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All Journal International Journal of Community Service
Warsono sudiro
Lecturer of Politeknik Jatiluhur, Indonesia
Religion Humanities Education Environmental Science Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Library & Information Science Public Health Social Sciences Other

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Enhancing Business Decision-Making of Purwakarta MSMEs through AI-Based Market Analysis Warsono sudiro; Suhendri; Arlen Nawang Rachelia Arlen; Indri Yani Lasmini Indri
International Journal Of Community Service Vol. 6 No. 2 (2026): May 2026 ( Indonesia - Thailand - Malaysia - Philippines)
Publisher : CV. Inara in Colaboration with www.stie-sampit.ac.id

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.51601/ijcs.v6i2.988

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in economic development; however, they face increasing challenges in making effective business decisions due to rapidly evolving market dynamics. Artificial Intelligence (AI) has emerged as a strategic tool to enhance decision-making processes through data-driven insights. This study aims to analyze the effect of AI-based market analysis on decision-making quality and its impact on business performance among MSMEs in Purwakarta. A quantitative approach was employed using survey data from 165 MSME owners, analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results indicate that AI-based market analysis significantly improves decision-making quality (β = 0.66, p < 0.001), which subsequently enhances business performance (β = 0.61, p < 0.001). Furthermore, data readiness strengthens the effectiveness of AI utilization. These findings contribute to the literature on digital transformation and provide practical insights for MSMEs in adopting AI-driven strategies.
Co-Authors Arlen Nawang Rachelia Arlen Indri Yani Lasmini Indri Suhendri