Factors Influence Small Medium Enterprises in Penang Island Reluctant to Use e-Commerce : A Research Proposal

2013 ◽  
Vol 64 (2) ◽  
Author(s):  
Seng Chee Lim ◽  
Ahmad Suhaimi Baharudin

The powerful of Internet has changed the world. The successful story from Amazon.com has encouraged some business owners to switch their business model to e-business model. In year 1997, Malaysia's government allocated some budget to setup Internet infrastructure and introduce Multimedia Super Corridor (MSC) to public. The main objective is to transform current practice to service based platform, and to attract world class companies while grooming local Internet communication technologies (ICT) companies. Besides that, the government had put efforts to increase Internet user population such as taxes deduction for family who purchase computers, educate the public the importance of master Internet technologies. After a decade of implementation, the e-Commerce adoption response from the Small Medium Enterprises (SMEs) still do not reach the considerable level, based on Association Chinese Chamber of Commerce & Industries of Malaysia SME's survey it shows 28% of the respondents involve into e-Commerce activities. Small Medium Enterprises contribute 99.2% to Malaysia's economic. This study intends to find out the level of e-Commerce adoption among SMEs in Malaysia, and potential factors that hindrance to the e-Commerce adoption.

2021 ◽  
Vol 10 (5) ◽  
pp. 2866-2874
Author(s):  
Kadek Cahya Dewi ◽  
Ni Wayan Dewinta Ayuni

Not all tourism actors in Indonesia had utilize the e-marketplace. Therefore, one of the Indonesian government's focus is to improve the tourism business process model through e-marketplace based system. The research purpose was to re-engineer the business process of tourism e-marketplace by engaging government, small medium enterprises (SMEs) and tourists. The research used the mixed method approach that conducted by modifying The McKinsey BPR methodology. As the result, this research adding two novel aspects to the previous research which are "role" and "activities". The new tourism e-marketplace business model proposed three kinds of role, namely: (1) government, (2) SMEs, and (3) tourists. This model also introduced activities including catalogue, finance, inventory management, collaboration, order fulfilment and customization. The proposed model was implemented and can be found in http://gonusadua.com. TELOS feasibility study was conducted to evaluate the model and found the final score of 8.3. It can be concluded that this model was feasible to develop and provide benefits for the government, SMEs, as well as the tourist. Beside had a contribution in built a new model of tourism e-marketplace, the research had also constructed a new tourism e-marketplace system with some improvements on the business model.


2020 ◽  
Vol 5 (01) ◽  
pp. 84-108
Author(s):  
I Wayan Aditya Harikesa

President Joko Widodo or Jokowi has made a great leap in enhancing Indonesia�s Small Medium Enterprises (SME)s and the country�s overall creative industries by establishing a new non ministerial institution called Badan Ekonomi Kreatif (BEKRAF) or the Creative Economy Agency. The BEKRAF, established under the Presidential Regulation Number 6 of 2015 issued on January 20, 2015, is responsible for accelerating the development of creative economy in Indonesia. Small Medium Enterprises (SMEs) have been playing crucial roles for generating economic progresses as well as social inclusion in Indonesia. Among the most important and worthy of priority is the country�s creative economy. The existence of BEKRAF will enhance close cooperation between the government, SMEs players and related economic stakeholders. This paper aims to assess the concept of �Creative Industries,� as a boundary concept that allows for increased co-operation between players and the generally opposing knowledge concepts�as reflected in their respective knowledge and cultural politics. Indonesia has great potential in terms of economic growth. In 2015, Indonesia�s Gross Domestic Product (GDP) rocketed to 4.79 percent, far above the previous expectation of only 2.4 percent. This encouraging climate is indeed the right moment for the government to strengthen the country�s economic foundation particularly in the real economic sector. Hence, BEKRAF has a vision to build Indonesia as one of the world�s great economic powers in the field of creative economy by 2030. This issue will be discussed comprehensively in the final part of the paper.


