Digitalisation Empowerment of Business to Digital Innovation in the Achievement of SDGs: A Survey on Creative Msme Actors in Indonesia

Abstract

Objective: This study aims to test and analyse the relationship patterns of digital business-based training, empowerment of MSME actors, digital self-efficacy and digital innovation in creative MSMEs for the achievement of SDGs in MSMEs in West Java and Banten Provinces, Indonesia. Theoretical Framework: Digital literacy is needed so that a person has the ability to access information related to digital-based media. MSMEs are required to have renewable digital-based business methods in order to provide optimal and satisfying services. When MSMEs have high digital literacy through digital-based training, they could increase high self-efficacy. Empowering MSMEs based on digital business is very necessary in the digital era. Human resources in the organisation is expected to have digital competencies (skills, knowledge, attitude). Also, employees are expected to increase digital self-efficacy in order to increase digital innovation and MSME performance in the long term. Method: This study uses quantitative method by distributing questionnaires to 250 natural colour batik MSMEs in West Java and Banten Provinces. 207 questionnaires are filled in completely and then processed with Partial Least Square statistical techniques. Results and Discussion: This study finds that digital-based business training has a significant positive impact on the empowerment of MSME actors, and digital self-efficacy of MSME actors. In addition, empowerment of MSME players has significant positive impact on digital innovation and digital self-efficacy. On the other hand, digital self-efficacy of MSME actors has significant positive impact on digital innovation and is able to mediate the effect of business digital-based training on digital innovation. However, empowerment of MSME actors cannot mediate the effect of business digital-based training on digital innovation. Research Implications: This study provide guidance for the government and MSME empowerment organisations to design more targeted digital-based training. In addition, this study highlights the importance of supporting technological infrastructure and providing wider access to digital technology, especially for creative MSMEs in Indonesia. This study also enriches the literature on the role of digital training on digital empowerment and digital self-efficacy. Likewise, it provides implications for the role of digital empowerment and digital self-efficacy in encouraging digital innovation. Originality/Value: This study offers a business digitalisation empowerment model for creative MSMEs in order to increase digital innovation for creative MSMEs in achieving SDGs in Indonesia. The research model considers digital-based business training, empowerment of MSME players, and digital self-efficacy.