Accelerative Capacity of Keyresources Industry 4.0 in Metropolitan Culinary Micro-Small Sector and Green Business Sustainability Impact
Keywords:
Industry 4.0, Culinary MSMEs, Circular Economy, Sustainable Business, Technology Adoption
Abstract
Indonesia’s MSME sector is torn between economic growth and environmental damage. Industrial Revolution 4.0 encourages MSMEs, including in the culinary sector, to integrate business and social values with the principle of circularity. This study analyzes the influence of Industry 4.0 key resources on Culinary MSMEs in Jakarta on the circular economy and sustainable business. A quantitative approach was used by surveying Culinary MSME owners in Jakarta, taking 82 samples by random sampling. The data were analyzed using structural equation modeling-partial least square (SEM-PLS). The analysis results show that the key resources of Industry 4.0, such as production system management, HR leadership, environmentally friendly business operations, and information technology, significantly affect the adoption of Industry 4.0 and the establishment of Sustainable Culinary Production Systems. The adoption of Industry 4.0 also impacts circular economy capabilities and sustainable business. Similarly, Sustainable Culinary Production Systems contribute to circular economy capabilities and sustainable business.
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References
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Kurniawan, T. A., Dzarfan Othman, M. H., Hwang, G. H., & Gikas, P. (2022). Unlocking digital technologies for waste recycling in Industry 4.0 era: A transformation towards a digitalization-based circular economy in Indonesia. Journal of Cleaner Production, 357, 131911. https://doi.org/10.1016/j.jclepro.2022.131911
Mahmood, K., Lanz, M., Toivonen, V., & Otto, T. (2018). A Performance Evaluation Concept for Production Systems in an SME Network. Procedia CIRP, 72, 603–608. https://doi.org/10.1016/j.procir.2018.03.182
Memon, M. A., T., R., Cheah, J.-H., Ting, H., Chuah, F., & Cham, T. H. (2021). PLS-SEM Statistical Programs: a Review. Journal of Applied Structural Equation Modeling, 5(1), i–xiv. https://doi.org/10.47263/jasem.5(1)06
Mukherjee, S. P. (2019). A guide to research methodology: An overview of research problems, tasks and methods. CRC Press.
Mukhuty, S., Upadhyay, A., & Rothwell, H. (2022). Strategic sustainable development of Industry 4.0 through the lens of social responsibility: The role of human resource practices. Business Strategy and the Environment, 31(5), 2068–2081. https://doi.org/10.1002/bse.3008
Muna, G. A. S., Ardani, W., & Putri, I. A. S. (2022). Penguatan Pemberdayaan Ekonomi Perempuan melalui Presedensi G20 pada Era Pandemi Covid 19 pada UMKM di Bali. Lensa Ilmiah: Jurnal Manajemen Dan Sumberdaya, 1(1), 21–27. https://doi.org/10.54371/jms.v1i1.163
Pujiastuti, H. (2023). The Role of Financial Statements for Culinary SME’s in Jakarta. Dinasti International Journal of Digital Business Management, 4(2), 219–232.
Qodriah, S. L., Darsono, D., Riani, A. L., & Anantanyu, S. (2021). Strategy Orientation, Innovation Capability, and Women Entrepreneurial Performance in Culinary Business in Indonesia. Journal of Asian Finance Economics and Business, 8(7), 203–213. https://doi.org/10.13106/jafeb.2021.vol8.no7.0203
Raharjo, K. (2019). The role of green management in creating sustainability performance on the small and medium enterprises. Management of Environmental Quality: An International Journal, 30(3), 557–577. https://doi.org/10.1108/MEQ-03-2018-0053
Rigdon, E. E., Sarstedt, M., & Ringle, C. M. (2017). On Comparing Results from CB-SEM and PLS-SEM: Five Perspectives and Five Recommendations. Marketing ZFP, 39(3), 4–16. https://doi.org/10.15358/0344-1369-2017-3-4
Rimadias, S. (2023). Faktor penentu kelangsungan hidup UMKM di Indonesia pasca pandemi Covid-19. Jurnal Manajemen Strategi Dan Aplikasi Bisnis, 6(1), 15–28.
Safar, L., Sopko, J., Bednar, S., & Poklemba, R. (2018). Concept of SME business model for industry 4.0 environment. Tem Journal, 7(3), 626.
