The Impact of the Implementation of the Government's Digital Direct Expenditure Program to Improve MSME Performance


Hais Dama
Meriyana F. Dungga, Universitas Negeri Gorontalo
DOI : https://doi.org/10.58806/ijirme.2024.v3i4n23

Abstract

This study aims to analyze and assess the impact of the procurement defense program on the performance of MSMEs in Gorontalo Province. The locus of research on MSME business actors who are members of the procurement defense program, especially through market place applications, both MbizMarketpalce and brliUMKM market place totaling 85 MSMEs with a sample of 10 MSMEs. The performance assessment method for MSMEs is used by Balance Scorecard analysis to analyze the financial and non-financial impacts of MSME businesses. The results showed that the Gorontalo Provincial government's procurement defense program had a relatively good impact on financial and non-financial performance. On average, there is an increase in operating profits, number of workers, production volume and marketing area. The procurement defense program is very helpful for MSME business actors in increasing public reputation and trust in their products and services so that business productivity and performance increase.

Keywords:

Direct shopping, Government spending, Online sales, MSME performance

References:

1) Al-Abdallah, G. M., & Bataineh, A. Q. (2018). Social networking sites and fashion e-purchasing process. Journal of Business and Retail Management Research, 13(2), 36–48. https://doi.org/10.24052/jbrmr/v13is02/art-04

2) Anda, M. I., Gabriela, B., Nicolae, E., & Rehman, A. (2023). Economic Growth Drivers in Romania: Evidence from a NARDL Analysis. Sustainability (Switzerland), 15(7). https://doi.org/10.3390/su15075916

3) Bekaert, G., Harvey, C. R., & Lundblad, C. (2005). Does financial liberalization spur growth? Journal of Financial Economics, 77(1), 3–55. https://doi.org/10.1016/j.jfineco.2004.05.007

4) Chaney, P. K., Jeter, D. C., & Erickson Shaw, P. (2003). The impact on the market for audit services of aggressive competition by auditors. Journal of Accounting and Public Policy, 22(6), 487–516. https://doi.org/10.1016/j.jaccpubpol.2003.09.002

5) Dama, H. (2018). The Influence of the Dividend Payout Ratio ( Dpr ) and the Current Ratio ( Cr ) Against the Growth of Share Prices in the Service Sector Companies the Period 2011 – 215 , in Indonesia. 3(5).

6) Delke, V., Schiele, H., & Buchholz, W. (2023). Differentiating between direct and indirect procurement: roles, skills, and Industry 4.0. International Journal of Procurement Management, 16(1), 1–30. https://doi.org/10.1504/IJPM.2022.10050671

7) Eisenhardt, K. M., & Schoonhoven, C. B. (1996). Resource-based View of Strategic Alliance Formation: Strategic and Social Effects in Entrepreneurial Firms. Organization Science, 7(2), 136–150. https://doi.org/10.1287/orsc.7.2.136

8) Fierro, J. C., Polo, I. M., & Olivan, F. J. S. (2014). From dissatisfied customers to evangelists of the firm: A study of the Spanish mobile service sector. Brq-Business Research Quarterly, 17(3), 191–204. https://doi.org/10.1016/j.cede.2013.10.001

9) Hardiningsih, P., Srimindarti, C., Alfasadun, A., & Lisiantara, G. A. (2022). Liquidity Assistance on MSMEs’ Growth in the Time of Covid-19: Empirical Evidence of MSMEs in Indonesia. Quality - Access to Success, 23(186), 37–44. https://doi.org/10.47750/QAS/23.186.06

10) Jan Habib, H., Khan, F., & Imran Wazir, M. (2016). Impact of Debt on Profitability of Firms; Evidence From Non-Financial Sector of Pakistan. City University Research Journal, 6(01), 1–80. http://www.cityuniversity.edu.pk/curj/Journals/Journal/Jan 2016/artcile 06a.pdf

11) Jayasundara, C., Ngulube, P., & Minishi-Majanja, M. K. (2009). A theoretical model to predict customer satisfaction in relation to service quality in selected university libraries in Sri Lanka. South African Journal of Libraries and Information Science, 75(2). https://doi.org/10.7553/75-2-98

12) Jurčik, R. (2013). Collaborative defence procurement in the european union and in the czech republic - Business principle leading more effectiveness of public expenditure in the field of defence. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 61(7), 2249–2253. https://doi.org/10.11118/actaun201361072249

13) Kohardinata, C., Soewarno, N., & Tjahjadi, B. (2020). Indonesian peer to peer lending (P2P) at entrant’s disruptive trajectory. Business: Theory and Practice, 21(1), 104–114. https://doi.org/10.3846/btp.2020.11171

14) Kotler, Philip; Keller, K. L. (2018). Marketing Management. In Essentials of Management for Healthcare Professionals. https://doi.org/10.4324/9781315099200-17

15) Kumaran, L. A., & Jeyachandran, H. (2022). Modelling e-business influencing factors for supply chain performance of Indian MSMEs: an ISM approach. International Journal of Process Management and Benchmarking, 12(1), 28–45. https://doi.org/10.1504/IJPMB.2022.120444

16) Li, Z. (2008). Lumpy Capital , Labor Market Search and Employment Dynamics over Business Cycles. 0–36.

