Value Creation Models of the Collaboration between MSMEs and Financial Technology Companies towards Innovation and Revenue Growth (A Study on Culinary MSMEs in Jakarta, Surabaya, and Medan - Indonesia)
Journal Title: International Journal of Social Science And Human Research - Year 2024, Vol 7, Issue 09
Abstract
This research examines the relationship and impact of value creation models from the collaboration between Micro, Small, and Medium Enterprises (MSMEs) and Financial Technology (Fintech) companies on innovation and revenue growth within MSMEs. Fintech revolutionizes the financial sector with digital solutions for various business processes, benefiting MSMEs by addressing financing, electronic payments, cash management challenges and other business matters. This study focus on value creations through MSME-fintech collaboration and their effects on innovation and revenue growth in MSME, while previous studies highlight fintech's advantages. The research questions include: (1) What value creations arise from the collaboration? (2) How do these value creations impact innovation and revenue growth in MSMEs? A structural equation model (SEM) using partial least square (PLS) methodology analyses the relationships and impacts of the value creation models. Data were collected from 178 culinary sector MSMEs in Jakarta, Surabaya, and Medan, Indonesia. Three of the five identified value creation models—new customer base, new value chain efficiency, and new customer value—significantly influence incremental innovation from MSME-fintech collaboration. Incremental innovation significantly boosts MSME revenue growth. Multi-group analysis shows micro enterprises have the highest revenue growth impact at 54.8%, compared to 47.0% for small enterprises, 51.5% for medium enterprises, and 50.5% for the overall MSME group. Specific value creation models foster incremental innovation, enhancing MSME revenue growth. This study provides insights into optimizing fintech collaborations for MSME financial outcomes and contributes to understanding the fintech-MSME dynamic, offering a foundation for future research.
Authors and Affiliations
D. Rahadian, A. Krisnawatie, W. Rachbini, Hadifian
Keywords
Related Articles
- EP ID EP744945
- DOI 10.47191/ijsshr/v7-i09-27
- Views 4
- Downloads 0
The Effectiveness of Bachelor of Arts Majoring in English of the Higher Education Institutions in the Mekong Delta, in Vietnam: Input for Planning and Development
The study aimed to find out the effectiveness of the existing Bachelor of Arts Major in English of the Higher Education Institutions in terms of the vision, mission, goals and objectives, personnel, facilities, training...
Testimonies of Shame and Anger in Northern Nigeria: Towards Protecting the Dignity of the Child
The theology of the Trinity is the apex of Christian revelation. This is closely followed by the theology of Incarnation, which focuses on God’s entry into human history. The incarnation of the divine word as a human per...
Shared University Leadership and Collaborative Work Environment at a Selected University in Tangshan, China
The study examines teacher-respondents' perceptions of the shared University Governance System and its impact on their collaborative work environment in a higher education institution. A quantitative correlational resear...
Law Enforcement Against Terrorism and Radicalism Disturbances that Occur in National Vital Object Areas in Indonesia
This study is entitled How is Law Enforcement Against Terrorism and Radicalism Disturbances That Occur in National Vital Object Areas in Indonesia. The legal research method that the researcher chose to apply in this stu...
Organizational Culture and Leadership Competence of State Universities and Colleges
Generally, organizational culture varies in different schools. Its role in the development of the school had a greater impact as far as administrators, school heads, and instructors were concerned. This paper intended to...