2021 ◽  
Vol 2 (1) ◽  
pp. 20-29
Author(s):  
Agus Darma Yoga Pratama ◽  
I Gusti Ayu Agung Dian Susanthi ◽  
Ni Putu Sri Mariyatni

Klungkung Regency is not only famous for producing songket and endek fabrics, but there are still many other Micro, Small, Medium Enterprises (MSMEs) that have been born and developed there. Semarapura Kaja Village is one of the MSME centers which certainly has a lot of potential that must be supported and developed so that it can become bigger and more independent. However, not all of these MSMEs have adequate capital, strategies, and support to be able to develop rapidly so that synergy and collaboration with the government and other parties are needed to overcome these problems. One solution that can be offered is to carry out promotional activities with interactive advertising language to attract consumer interest through online media in the hope of expanding market share and of course increasing income for MSME in Semarapura Kaja Village. This Community Partnership Program (PKM) educates and assists MSME to create good promotion and marketing strategies, either through print or online media. Assistance in optimizing the use of interactive advertising language in making online advertisements for superior products in Semarapura Kaja Village is targeting MSME who sell Balinese traditional clothing as one of the characteristics of Klungkung Regency which is the center of MSME traditional clothing. In its implementation, it was found that people are still very ignorant not only about advertising language but also with how to create, manage, and develop social media for promotion because there are still social media such as: Instagram and Facebook that are not effective and even not active in uploading content so that the form of implementation of assistance is direct and not in groups to maximize the results. MSMEs that are partners in the Community Partnership Program (PKM) are Dex's Pong and Tri Arta Collection. MSME have been assisted to socialize the importance of professionally managed social media with interactive advertising language, how to create attractive visual content for potential customers, to the importance of publication in print or online media. It is hoped that MSME will be able to consciously and independently promote their products in the future through the media consistently and continuously.


Author(s):  
Alexey Salikov

The question of how the digital transformation of the public sphere affects political processes has been of interest to researchers since the spread of the Internet in the early 1990s. However, today there is no clear or unambiguous answer to this question; expert estimates differ radically, from extremely positive to extremely negative. This article attempts to take a comprehensive approach to this issue, conceptualizing the transformations taking place in the public sphere under the influence of Internet communication technologies, taking their political context into account, and identifying the relationship between these changes and possible transformations of political regimes. In order to achieve these goals, several tasks are tackled during this research. The first section examines the issue as to whether the concept of the public sphere can be used in a non-democratic context. It also delineates two main types of the public sphere, the “democratic public sphere” and the “authoritarian public sphere,” in order to take into account the features of public discourse in the context of various political regimes. The second section discusses the special aspects of the digital transformation of the public sphere in a democratic context. The third section considers the special aspects of the digital transformation of the public sphere in a non-democratic context. The concluding section summarizes the results of the study, states the existing gaps and difficulties, outlines the ways for their possible extension, and raises questions requiring attention from other researchers.


2017 ◽  
Vol 8 (1) ◽  
pp. 95
Author(s):  
Singgih Muheramtohadi

Syariah Financial Institution means that the financial institution is run based on the Islamic teaching that refers to Qur’an and the Sunnah. Practically, it beganin early history of Islam, then was developed into Syariah Financial Institution. So, the purpose of Syariah Financial Institution is not merely for profit orientation. Further, it should be in accordance with Islamic value and the human philanthropy. Most of Syariah Financial Institution’s financing is for business sector and its ability to reach the micro business, that can’t be done by commercial banks. The financing for small business is funded by Islamic institutions due to Grameen Bank effect. Previously, Grameen Bank was built in mid-decade of 1970. The Financing of Syariah Financial Institution, in any sort, including cooperative union or BMT (Baitul Maal wa Tamwil), increased over time in both Institution Revenue and the Financing Rate. According to Financial Service Authority, most of financing of Syariah Banking is for the Micro, Small, Medium Enterprises that is very important for the nation economy, because it is engaged in the real sector of economy. And the other characters of the Micro, Small, medium enterprises in Indonesia are holding the honesty ethics and resistante to the crisis. They are the strengths of UMKM which must be considered to make the decision by the government or the Financial Institutions.Lembaga Keuangan Syariah (LKS) berarti badan yang bergerak di bidang keuangan yang dilandaskan pada ajaran Islam yang bersumber pada al Qur’an dan As Sunnah. Praktek ini sudah terdapat pada sejarah awal Islam, dan asas moralitas Islam dikembangkan dalam bentuk LKS. Sehingga, tujuan dari LKS tidak semata Profit Oriented, melainkan terdapat unsur-unsur keislaman dan kemanusiaan di dalamnya. Lembaga Keuangan syariah sebagian besar pembiayaannya diperuntukkan kepada sektor usaha, dan punya kemampuan untuk menjangkau usaha mikro, Sesuatu yang jarang dilakukan oleh pihak perbankan konvensional. Pembiayaan kepada UMKM ini tidak lepas juga dari pengaruh Grameen Bank sebelumnya, yang telah berdiri sejak medio 1970-an. Pembiayaan Lembaga Keuangan Syarah, baik dalam wujud Bank, Koperasi Simpan Pinjam maupun BMT mengalami peningkatan dari waktu ke waktu. Baik itu dari segi omzet LKS maupun tingkat pembiayaan nya. Berdasarkan data dari Jasa Otoritas Keuangan sebagian besar dari pembiayaan tersebut disalurkan kepada UMKM. Pembiayaan UMKM sangat penting dalam perekonomian nasional, karena bergerak di sektor riil. Karakteristik UMKM adalah sebagai usaha menengah ke bawah, pada umumnya dikelola dengan etika kejujuran masih dipegang kuat, serta relatif lebih kuat ketika dihadapkan pada krisis. Inilah yang jadi potensi UMKM yang harus diperhatikan dalam mengambil keputusan publik, baik itu oleh Pemerintah maupun Lembaga Keuangan (perbankan). 


