Impact Of Digital Technology Adoption On Readiness For The Industrial Revolution 4.0 And Business Performance Of Indonesian And Thai Culinary Micro And Small Enterprises

Abstract

Industrial Revolution 4.0, has changed the basic managerial aspects of an industry. The goal of this era is to transform industries through digitalization. micro and small enterprises are one of the industries that massively contribute to employment, economic growth in Indonesia and Thailand especially very impactful on the socio-economy of the lower middle class community. Technology can utilize its business to quickly adapt, accelerate digital transformation, and survive the COVID-19 pandemic. This study aims to prove the influence of digital technology on the readiness of Micro Small Enterprises to face the Industrial Revolution 4.0, and to improve business performance. Measuring readiness and business performance is necessary to establish a standard for designing business strategies. This research uses quantitative methods with Structural Equation Modeling (SEM) analysis tools on 227 business actors in Indonesia and Thailand. The calculation of the average value of the readiness indicator of Indonesia and Thailand is classified as "achieved" which means that it is capable of applying digital technology to face the 4.0 revolution with an average score of 59.2% and 55.2%, respectively. This study found that the adoption of digital technology by business actors has a very small and insignificant influence on business performance in culinary Micro Small Enterprises, but it affects readiness to face the Industrial Revolution 4.0. Readiness indicators indirectly affect digital technology use and business performance. This research will be useful in determining the state of culinary Micro Small Enterprises in Indonesia and Thailand through comparative studies on the use of digital technology.