Digital Technologies Application and Competitive Advantage for MSMEs Sustainability and Market Performance
DOI:
https://doi.org/10.24269/ekuilibrium.v18i2.2023.pp169-178Abstract
The development of digital technology and intense competition have forced owners of small firms (MSMEs) to adapt technological developments to compete with competitors quickly. This study examines the effect of digitalization and competitive advantage on market sustainability and performance. This study used a qualitative method by distributing questionnaires to 166 MSMEs owners in Indonesia. The finding of this research indicate that digitalization and competitive advantage affect sustainability and market performance. This study's results suggest to MSMEs owners that technological proficiency is crucial for companies to survive in an uncertain environment.
References
Bianchi, Constanza & Andrews, L. (2018). Consumer engagement with retail brands through social media: An empirical study in Chile. International Journal of Retail and Distribution Management, 46(4), 364-385. https://doi.org/10.1108/IJRDM-02-2017-0035
Budiarto, D. S., Vivianti, E., & Diansari, R. E. (2021). Maintaining the performance and sustainability of MSMEs with e-commerce: Research during the covid-19 pandemic. Journal of Economics, Business, & Accountancy Ventura, 23(3), 414-425 https://doi.org/10.14414/jebav.v23i3.2463
Camilleri, M. A. (2019). The SMEs’ technology acceptance of digital media for stakeholder engagement. Journal of Small Business and Enterprise Development, 26(4), 504–521. https://doi.org/10.1108/JSBED-02-2018-0042
Del Baldo, M., Sitnikov, C., Vasilescu, L., Mandache, L., Ogarcă, R., Băndoi, A., & Ganea, E. (2022). Funding, turnover, sustainability and digital technologies: A multicriteria research model for SMEs facing a challenging context. Sustainability (Switzerland), 14(7), 1-33. https://doi.org/10.3390/su14073953
Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive advantage. Kasetsart Journal of Social Sciences, 41(1), 15–21. https://doi.org/10.1016/j.kjss.2018.07.009
Dua, A., Ellingrud, K., Mahajan, D., & Silberg, J. (2020). Which small businesses are most vulnerable to covid-19—and when. Social Sector Practice, June, 3, 1-10.
Falahat, M., Lee, Y. Y., Foo, Y. C., & Chia, C. E. (2019). A model for consumer trust in E-commerce. Asian Academy of Management Journal, 24, 93–109. https://doi.org/10.21315/aamj2019.24.s2.7
Fatonah, S., & Haryanto, A. T. (2022). Exploring market orientation, product innovation and competitive advantage to enhance the performance of SMEs under uncertain events. Uncertain Supply Chain Management, 10(1), 161–168. https://doi.org/10.5267/j.uscm.2021.9.011
Fauzi, A. A., & Sheng, M. L. (2022). The digitalization of micro, small, and medium-sized enterprises (MSMEs): An institutional theory perspective. Journal of Small Business Management, 60(6), 1288–1313. https://doi.org/10.1080/00472778.2020.1745536
Gwee, L., & Giantari, I. G. A. K. (2021). The role of competitive advantage mediates the effect of innovation on business performance. American Journal of Humanities and Social Sciences Research, 5(1), 222–230.
Hair, J. F., Risher, J. J., Sarstedt, M., & Ringle, C. M. (2019). When to use and how to report the results of PLS-SEM. European Business Review, 31(1), 2–24. https://doi.org/10.1108/EBR-11-2018-0203
Jin, Z., Navare, J., & Lynch, R. (2019). The relationship between innovation culture and innovation outcomes: exploring the effects of sustainability orientation and firm size. R and D Management, 49(4), 607–623. https://doi.org/10.1111/radm.12351
Joensuu-Salo, S., Sorama, K., Viljamaa, A., & Varamäki, E. (2018). Firm performance among internationalized smes: The interplay of market orientation, marketing capability and digitalization. Administrative Sciences, 8(3), 1-13. https://doi.org/10.3390/admsci8030031
Latifah, L., Susilowati, N., Ardiansah, M. N., Tusyanah, T., & Abdullah, M. S. (2022). Social media networking and knowledge sharing in increasing innovation and MSME’s Growth: based on the theory of communication visibility. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 17(2), 122–138. https://doi.org/10.24269/ekuilibrium.v17i2.2022.pp122-138
Lestari, S. D., Leon, F. M., Widyastuti, S., Brabo, N. A., & Putra, A. H. P. K. (2020). Antecedents and consequences of innovation and business strategy on performance and competitive advantage of SMEs. Journal of Asian Finance, Economics and Business, 7(6), 365–378. https://doi.org/10.13106/JAFEB.2020.VOL7.NO6.365
Liew, Y. S., & Falahat, M. (2019). Factors influencing consumers’ purchase intention towards online group buying in Malaysia. International Journal of Electronic Marketing and Retailing, 10(1), 60-77. https://doi.org/10.1504/ijemr.2019.10017363
Lorenzo, J. R. F., Rubio, M. T. M., & Garcés, S. A. (2018). The competitive advantage in business, capabilities and strategy. What general performance factors are found in the Spanish wine industry? Wine Economics and Policy, 7(2), 94–108. https://doi.org/10.1016/j.wep.2018.04.001
Obal, M., Morgan, T., & Joseph, G. (2020). Integrating sustainability into new product development: The role of organizational leadership and culture. Journal of Small Business Strategy, 30(1), 43–57.
