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Measuring Digital Technology Readiness in Manufacturing Small and Medium Enterprises (SMEs) in Indonesia

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Abstract

Technology enables manufacturing small-and medium-sized enterprises (SMEs) to improve operational efficiency through the use of business management software, digital inventory systems, and automation of production processes. Technology opens up wider market access, allowing SMEs to reach potential consumers through digital platforms and e-commerce to international markets. This study aims to measure the readiness of manufacturing SMEs in Indonesia in implementing digital technology. This study uses Maturity Assessment with a questionnaire instrument. The findings show the average manufacturing SMEs in Indonesia is at the “Learning” readiness level with a percentage of $87 \%$ in which the textile and food sectors are recorded as the most ready to adopt digital technology. The findings also show that a higher category of technology readiness for SMEs is associated with the larger proportion of SMEs that participated in the government program.

Keywords

SMEs maturity digital transformation readiness

Authors

D. Ramdhan
Deputy for Development Policy, National Research and Innovation Agency, School of Economics and Business, Telkom University, Jakarta and Bandung, Indonesia
S. Negara
Deputy for Development Policy, National Research and Innovation Agency, Jakarta, Indonesia
L. Setyaningrum
Deputy for Development Policy, National Research and Innovation Agency, Jakarta, Indonesia
D. Noviwiyanah
Deputy for Development Policy, National Research and Innovation Agency, Jakarta, Indonesia
J. Anggarini
Deputy for Development Policy, National Research and Innovation Agency, Jakarta, Indonesia
A. Aryanto
Deputy for Development Policy, National Research and Innovation Agency, Jakarta, Indonesia
N. G. Pastrana
School of Computing, Telkom University, Bandung, Indonesia
M. D. Haidar
School of Computing, Telkom University, Bandung, Indonesia
R. F. Muizzullah
Directorate General of Small Medium, and Multifarious Industry, Ministry of Industry, Jakarta, Indonesia
A. Putra
Directorate General of Small Medium, and Multifarious Industry, Ministry of Industry, Jakarta, Indonesia
E. Prasetyo
Directorate General of Small Medium, and Multifarious Industry, Ministry of Industry, Jakarta, Indonesia

Publication Details

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proceedings
Publisher
IEEE
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