Sarstedt, M., Radomir, L., Moisescu, O. I., & Ringle, C. M. (2022). Latent class analysis in PLS-SEM: A review and recommendations for future applications. Journal of Business Research, 138, 398–407. https://doi.org/10.1016/j.jbusres.2021.08.051
Sima, V., Gheorghe, I. G., Subić, J., & Nancu, D. (2020). Influences of the Industry 4.0 Revolution on the Human Capital Development and Consumer Behavior: A Systematic Review. Sustainability, 12(10), 4035. https://doi.org/10.3390/su12104035
Simangunsong, R. (2022). Pengaruh Usaha Mikro, Kecil, dan Menengah Terhadap Pertumbuhan Ekonomi di Indonesia. Wadah Ilmiah Penelitian Pengabdian Untuk Nommensen, 1(1), 78–84.
Sommer, L. (2015). Industrial revolution - industry 4.0: Are German manufacturing SMEs the first victims of this revolution? Journal of Industrial Engineering and Management, 8(5). https://doi.org/10.3926/jiem.1470
Somohano-Rodríguez, F. M., Madrid-Guijarro, A., & López-Fernández, J. M. (2020). Does Industry 4.0 really matter for SME innovation? Journal of Small Business Management, 00(00), 1–28. https://doi.org/10.1080/00472778.2020.1780728
Soomro, M. A., Hizam-Hanafiah, M., Abdullah, N. L., Ali, M. H., & Jusoh, M. S. (2021). Embracing Industry 4.0: Empirical Insights from Malaysia. Informatics, 8(2), 30. https://doi.org/10.3390/informatics8020030
Turkyilmaz, A., Dikhanbayeva, D., Suleiman, Z., Shaikholla, S., & Shehab, E. (2020). Industry 4.0: Challenges and opportunities for Kazakhstan SMEs. Procedia CIRP, 96, 213–218. https://doi.org/10.1016/j.procir.2021.01.077
Verboven, H., & Vanherck, L. (2016). Sustainability management of SMEs and the UN Sustainable Development Goals. Uwf UmweltWirtschaftsForum, 24(2–3), 165–178. https://doi.org/10.1007/s00550-016-0407-6
Vrchota, J., Řehoř, P., Maříková, M., & Pech, M. (2020). Critical Success Factors of the Project Management in Relation to Industry 4.0 for Sustainability of Projects. Sustainability, 13(1), 281. https://doi.org/10.3390/su13010281
Waluyo, & Kharisma, D. B. (2023). Circular economy and food waste problems in Indonesia: Lessons from the policies of leading Countries. Cogent Social Sciences, 9(1). https://doi.org/10.1080/23311886.2023.2202938
Zeng, H., Chen, X., Xiao, X., & Zhou, Z. (2017). Institutional pressures, sustainable supply chain management, and circular economy capability: Empirical evidence from Chinese eco-industrial park firms. Journal of Cleaner Production, 155, 54–65. https://doi.org/10.1016/j.jclepro.2016.10.093
Bag, S., Yadav, G., Dhamija, P., & Kataria, K. K. (2021). Key resources for industry 4.0 adoption and its effect on sustainable production and circular economy: An empirical study. Journal of Cleaner Production, 281. https://doi.org/10.1016/j.jclepro.2020.125233
Bankins, S., & Formosa, P. (2023). The Ethical Implications of Artificial Intelligence (AI) For Meaningful Work. Journal of Business Ethics. https://doi.org/10.1007/s10551-023-05339-7
Bashar Fakhri, A., Latteef Mohammed, S., Khan, I., Safaa Sadiq, A., Alkazemi, B., Pillai, P., & Jun Choi, B. (2021). Industry 4.0: Architecture and Equipment Revolution. Computers, Materials & Continua, 66(2), 1175–1194. https://doi.org/10.32604/cmc.2020.012587
Becker, J.-M., Cheah, J.-H., Gholamzade, R., Ringle, C. M., & Sarstedt, M. (2023). PLS-SEM’s most wanted guidance. International Journal of Contemporary Hospitality Management, 35(1), 321–346. https://doi.org/10.1108/IJCHM-04-2022-0474
Bongomin, O., Nganyi, E. O., Abswaidi, M. R., Hitiyise, E., & Tumusiime, G. (2020). Sustainable and Dynamic Competitiveness towards Technological Leadership of Industry 4.0: Implications for East African Community. Journal of Engineering, 2020, 1–22. https://doi.org/10.1155/2020/8545281
Dombrowski, U., Crespo, I., & Zahn, T. (2010). Adaptive Configuration of a Lean Production System in Small and Medium-sized Enterprises. Production Engineering, 4(4), 341–348. https://doi.org/10.1007/s11740-010-0250-5
Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210, 15–26. https://doi.org/10.1016/j.ijpe.2019.01.004
Gunarathne, A. D. N., Lee, K., & Hitigala Kaluarachchilage, P. K. (2021). Institutional pressures, environmental management strategy, and organizational performance: The role of environmental management accounting. Business Strategy and the Environment, 30(2), 825–839. https://doi.org/10.1002/bse.2656
Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107. https://doi.org/10.1504/ijmda.2017.10008574
Harini, S., Pranitasari, D., Said, M., & Endri, E. (2023). Determinants of SME performance: Evidence from Indonesia. Problems and Perspectives in Management, 21(1), 471–481. https://doi.org/10.21511/ppm.21(1).2023.40
Haseeb, M., Hussain, H. I., Ślusarczyk, B., & Jermsittiparsert, K. (2019). Industry 4.0: A solution towards technology challenges of sustainable business performance. Social Sciences, 8(5). https://doi.org/10.3390/socsci8050154
Hung, H.-C., & Chen, Y.-W. (2023). Striving to Achieve United Nations Sustainable Development Goals of Taiwanese SMEs by Adopting Industry 4.0. Sustainability, 15(3), 2111. https://doi.org/10.3390/su15032111
Ingaldi, M., & Ulewicz, R. (2019). Problems with the Implementation of Industry 4.0 in Enterprises from the SME Sector. Sustainability, 12(1), 217. https://doi.org/10.3390/su12010217
Javaid, M., Haleem, A., Singh, R. P., & Suman, R. (2021). Significant Applications of Big Data in Industry 4.0. Journal of Industrial Integration and Management, 6(4), 429–447. https://doi.org/10.1142/S2424862221500135
Jermsittiparsert, K. (2020). Leadership and Industry 4.0 As A Tool to Enhance Organization Performance: Direct and Indirect Role of Job Satisfaction, Competitive Advantage and Business Sustainability. In Agile Business Leadership Methods for Industry 4.0 (pp. 233–257). Emerald Publishing Limited. https://doi.org/10.1108/978-1-80043-380-920201014
Klein, O., Nier, S., & Tamásy, C. (2022). Circular agri-food economies: business models and practices in the potato industry. Sustainability Science, 17(6), 2237–2252. https://doi.org/10.1007/s11625-022-01106-1
Kock, N. (2018). Should bootstrapping be used in pls-sem? Toward stable p-value calculation methods. Journal of Applied Structural Equation Modeling, 2(1), 1–12. https://doi.org/10.47263/JASEM.2(1)02
Kurniawan, T. A., Dzarfan Othman, M. H., Hwang, G. H., & Gikas, P. (2022). Unlocking digital technologies for waste recycling in Industry 4.0 era: A transformation towards a digitalization-based circular economy in Indonesia. Journal of Cleaner Production, 357, 131911. https://doi.org/10.1016/j.jclepro.2022.131911
Mahmood, K., Lanz, M., Toivonen, V., & Otto, T. (2018). A Performance Evaluation Concept for Production Systems in an SME Network. Procedia CIRP, 72, 603–608. https://doi.org/10.1016/j.procir.2018.03.182
Memon, M. A., T., R., Cheah, J.-H., Ting, H., Chuah, F., & Cham, T. H. (2021). PLS-SEM Statistical Programs: a Review. Journal of Applied Structural Equation Modeling, 5(1), i–xiv. https://doi.org/10.47263/jasem.5(1)06
Mukherjee, S. P. (2019). A guide to research methodology: An overview of research problems, tasks and methods. CRC Press.
Mukhuty, S., Upadhyay, A., & Rothwell, H. (2022). Strategic sustainable development of Industry 4.0 through the lens of social responsibility: The role of human resource practices. Business Strategy and the Environment, 31(5), 2068–2081. https://doi.org/10.1002/bse.3008
Muna, G. A. S., Ardani, W., & Putri, I. A. S. (2022). Penguatan Pemberdayaan Ekonomi Perempuan melalui Presedensi G20 pada Era Pandemi Covid 19 pada UMKM di Bali. Lensa Ilmiah: Jurnal Manajemen Dan Sumberdaya, 1(1), 21–27. https://doi.org/10.54371/jms.v1i1.163
Pujiastuti, H. (2023). The Role of Financial Statements for Culinary SME’s in Jakarta. Dinasti International Journal of Digital Business Management, 4(2), 219–232.
