Analysis of the Government's Role in Promoting Innovation Readiness in Micro, Small, and Medium-sized Industries in Indonesia

Muhammad Farid(1*), Aris Baharuddin(2), Muh. Ihsan Said(3),

(1) Universitas Negeri Makassar, South Sulawesi, Indonesia
(2) Universitas Negeri Makassar, South Sulawesi, Indonesia
(3) Universitas Negeri Makassar, South Sulawesi, Indonesia
(*) Corresponding Author




DOI: https://doi.org/10.26858/jiap.v13i2.53041

Abstract


In the context of Indonesia's evolving economic landscape, this study delves into the critical issue of innovation readiness within its Micro, Small, and Medium-sized Enterprises (MSMEs) sector. Recognizing the significant role of governments in fostering innovation, this research aims to comprehensively analyze the government's contributions to enhancing innovation readiness in Indonesian MSMEs. Employing a qualitative research approach, this study investigates government policies, regulatory frameworks, and collaborative initiatives with industry associations and research institutions. The findings illuminate the effectiveness of these interventions and provide valuable insights for policymakers and stakeholders striving to bolster Indonesia's economic development and competitiveness through innovation support in the MSME sector.


Keywords


Government; innovation; MSMEs

Full Text:

PDF

References


Ahmad, S. Z., Abu Bakar, A. R., & Ahmad, N. (2019). Social media adoption and its impact on firm performance: the case of the UAE. International Journal of Entrepreneurial Behaviour and Research, 25(1), 84–111. https://doi.org/10.1108/IJEBR-08-2017-0299

Anggadwita, G., Martini, E., Hendayani, R., & Kamil, M. R. (2021). The Role of Technology and Innovation Capabilities in Achieving Business Resilience of MSMEs during Covid-19: Empirical Study. 2021 9th International Conference on Information and Communication Technology, ICoICT 2021, 1–6. https://doi.org/10.1109/ICoICT52021.2021.9527464

Annamalah, S., Paraman, P., Ahmed, S., Dass, R., Sentosa, I., Pertheban, T. R., Shamsudin, F., Kadir, B., Aravindan, K. L., Raman, M., Hoo, W. C., & Singh, P. (2023). The role of open innovation and a normalizing mechanism of social capital in the tourism industry. Journal of Open Innovation: Technology, Market, and Complexity, 9(2), 100056. https://doi.org/https://doi.org/10.1016/j.joitmc.2023.100056

Appiah, K., Osei, C., Selassie, H., & Osabutey, E. (2019). The role of government and the international competitiveness of SMEs: Evidence from Ghanaian non-traditional exports. Critical Perspectives on International Business.

Baxter Pamela, & Jack, S. (1990). Qualitative Case Study Methodology: Study Design and Implementation for Novice Researchers. The Qualitative Report, 13(4), 544–559.

Băzăvan, A. (2019). Chinese government’s shifting role in the national innovation system. Technological Forecasting and Social Change, 148, 119738. https://doi.org/https://doi.org/10.1016/j.techfore.2019.119738

Beckmann, B., Giani, A., Carbone, J., Koudal, P., Salvo, J., & Barkley, J. (2016). Developing the Digital Manufacturing Commons: A National Initiative for US Manufacturing Innovation. Procedia Manufacturing, 5, 182–194. https://doi.org/https://doi.org/10.1016/j.promfg.2016.08.017

Begum, S., Xia, E., Mehmood, K., Iftikhar, Y., & Li, Y. (2020). The impact of ceos’ transformational leadership on sustainable organizational innovation in smes: A three-wave mediating role of organizational learning and psychological empowerment. Sustainability (Switzerland), 12(20), 1–16. https://doi.org/10.3390/su12208620

Belousova, O. A., Groen, A. J., & Ouendag, A. M. (2020). Opportunities and barriers for innovation and entrepreneurship in orphan drug development. Technological Forecasting and Social Change, 161, 120333. https://doi.org/https://doi.org/10.1016/j.techfore.2020.120333

