Technology innovation to improve SMEs sustainability

Abstract

Purpose This study aims to analyze the determinants of small and medium enterprise (SME) sustainability through online marketing technology innovation. Design/methodology/approach The study was conducted through a survey in Siak Regency and Dumai City, Riau Province, Indonesia. The study population is small entrepreneurs doing online marketing. The determination of this survey area is by considering: the use of online marketing technology in this area is relatively more developed than other regions; Siak Regency and Dumai City are very prospective to be used as small business development areas based on online marketing; and the sample was determined by purposive random sampling with the criteria of small entrepreneurs who have tried to do online marketing for at least six months. Based on these criteria, there are 301 small entrepreneurs who conduct online marketing as a sample. Findings The sustainability of SMEs is directly and indirectly influenced by government support, human resource quality, innovation costs, economic conditions and business partners through online marketing technology innovations. Online marketing strategy through targeting, segmentation and positioning marketing strategies. Implementation of online marketing technology innovation models: increased government support; improvement of human resources; provision of innovation cost allocation; government policies in maintaining economic stability; and increase in business partners. Research limitations/implications Limited access to data can limit the interpretation of correlations between the variables studied. This limitation is because the available data is limited to certain periods and certain geographical regions. In addition, research time constraints limit the ability to conduct more in-depth interviews and obtain additional data relevant to the topic being studied. Practical implications Practical implications: 1) Targeting marketing strategy is a staged strategy to select a target market. The target market for SME products is intermediary consumers (agents) and end consumers; 2) Segmenting marketing strategy is a stage strategy to determine market segments. The market segment of SME products is based on consumer characteristics, namely, the local market and markets outside the region. SME product market segments based on consumer response characteristics, namely, market segments based on product benefits and consumer loyalty; 3) Positioning marketing strategy is a strategy for the development stage of each product detail placement and the development of a 4P mix strategy, namely, product, price, place and promotion. Social implications The implementation of this research policy is: increased government support in facilitating online marketing; increased human resources in online marketing; provision of cost allocation of innovation in online marketing; government policy in maintaining economic stability; and increased business partners in online marketing. Model implementation requires mentoring and training through cooperation with business partners. Originality/value The sustainability of SMEs requires online marketing technology innovation. These findings can help provide an alternative solution to the weak resources of SMEs. With the discovery of the determining factor for the sustainability of SMEs, it can accelerate the SME digitalization program.

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