JEFMS Journal

ABSTRACT:

The Covid-19 pandemic has encouraged initiatives to digitalize SMEs to be carried out seriously and more equally. This is due to the fact that the success of the SMEs business in the digital era is inextricably linked to its readiness to digitalize existing business operations. One proof of the readiness of SMEs in doing business in this digital era is that they have used digital marketing platforms. This research aims to digitalize the business of the SMEs group in the Tempe Industry Center in Kampung Sanan Malang, East Java, which is included in the Indonesian government’s projection to maximize income in the creative economy sector. This research is a qualitative research with the stages of research implementation covering the identification and mapping of the potential for digitalization of the economy, to the development of an e-commerce website in the Tempe Sanan Malang SMEs group. The research results take the shape of an e-commerce website used by SMEs actors, as well as an increase in digital competence owned by SMEs actors, enabling them to digitalize their businesses in a sustainable manner.

KEYWORDS:

Creative Economy, Digitalization of MSMEs, E-Commerce Websites

REFERENCES:

1) Agustina, Y., Winarno, A., Pratikto, H., Narmaditya, B. S., & Filianti, F. (2020). A Creative Economy Development Strategy: The Case of Trenggalek Creative Network for Trenggalek Regency, Indonesia. The Journal of Asian Finance, Economics and Business, 7(12), 1111–1122. https://doi.org/10.13106/jafeb.2020.vol7.no12.1111

2) Aminullah, E., Fizzanty, T., Nawawi, N., Suryanto, J., Pranata, N., Maulana, I., Ariyani, L., Wicaksono, A., Suardi, I., Azis, N. L. L., & Budiatri, A. P. (2022). Interactive Components of Digital MSMEs Ecosystem for Inclusive Digital Economy in Indonesia. Journal of the Knowledge Economy. https://doi.org/10.1007/s13132-022-01086-8

3) Andreas, C., & Yuniati, T. (2016). Pengaruh kualitas produk terhadap loyalitas pelanggan dengan kepuasan sebagai variabel intervening. Jurnal Ilmu Dan Riset Manajemen (JIRM), 5(5).

4) Argilés-Bosch, J. M., Garcia-Blandón, J., & Ravenda, D. (2022). Cost behavior in e-commerce firms. Electronic Commerce Research. https://doi.org/10.1007/s10660-021-09528-2

5) Bilan, Y., Vasilyeva, T., Kryklii, O., & Shilimbetova, G. (2019). The Creative Industry As A Factor In The Development Of The Economy: Dissemination Of European Experience In The Countries With Economies In Transition. Creativity Studies, 12(1), 75–101. https://doi.org/10.3846/cs.2019.7453

6) Cassetta, E., Monarca, U., Dileo, I., Di Berardino, C., & Pini, M. (2020). The relationship between digital technologies and internationalisation. Evidence from Italian SMEs. Industry and Innovation, 27(4), 311–339. https://doi.org/10.1080/13662716.2019.1696182

7) Chollisni, A., Syahrani, S., Dewi, S., Utama, A. S., & Anas, M. (2022). concept of creative economy development-strengthening post COVID-19 pandemic in Indonesia. Linguistics and Culture Review, 6, 413–426. https://doi.org/10.21744/lingcure.v6nS1.2065

8) Costa, J., & Castro, R. (2021). SMEs Must Go Online—E-Commerce as an Escape Hatch for Resilience and Survivability. Journal of Theoretical and Applied Electronic Commerce Research, 16(7), 3043–3062. https://doi.org/10.3390/jtaer16070166

9) Dwivedi, Y. K., Ismagilova, E., Hughes, D. L., Carlson, J., Filieri, R., Jacobson, J., Jain, V., Karjaluoto, H., Kefi, H., Krishen, A. S., Kumar, V., Rahman, M. M., Raman, R., Rauschnabel, P. A., Rowley, J., Salo, J., Tran, G. A., & Wang, Y. (2021). Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, 59, 102168. https://doi.org/10.1016/j.ijinfomgt.2020.102168

10) Eller, R., Alford, P., Kallmünzer, A., & Peters, M. (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization. Journal of Business Research, 112, 119–127. https://doi.org/10.1016/j.jbusres.2020.03.004

