The Big Data Effect on Indonesia MSME with the Mediation of Differentiation Strategy and Innovation Performance
Keywords:
Big Data Usage, MSME's Performance, Differentiation Strategy, Innovation Performance, Fashion IndustryAbstract
In Indonesia, micro, small, and medium enterprises (MSMEs) drive economic growth, contributing 61.1% of GDP, with fashion as the second-largest sector. As e-commerce expands, MSMEs can harness big data through cloud platforms to boost innovation and competitiveness. This study investigates how big data adoption enhances MSMEs’ performance in Indonesia’s fashion industry, focusing on its role in decision-making, differentiation strategies, and operational outcomes. The research surveyed 228 MSME owners, combining quantitative data and interviews to assess big data’s impact on customer engagement, innovation, and efficiency. Findings reveal that leveraging big data significantly strengthens performance by refining decision-making and accelerating innovation. Key factors like data volume (scale), velocity (speed), and variety (diversity) directly influence success. Additionally, differentiation strategies—such as unique product designs or tailored marketing—mediate the link between data use and improved business outcomes. While the study underscores the urgency for MSMEs to adopt data-driven practices, challenges persist. Limited tech infrastructure and low digital literacy hinder progress, particularly among small-scale owners. To thrive, businesses must prioritize investments in cloud tools and skills training, while policymakers should support affordable tech access. This research offers practical insights for MSMEs aiming to navigate competitive e-commerce landscapes, emphasizing that innovation and adaptability, powered by data, are critical for sustainable growth.
References
Accenture. (2018). MAKING IT PERSONAL Why brands must move from communication to conversation for greater personalization. Pulse Check 2018.
Adi Ahdiat. (2022, October 11). Indonesia Punya UMKM Terbanyak di ASEAN, Bagaimana Daya Saingnya? Https://Databoks.Katadata.Co.Id/Datapublish/2022/10/11/Indonesia-Punya-Umkm-Terbanyak-Di-Asean-Bagaimana-Daya-Saingnya.
Alfarizi, M., Widiastuti, T., & Ngatindriatun. (2023). Exploration of Technological Challenges and Public Economic Trends Phenomenon in the Sustainable Performance of Indonesian Digital MSMEs on Industrial Era 4.0. Journal of Industrial Integration and Management, 09(01), 65–96. https://doi.org/10.1142/S2424862223500045
Amira, B., Negeri, U. I., & Utara, S. (2024). Universitas Islam Negeri Sumatra Utara Muhammad Irwan Padli Nasution. Jurnal Ilmiah Nusantara ( JINU), 1(4), 695–704. https://doi.org/10.61722/jinu.v1i4.1888
Anatan, L. (2023). Micro, Small, and Medium Enterprises’ Readiness for Digital Transformation in Indonesia. https://doi.org/10.3390/economies
Avlonitis, G. J., & Salavou, H. E. (2007). Entrepreneurial orientation of SMEs, product innovativeness, and performance. Journal of Business Research, 60(5), 566–575. https://doi.org/10.1016/j.jbusres.2007.01.001
Badan Pusat Statistik Indonesia. (2020, April 29). Statistik Indonesia 2020. Https://Www.Bps.Go.Id/Id/Publication/2020/04/29/E9011b3155d45d70823c141f/Statistik-Indonesia-2020.Html.
Behl, A., Gaur, J., Pereira, V., Yadav, R., & Laker, B. (2022). Role of big data analytics capabilities to improve sustainable competitive advantage of MSME service firms during COVID-19 – A multi-theoretical approach. Journal of Business Research, 148, 378–389. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.05.009
Belgavi, V., Narang, A., & Raj, A. (2018). INTERNATIONAL FINANCIAL ARCHITECTURE FOR STABILITY AND DEVELOPMENT/ CRYPTO-ASSETS AND FINTECH Expanding Data Collection to Streamline MSME (Micro, Small and Medium Enterprise) Lending.
Bhatti, S. H., Ahmed, A., Ferraris, A., Hirwani Wan Hussain, W. M., & Wamba, S. F. (2022). Big data analytics capabilities and MSME innovation and performance: A double mediation model of digital platform and network capabilities. Annals of Operations Research. https://doi.org/10.1007/s10479-022-05002-w
Chatterjee, S., Chaudhuri, R., Shah, M., & Maheshwari, P. (2022). Big data driven innovation for sustaining SME supply chain operation in post COVID-19 scenario: Moderating role of SME technology leadership. Computers and Industrial Engineering, 168. https://doi.org/10.1016/j.cie.2022.108058
Chen, H., Chiang, R. H. L., Storey, V. C., Lindner, C. H., & Robinson, J. M. (2012). Business Intelligence and Analytics: From Big Data to Big Impact Quarterly-Business Intelligence and Analytics: From Big Data to Big Impact (Vol. 36, Issue 4).
Creswell, & Creswell. (2014). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (Fifth Edition). Sage Publications.
