Digital Entrepreneurship and Business Innovation: Strategies for Indonesian SMEs in the Era of Industry 4.0

Authors

  • Nengsi Sudirman Universitas Mega Buana Palopo
  • Nurfaisah Universitas Mega Buana Palopo

DOI:

https://doi.org/10.59065/jissr.v5i1.170

Keywords:

digital entrepreneurship, business innovation, SMEs, industry 4.0, digital transformation

Abstract

The rapid advancement of Industry 4.0 has significantly transformed the entrepreneurial landscape, particularly for small and medium-sized enterprises (SMEs) in Indonesia. Digital entrepreneurship has emerged as a critical driver of business innovation, enabling SMEs to enhance operational efficiency, expand market reach, and develop competitive advantages. This study explores the role of digital entrepreneurship in fostering business innovation, focusing on strategies that Indonesian SMEs adopt to navigate the digital economy. By utilizing a qualitative research approach, this paper examines case studies of SMEs that have successfully integrated digital technologies, such as e-commerce platforms, cloud computing, artificial intelligence, and blockchain, into their business models. The findings reveal that digital transformation enhances SMEs’ adaptability, productivity, and customer engagement. Key success factors include digital literacy, strategic use of online marketplaces, and the adoption of automation tools to streamline operations. However, SMEs also face significant challenges, including digital infrastructure limitations, cybersecurity risks, financial constraints, and resistance to technological change. The study highlights the importance of government policies, financial incentives, and digital training programs in supporting SMEs’ digital transition. This paper argues that a comprehensive and collaborative approach—where businesses, policymakers, and technology providers work together—is essential for maximizing the potential of digital entrepreneurship in Indonesia. By embracing digital transformation, SMEs can drive innovation, strengthen economic resilience, and contribute to sustainable economic growth in the digital era.

Downloads

Download data is not yet available.

References

Awaluddin A, M., Siraj, M. L., & Yusriadi, Y. (2019). The effectiveness of the implementation of independent community empowerment programs in bone district. International Journal of Scientific and Technology Research, 8(8), 352–354. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85070898000&partnerID=40&md5=fc631daab7569451b6d4836d0d5c4837

Dangkeng, A., Ramli, M., & Nurfaisah, N. (2023). Cost of Production to Determine Selling Price in Gowa Jaya Cake. INVOICE: JURNAL ILMU AKUNTANSI, 5(1), 17–23.

Dani, S. D., & Ramli, M. (2024). PENGARUH STRATEGI PEMASARAN TERHADAP KEPUTUSAN PENGGUNAAN JASA TRANSPORTASI ONLINE GRAB DI KOTA PALOPO. Jurnal Ekonomi Revolusioner, 7(9).

Fausiah, R., Samsuri, S., Wijaya, H., & Ramli, M. (2023). Balanced Scorecard Analysis as A Performance Measurement Tool PT Japfa Makassar. Jurnal Ekonomi Balance, 19(2), 217–225.

Gaskell, J. C. (2015). The Role of Markets, Technology, and Policy in Generating Palm-Oil Demand in Indonesia. Bulletin of Indonesian Economic Studies, 51(1), 29–45. https://doi.org/10.1080/00074918.2015.1016566

Gregory, G. D., Ngo, L. V., & Karavdic, M. (2019). Developing e-commerce marketing capabilities and efficiencies for enhanced performance in business-to-business export ventures. Industrial Marketing Management, 78, 146–157.

Gunasekaran, A., McGaughey, R. E., Ngai, E. W. T., & Rai, B. K. (2009). E-Procurement adoption in the Southcoast SMEs. International Journal of Production Economics, 122(1), 161–175.

I Djais, A., & Nurfaisah, N. (2020). Combination of platelet rich fibrin and carbonate hydroxyapatite alloplastic bone graft as periodontal tissue engineering in management of chronic periodontitis: a case report. Journal of Dentomaxillofacial Science.

Ilyas, G. B., Munir, A. R., Tamsah, H., Mustafa, H., & Yusriadi, Y. (2021). The Influence Of Digital Marketing And Customer Perceived Value Through Customer Satisfaction On Customer Loyalty. Journal of Legal, Ethical and Regulatory Issues, 24(8), 1–14. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85115625216&partnerID=40&md5=d4188318dbf42f42236a72603cc122e9

Mariana, L., & Ramli, M. (2022). The Effect of Communication and Motivation on Employee Performance at PT. Federal International Finance (FIFGROUP) Hertasning Post. Economos: Jurnal Ekonomi Dan Bisnis, 5(3), 259–267.

