Desmiyawati, Yusralaini, Ramaiyanti, S., & Azlina, N.
The Utilization of Digital Technology in Improving SMEs Performance in The New Normal Era. |
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Full Article: PDF
Scientific Object Identifier: http://s-o-i.org/1.1/TAS-10-114-49
DOI: https://dx.doi.org/10.15863/TAS.2022.10.114.49
Language: English
Citation: Desmiyawati, Yusralaini, Ramaiyanti, S., & Azlina, N. (2022). The Utilization of Digital Technology in Improving SMEs Performance in The New Normal Era. ISJ Theoretical & Applied Science, 10 (114), 428-437. Soi: http://s-o-i.org/1.1/TAS-10-114-49 Doi: https://dx.doi.org/10.15863/TAS.2022.10.114.49 |
Pages: 428-437
Published: 30.10.2022
Abstract: The Covid-19 pandemic has been a global disaster. Because many countries choose lockdown policies, this pandemic causes job losses and increases poverty rates. The impact of COVID-19 is becoming more apparent in Indonesia, particularly in the MSME sector, which has long been the backbone of the economy. As a result of the economic downturn, several countries, including Indonesia, are gradually implementing the "new normal" in order to boost the economy's wheels. It is hoped that the new normal policy will re-energize the business sector, particularly micro, small, and medium enterprises (SMEs). By considering the social dynamics towards the new normal following the COVID19 pandemic, SMEs need to strengthen their business. This requires a strategy so that SMEs can survive and improve performance in the new normal era. The purpose of this research is to analyze the advantages of digital technology and innovation in improving MSME performance in the New Normal Era. The research focuses on SMEs in Pelalawan Regency. The population is 13,824 SMEs registered at the Department of Cooperatives and SMEs in Pelalawan Regency. The data used is primary data, in which respondents are given a written questionnaire/question. The data were analyzed using multiple linear regression. The results of testing on 50 questionnaires show that all instruments used in this research are valid and reliable. The results of testing the research hypothesis show that digital technology has a positive and significant effect on the performance of SMEs. The use of digital technology, such as online media, will make it easier for SMEs to market their products, expanding the reach of product marketing, particularly during this New Normal period. Meanwhile, the results of innovation testing show that innovation has no effect on SMEs' performance. This shows that during the New Normal period, SMEs did not innovate much due to the limitation, a lack of capital and lack of knowledge of resources to implement this innovation.
Key words: digital technology, innovation, performance, new normal
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