Development Bank, A. (2020). ADB Annual Report 2020. www.adb.org/ar2020/digital
Dubey, R., Gunasekaran, A., Childe, S. J., Blome, C., & Papadopoulos, T. (2019). Big Data and Predictive Analytics and Manufacturing Performance: Integrating Institutional Theory, Resource-Based View and Big Data Culture. British Journal of Management, 30(2), 341–361. https://doi.org/10.1111/1467-8551.12355
Fatma Sjoraida, D., Dwika, N., Amrita, A., & Ruchiyat, E. (2024). INNOVATIVE BUSINESS MODEL DESIGN: A TRIPLE-LAYERED APPROACH FOR INDONESIA’S FASHION SECTOR. In Kisa Institute (Vol. 1, Issue 6). www.Kisainstitute.com1
Field, A. (2013). Discovering Statistics Using IBM SPSS Statistics (4th Edition). Sage Publications.
Fosso Wamba, S., Akter, S., Edwards, A., Chopin, G., & Gnanzou, D. (2015). How “big data” can make big impact: Findings from a systematic review and a longitudinal case study. International Journal of Production Economics, 165, 234–246. https://doi.org/10.1016/j.ijpe.2014.12.031
Fowler, F. J. (2014). Survey Research Methods: Vol. Volume 1 (Fifth Edition). SAGE Publications.
Fridayani, H. D., Hakim, M. L., Hanif, N. A., & Darumurti, A. (n.d.). Indonesian MSMEs Toward the Global Market: Challenges and Future Agenda Planning. https://ssrn.com/abstract=4783792
Gandomi, A., & Haider, M. (2015). Beyond the hype: Big data concepts, methods, and analytics. International Journal of Information Management, 35(2), 137–144. https://doi.org/10.1016/j.ijinfomgt.2014.10.007
Ghasemaghaei, M., & Calic, G. (2020). Assessing the impact of big data on firm innovation performance: Big data is not always better data. Journal of Business Research, 108, 147–162. https://doi.org/10.1016/j.jbusres.2019.09.062
Gnizy, I. (2020). Applying big data to guide firms’ future industrial marketing strategies. Journal of Business and Industrial Marketing, 35(7), 1221–1235. https://doi.org/10.1108/JBIM-06-2019-0318
Gupta, M., & George, J. F. (2016). Toward the development of a big data analytics capability. Information and Management, 53(8), 1049–1064. https://doi.org/10.1016/j.im.2016.07.004
Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate Data Analysis (8th ed.). Cengage Learning.
Handayati, R., Haliza, S. N., Haqqoh, A., Kumalasari, E. N., & Saputra, Y. (n.d.). Strategies for SMEs in Managing Big Data for Personalization and Customer Service Enhancement. Journal of Contemporary Administration and Management. https://doi.org/10.61100/adman.v2i2.208
Hartono, B., Atmaja, H., Ratnawati, S., Verawati, D., & Ikhwan, K. (2021). Indonesian MSMEs and big data: Seizing opportunities by minimizing bottlenecks. Journal of Management Information and Decision Sciences, 24(3).
Henke, N., Bughin, J., Chui, M., Manyika, J., Saleh, T., & Wiseman, B. (2016). The age of analytics: competing in a data-driven world.
Huang, M. H., & Rust, R. T. (2018). Artificial Intelligence in Service. Journal of Service Research, 21(2), 155–172. https://doi.org/10.1177/1094670517752459
Hutama, D., Raharjo, K., & Nugroho, A. (2023). Impact of Digital Capability on SMEs Performance: Mediating Role of Digital Business Transformation. 26(3).
IDC Survey. (2019). The Opportunities Cloud Service Providers Should Pursue in 2020. IDC Web Page.
Indonesia Ministry of Finance. (2020). UMKM kuat, ekonomi berdaulat. Https://Www.Djkn.Kemenkeu.Go.Id/Artikel/Baca/14214/UMKM-Kuat-Ekonomi-Berdaulat.Html#:~:Text=Usaha%20Mikro%2C%20Kecil%20dan%20Menengah,Rp8.573%2C89%20triliun.
Kapoor, K. K., Tamilmani, K., Rana, N. P., Patil, P., Dwivedi, Y. K., & Nerur, S. (2018). Advances in Social Media Research: Past, Present and Future. Information Systems Frontiers, 20(3), 531–558. https://doi.org/10.1007/s10796-017-9810-y
Khan, N. A., Awang, A., & Karim, S. A. A. (2022). Security in Internet of Things: A Review. In IEEE Access (Vol. 10, pp. 104649–104670). Institute of Electrical and Electronics Engineers Inc. https://doi.org/10.1109/ACCESS.2022.3209355
Kumar, V., Anand, A., & Song, H. (2017). Future of Retailer Profitability: An Organizing Framework. Journal of Retailing, 1(93), 96–119.
Laney, D. (2001, February 6). 3-D Data Management: Controlling Data Volume, Velocity and Variety. Application Delivery Strategies by META Group Inc.