Qodriah, S. L., Darsono, D., Riani, A. L., & Anantanyu, S. (2021). Strategy Orientation, Innovation Capability, and Women Entrepreneurial Performance in Culinary Business in Indonesia. Journal of Asian Finance Economics and Business, 8(7), 203–213. https://doi.org/10.13106/jafeb.2021.vol8.no7.0203
Raharjo, K. (2019). The role of green management in creating sustainability performance on the small and medium enterprises. Management of Environmental Quality: An International Journal, 30(3), 557–577. https://doi.org/10.1108/MEQ-03-2018-0053
Rigdon, E. E., Sarstedt, M., & Ringle, C. M. (2017). On Comparing Results from CB-SEM and PLS-SEM: Five Perspectives and Five Recommendations. Marketing ZFP, 39(3), 4–16. https://doi.org/10.15358/0344-1369-2017-3-4
Rimadias, S. (2023). Faktor penentu kelangsungan hidup UMKM di Indonesia pasca pandemi Covid-19. Jurnal Manajemen Strategi Dan Aplikasi Bisnis, 6(1), 15–28.
Safar, L., Sopko, J., Bednar, S., & Poklemba, R. (2018). Concept of SME business model for industry 4.0 environment. Tem Journal, 7(3), 626.
Sarstedt, M., Radomir, L., Moisescu, O. I., & Ringle, C. M. (2022). Latent class analysis in PLS-SEM: A review and recommendations for future applications. Journal of Business Research, 138, 398–407. https://doi.org/10.1016/j.jbusres.2021.08.051
Sima, V., Gheorghe, I. G., Subić, J., & Nancu, D. (2020). Influences of the Industry 4.0 Revolution on the Human Capital Development and Consumer Behavior: A Systematic Review. Sustainability, 12(10), 4035. https://doi.org/10.3390/su12104035
Simangunsong, R. (2022). Pengaruh Usaha Mikro, Kecil, dan Menengah Terhadap Pertumbuhan Ekonomi di Indonesia. Wadah Ilmiah Penelitian Pengabdian Untuk Nommensen, 1(1), 78–84.
Sommer, L. (2015). Industrial revolution - industry 4.0: Are German manufacturing SMEs the first victims of this revolution? Journal of Industrial Engineering and Management, 8(5). https://doi.org/10.3926/jiem.1470
Somohano-Rodríguez, F. M., Madrid-Guijarro, A., & López-Fernández, J. M. (2020). Does Industry 4.0 really matter for SME innovation? Journal of Small Business Management, 00(00), 1–28. https://doi.org/10.1080/00472778.2020.1780728
Soomro, M. A., Hizam-Hanafiah, M., Abdullah, N. L., Ali, M. H., & Jusoh, M. S. (2021). Embracing Industry 4.0: Empirical Insights from Malaysia. Informatics, 8(2), 30. https://doi.org/10.3390/informatics8020030
Turkyilmaz, A., Dikhanbayeva, D., Suleiman, Z., Shaikholla, S., & Shehab, E. (2020). Industry 4.0: Challenges and opportunities for Kazakhstan SMEs. Procedia CIRP, 96, 213–218. https://doi.org/10.1016/j.procir.2021.01.077
Verboven, H., & Vanherck, L. (2016). Sustainability management of SMEs and the UN Sustainable Development Goals. Uwf UmweltWirtschaftsForum, 24(2–3), 165–178. https://doi.org/10.1007/s00550-016-0407-6
Vrchota, J., Řehoř, P., Maříková, M., & Pech, M. (2020). Critical Success Factors of the Project Management in Relation to Industry 4.0 for Sustainability of Projects. Sustainability, 13(1), 281. https://doi.org/10.3390/su13010281
Waluyo, & Kharisma, D. B. (2023). Circular economy and food waste problems in Indonesia: Lessons from the policies of leading Countries. Cogent Social Sciences, 9(1). https://doi.org/10.1080/23311886.2023.2202938
Zeng, H., Chen, X., Xiao, X., & Zhou, Z. (2017). Institutional pressures, sustainable supply chain management, and circular economy capability: Empirical evidence from Chinese eco-industrial park firms. Journal of Cleaner Production, 155, 54–65. https://doi.org/10.1016/j.jclepro.2016.10.093
Published
2023-09-30
How to Cite
Alfarizi, M., Hanum, R., Anggraeni, D., Qanita, A., Al Hakim, M., & Ngatindriatun, N. (2023). Accelerative Capacity of Keyresources Industry 4.0 in Metropolitan Culinary Micro-Small Sector and Green Business Sustainability Impact. Journal of Applied Business Administration, 7(2), 186-200. https://doi.org/10.30871/jaba.v7i2.6166
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Articles
Copyright (c) 2023 Muhammad Alfarizi, Rastinia Kamila Hanum, Deby Gita Anggraeni, Aisyah Qanita, Muhammad Rafif Al Hakim, Ngatindriatun Ngatindriatun
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