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Digital Disruption for Micro Business and Small and Medium Enterprises: A study in Empowering the Value Added of the Traditional Flower Market
Elvia R Shauki, PhD (a*), Eva Oktavini (b), Tiara Pradani (c)

(a*) Department of Accounting, Faculty of Economics and Business, University of Indonesia
elvia.shauki[at]icloud.com
(b) Accounting Science Graduate Program, Department of Accounting, Faculty of Economics and Business
(c) Accounting Science Graduate Program, Department of Accounting, Faculty of Economics and Business


Abstract

Digital disruption is coming not only to large-sized companies but also to micro business, small and medium enterprises (SMEs). Their challenges and strategies facing the disruption technologies are the themes of this paper. This type of business is in highly demand to more fully embrace towards Information and Communication Technology (ICT) and e-business/e-commerce as it involves large number of buyers, sellers, innovators, and importantly large number of employees too (Taylor and Murphy 2004). E-Business or e-commerce is known as a way of building international competitive advantage and it is expected in generating economic dynamism, growth and jobs According to new research conducted by Ricoh South Africa, SMEs are in danger of failing if they dont adapt to digital disruption, regulatory requirements and the economic shifts that are fundamentally changing their markets (Entrepreneur SA, 2019). A case study in empowering the Value Added of the Traditional Flower Market located in Cikini, the Centre of Jakarta, Indonesia was conducted by applying Participatory Action Research (PAR). PAR is an approach to research involving communities (everyone involved in the process) that emphasizes participation and action. It seeks to understand what the communities are doing by trying to change it, collaboratively, and following continuous reflection. The following research questions were addressed in the study: (1) How are SMEs engaging in e-commerce and e-business; (2) What deters SMEs from adopting; e-commerce and e-business techniques? (3) What factors create successful e-enterprises; and (4) Does e-business bring the economic rewards everyone is after (the competitive advantage debate)? The study finds that though e-business has brought a new promising era, a new competition era, and economic benefits to those who are involved, however there are some deterrence that hinder the process. Human and financial capital are the key success for the SMEs. SMEs must actively seek closer customer relationships by using a better technology to facilitate and inform their products and services continuously. SMEs must apply a better and smarter technology to reshape the processes, improve a better service and more efficiencies. SMEs must adopt full potential of talented young individuals using technology to empower employees and the e-business.

Keywords: Keywords: Micro business, small and medium enterprises, digital disruption, disruption technology, e-business, e-commerce, participatory action research, and empowering value added.

Topic: Education Management and Learning Innovation

Link: https://ifory.id/abstract/3PYm4fpbneau

Conference: The 3rd International Research Conference on Economics and Business (IRCEB 2019)

Plain Format | Corresponding Author (Eva Oktavini)

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