Partnership Model Between MSMEs and Industrial Companies in West Java to Improve MSME Performance Through Digital Competency, Sustainable Value Creation, Community Involvement and Development
Abstract
Micro, Small, and Medium Enterprises or
MSMEs are crucial to Indonesia's economy, contributing over
50% to the national GDP, absorbing 97% of the workforce, and
demonstrating significant potential for growth through
partnership programs, digital transformation, and sustainable
value creation, despite challenges such as fluctuating economic
growth and low levels of collaboration with large enterprises.
This study aims to design an effective partnership program
between industrial companies and MSMEs in West Java.
Focusing on MSMEs, this study examines how the variables of
digital competence, sustainable value creation and community
involvement and development are able to influence partnership
programs which ultimately have an impact on MSMEs
performance. The population in this study were MSMEs
business actors in West Java who had collaborated with
industrial companies. While the sampling technique used
purposive sampling where the sample used in this study was 97
MSMEs business actors. Data analysis used Smart PLS 4 based
Partial Least Square. Based on the results of the direct influence
analysis, it shows that Digital Competence has a significant
effect on community involvement and development; community
involvement and development have a significant effect on
partnership programs; sustainable value creation has a
significant effect on partnership programs; and Partnership
Programs have a significant effect on SME Performance. While
the results of the indirect influence analysis show that digital
competence has a significant effect on community involvement
and development and partnership programs.
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