Email this article The Effect of Covid 19 on Bitung Micro Business Performance
Abstract
Microbusinesses under Dinas Koperasi Usaha Kecil Menengah Bitung faced plenty of struggles to make ends meet given the uncertainty of the Covid19 pandemic. The micro-business owners have to adapt and adjust their businesses for survivability.
Objectives: This study aims to analyze the effect of Covid19 and market competition on these micro and small enterprises in Bitung, Indonesia which survived and still has business performance, either financial or non-financial. In addition, this study seeks to analyze the effect of Covid19 on the adoption of digital marketing that might influence business performance.
Methodology: The study uses data from 38 micro-business in Bitung that are currently active and has been surviving through the Covid19 pandemic. Data analysis and hypothesis testing are done using Partial Least Squared Modelling (PLS-SEM) using SMART PLS.
Finding: Results of this study shows that competition intensity has a positive influence on the adoption of digital marketing. In addition, digital marketing adoption positively influences both financial and non-financial performances.
Conclusion: Contrary to common belief, it is competition intensity rather than the perception of Covid19 that has contributed to the adoption of digital marketing which in turn contributed to the business financial performance of micro businesses in Bitung.
Keywords
Full Text:
PDFReferences
Arief, H. (2019). Pengaruh Kinerja Keuangan terhadap Harga Saham dengan Metode Diskriminan Springate pada Industri Migas di Pasar Saham Indonesia. Jurnal Ilmiah Manajemen Bisnis, 5(1).
Bitung, D. K. dan U. K. M. (2022). UMKM Kota Bitung. http://gis.diskopukmbitung.id/
Caraka, R. E. (2021). Micro, small, and medium enterprises’ business vulnerability cluster in Indonesia: An analysis using optimized fuzzy geodemographic clustering. Sustainability (Switzerland), 13(14). https://doi.org/10.3390/su13147807
Castro, G. D. R. (2021). Unleashing the convergence amid digitalization and sustainability towards pursuing the Sustainable Development Goals (SDGs): A holistic review. In Journal of Cleaner Production (Vol. 280). https://doi.org/10.1016/j.jclepro.2020.122204
Chen, C. L., Lin, Y. C., Chen, W. H., Chao, C. F., & Pandia, H. (2021). Role of Government to Enhance Digital Transformation in Small Service Business. Undefined, 13(3), 1–26. https://doi.org/10.3390/SU13031028
Eller, R. (2020). Antecedents, consequences, and challenges of small and medium-sized enterprise digitalization. Journal of Business Research, 112, 119–127. https://doi.org/10.1016/j.jbusres.2020.03.004
Fawzeea, B. K. (2019). The role of technology marketing micro business, small and medium enterprises (Smes) agents for repurchase intention and its impact on the community satisfaction (case in Indonesia). International Journal of Scientific and Technology Research, 8(12), 1724–1730. https://api.elsevier.com/content/abstract/scopus_id/85077314760
Garson, D. G. (2016). Partial Least Squares: Regression and Structural Equation Models. 62–65.
Gherhes, C., Vorley, T., & Brooks, C. (2021). The “additional costs” of being peripheral: developing a contextual understanding of micro-business growth constraints. Journal of Small Business and Enterprise Development, 28(1), 59–84. https://doi.org/10.1108/JSBED-03-2019-0091
Giantari, I. G. A. K. (2022). The role of digital marketing in mediating the effect of the COVID-19 pandemic and the intensity of competition on business performance. International Journal of Data and Network Science, 6(1), 217–232. https://doi.org/10.5267/J.IJDNS.2021.9.006
Guo, H. (2020). The digitalization and public crisis responses of small and medium enterprises: Implications from a COVID-19 survey. Frontiers of Business Research in China, 14(1). https://doi.org/10.1186/s11782-020-00087-1
Hair, Joe F., Sarstedt, M., Hopkins, L., & Kuppelwieser, V. G. (2014). Partial least squares structural equation modeling (PLS-SEM): An emerging tool in business research. European Business Review, 26(2), 106–121. https://doi.org/10.1108/EBR-10-2013-0128/FULL/XML
Hair, Joseph F, Ringle, C. M., & Sarstedt, M. (2012). Partial Least Squares: The Better Approach to Structural Equation Modeling? Long Range Planning, 45(5–6), 312–319. https://doi.org/10.1016/j.lrp.2012.09.011
Hetami, A. A., & Aransyah, M. F. (2021). Development of synergistic between digitalization MSMEs and digital society in Indonesia. Undefined, 11(2), 18–30. https://doi.org/10.46223/HCMCOUJS.ECON.EN.11.2.1934.2021
