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Journal : International Journal of Business, Law, and Education

A Holistic Review of MSME Entrepreneurship in Indonesia: The Role of Innovation, Sustainability, and the Impact of Digital Transformation Judijanto, Loso; Utami, Eva Yuniarti; Apriliani, Diah; Rijal, Syamsu
International Journal of Business, Law, and Education Vol. 5 No. 1 (2024): International Journal of Business, Law, and Education
Publisher : IJBLE Scientific Publications Community Inc.

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56442/ijble.v5i1.355

Abstract

This study conducts a comprehensive examination of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, focusing on their role in the economy, challenges in innovation, sustainability, and digital transformation. With over 97% of the local labor force employed by MSMEs, their significance is undeniable. However, obstacles, exacerbated by the COVID-19 pandemic, include a financing gap, innovation difficulties, and limited resources hindering digitalization. The research, based on a sample of 250 MSMEs, utilizes Partial Least Square-Structural Equation Modeling (PLS-SEM) to reveal the positive and significant impact of innovation, sustainability, and digital transformation on MSME entrepreneurship. Practical implications suggest prioritizing innovation, integrating sustainable practices, and recognizing the importance of digitalization for MSMEs' success, with broader implications for socio-economic and environmental goals.
The Influence of Social Capital, Entrepreneurial Competence and Entrepreneurial Ecosystem in Shaping Business Incubators in Indonesia Sucandrawati, Ni Luh Ketut Ayu Sudha; Suartini, Ni Wayan; Wati, Indah; Apriliani, Diah
International Journal of Business, Law, and Education Vol. 5 No. 1 (2024): International Journal of Business, Law, and Education
Publisher : IJBLE Scientific Publications Community Inc.

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.56442/ijble.v5i1.496

Abstract

This study looks into how the entrepreneurial ecosystem, social capital, and entrepreneurial competence interact to influence how successful Indonesian business incubators are. Partial Least Squares Structural Equation Modeling (PLS-SEM) was the quantitative method used to examine the data collected from 275 entrepreneurs and incubator stakeholders. The evaluation of the measurement model demonstrated appropriate average variances extracted, strong loadings, and high composite reliabilities, all of which supported the validity and reliability of the selected indicators. Each latent variable's uniqueness was confirmed by discriminant validity analysis. Significant positive correlations between social capital, entrepreneurial competence, the entrepreneurial ecosystem, and the efficacy of business incubators were found by the structural model estimation. The suggested theoretical framework was validated by hypothesis testing, which showed that these elements interact to affect the performance of business incubators in Indonesia. A good fit was shown by the model fit assessment, supporting the structural model's validity. The results enhance our understanding from a theoretical and practical standpoint, offering policymakers, entrepreneurs, and stakeholders a comprehensive framework to maximize the conditions necessary for the success of business incubators.