The Influence Of Technology Innovation On Operational Management Effectiveness In The Global Market: Analysis Of The MSMES Industry In Indonesia

This study examines the impact of technological innovation on the operational management effectiveness of Micro, Small, and Medium Enterprises (MSMEs) in the context of the global market. With the rapid development of technology and increasing international competition, MSMEs are required to adapt and adopt technological innovations to enhance their competitiveness. This study employs a mixed-method approach, combining quantitative analysis from a survey of 500 MSMEs across various sectors and regions in Indonesia, with in-depth interviews with 50 key stakeholders, including MSME owners, policymakers, and technology experts. The survey covers various aspects of technology adoption, such as the use of e-commerce, supply chain management systems, and advanced manufacturing technologies. The results indicate that the adoption of technological innovation has a significant positive correlation (r = 0.68, p < 0.001) with improved operational management effectiveness, reflected in increased productivity (an average of 23%), cost efficiency (reductions of up to 15%), and product quality (a 30% increase in customer satisfaction). Regression analysis shows that factors such as company size, industry sector, and the education level of the owners significantly influence the level of technology adoption. The findings also reveal challenges in the technology adoption process, including financial resource limitations (faced by 72% of respondents), lack of digital skills (63%), and employee resistance to change (41%). This study makes an important contribution to understanding the role of technological innovation in the development of MSMEs in the digital era and highlights policy implications for supporting the digital transformation of the MSME sector in Indonesia. Key recommendations include improving access to technology financing, developing targeted digital training programs, and providing tax incentives for technology adoption. The research also underscores the importance of a tailored approach to address the specific needs of different MSME sectors in promoting effective technology adoption.