Isensee, C. (2020). The relationship between organizational culture, sustainability, and digitalization in SMEs: A systematic review. In Journal of Cleaner Production (Vol. 275). https://doi.org/10.1016/j.jclepro.2020.122944
Li, X. (2022). Business transformation in an age of turbulence – Lessons learned from COVID-19. Technological Forecasting and Social Change, 176. https://doi.org/10.1016/j.techfore.2021.121452
Meriam, A. (2021). Establish relation in collaborative governance in micro and small business development in Palopo city, South Sulawesi province, Indonesia. In Proceedings of the International Conference on Industrial Engineering and Operations Management (pp. 4492–4499). https://api.elsevier.com/content/abstract/scopus_id/85114247077
Mkansi, M. (2021). E-business adoption costs and strategies for retail micro businesses. In Electronic Commerce Research (Issue 0123456789). Springer US. https://doi.org/10.1007/s10660-020-09448-7
Mujanah, S. (2022). Critical thinking and creativity of msmes in improving business performance during the covid-19 pandemic. Uncertain Supply Chain Management, 10(1), 19–28. https://doi.org/10.5267/j.uscm.2021.10.014
Niemand, T. (2021). Digitalization in the financial industry: A contingency approach of entrepreneurial orientation and strategic vision on digitalization. European Management Journal, 39(3), 317–326. https://doi.org/10.1016/j.emj.2020.04.008
Pollák, F. (2021). Size of business unit as a factor influencing adoption of digital marketing: Empirical analysis of SMEs operating in the central European market. Administrative Sciences, 11(3). https://doi.org/10.3390/admsci11030071
Pucihar, A., Lenart, G., Borštnar, M. K., Vidmar, D., & Marolt, M. (2019). Drivers and outcomes of business model innovation-micro, small and medium-sized enterprises perspective. Sustainability (Switzerland), 11(2). https://doi.org/10.3390/su11020344
Sekaran, U., & Bougie, R. (2016). Research methods for business: a skill-building approach (7th Editio).
Shree, D., Kumar Singh, R., Paul, J., Hao, A., & Xu, S. (2021). Digital platforms for business-to-business markets: A systematic review and future research agenda. Journal of Business Research, 137, 354–365. https://doi.org/10.1016/J.JBUSRES.2021.08.031
Statistik, B. P. (2022). Badan Pusat Statistik Kota Bitung. https://bitungkota.bps.go.id/indicator/156/200/1/penduduk-berumur-15-tahun-ke-atas-yang-bekerja-selama-seminggu-yang-lalu-menurut-lapangan-pekerjaan-utama.html
The World Bank. (2021). A Green Horizon: Towards a High Growth and Low Carbon Economy.
Tijan, E., Jović, M., Aksentijević, S., & Pucihar, A. (2021). Digital transformation in the maritime transport sector. Undefined, 170. https://doi.org/10.1016/J.TECHFORE.2021.120879
Tjahjadi, B., Soewarno, N., Nadyaningrum, V., & Aminy, A. (2022). Human capital readiness and global market orientation in Indonesian Micro-, Small- and-Medium-sized Enterprises business performance. International Journal of Productivity and Performance Management, 71(1), 79–99. https://doi.org/10.1108/IJPPM-04-2020-0181
Trinugroho, I., Pamungkas, P., Wiwoho, J., Damayanti, S. M., & Pramono, T. (2021). Adoption of digital technologies for micro and small business in Indonesia. Finance Research Letters, March, 102156. https://doi.org/10.1016/j.frl.2021.102156
Ullah, F. (2021). Barriers to the digitalisation and innovation of Australian Smart Real Estate: A managerial perspective on the technology non-adoption. Environmental Technology and Innovation, 22. https://doi.org/10.1016/j.eti.2021.101527
Undang-Undang Republik Indonesia Nomor 20 Tahun 2008 Tentang Usaha Mikro, Kecil, Dan Menengah. (2008). https://ppid.unud.ac.id/img/admin/page_attc/a16a3dba809cb5346a0cbf2c0073cd6d.pdf
Van Veldhoven, Z., & Vanthienen, J. (2021). Digital transformation as an interaction-driven perspective between business, society, and technology. Electronic Markets. https://doi.org/10.1007/S12525-021-00464-5
World Health Organization. (2021). Coronavirus Disease 2019 (COVID-19) (Vol. 2019, Issue December).
Zhou, Y. (2021). The impact of HRM digitalization on firm performance: investigating three-way interactions. Asia Pacific Journal of Human Resources, 59(1), 20–43. https://doi.org/10.1111/1744-7941.12258
DOI: http://dx.doi.org/10.22441/jurnal_mix.2022.v12.i3.003
Refbacks
- There are currently no refbacks.
MIX: Jurnal Ilmiah Manajemen
Journal URL: http://publikasi.mercubuana.ac.id/index.php/Jurnal_Mix
Journal DOI: 10.22441/jurnal_mix
P-ISSN: 2088-1231
E-ISSN: 2460-5328
Editor's Address:
Magister Management Department, Universitas Mercu Buana.
Tedja Buana Building 4th Floor.
Jl. Menteng Raya No. 29, Jakarta 10340.
The Journal is Indexed and Abstracting by:
1.png){kind=logo}