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

Citation Format:

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).

Keywords: banana chips MSMEs; industry 4.0; Lampung; 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. 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
  3. 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
  4. Central Bureau of Statistics of Bandar Lampung. (2016). Bandar Lampung dalam angka. Bandar Lampung
  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. doi: 10.5897/AJBM12.647
  7. 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
  8. 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
  9. 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
  10. 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
  11. 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)
  12. 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
  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. doi: 10.3390/economies6030046
  14. Markides, C. (2006). Disruptive innovation: In need of better theory. Journal of Product Innovation Management, 23(1), 19–25
  15. 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
  16. Ministry of Industry. (2015). Rencana induk pembangunan industri nasional 2015-2035. Jakarta
  17. 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)
  18. 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
  19. OECD. (2018). SME and entrepreneurship policy in Indonesia 2018 (OECD studi). Paris: OECD. doi: 10.1787/9789264306264-en
  20. 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
  21. 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
  22. 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
  23. 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
  24. 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
  25. 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: 2021-04-14 21:31:05

No citation recorded.

Last update: 2021-04-14 21:31:07

No citation recorded.