Marketing Magic or Just Hype? The AI Factor in Indonesia’s MSME Growth
DOI:
https://doi.org/10.31941/pj.v24i2.6625Keywords:
Competitive Advantage, Innovation Diffusion, MSMEs, Technology AdoptionAbstract
This research investigates the strategic influence of artificial intelligence (AI) adoption on the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, emphasizing the mediating role of innovation diffusion. By synthesizing the Technology Acceptance Model (TAM), the Diffusion of Innovations (DOI) theory, and the Resource-Based View (RBV), the study analyzes how perceived usefulness and ease of use contribute to the attainment of sustained competitive advantage. Employing a quantitative methodology, the analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) on data collected from 160 MSMEs. The measurement model demonstrated strong reliability and validity. The findings reveal that technology adoption exerts a significant effect on both innovation and competitiveness, with innovation serving as a partial mediator. The R² and Q² values reflect moderate explanatory and predictive capacity. This study provides both theoretical contributions and practical recommendations for fostering digital transformation in the MSME sector through AI-driven innovation.
Downloads
References
Abdillah, A., Sufa, S. A., & Brumadyadisty, G. (2024). " HAPPY BARENG BIGGER BETTER " SCHOOL TO SCHOOL DI SURABAYA. 9(1), 266–284.
Barney, J. (2015). Firm resources and sustained competitive advantage. International Business Strategy: Theory and Practice, 17(1), 283–301. https://doi.org/10.1093/oso/9780199277681.003.0003
Cueto, L. J., Frisnedi, A. F. D., Collera, R. B., Batac, K. I. T., & Agaton, C. B. (2022). Digital Innovations in MSMEs During Economic Disruptions: Experiences and Challenges of Young Entrepreneurs. Administrative Sciences, 12(1), 8. https://doi.org/10.3390/admsci12010008
Davis, F. D., Bagozzi, R. P., & Warshaw, P. R. (1989). User Acceptance of Computer Technology: A Comparison of Two Theoretical Models. Management Science, 35(8), 982–1003. https://doi.org/10.1287/mnsc.35.8.982
European Economic Letters. (2024). “Unlocking Digital Potential: Navigating the Path to Digital Transformation for Indian MSMES.” https://doi.org/10.52783/eel.v14i1.1314
Fornell, C., & Larcker, D. F. (1981). Evaluating Structural Equation Models with Unobservable Variables and Measurement Error. Journal of Marketing Research, 18(1), 39–50. https://doi.org/10.2307/3151312
Hair, J. F., Hult, G. T. M., Ringle, C. M., Sarstedt, M., Danks, N. P., & Ray, S. (2021). Evaluation of Formative Measurement Models. https://doi.org/10.1007/978-3-030-80519-7_5
Hair, J., Marko Sarstedt, Hopkins, L., & Kuppelwieser, V. (2019). Partial least squares structural equation modeling ( PLS-SEM ) An emerging tool in business research. European Business Review, 26(2). https://doi.org/10.1108/EBR-10-2013-0128
Henseler, J., Ringle, C. M., & Sarstedt, M. (2015). A new criterion for assessing discriminant validity in variance-based structural equation modeling. Journal of the Academy of Marketing Science, 43(1), 115–135. https://doi.org/10.1007/s11747-014-0403-8
Islami, N. N., Wahyuni, S., & Tiara, T. (2020). The Effect of Digital Marketing on Organizational Performance Through Intellectual Capital and Perceived Quality in Micro, Small and Medium Enterprises. Jurnal Organisasi Dan Manajemen, 16(1), 60–72. https://doi.org/10.33830/jom.v16i1.718.2020
Kadin Indonesia. (2023). UMKM Indonesia - KADIN Indonesia. In Kadin Indonesia (p. 1). Indonesian Chamber of Commerceand Industry. https://kadin.id/data-dan-statistik/umkm-indonesia/
Khaq, Z. D. (2024). AI-driven Strategies for Enhancing MSME Sales and Business Communication: A Case Study. Jmi, 3(2), 180–194. https://doi.org/10.51903/jmi.v3i2.28
Krisprimandoyo, D. A. (2023). Optimizing Corporate Branding: The Role of Artificial Intelligence In Business Transformation of IQOS. Jurnal Riset Multidisiplin dan Inovasi Teknologi, 2(01), 283–306. https://doi.org/10.59653/jimat.v2i01.482
Modgil, S., Singh, R., & Hannibal, C. (2021). Artificial Intelligence for Supply Chain Resilience: Learning From Covid-19. The International Journal of Logistics Management, 33(4), 1246–1268. https://doi.org/10.1108/ijlm-02-2021-0094
Mukherjee, S. (2023). Artificial Intelligence-Based Supply Chain Resilience for Improving Firm Performance in Emerging Markets. Journal of Global Operations and Strategic Sourcing, 17(3), 516–540. https://doi.org/10.1108/jgoss-06-2022-0049
Nurlina, N., Rosa, Y. D., & Yanti, B. (2023). The Effect of Digital Literacy and Business Strategy on the Performance of Micro, Small, and Medium Enterprises (MSMES) in Culinary Industry in Padang City. International Journal of Progressive Sciences and Technologies, 38(2), 252. https://doi.org/10.52155/ijpsat.v38.2.5291
Pranata, S. (2024). Content Marketing, Social Media Marketing and Search Engine Optimization (SEO) on Successful Business Performance in Msmes in Cirebon City With Digital Literacy as an Intervening Variabl. Jurnal Riset Ekonomi Manajemen (Rekomen), 7(1), 272–283. https://doi.org/10.31002/rekomen.v7i1.1426
Rogers, E. M., & Everett, M. (1983). DIFFUSION OF Third Edition. teddykw2.files.wordpress.com/.../everett-m-rogers-diffusion-of-innovati..
Santosa, A. D. (2024). Artificial Intelligence (AI) Adoption as Marketing Tools Among Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Jurnal Sosial Humaniora, 17(1), 91. https://doi.org/10.12962/j24433527.v17i1.20520
Seriki, O. (2020). Resource-Based View. 1–4. https://doi.org/10.1007/978-3-030-02006-4_469-1
Tresnasari, R., & Zulganef, Z. (2023). Increasing MSME Performance Through Institutional Strengthening, Entrepreneurship, and Digital Marketing. International Journal of Research in Community Service, 4(1), 11–17. https://doi.org/10.46336/ijrcs.v4i1.383
Venkatesh, V., & Davis, F. D. (2000). A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies. Management Science, 46(2), 186–204. https://doi.org/10.1287/mnsc.46.2.186.11926
Wang, Y., Zhang, X., & Wang, L. (2022). Assessing the Intention to Use Sports Bracelets Among Chinese University Students: An Extension of Technology Acceptance Model With Sports Motivation. Frontiers in Psychology, 13. https://doi.org/10.3389/fpsyg.2022.846594
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Johni Eka Putra, Lili Adi Wibowo, Siska Armawati Sufa, Nindi Aristi, Dedi Setyawan
This work is licensed under a Creative Commons Attribution 4.0 International License.
