3rd South American International Conference on Industrial Engineering and Operations Management

Implementation of Business Sustainability in Jakarta's Micro Small Medium Enterprises

Alexander Adinata, Fabien Sutedja & Haryadi Sarjono
Publisher: IEOM Society International
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Track: Business Management
Abstract

The Industrial Revolution 4.0 is directly related to the digital transformation process, and this is because digital transformation is one of the efforts to participate in the 4.0 industrial revolution and is the topic of discussion in this research. The research aims to become a means of information for MSMEs that will carry out digital transformation and as a reference for MSMEs that have not yet carried out digital transformation. The data analysis technique in this study uses the Partial Least Square (PLS) approach, one of the Structural Equation Modeling (SEM) equation models. The data analysis technique in this research is path analysis. The research data was collected using an online questionnaire and distributed using accidental sampling and snowball sampling techniques so that 393 respondents were collected. The results of this study indicate that the variables of the customer, competition, and innovation (financial technology), which are the dimensions of digital transformation, have a significant positive influence on business sustainability. Meanwhile, Big Data Usage as a moderator does not have a positive and significant effect on the relationship between the customer variable and business sustainability and the relationship between the competition variable and business sustainability. It can be concluded that the variable of Big Data Usage as a moderator weakens the relationship between the customer or competition variable and the business sustainability variable. The results of this study found that digital transformation can help MSMEs in Jakarta achieve business sustainability, but Big Data Usage has not been utilized properly.

Published in: 3rd South American International Conference on Industrial Engineering and Operations Management

Publisher: IEOM Society International
Date of Conference: May 10-12, 2022

ISBN: 978-1-7923-9159-0
ISSN/E-ISSN: 2169-8767