2018 ◽  
Vol 14 (1) ◽  
pp. 95
Author(s):  
Ernani Hadiyati ◽  
Martaleni ◽  
Suprayitno

Small Medium Enterprises (SMEs) in Indonesia have a significantly strategic role in the national economy to improve employment, Gross Domestic Product (GDP) and export value, thus increase the economic growth in Indonesia. The purpose of the study is to describe and analyze the traditional marketing practices and entrepreneurial marketing and their effects on business performance. The object of the research is industrial SMEs in garment production, located in East Java Province. The number of research samples is 134. The data is analyzed by using SEM-PLS and Different Test Statistics. The result of the study indicates that the traditional marketing practice model and entrepreneurial marketing influence business performance. And the other research results show that there are differences in traditional marketing practices and entrepreneurial marketing in SMEs. The concept of entrepreneurial marketing is suitable for SMEs to improve their business performance. From the research it is recommended that the government policy, with its SME empowerment program, is able to overcome marketing challenges. For SMEs, they need to consider and learn the entrepreneurial marketing concept as a new paradigm in marketing.


2019 ◽  
Vol 7 (1) ◽  
pp. 1270-1282
Author(s):  
VICTOR CORNELIS SINAGA ◽  
JUDITH T. GALLENA SINAGA

INTRODUCTION: Small-Medium Enterprises (SMEs) play a vital role in economic development of Indonesia.  To support its economic development, the government is obliged to generate revenue.  In order to generate more revenue, Indonesian government implemented self- assessment system in compliance with tax obligations.  Most of the SMEs are compliant while some are not that aware of it because of lack of socialization.  The aim of this study is to comprehend the effect of implementing self-assessment system on tax compliance.   METHOD:  This study focused on SMEs in Lembang, West Java, Indonesia.  It was exploratory research based on data were gathered from West Java Regency Office.  Questionnaires were distributed to 70 (based on Slovin formula) respondents from the total population of 244.   RESULTS: The result showed that the correlation of implementation of self-assessment system on tax compliance is weak, thus, the findings showed that implementation of self-assessment system has no significant influence on tax compliance.         DISCUSSION AND RECOMMENDATION: Implementation of self-assessment system has no significant influence on tax compliance.  There are several reasons for this, such as, most of the people around the district of Lembang are not yet fully aware about its implementation. Also, it is not well socialized by the tax authorities from the Revenue Offices.  It lacks personnel to do the socialization.  The stated reasons were affirmed during the interview with the Head of SMEs located in West Bandung Regency.   Implementation of the Self - Assessment System is worth to grab by SMEs in the district of Lembang, Bandung, Indonesia. It is highly recommended to socialize again the implementation and assign personnel that can extend time and effort to socialization.                Keywords:  SMEs, revenue, self-assessment, socialization, compliance      


2014 ◽  
Vol 52 (8) ◽  
pp. 1491-1515 ◽  
Author(s):  
Marco Cucculelli ◽  
Cristina Bettinelli ◽  
Angelo Renoldi

