How Covid-19 Pandemic Affects Technology, Relational & Compliance on MSMEs Performance in Indonesia

DOI

10.2991/assehr.k.211102.012How to use a DOI?

Keywords

technology utilization; relational capability; regulatory compliance; firm performance; Indonesian MSMEs; Covid19 pandemic

Abstract

The COVID-19 pandemic started on December 2019 and impacted the global economy including Indonesia. Gross Domestic Product (GDP) is one of the aspects to measures country’s economic growth. Micro, Small, and Medium Enterprises (MSMEs) revenue contribute 60% of Indonesia’s Gross Domestic Product (GDP). This study analyses the influence of technology utilization, relational capability, and regulatory compliance simultaneously by viewing them from MSMEs performance throughout Indonesia and add Covid-19 pandemic as a new variable. In addition, this study aim to analyse the influence of technology utilization, relational capability, and regulatory compliance on MSMEs performance in Indonesia with Covid-19 pandemic as the moderating variable. There are 308 owners of MSMEs in Indonesia were surveyed using online survey. The simple random sampling technique was used in this study. Data from questionnaire were analysed using SmartPLS. This study concludes that technology utilization has positive affect on MSMEs performance significantly, relational capability has positive affect on MSMEs performance significantly, and regulatory compliance has positive affect on MSMEs performance significantly. However, the Covid-19 pandemic has negative affect on MSMEs performance significantly. This study reveals a moderating effect of Covid-19 pandemic on the relationship between technology utilization and MSMEs performance and a moderating effect of Covid-19 pandemic on the relationship between relational capability to MSMEs performance. Yet, the Covid-19 pandemic has no moderating effect between regulatory compliance and MSMEs performance. The results propose that MSMEs performance is important for Indonesian government to withstand a possibility of long term economic crisis.

Copyright

© 2021 The Authors. Published by Atlantis Press SARL.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Riyan Harbi Valdiansyah
AU  - Meidijati
AU  - Dian Widiyati
AU  - Faransyah Agung Jaya
PY  - 2021
DA  - 2021/11/16
TI  - How Covid-19 Pandemic Affects Technology, Relational & Compliance on MSMEs Performance in Indonesia
BT  - Proceedings of the 1st International Conference on Research in Social Sciences and Humanities (ICoRSH 2020)
PB  - Atlantis Press
SP  - 86
EP  - 94
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.211102.012
DO  - 10.2991/assehr.k.211102.012
ID  - Valdiansyah2021
ER  -