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

Helmia Adita Fitra; Fran Sinatra

doi:10.14710/jwl.8.2.177-186

DOI: https://doi.org/10.14710/jwl.8.2.177-186

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

*Helmia Adita Fitra

- Department of Urban and Regional Planning, Institut Teknologi Sumatera, Indonesia

Fran Sinatra

- Department of Urban and Regional Planning, Institut Teknologi Sumatera, Indonesia

Citation Format:

Abstract

Industry 4.0 fosters the local economy to be globalized because 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. 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. This study aims to examine the effect of industry 4.0 on the aspects of MSMEs development, pervades production and infrastructure, networking and financing support, sales and marketing, and human resources. This study used a quantitative approach and conducted a regression analysis to discover which aspect is affected by Industry 4.0. The results of the study revealed that only two components of Banana Chips MSMEs development affected industry 4.0. They are the component of sales and marketing and human resources components.

Note: This article has supplementary file(s).

Fulltext View|Download | Copyright Transfer Agreement

Copyright Transfer Agreement

Subject
Type	Copyright Transfer Agreement
	Download (802KB) Indexing metadata

Keywords: banana chips MSMEs; industry 4.0; Lampung; regression

Article Metrics:

Article Info

Section: Research Articles

Language : EN

In Vol 8, No 2 (2020): August 2020

Recent articles

Kemampuan Kebertahanan Masyarakat pada Permukiman Rawan Banjir di Kecamatan Barabai, Kabupaten Hulu Sungai Tengah Modal Sosial Masyarakat di Kawasan Penyangga Taman Nasional Gunung Ciremai untuk Mendukung Skema Pengelolaan Berbasis Kemitraan The Effect of Industry 4.0 on the Development of Micro, Small and Medium Enterprises (MSMEs) Banana Chips in Bandar Lampung More recent articles

Adner, R., & Zemsky, P. (2005). Disruptive technologies and the emergence of competition. RAND Journal of Economics, 36(2), 229–254
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. doi: 10.32812/jibeka.v11i2.50
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. doi: 10.1080/713673986
Central Bureau of Statistics of Bandar Lampung. (2016). Bandar Lampung dalam angka. Bandar Lampung
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
doi: 10.5897/AJBM12.647
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. doi: 10.5539/ass.v7n5p180
Cui, Y., Zha, L., & Zhan, F. (2010). Financial support system and strategy of SMEs in the incubation based on business life cycle. International Business Research, 3(4), 119–123
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. doi: 10.1111/j.1435-5957.2012.00421.x
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. doi: 10.1504/IJGSB.2007.014184
Handayani, P. W., & Lisdianingrum, W. (2011). Impact analysis on free online marketing using social network Facebook: Case study SMEs in Indonesia. In 2011 International Conference on Advanced Computer Science and Information Systems (pp. 171–176)
Jones, M., & Jain, R. (2002). Technology transfer for SMEs: challenges and barriers. International Journal of Technology Transfer and Commercialisation, 1(1–2), 146–162. doi: 10.1504/IJTTC.2002.001781
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. doi: 10.3390/economies6030046
Markides, C. (2006). Disruptive innovation: In need of better theory. Journal of Product Innovation Management, 23(1), 19–25
Matt, D. T., & Rauch, E. (2020). SME 4.0: The role of small- and medium-sized enterprises in the digital transformation. In M. D, M. V, & Z. H (Eds.), Industry 4.0 for SMEs: Challenges, Opportunities, and Requirements (pp. 3–36). Palgrave Macmillan, Cham. doi: 10.1007/978-3-030-25425-4_1
Ministry of Industry. (2015). Rencana induk pembangunan industri nasional 2015-2035. Jakarta
Nie, J. (2007). A study of information technology adoption for small and medium sized enterprises strategic competitiveness. In 2007 International Conference on Wireless Communications, Networking and Mobile Computing (pp. 4342–4346)
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. doi: 10.31842/jurnal-inobis.v1i2.31
OECD. (2018). SME and entrepreneurship policy in Indonesia 2018 (OECD studi). Paris: OECD. doi: 10.1787/9789264306264-en
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
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. doi: 10.1007/s10799-017-0276-x
Singh, R. K. (2011). Developing the framework for coordination in supply chain of SMEs. Business Process Management Journal, 17(4), 619–638. doi: 10.1108/14637151111149456
Omar, S. S., 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. doi: 10.5539/ijbm.v4n10p95
Smallbone, D., & Welter, F. (2001). The role of government in SME development in transition economies. International Small Business Journal, 19(4), 63–77. doi: 10.1177/0266242601194004
Sulaksono. (2018). Kebijakan industri nasional di era disrupsi teknologi. In IPB Talk on Agroindustry 4.0: Tantangan dan Peluang bagi Sumberdaya Agroindustri. Bogor

Last update:

No citation recorded.

Last update:

No citation recorded.

As an article writer, the author has the right to use their articles for various purposes, including use by institutions that employ authors or institutions that provide funding for research. Author rights are granted without special permission.

Author who publishes a paper at JWL has the broad right to use their work for teaching and scientific purposes without the need to ask permission, including: used for (i) teaching in the author's class or institution, (ii) presentation at meetings or conferences and distributing copies to participants ; (iii) training conducted by the author or author's institution; (iv) distribution to colleagues for research use; (v) use in the compilation of subsequent authors' works; (vi) inclusion in a thesis or dissertation; (vi) reuse of part of the article in another work (with citation); (vii) preparation of derivative works (with citation); (viii) voluntary posting on open websites operated by authors or author institutions for scientific purposes (follow the CC BY-NC-SA 4.0 License).

Authors and readers can copy and redistribute material in any media or format, and mix, modify, and build material for any purpose but they must provide appropriate credit (provide article citation or content), providing links to the license, and indicate if there are changes.

The authors submitting a manuscript do so on the understanding that if accepted for publication, copyright of the article shall be assigned to Jurnal Wilayah dan Lingkungan (JWL). Copyright encompasses rights to reproduce and deliver the article in all form and media, including reprints, photographs, microfilms and any other similar reproductions, as well as translations.

Reproduce any part of this journal, its storage in the database or its transmission by all forms or media is permitted does not need for written permission from JWL. However, it should be cited as an honor in academic manners

JWL and the Department of Urban and Regional Planning of Diponegoro University and the Editor make every effort to ensure that there are no data, opinions, or false or misleading statements published in JWL. However, the content of the article is the sole and exclusive responsibility of each author.

The Copyright Transfer Form can be downloaded here: [Copyright Transfer Form - Indonesian] [Copyright Transfer Form - English]. The copyright form should be signed originally and send to the Editor in the form of printed letters, scanned documents sent via email or fax.