innovation Management, 23(1), 19–25.
  15. Nie, J. (2007). A study of information technology adoption for small and medium sized enterprises strategic competitiveness. 2007 International Conference on Wireless Communications, Networking and Mobile Computing, 4342–4346.
  16. Nurhajati, N., Rachma, N., Deka, R. E., & Azwar, E. (2018). Inovasi disruptif: Tantangan dan peluang bagi UKM. INOBIS: Jurnal Inovasi Bisnis Dan Manajemen Indonesia, 1(2), 214–226.
  17. OECD. (2018). SME and entrepreneurship policy in Indonesia 2018 (OECD studi). OECD.
  18. Pereshybkina, A., Castillo Conde, M. E., & Kalyesubula, T. (2017). Industry 4.0 scenario planning: How will the industry 4.0 transformations affect SMEs in Germany by 2030? Hochschule Furtwangen University.
  19. Raymond, L., Uwizeyemungu, S., Fabi, B., & St-Pierre, J. (2018). IT capabilities for product innovation in SMEs: a configurational approach. Information Technology and Management, 19(1), 75–87.
  20. Siti Sarah bt. Omar, Arokiasamy, L., & Ismail, M. (2009). The background and challenges faced by the small medium enterprises. A human resource development perspective. International Journal of Business and Management, 4(10), 95–102.
  21. Smallbone, D., & Welter, F. (2001). The role of government in SME development in transition economies. International Small Business Journal, 19(4), 63–77.
  22. Sulaksono. (2018). Kebijakan industri nasional di era disrupsi teknologi. IPB Talk on Agroindustry 4.0: Tantangan Dan Peluang Bagi Sumberdaya Agroindustri.