Cenamor, J., Parida, V., & Wincent, J. (2019a). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity. Journal of Business Research, 100(April), 196–206. https://doi.org/10.1016/j.jbusres.2019.03.035

Cenamor, J., Parida, V., & Wincent, J. (2019b). How entrepreneurial SMEs compete through digital platforms: The roles of digital platform capability, network capability and ambidexterity. Journal of Business Research, 100, 196–206. https://doi.org/https://doi.org/10.1016/j.jbusres.2019.03.035

Creswell, J. W., & Creswell, J. D. (2017). Research design: Qualitative, quantitative, and mixed methods approaches. Sage publications.

D’Amato, A. (2020). Capital structure, debt maturity, and financial crisis: empirical evidence from SMEs. Small Business Economics, 55(4), 919–941.

Dekker, R., Franco Contreras, J., & Meijer, A. (2020). The Living Lab as a Methodology for Public Administration Research: a Systematic Literature Review of its Applications in the Social Sciences. International Journal of Public Administration, 43(14), 1207–1217. https://doi.org/10.1080/01900692.2019.1668410

Dibrell, C., Davis, P. S., & Craig, J. (2008). Fueling innovation through information technology in SMEs. Journal of Small Business Management, 46(2), 203–218.

Doh, S., & Kim, B. (2014). Government support for SME innovations in the regional industries: The case of government financial support program in South Korea. Research Policy, 43(9), 1557–1569. https://doi.org/https://doi.org/10.1016/j.respol.2014.05.001

Gherghina, S. C. (2020). Small and medium-sized enterprises (SMEs): The engine of economic growth through investments and innovation. Sustainability (Switzerland), 12(1). https://doi.org/10.3390/SU12010347

Gomes, G., & Wojahn, R. M. (2017). Organizational learning capability, innovation and performance: study in small and medium-sized enterprises (SMES). Revista de Administração, 52(2), 163–175. https://doi.org/10.1016/j.rausp.2016.12.003

Hanafizadeh, P., Behboudi, M., Ahadi, F., & Varkani, F. G. (2012). Internet advertising adoption: A structural equation model for Iranian SMEs. Internet Research, 22(4), 499–526. https://doi.org/10.1108/10662241211251015

Hardin, R. (2008). Normative Methodology. The Oxford Handbook of Political Methodology, September, 1–14. https://doi.org/10.1093/oxfordhb/9780199286546.003.0002

Hutahayan, B., & Yufra, S. (2019). Innovation speed and competitiveness of food small and medium-sized enterprises (SME) in Malang, Indonesia: Creative destruction as the mediation. Journal of Science and Technology Policy Management, 10(5), 1152–1173. https://doi.org/10.1108/JSTPM-12-2017-0071

Kahle, J. H., Marcon, É., Ghezzi, A., & Frank, A. G. (2020). Smart Products value creation in SMEs innovation ecosystems. Technological Forecasting and Social Change, 156, 120024.

Kang, K.-N., & Park, H. (2012). Influence of government R&D support and inter-firm collaborations on innovation in Korean biotechnology SMEs. Technovation, 32(1), 68–78.

Lu, C., Yu, B., Zhang, J., & Xu, D. (2020). Effects of open innovation strategies on innovation performance of SMEs: evidence from China. Chinese Management Studies.

Mai, B. T., Nguyen, P. V., Ton, U. N. H., & Ahmed, Z. U. (2023). Government policy, IT capabilities, digital transformation, and innovativeness in Post-Covid context: case of Vietnamese SMEs. International Journal of Organizational Analysis. https://doi.org/10.1108/IJOA-11-2022-3480

Mehrabi, H., Coviello, N., & Ranaweera, C. (2019). Ambidextrous marketing capabilities and performance: How and when entrepreneurial orientation makes a difference. Industrial Marketing Management, 77(November), 129–142. https://doi.org/10.1016/j.indmarman.2018.11.014

Miles, M. B., Huberman, A. M., & Saldana, J. (2014). Qualitative data analysis: A method sourcebook. In CA, US: Sage Publications.

