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This Author published in this journals
All Journal International Journal of Cyber and IT Service Management (IJCITSM)
Martinus Tukiran
Agung Podomoro University
Computer Science & IT Decision Sciences, Operations Research & Management

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Innovation Practices and External Support for MSME Performance and Survival in Indonesia Pauline Henriette Pattyranie Tan; Martinus Tukiran; Dewi Wuisan
International Journal of Cyber ​​and IT Service Management (IJCITSM) Vol. 5 No. 2 (2025): October
Publisher : International Institute for Advanced Science & Technology (IIAST)

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.34306/ijcitsm.v5i2.184

Abstract

Amidst the rapid development of the digital economy, innovation practices are critical for enhancing performance and ensuring the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. As the backbone of the national economy, contributing significantly to GDP and employment, MSMEs are vital for macroeconomic resilience and inclusive growth. However, they consistently encounter systemic challenges in maintaining business performance and long-term survival, particularly within highly competitive and volatile markets, exacerbated by the aftermath of the COVID-19 pandemic. This study aimed to analyze the impact of innovation practices on MSME business performance and survival in Indonesia, with external support serving as a moderating factor. Using a purposive sampling technique, data was collected from 281 MSME actors in Jabodetabek who had embraced innovation. SEM-PLS analysis revealed that innovation practices positively and significantly affect both business performance and survival. Interestingly, external support did not moderate the influence of innovation practices on business performance but did moderate its effect on business continuity.
Co-Authors Dewi Wuisan Tan, Pauline H. Pattyranie