17) Murugan, M., & Natarajan, P. M. (2022). Agile Leader’S Emotional Resilience and Their Digital Innovations and Business Transformations in a Workplace in Msme Sector (New Normal) To Mitigate Covid-19 & Its Successors. International Journal of Professional Business Review, 7(4), 1–13. https://doi.org/10.26668/businessreview/2022.v7i4.e755

18) Poku, K., Opoku, E., & Agyeiwaa Ennin, P. (2022). The influence of government expenditure on economic growth in Ghana: An Ardl approach. Cogent Economics and Finance, 10(1). https://doi.org/10.1080/23322039.2022.2160036

19) Prajogo, D. I., & McDermott, C. M. (2008). The relationships between operations strategies and operations activities in service context. International Journal of Service Industry Management, 19(4), 506–520. https://doi.org/10.1108/09564230810891932

20) Qureshi, K. M., Mewada, B. G., Alghamdi, S. Y., Almakayeel, N., Qureshi, M. R. N., & Mansour, M. (2022). Accomplishing Sustainability in Manufacturing System for Small and Medium-Sized Enterprises (SMEs) through Lean Implementation. Sustainability (Switzerland), 14(15). https://doi.org/10.3390/su14159732

21) Roy, A., Patnaik, B. C. M., & Satpathy, I. (2020). Impact of Covid-19 crisis on Indian MSME sector: A study on remedial measures. Eurasian Chemical Communications, 2(9), 991–1000. https://doi.org/10.22034/ecc.2020.114672

22) Rupeika-Apoga, R., & Petrovska, K. (2022). Barriers to Sustainable Digital Transformation in Micro-, Small-, and Medium-Sized Enterprises. Sustainability (Switzerland), 14(20). https://doi.org/10.3390/su142013558

23) Su, Y., Jiang, Q., Khattak, S. I., Ahmad, M., & Li, H. (2021). Do higher education research and development expenditures affect environmental sustainability? New evidence from Chinese provinces. Environmental Science and Pollution Research, 28(47), 66656–66676. https://doi.org/10.1007/s11356-021-14685-w

24) Subawa, N. S., Widhiasthini, N. W., Permatasari, N. P. I., & Sri Wisudawati, N. N. (2022). MSMEs envisaged as the economy spearhead for Bali in the covid-19 pandemic situation. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2096200

25) Utomo, L. L. (2004). Economic Value Added Sebagai Ukuran Keberhasilan Kinerja Manajemen Perusahaan. Jurnal Akuntansi Dan Keuangan, 1(1), 28–42. https://doi.org/10.9744/JAK.1.1.PP. 28-42

26) Vysochyna, A., Vasylieva, T., Dluhopolskyi, O., Marczuk, M., Grytsyshen, D., Yunger, V., & Sulimierska, A. (2023). Impact of Coronavirus Disease COVID-19 on the Relationship between Healthcare Expenditures and Sustainable Economic Growth. International Journal of Environmental Research and Public Health, 20(4). https://doi.org/10.3390/ijerph20043049

27) Yanto, H., Kiswanto, Baroroh, N., Hajawiyah, A., & Rahim, N. M. (2022). The Roles of Entrepreneurial Skills, Financial Literacy, and Digital Literacy in Maintaining MSMEs during the COVID-19 Pandemic. Asian Economic and Financial Review, 12(7), 504–517. https://doi.org/10.55493/5002.v12i7.4535

28) Zahra, F., Abdullah, M. I., Din, M., Thahir, H., Harun, H., & Ali, J. K. (2021). The role of e-purchasing in government procurement fraud reduction through expanding market access. International Journal of Data and Network Science, 6(1), 179–184. https://doi.org/10.5267/J.IJDNS.2021.9.010

29) Zhang, Z., Hu, H., Zhao, X., & Bai, Y. (2022). Dynamic Influences of FDI and R&D Expenditures on IT Business Value: An Empirical Test from China. Sustainability (Switzerland), 14(17). https://doi.org/10.3390/su141711039