Mustafa, D., Farida, U., & Yusriadi, Y. (2020). The effectiveness of public services through E-government in Makassar City. International Journal of Scientific and Technology Research, 9(1), 1176–1178. https://www.scopus.com/inward/record.uri?eid=2-s2.0-85078751832&partnerID=40&md5=97c1cbbd7d80b4de4ed875db5131fd08

Nurfaisah, N., Ramli, M., Samsuri, S., & Fausiah, R. (2023). The Impact of Leadership Style on Employee Performance at the Public Works Office of East Luwu Regency. Jurnal Ilmu Manajemen Profitability, 7(2), 180–183.

Nurfaisah, N., Tayeb, T., Nur, F., Latuconsina, N. K., & Mattoliang, L. A. (2021). Kemampuan Pemecahan Masalah Matematika Peserta didik melalui Model Kooperatif Tipe Diskursus Multi Representasi. Alauddin Journal of Mathematics Education, 3(1), 53–61.

Orfanidou, M. (2024). E-commerce and the influence of social media and online reviews on customer purchase decisions.

Pertiwi, H., Nurfaisah, N., & Rifqiansyah, R. (2022). The Effect of Capital Structure and Company Growth on the Value of Manufacturing Companies Listed on the Indonesia Stock Exchange. Invoice, 4(1), 142–152.

Rafi, M., JianMing, Z., & Ahmad, K. (2019). Technology integration for students’ information and digital literacy education in academic libraries. Information Discovery and Delivery, 47(4), 203–217.

Ramli, M. (2019). Pengaruh Reward Dan Punishment Terhadap Peningkatan Disiplin Kerja Karyawan Pada PT. London Sumatera (Perusahaan Ekspor Karet) Di Bulukumba. MANDAR: Management Development and Applied Research Journal, 2(1), 8–16.

Ramli, M., Dangkeng, A., Fausiah, R., & Wijaya, H. W. H. (2024). The Role of Accounting Information Systems In Management Decision Making at PT. Kawi Heritage Raharja (Wings) Bantaeng District. INVOICE: JURNAL ILMU AKUNTANSI, 6(1), 78–82.

Ramli, M., Dangkeng, A., Pertiwi, H., & Fausiah, R. (2023). Analysis of Factors Affecting Income and Order Levels of Online Motorcycle Taxis During the Pandemic Case Study of Grab And Gojek Online Ojek Drivers In palopo City. Jurnal Ilmu Manajemen Profitability, 7(1), 134–138.

Ramli, M., Marsuni, N. S., & Ismawati, I. (2023). The Influence of Economic Literacy Proficiency and Financial Literacy on Business Performance in Micro, Small, and Medium Enterprises (MSMEs) in the Hanggar Talasalapang Area, Makassar. Economos: Jurnal Ekonomi Dan Bisnis, 6(3), 233–246.

Ramli, M., Mattalatta, M., Hasmin, H., Ilyas, J. B., Ansar, A., & Kurniawaty, K. (2024). Analysis of Factors that Influence Student Interest in Entrepreneurship with Entrepreneurial Character as an Intervening Variable. Point of View Research Economic Development, 5(1).

Ramli, M., & Sarda, S. (2021). The Effect Of Leadership Style And Motivation On Performance Of Bank Btpn Employees, Sungguminasa Branch, Gowa Regency. Jurnal Ilmu Manajemen Profitability, 5(2), 285–301.

Rifqiansyah, R. (2022). Pengaruh Efisiensi Modal Kerja Terhadap Tingkat Profitabilitas Perusahaan Industri Makanan Dan Minuman Yang Tercatat di Bursa Efek Indonesia. Jurnal Manajemen STIE Muhammadiyah Palopo, 8(1), 93–105.

Rifqiansyah, R., Nurfaisah, N., Samsuri, S., & Pertiwi, H. (2024). Pengambilan Keputusan Investasi Terhadap Nilai Perusahaan Jasa Perbankan Yang Terdaftar Pada BEI. Jurnal Ilmu Ekonomi & Sosial, 15(2), 64–77.

Rifqiansyah, R., Sudirman, N., & Pertiwi, H. (2023). Analisis Evaluasi Sistem Informasi Akuntansi Pengelolaan Dana Bantuan Oprasional Sekolah Pada SMP Negeri 1 Lamasi. Innovative: Journal Of Social Science Research, 3(5), 6948–6957.

Sudirman, N., Alimuddin, A., & Indrijawati, A. (2021). The Effect of Good Corvorate Governance and Enterprise Risk Management on Company Value with Financial Performance as a Moderating Variables. Journal of Research in Business and Management, 9(1), 22–33.

