Innovation And Technology in Management, A Pathways to Sustainable Growth for MSMEs In Indonesia
DOI: 10.35760/ugefic.v8i1.230Abstract
MSMEs sector is one of the engines of Indonesia's economy through its enormous contributions in GDP and absorptions of workforce. Yet, their competitive capacity and sustainability are hindered by low investment lacking in human capital, a low level of digital literacy, and a penchant of reluctance to change. In the era of technology, business transformation levers of innovation and technology are considered essential, their coverage across the MSME management are low. The purpose of this study is to examine the technology absorption and implementation in the managerial system and the consequences of such implementation in terms of performance and resiliency of the Indonesian MSMEs. A qualitative multiple case study was undertaken and the data obtained from semi-structured interviews, observation and document analysis in MSMEs across various sectors. Thematically analysis with inferences grounded in grounded theory identified six major themes namely, (1) motivation for adoption through relative advantage, and opening of market opportunities, (2) continued barriers such as financial resources and cultural restrictions, (3) leadership response and management innovation, (4) employee commitment, digital skill formation (5) customer reliance influenced by digital capability, and (6) sustainability and competitive re-alignment. Our findings are a synthesis of the Resource-Based and Knowledge-Based Views, as well as the Dynamic Capabilities, and Diffusion of Innovation, and Technology Organization Environment, and Socio-Technical Systems literature. The results demonstrate that successful implementation of DT in MSMEs is not merely technological; it also concerns with adaptive leadership, organization readiness and social and cultural fit too.
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