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Enhancing the competitiveness of Malaysian and Indonesian MSME through governance and digitalization
Abstract
Globalization forces the business world to adapt and transform, driving the urgency of digital integration and transformation. This article highlights the crucial role of Micro, Small and Medium Enterprises (MSMEs) in economic growth, especially in Indonesia and Malaysia. Even though MSMEs are the main pillar of Indonesia's economic growth, they face challenges such as lack of financing, low productivity and lack of managerial capabilities. Optimizing MSME business governance is the focus, it is hoped that it can increase the efficiency of resource utilization. The solution that can be provided is in the form of intensive training to MSME actors in Bogor City and Regency as well as distributing questionnaires to Indonesian and Malaysian MSME actors. Data from respondents provides an in-depth picture of the profile of MSMEs, including demographic characteristics and perceptions of governance, entrepreneurship and use of technology. The results of the analysis show significant differences between MSMEs in Indonesia and Malaysia, especially in organizational governance and understanding of entrepreneurship. MSMEs in Malaysia show a higher level of maturity in implementing good governance and have a deep understanding of entrepreneurship. However, in the use of technology, both tend to be balanced, showing the same challenges and opportunities related to technology. This research provides a strong basis for increasing the competitiveness and sustainability of MSMEs in the era of digital transformation, by providing recommendations based on comparisons between Indonesia and Malaysia.
Keywords— MSMEs; Governance; Indonesia; Malaysia; understanding entrepreneurship; use of technologyKeywords
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DOI: http://dx.doi.org/10.52155/ijpsat.v43.1.6039
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