Sudirman, N., Epin, M. N. W., & Amalia, W. R. (2023). Analysis of M-Banking Adoption on Banking Performance Listed on the Indonesian Stock Exchange. Formosa Journal of Sustainable Research, 2(1), 13–24.

Sudirman, N., Pertiwi, H., & Kastanya, M. O. (2023). Analisis Analisis Strategi Bisnis Dan Dampaknya Terhadap Pendapatan Selama Pandemi Dan Era New Normal Covid-19. JRAK (Jurnal Riset Akuntansi Dan Bisnis), 9(2), 452–461.

Sudirman, N., Rifqiansyah, R., & Darmono, D. (2024). STUDI LITERATUR: ANALISIS KINERJA KEUANGAN PADA PERUSAHAAN MANUFAKTUR BURSA EFEK INDONESIA DITINJAU DARI PERSPEKTIF SIGNALING THEORY. TRANSEKONOMIKA: AKUNTANSI, BISNIS DAN KEUANGAN, 4(3), 274–284.

Tamsah, H., Yusriadi, Y., & Ilyas, G. B. (2022). Supply Chain of Agriculture Extension Agent Quality. International Journal of Information Technology Project Management (IJITPM), 13(2), 1–13.

Umar, A., Amrin, Madani, M., Farida, U., Yusriadi, Y., Tamsa, H., Bahtiar, Ansar, Yahya, M., Nurnaningsih, Alam, S., Gunawan, H., Darwis, Sahabuddin, C., Jamaluddin, Misbahuddin, Elpisah, Akbar, Z., Sakkir, G., … Misnawati, M. (2019). One-stop service policy as a bureaucratic reform in Indonesia. Academy of Strategic Management Journal, 18(2). https://www.scopus.com/inward/record.uri?eid=2-s2.0-85065212889&partnerID=40&md5=171ef8a864a0a335dcb5c2675507719d

Wijaya, H., Dangkeng, A., & Ramli, M. (2023). The Impact of Transactional Leadership Style, Transformational Leadership, and Motivation on the Performance of Trade Service Employees in Palopo City. Jurnal Ilmu Manajemen Profitability, 7(2), 225–231.

Yu, Y., Wang, X., Zhong, R. Y., & Huang, G. Q. (2017). E-commerce logistics in supply chain management. Industrial Management & Data Systems, 117(10), 2263–2286. https://doi.org/10.1108/IMDS-09-2016-0398

Yunus, M. R., Idris, M., & Hidayat, M. (2020). PENGARUH PENERAPAN PRINSIP GOOD GOVERNANCE TERHADAP EFEKTIVITAS KERJA PEGAWAI DISKUMDAG KABUPATEN BARRU. Nobel Management Review, 1(1), 25–37.

Yusni, Y., & Sudirman, N. (2023). Alih Kode Campur Kode dalam Interaksi Penjual dan Pembeli di Pusat Niaga Palopo. DEIKTIS: Jurnal Pendidikan Bahasa Dan Sastra, 3(2), 105–110.

Yusriadi, Y., Awaluddin, M., Firman, H., & Asrijal, A. (2022). Implementation of e-commerce in supply chain management. Uncertain Supply Chain Management, 10(4), 1279–1288. https://doi.org/10.5267/j.uscm.2022.7.012

Zacharias, T., Rahawarin, M. A., & Yusriadi, Y. (2021). Cultural reconstruction and organization environment for employee performance. Journal of Ethnic and Cultural Studies, 8(2), 296–315. https://doi.org/10.29333/ejecs/801

Downloads

Published

2025-01-22

How to Cite

Nengsi Sudirman, & Nurfaisah. (2025). Digital Entrepreneurship and Business Innovation: Strategies for Indonesian SMEs in the Era of Industry 4.0. Journal of Indonesian Scholars for Social Research, 5(1), 24–34. https://doi.org/10.59065/jissr.v5i1.170

Issue

Vol. 5 No. 1 (2025): JISSR

Section

Articles

License

Copyright (c) 2025 Nengsi Sudirman, Nurfaisah

Creative Commons License

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.

Authors who publish in this journal agree to the following conditions:

  1. Authors retain the copyright of their work while granting the journal the right of first publication. The published work is licensed under the Attribution-ShareAlike 4.0 International (CC BY-SA 4.0) license (https://creativecommons.org/licenses/by-sa/4.0/). This license permits others to share and adapt the work, provided that proper credit is given to the original author(s) and the journal as the initial publisher.
  2. Authors may establish separate, additional agreements for the non-exclusive distribution of their published work (e.g., depositing it in an institutional repository or including it in a book), as long as they acknowledge its original publication in this journal.
  3. Authors must sign a copyright transfer agreement once they have reviewed and approved the final proof provided by JISSR before publication.