Lee, S. M., & Trimi, S. (2021). Convergence innovation in the digital age and the COVID-19 pandemic crisis. Journal of Business Research, 123, 14–22. https://doi.org/10.1016/j.jbusres.2020.09.041
Mahdi. (2022). Berapa Jumlah UMKM di Indonesia? Https://Dataindonesia.Id/Sektor-Riil/Detail/Berapa-Jumlah-Umkm-Di-Indonesia.
Manyika, J., Chui, M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C., & Byers, A. H. (2011). Big data: The next frontier for innovation, competition, and productivity.
Market Research Indonesia. (2022). The robust growth of Indonesia’s e-commerce industry. Https://Www.Researchinindonesia.Com/Insight/the-Robust-Growth-of-Indonesia-e-Commerce-Industry.
Maroufkhani, P., Tseng, M. L., Iranmanesh, M., Ismail, W. K. W., & Khalid, H. (2020). Big data analytics adoption: Determinants and performances among small to medium-sized enterprises. International Journal of Information Management, 54. https://doi.org/10.1016/j.ijinfomgt.2020.102190
Mashruwala, A. (n.d.). Fraud Detection and Prevention in Financial Services Using Big Data Analytics. https://doi.org/10.13140/RG.2.2.16018.26561
Mikalef, P., Krogstie, J., Pappas, I. O., & Pavlou, P. (2020). Exploring the relationship between big data analytics capability and competitive performance: The mediating roles of dynamic and operational capabilities. Information and Management, 57(2). https://doi.org/10.1016/j.im.2019.05.004
NOVITA, D. (2023). PROBLEMS FACING MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN INDONESIA: A LITERATURE REVIEW. INTERNATIONAL JOURNAL OF RESEARCH IN EDUCATION HUMANITIES AND COMMERCE, 04(05), 256–262. https://doi.org/10.37602/ijrehc.2023.4521
Point of Sale’s Transaction Data: Envisioning Micro Small and Medium Enterprise (MSME)’s Inventory Management Strategy. (2024). International Journal of Business and Technology Management. https://doi.org/10.55057/ijbtm.2024.6.1.38
Potluri, R. M., & Vajjhala, N. R. (2021). Risks in Adoption and Implementation of Big Data Analytics. International Journal of Risk and Contingency Management, 10(3), 1–11. https://doi.org/10.4018/ijrcm.2021070101
Presser, S., Couper, M. P., Lessler, J. T., Martin, E., Martin, J., Rothgeb, J. M., & Singer, E. (2004). Methods for testing and evaluating survey questions. Public Opinion Quarterly, 68(1), 109–130. https://doi.org/10.1093/poq/nfh008
Qibtiyana, M., & Ali, H. (n.d.). Utilization of Big Data in Increasing the Competitiveness of MSMEs. https://doi.org/10.38035/sijet.v1i3
Satria Pamungkas, E., Ayu Kusumawati, Y., Tang Herman, R., & Shanti, M. (n.d.). BuSia: Mobile Apps Design to Promote MSMEs Fashion in Indonesia.
Sidiq Adi Prabowo, F., Fauzan Oktavian, M., & Syarif Hidayatullah, D. (n.d.). The Effect of Market Orientation, Learning Orientation and Product Innovation Agility on Fashion MSMEs Business Performance at Trunojoyo Area, Bandung City (Vol. 5).
Statista. (2024). Worldwide retail e-commerce sales from 2014 to 2023 (in billion U.S. dollars). Https://Www.Statista.Com/Statistics/379046/Worldwide-Retail-e-Commerce-Sales/.
Tarigan, E. S., & Mawardi, W. (2024). Utilization Of Big Data In Business Analysis In Micro, Small And Medium Enterprises (MSME) In Order To Increase The Scale Of Economic Business In The Sumatra Region. Ekombis Review: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(1). https://doi.org/10.37676/ekombis.v12i1
Wessels, T., & Jokonya, O. (2021). Factors affecting the Adoption of Big Data as a Service in SMEs. Procedia Computer Science, 196, 332–339. https://doi.org/10.1016/j.procs.2021.12.021
World Bank. (2019). World Development Report 2019: The Changing Nature of Work.
Yu, A. P. I., Chuang, S. C., Cheng, Y. H., & Wu, Y. C. (2020). The influence of sharing versus self-use on the preference for different promotional offers. Journal of Retailing and Consumer Services, 54. https://doi.org/10.1016/j.jretconser.2019.102026
Zhu, K., Kraemer, K. L., & Xu, S. (2006). The process of innovation assimilation by firms in different countries: A technology diffusion perspective on e-business. Management Science, 52(10), 1557–1576. https://doi.org/10.1287/mnsc.1050.0487
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Meishelle Andriani Young

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
a. Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License - Share Alike that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
b. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
c. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
USER RIGHTS
All articles published Open Access will be immediately and permanently free for everyone to read and download. We are continuously working with our author communities to select the best choice of license options, currently being defined for this journal as follows: Creative Commons Attribution-Share Alike (CC BY-SA)