Parida, V., Sjödin, D., & Reim, W. (2019). Reviewing literature on digitalization, business model innovation, and sustainable industry: Past achievements and future promises. Sustainability (Switzerland), 11(2), 1-18. https://doi.org/10.3390/su11020391
Respatiningsih, H. (2021). The impact of E-Commerce on the marketing performance of MSMEs during the covid19 pandemic mediated by competitive advantage. Proceedings of the 3rd International Conference on Banking, Accounting, Management and Economics (ICOBAME 2020), 169(Icobame 2020), 166–169. https://doi.org/10.2991/aebmr.k.210311.032
Setiyawan, A., Isa, M., & Wajdi, M. F. (2023). SMEs Performance and halal food supply chain. Ekuilibrium : Jurnal Ilmiah Bidang Ilmu Ekonomi, 18(1), 62–71. https://doi.org/10.24269/ekuilibrium.v18i1.2023.pp62-71
Shashi, Cerchione, R., Centobelli, P., & Shabani, A. (2018). Sustainability orientation, supply chain integration, and SMEs performance: A causal analysis. Benchmarking, 25(9), 3679–3701. https://doi.org/10.1108/BIJ-08-2017-0236
Singh, S. K., Gupta, S., Busso, D., & Kamboj, S. (2021). Top management knowledge value, knowledge sharing practices, open innovation and organizational performance. Journal of Business Research, 128(November 2018), 788–798. https://doi.org/10.1016/j.jbusres.2019.04.040
Srikalimah, S., Wardana, L. W., Ambarwati, D., Sholihin, U., Shobirin, R. A., Fajariah, N., & Wibowo, A. (2020). Do creativity and intellectual capital matter for SMEs sustainability? The role of competitive advantage. Journal of Asian Finance, Economics and Business, 7(12), 397–408. https://doi.org/10.13106/JAFEB.2020.VOL7.NO12.397
Srisathan, W. A., Ketkaew, C., & Naruetharadhol, P. (2020). The intervention of organizational sustainability in the effect of organizational culture on open innovation performance: A case of thai and chinese SMEs. Cogent Business and Management, 7(1), 1-28. https://doi.org/10.1080/23311975.2020.1717408
Toftgård, A. S. & J. (2018). Chinese internationalization in Sweden. Bachelor Thesis in Business Administration, May, 63.
Tura, N., Keränen, J., & Patala, S. (2019). The darker side of sustainability: Tensions from sustainable business practices in business networks. Industrial Marketing Management, 77(July), 221–231. https://doi.org/10.1016/j.indmarman.2018.09.002
Udriyah, Tham, J., & Ferdous Azam, S. M. (2019). The effects of market orientation and innovation on competitive advantage and business performance of textile smes. Management Science Letters, 9(9), 1419–1428. https://doi.org/10.5267/j.msl.2019.5.009
Yang, Y., Khan, Z., & Zhang, Y. (2020). The influence of social media marketing on apparel brands’ customers’ satisfaction: The mediation of perceived value. Asian Academy of Management Journal, 25(2), 167–188. https://doi.org/10.21315/aamj2020.25.2.7
Yi, H. T., Amenuvor, F. E., & Boateng, H. (2021). The impact of entrepreneurial orientation on new product creativity, competitive advantage and new product performance in smes: The moderating role of corporate life cycle. Sustainability (Switzerland), 13(6), 1-20. https://doi.org/10.3390/su13063586
Yousaf, Z., Radulescu, M., Sinisi, C. I., Serbanescu, L., & Păunescu, L. M. (2021). Towards sustainable digital innovation of smes from the developing countries in the context of the digital economy and frugal environment. Sustainability (Switzerland), 13(10), 1–28. https://doi.org/10.3390/su13105715
Zutshi, A., Mendy, J., Sharma, G. D., Thomas, A., & Sarker, T. (2021). From challenges to creativity: Enhancing SMEs’ resilience in the context of covid-19. Sustainability (Switzerland), 13(12), 1–16. https://doi.org/10.3390/su13126542
Downloads
Published
How to Cite
Issue
Section
License
Retained Rights/Terms and Conditions of Publication
1. As an author you (or your employer or institution) may do the following:
- make copies (print or electronic) of the article for your own personal use, including for your own classroom teaching use;
- make copies and distribute such copies (including through e-mail) of the article to research colleagues, for the personal use by such colleagues (but not commercially or systematically, e.g. via an e-mail list or list server);
- present the article at a meeting or conference and to distribute copies of the article to the delegates attending such meeting;
- for your employer, if the article is a ‘work for hire’, made within the scope of your employment, your employer may use all or part of the information in the article for other intra-company use (e.g. training);
- retain patent and trademark rights and rights to any process, procedure, or article of manufacture described in the article;
- include the article in full or in part in a thesis or dissertation (provided that this is not to be published commercially);
- use the article or any part thereof in a printed compilation of your works, such as collected writings or lecture notes (subsequent to publication of the article in the journal); and prepare other derivative works, to extend the article into book-length form, or to otherwise re-use portions or excerpts in other works, with full acknowledgement of its original publication in the journal;
- may reproduce or authorize others to reproduce the article, material extracted from the article, or derivative works for the author's personal use or for company use, provided that the source and the copyright notice are indicated, the copies are not used in any way that implies RCEPM-LIPI endorsement of a product or service of any employer, and the copies themselves are not offered for sale.
