| dc.description.abstract | Economic growth in Indonesia which is very inseparably significant from
the role of Small and Medium Enterprises (SMEs). SMEs contribute greatly to the
economies of Indonesia, Malaysia and ASEAN. Currently it’s around 96% of the
business forms in ASEAN are Small and Medium Enterprises (SMEs) with
contributions to gross domestic product (GDP) about 33.1% to 57.6%, and
absorbing 46.8% to 96.9 % employment. Perspektively Indonesia and Malaysia
while technological developments and increasing internet users in the world
including Indonesia, it has an impact on the economy and business activities
including SME players. Business activities that were initially carried out by
meeting directly between sellers and buyers are now starting to switch to using the
internet.
Indonesia is in the midst of a digital trend but not only in Indonesia but
also in Malaysia as allied country, in ASEAN and in international level. Internet
users in Indonesian, Malaysian and ASEAN communities increase every year.
The e-commerce growth in ASEAN with a percentage of 10-15%, namely
Indonesia, Malaysia and Thailand that are the three countries with the highest
growth. This has changed business activities from direct meeting between sellers
and buyers to internet media with indirect interaction that make no boundaries
each countries.
Not all SMEs realize the importance of digital marketing role in running
their businesses so that not all SMEs managed these opportunities optimally. This
study will focused on how the influence of digital marketing on improving the
competitiveness of SME products by analyzing promotion strategies in digital
marketing. This study specialy aims (i) to identify the characteristics of
Indonesian and Malaysian SMEs, (ii) analyze the influence of digital marketing
on the SMEs’ competitiveness in Indonesian and Malaysian at the MEA level, dan
(iii) analyze the effectiveness of digital marketing in Indonesian and Malaysian
SMEs.
This research was conducted in two countries, namely in Bandung, West
Java, Indonesia and in Bandar Baru Bangi, Selangor Malaysia as collaboration
between IPB and University Putra Malaysia in April - June 2018. The population
in this study is SMEs in Little Bandung and SMEs in Malaysia. The sampling
method uses the accidental sampling method, which is 100 SMEs in Indonesia and
110 SMEs in Malaysia over a period of three months by distributing
questionnaires to all SMEs in there. The data that have been collected will be
analyzed quantitatively and the descriptive approach. Quantitative analysis is
carried out using a different test model and structural equation model (SEM)
approach.
The results showed that the characteristics of SMEs in Indonesia and
Malaysia were basically not much different but there were some differences,
namely the majority of female Indonesian SMEs as much as 58% while Malaysian
SMEs were dominated by men as much as 75%, the respondent age from the two
countries dominated 26-35 years old with a percentage of 67% in Indonesia and
75% in Malaysia. The highest educational background is diploma and bachelor
level about 50% in Indonesia and 62.7% in Malaysia, SMEs have been running
their businesses online for 1-5 years with a percentage of 74% in Indonesia and
62% in Malaysia and the highest number of workers is in categories 1 - 4 with
43% in Indonesia and 24% in Malaysia.
Based on the analysis result that Digital Attitude and Leadership Skill
variables show a significant effect on Digital Leadership Capability where an
employee will have the capability if supported by the attitudes and skills of the
HR. Digital Culture has a significant effect on Digital Marketing where each
employee's cultural dimensions support in implementing Digital Marketing.
Digital Marketing has a significant effect on Competitiveness based on data from
respondents from Indonesia and Malaysia. There is a different in Malaysian
respondents' data that the Digital Leadership Capability variable show a
significant effect on Competitiveness. The finding can be concluded that
Malaysian SME respondents in a technological mastery capability are one step
ahead than respondents in Indonesia. Based on the results of SEM PLS analysis, it
can be concluded that Digital Culture show a direct effect on Digital Marketing
while Leadership Skill and Digital Attitude indirectly affect Digital Marketing or
it will influence through the establishment of Digital Leadership Capability and
then affect Digital Marketing.
Based on the results of this study, SMEs require the right digital marketing
strategy in increasing competitiveness through the influence of digital marketing.
It also includes the selection of social media, and making creative content the
spearhead of marketing communication, to enhance SME's digital marketing
capabilities through an using social media, website and marketplace in better
capability level. Stakeholders are expected to conducted a sustainable workshop
program or training for SMEs such as marketing creator content writing skills and
skills in using various promotional strategy applications through social media and
other digital platforms. Malaysian SMEs expected to focus on training on
improving Digital Capability through training in building Web and other digital
platforms while Indonesian SMEs are expected to focus more on improving
mastery of Digital Marketing, especially the use of social media. | id |
