The influence of innovation, knowledge management, and e-commerce adoption on MSME performance, and its impact on MSMEs sustainability

Damdam Damiyana, Erna Maulina, Anang Muftiadi, Lina Auliana, Kurniadi Kurniadi

Article ID: 7994
Vol 8, Issue 11, 2024

VIEWS - 1619 (Abstract)

Abstract


In the current digital age, financial development has seen substantial shifts, particularly in buying and selling activities that are now facilitated by digital technology or electronic transactions (e-commerce), which offer convenience at relatively low costs. However, micro, small, and medium enterprises (MSMEs), which play a crucial role in the economy, must adapt to these advancements to sustain and grow their businesses. Despite the widespread adoption of e-commerce, many MSMEs have yet to fully capitalize on this technology. Limited knowledge often leads to hesitation in embracing e-commerce opportunities. Consequently, this study seeks to explore how innovation, information management, and e-commerce adoption impact MSME performance and its implications for business sustainability. The research targets MSME owners and managers in the Jabodetabek area (Jakarta, Bogor, Depok, Tangerang, and Bekasi) and nearby regions, with a sample of 420 individuals selected through random sampling. Data was collected through an online survey (Google Forms) administered to MSME management. The survey items were tested for validity and reliability, and the data analysis was conducted using various regression analyses with SEM-PLS and Smart-PLS3. The study’s findings highlight the following key points: 1) E-commerce adoption significantly enhances information management, which supports MSME sustainability; 2) E-commerce adoption also improves performance through better information management, further promoting MSME sustainability; 3) While technology is important, e-commerce adoption is the primary factor driving MSME sustainability, with technology serving as a secondary factor.


Keywords


innovation; knowledge management; e-commerce adoption; MSME performance; MSME sustainability; digital native

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DOI: https://doi.org/10.24294/jipd.v8i11.7994

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