Purpose – The purpose of this paper is to focus on how investments in research and development (R&D) and advertising affect the performance of small- and medium-sized enterprises (SMEs) during recessions. Design/methodology/approach – Contingency theory is applied to a data set of 376 Italian clothing SMEs during the period 2000-2010 to test whether investment in R&D and advertising impacts financial performance differently when contingent factors (such as market share, financial leverage and business model change) are taken into account. Findings – Empirical results confirm that market share and leverage moderate the effects of investments in R&D and advertising (i.e. intangibles) on performance, and also that changes in business models are an important contingent factor that explains performance. Specifically, the paper ascertains that a novelty-centered business model, together with investments in intangibles, positively affects performance during recessions. Originality/value – This study offers an input to the debate on how SMEs develop and sustain their competitive advantage during the recession. It contributes to existent theory by showing whether and how contingencies, such as a firm's market share and leverage, moderate the relationship between performance and investments in R&D and advertising in SMEs. Second, it addresses the call for additional data “about the strategic effects of business models and how they influence the positioning of firms in their competitive environment” (Amit and Zott, 2008, p. 20) by introducing business model change/innovation as a new contingency factor and by empirically testing its effects on “objective measures of firm performance” (Bock et al., 2012, p. 301).


Author(s):  
Adhisty Mohammad Khariza ◽  
Arintoko Arintoko ◽  
Suprapto Suprapto

Small-medium enterprises (SMEs) are the main pillar of the Indonesian economy. Based on 2016’s Economic Census, most businesses in Indonesia are SMEs, while SMEs absorb the majority of the workforce. The empowerment of SMEs is one way to improve the economy. To empower the SMEs sector, the Indonesian government launched the Kredit Usaha Rakyat (KUR) since 2007. The lasts policy is the provision of the mild interest rate for KUR since 2016. The hope is that with a mild interest rate, SMEs can get affordable financing access so they can be the driving force of the economy. However, credit demand is not only influenced by interest rate but other macroeconomic factors such as Gross Domestic Product and inflation. Also, this study will look at how development disparities between the West Indonesia Region and East Indonesia Region affect credit demand. This research is intended to see the effect of macroeconomic factors on Small-medium enterprises loans. Source of data is taken from Indonesia Badan Pusat Statistik. Panel data use 2011-2018 time-series data and 33 provinces cross-section data are used to investigate the relationship of SMEs’ Loans with these macroeconomic factors. The result show that Interest Rate, GRDP, and Inflation, effect on SMEs Loans in a respectively different manner. However, the development disparities between West Indonesia Region and East Indonesia Region has no significant effect on SMEs’ loans. The study concludes that macroeconomic activities are important indicators not only the interest rate. So, the government should not only focus on interest rate policy but also other macroeconomic factors. Keyword: Macroeconomic Factors, SMEs’ Loan, Kredit Usaha Rakyat (KUR), Panel Data


2019 ◽  
Vol 18 (2) ◽  
pp. 153
Author(s):  
Ida Giyanti ◽  
Anita Indrasari

The objective of this study is to model the technological, organizational, and environmental factors influencing the intention of food manufacturing Small Medium Enterprises (SMEs) to fulfill halal standard requirements. The research was conducted in Surakarta city in which halal-certified SMEs became the research object. Data were analyzed using Structural Equation Model-Partial Least Squares (SEM-PLS). Technological factors were measured by the perceived benefit and complexity of the halal procedure. An organizational factor was measured by SMEs awareness towards the halal standards. While the environmental factor was measured using external pressure. The result shows that the estimated model found support only for the role of perceived benefit of halal standard implementation in influencing the intention of food manufacturing SMEs to fulfill halal standard requirements. Other hypotheses were in the predicted direction but not statistically significant. A little less than half (R2 = 0.413) of the variability in the intention to fulfill halal standard requirements is explained by the four variables. The structural model in this study has a predictive relevance at a moderate level with a Q2 value of 0.208. Based on the findings of this study, it is expected that the government always explains the benefits of adopting a halal standard to the food manufacturing SMEs. Theoretically, this study makes a contribution to enriching the research literature regarding halal certification adoption factors among food manufacturing SMEs.


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