All copies, print or electronic, or other use of the paper or article must include the appropriate bibliographic citation for the article's publication in the journal.
2. Requests from third parties
Although authors are permitted to re-use all or portions of the article in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use. Requests for all uses not included above, including the authorization of third parties to reproduce or otherwise use all or part of the article.
3. Author Online Use
- Personal Servers. Authors and/or their employers shall have the right to post the accepted version of articles pre-print version of the article, or revised personal version of the final text of the article (to reflect changes made in the peer review and editing process) on their own personal servers or the servers of their institutions or employers without permission from Universitas Muhamamdiyah Ponorogo, provided that the posted version includes a prominently displayed Universitas Muhamamdiyah Ponorogo copyright notice and, when published, a full citation to the original publication, including a link to the article abstract in the journal homepage. Authors shall not post the final, published versions of their papers;
- Classroom or Internal Training Use. An author is expressly permitted to post any portion of the accepted version of his/her own articles on the author's personal web site or the servers of the author's institution or company in connection with the author's teaching, training, or work responsibilities, provided that the appropriate copyright, credit, and reuse notices appear prominently with the posted material. Examples of permitted uses are lecture materials, course packs, e-reserves, conference presentations, or in-house training courses;
- Electronic Preprints. Before submitting an article to an Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, authors frequently post their manuscripts to their own web site, their employer's site, or to another server that invites constructive comment from colleagues. Upon submission of an article to Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi, an author is required to transfer copyright in the article to Economy Faculty Universitas Muhammadiyah Ponorogo, and the author must update any previously posted version of the article with a prominently displayed Economy Faculty Universitas Muhammadiyah Ponorogo copyright notice. Upon publication of an article by the Universitas Muhammadiyah Ponorogo, the author must replace any previously posted electronic versions of the article with either (1) the full citation to the work with a Digital Object Identifier (DOI) or link to the article abstract in Ekuilibrium: Jurnal Ilmiah Bidang Ilmu Ekonomi journal homepage, or (2) the accepted version only (not the final, published version), including the Economy Faculty Universitas Muhammadiyah Ponorogo copyright notice and full citation, with a link to the final, published article in journal homepage.
4. Articles in Press (AiP) service
Economy Faculty Universitas Muhammadiyah Ponorogo may choose to publish an abstract or portions of the paper before we publish it in the journal. Please contact our Production department immediately if you do not want us to make any such prior publication for any reason, including disclosure of a patentable invention.
5. Author/Employer Rights
If you are employed and prepared the article on a subject within the scope of your employment, the copyright in the article belongs to your employer as a work-for-hire. In that case, Economy Faculty Universitas Muhammadiyah Ponorogo assumes that when you sign this Form, you are authorized to do so by your employer and that your employer has consented to the transfer of copyright, to the representation and warranty of publication rights, and to all other terms and conditions of this Form. If such authorization and consent has not been given to you, an authorized representative of your employer should sign this Form as the Author.
6. RCEPM-LIPI Copyright Ownership
It is the formal policy of Economy Faculty Universitas Muhammadiyah Ponorogo to own the copyrights to all copyrightable material in its technical publications and to the individual contributions contained therein, in order to protect the interests of the Economy Faculty Universitas Muhammadiyah Ponorogo, its authors and their employers, and, at the same time, to facilitate the appropriate re-use of this material by others. Economy Faculty Universitas Muhammadiyah Ponorogo distributes its technical publications throughout the world and does so by various means such as hard copy, microfiche, microfilm, and electronic media. It also abstracts and may translate its publications, and articles contained therein, for inclusion in various compendiums, collective works, databases and similar publication.
7. Licensing Terms
Ekuilibrium is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Permissions beyond the scope of this license may be available at https://journal.umpo.ac.id/










