Dynamics of Industrial Revolution 4.0: Digital Technology Transformation and Cultural Evolution –
Wulandari et al (eds)
© 2021 The Author(s), ISBN 978-1-032-04451-4
Digital knowledge improvement for Indonesian small and medium
enterprises: Cultural change in digital mental
I. Wirasari
Telkom University, Bandung, Indonesia
ABSTRACT: Cultural changes in society affect many areas of life, including the business sector
as well as small and medium enterprises. During a pandemic, there are changes in the way people
think, act, and socialize. The COVID-19 pandemic has altered the world’s economic order to such
a large degree that the International Monetary Fund predicted negative global economic growth in
2020. In Indonesia, economic activities have decreased drastically, especially with the governmentmandated, large-scale social restrictions and health protocols such as the use of masks and social
distancing. The first strategy for Indonesian small- and medium-scale enterprises in the new normal
is to conduct marketing research on consumers to meet their needs. Marketing research is part of
the STP (segmentation, targeting, and positioning) marketing strategy, and is more suitable and
appropriate to meet consumer needs. Although qualitative research methods and analyzing branding
strategies were used, the current study analyzed how community, especially small business actors,
adapts to this pandemic. Mental changes in society were analyzed as well as cultural changes
in society’s digital mental state. The results of the study showed mental changes along with the
development of digitalization in all sectors.
Keywords: Cultural changes, digitalization, small and medium enterprises
1 INTRODUCTION
Reviewing the data from the Ministry of Cooperatives and small- and medium-scale enterprises
(SMEs) of the Republic of Indonesia, micro, small, and medium enterprises (MSMEs) have experienced good development and growth over the years. In 2010, the total number of MSME units was
52,769,426. In the latest news in early 2020, that number has reached 63 million. In a pandemic
such as the COVID-19 we are experiencing now, SMEs are competing to be able to maintain their
business.
The first strategy for new normal SMEs is to conduct marketing research to all consumers to
meet their needs. Marketing research is part of the STP (segmentation, targeting, and positioning)
marketing strategy. By conducting marketing research, this type of strategy is more suitable and
appropriate to meet consumer needs.
The development of SMEs in Indonesia demonstrates a good pattern. The existence of support
from the government in certain ways affects the growth rate of the number of micro, small, and
medium enterprises. The use of technology and communication facilities, the allocation of business
credits, and the reduction in the Final Income Tax rate, are several factors that encourage the
development of SMEs in Indonesia. Even so, this growth is still considered slow because several
supporting factors are considered not very effective.
These factors include the media for promotion and branding. SMEs’ actors, who originally
carried out promotions and branding with conventional media, are now starting to switch to digital
media. The transition to digital media is a mental change that business owners must accept. However,
this is not easy because the mental changes involved in going from conventional to digital means,
including behavior changes that relate to cultural changes, must be adapted by SMEs. Subsequent
DOI 10.1201/9781003193241-3
13
Wulandari et al (eds)
© 2021 The Author(s), ISBN 978-1-032-04451-4
Digital knowledge improvement for Indonesian small and medium
enterprises: Cultural change in digital mental
I. Wirasari
Telkom University, Bandung, Indonesia
ABSTRACT: Cultural changes in society affect many areas of life, including the business sector
as well as small and medium enterprises. During a pandemic, there are changes in the way people
think, act, and socialize. The COVID-19 pandemic has altered the world’s economic order to such
a large degree that the International Monetary Fund predicted negative global economic growth in
2020. In Indonesia, economic activities have decreased drastically, especially with the governmentmandated, large-scale social restrictions and health protocols such as the use of masks and social
distancing. The first strategy for Indonesian small- and medium-scale enterprises in the new normal
is to conduct marketing research on consumers to meet their needs. Marketing research is part of
the STP (segmentation, targeting, and positioning) marketing strategy, and is more suitable and
appropriate to meet consumer needs. Although qualitative research methods and analyzing branding
strategies were used, the current study analyzed how community, especially small business actors,
adapts to this pandemic. Mental changes in society were analyzed as well as cultural changes
in society’s digital mental state. The results of the study showed mental changes along with the
development of digitalization in all sectors.
Keywords: Cultural changes, digitalization, small and medium enterprises
1 INTRODUCTION
Reviewing the data from the Ministry of Cooperatives and small- and medium-scale enterprises
(SMEs) of the Republic of Indonesia, micro, small, and medium enterprises (MSMEs) have experienced good development and growth over the years. In 2010, the total number of MSME units was
52,769,426. In the latest news in early 2020, that number has reached 63 million. In a pandemic
such as the COVID-19 we are experiencing now, SMEs are competing to be able to maintain their
business.
The first strategy for new normal SMEs is to conduct marketing research to all consumers to
meet their needs. Marketing research is part of the STP (segmentation, targeting, and positioning)
marketing strategy. By conducting marketing research, this type of strategy is more suitable and
appropriate to meet consumer needs.
The development of SMEs in Indonesia demonstrates a good pattern. The existence of support
from the government in certain ways affects the growth rate of the number of micro, small, and
medium enterprises. The use of technology and communication facilities, the allocation of business
credits, and the reduction in the Final Income Tax rate, are several factors that encourage the
development of SMEs in Indonesia. Even so, this growth is still considered slow because several
supporting factors are considered not very effective.
These factors include the media for promotion and branding. SMEs’ actors, who originally
carried out promotions and branding with conventional media, are now starting to switch to digital
media. The transition to digital media is a mental change that business owners must accept. However,
this is not easy because the mental changes involved in going from conventional to digital means,
including behavior changes that relate to cultural changes, must be adapted by SMEs. Subsequent
DOI 10.1201/9781003193241-3
13