11) Herlina, E., Tukiran, M., & Anwar, S. (2021). The Effect of Entrepreneurial Leadership on Organizational Performance: Literature Review. MARGINAL.: Journal of Management, Accounting, General Finance and International Economic Issues, 1(1), 25–33. https://doi.org/https://doi.org/10.55047/marginal.v1i1.9

12) Indonesian Ministry of Finance. (2020). UMKM Bangkit, Ekonomi Indonesia Terungkit. Indonesian Ministry of Finance. https://www.djkn.kemenkeu.go.id/artikel/baca/13317/UMKM-Bangkit-Ekonomi-Indonesia-Terungkit.html

13) Kergroach, S. (2020). Giving momentum to SME digitalization. Journal of the International Council for Small Business, 1(1), 28–31. https://doi.org/10.1080/26437015.2020.1714358

14) Khayru, R. K., Darmawan, D., & Munir, M. (2021). Analysis of Product Preference of Chitato and Lay’s Potato Chips. MARGINAL: Journal of Management, Accounting, General Finance and International Economic Issues, 1(1), 10–15. https://doi.org/https://doi.org/10.55047/marginal.v1i1.7

15) Kirschner, P. A., & De Bruyckere, P. (2017). The myths of the digital native and the multitasker. Teaching and Teacher Education, 67, 135–142. https://doi.org/10.1016/j.tate.2017.06.001

16) Meileni, H., Oktapriandi, S., & Apriyanti, D. (2021). The Application of Digital Marketing for UKM in Facing the Covid-19 Pandemic. https://doi.org/10.2991/ahe.k.210205.093

17) Norris, L. (2020). The spatial implications of rural business digitalization: case studies from Wales. Regional Studies, Regional Science, 7(1), 499–510. https://doi.org/10.1080/21681376.2020.1841674

18) North, K., Aramburu, N., & Lorenzo, O. J. (2019). Promoting digitally enabled growth in SMEs: a framework proposal. Journal of Enterprise Information Management, 33(1), 238–262. https://doi.org/10.1108/JEIM-04-2019-0103

19) Putra, H. A., & Ngatno, N. (2017). Pengaruh Kualitas Pelayanan Terhadap Loyalitas Konsumen Melalui Kepuasan Konsumen Sebagai Variabel Intervening (Studi Kasus Pada Konsumen PT. Lontar Media Digital Printing Semarang). Jurnal Ilmu Administrasi Bisnis, 6(4), 68–75.

20) Rizki, K. (2020). How digitalization is accelerating the growth of MSMEs in Indonesia. World Economic Forum.

21) Sinyuk, T., Panfilova, E., & Pogosyan, R. (2021). Digital transformation of SME business models as a factor of sustainable socio-economic development. E3S Web of Conferences, 295, 01028. https://doi.org/10.1051/e3sconf/202129501028

22) Sopanah, A., Bahri, S., & Ghozali, M. (2018). Creative Economic Development Strategy in Malang City. KnE Social Sciences, 3(10). https://doi.org/10.18502/kss.v3i10.3386

23) Tambunan, T. T. H. (2021). EXPORT OF INDONESIAN MSEs AND THE ROLE OF PARTNERSHIP. Journal of Developing Economies, 6(2), 235. https://doi.org/10.20473/jde.v6i2.28747

24) Thompson, P. (2013). The digital natives as learners: Technology use patterns and approaches to learning. Computers & Education, 65, 12–33. https://doi.org/10.1016/j.compedu.2012.12.022

25) Trașcă, D. L., Ștefan, G. M., Sahlian, D. N., Hoinaru, R., & Șerban-Oprescu, G.-L. (2019). Digitalization and Business Activity. The Struggle to Catch Up in CEE Countries. Sustainability, 11(8), 2204. https://doi.org/10.3390/su11082204

26) Viswanathan, R., & Telukdarie, A. (2021). A systems dynamics approach to SME digitalization. Procedia Computer Science, 180, 816–824. https://doi.org/10.1016/j.procs.2021.01.331

27) Wihardja, M. M. (2021). Why e-commerce is key to Indonesia’s small businesses. Wolrd Bank Blog.

28) Zhai, Y., Yang, K., Chen, L., Lin, H., Yu, M., & Jin, R. (2023). Digital entrepreneurship: global maps and trends of research. Journal of Business & Industrial Marketing, 38(3), 637–655. https://doi.org/10.1108/JBIM-05-2021-0244