Mishra, S. B., & Alok, S. (2022). Handbook of research methodology. Educreation publishing.

Osman, M. A., Mohd Noah, S. A., & Saad, S. (2022). Ontology-Based Knowledge Management Tools for Knowledge Sharing in Organization-A Review. IEEE Access, 10, 43267–43283. https://doi.org/10.1109/ACCESS.2022.3163758

Palacios-Marques, D., Saldaña, A. Z., & Vila, J. E. (2013). What are the relationships among Web 2.0, market orientation and innovativeness? Kybernetes, 42(5), 754–765. https://doi.org/10.1108/K-03-2013-0057

Pasetto, M., & Giacomello, G. (2023). Technical-economic assessments on the feasibility of new infrastructures serving seaport and dry port of Venice. Transportation Research Procedia, 69, 839–846. https://doi.org/https://doi.org/10.1016/j.trpro.2023.02.243

Sastararuji, D., Hoonsopon, D., Pitchayadol, P., & Chiwamit, P. (2022). Cloud accounting adoption in Thai SMEs amid the COVID-19 pandemic: an explanatory case study. Journal of Innovation and Entrepreneurship, 11(1), 43. https://doi.org/10.1186/s13731-022-00234-3

Solomon, E. M., & van Klyton, A. (2020). The impact of digital technology usage on economic growth in Africa. Utilities Policy, 67, 101104. https://doi.org/10.1016/j.jup.2020.101104

Tan, J. D., Supratikno, H., Pramono, R., Purba, J. T., & Bernarto, I. (2019). Nurturing transgenerational entrepreneurship in ethnic Chinese family SMEs: exploring Indonesia. Journal of Asia Business Studies, 13(2), 294–325.

Taneo, S. Y. M., Hadiwidjojo, D., Sunaryo, S., & Sudjatno, S. (2020). Creative destruction and knowledge creation as the mediation between innovation speed and competitiveness of food small and medium-sized enterprises in Malang, Indonesia. Competitiveness Review, 30(2), 195–218. https://doi.org/10.1108/CR-12-2017-0090

Taneo, S. Y. M., Hadiwidjojo, D., Sunaryo, & Sudjatno. (2017). the Roles of Local Government in Moderating the Correlation Between Innovation Speed and and the Competitiveness of Food Small and Medium-Sized Enterprises (Smes) in Malang, Indonesia. Russian Journal of Agricultural and Socio-Economic Sciences, 62(2), 42–54. https://doi.org/10.18551/rjoas.2017-02.06

VanHoose, K., Hoekstra, M., & Bontje, M. (2021). Marketing the unmarketable: Place branding in a postindustrial medium-sized town. Cities, 114, 103216. https://doi.org/https://doi.org/10.1016/j.cities.2021.103216

Wan, S., Luan, W., Chen, Y., & Lin, Q. (2022). Influence of dry ports construction on seaport growth: Case of Ningbo Zhoushan Port. Transport Policy, 117, 40–47. https://doi.org/https://doi.org/10.1016/j.tranpol.2022.01.008

Wonglimpiyarat, J., & Yuberk, N. (2005). In support of innovation management and Roger’s Innovation Diffusion theory. Government Information Quarterly, 22(3), 411–422.


Article Metrics

Abstract view : 241 times | PDF view : 46 times

Refbacks

  • There are currently no refbacks.


Copyright (c) 2023 Muhammad Farid, Aris Baharuddin, Muh. Ihsan Said

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.

Diterbitkan oleh:

Program Studi Ilmu Administrasi Publik

Program Pascasarjana Universitas Negeri Makassar

 

JIAP Index By:

               

View My Stats

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.