DIGITAL INNOVATION, AGILITY, AND THE GOVERNMENT INTERVENTION IN THE CULINARY SECTOR SMALL AND MEDIUM ENTERPRISES: BUSINESS RESILIENCE IN INDONESIA AFTER TURBULENCE

Abstract

Due to the technology and the pandemic, the culinary industry's small and medium-sized enterprises (SMEs) are among the most susceptible to economic instability following the Covid-19 pandemic. Therefore, this study demonstrates the need to investigate the factors that influence the survival and profitability of SMBs in the culinary sector. This study will conduct empirical tests on six variables contributing to business resilience in Indonesian Culinary SMEs: networking capabilities, entrepreneurial orientation, digital adoption, business agility, business model innovation, business agility, business resilience, and government intervention. This study analysed descriptive and explanatory quantitative data collected via a questionnaire with a Likert scale ranging from 1 to 4 using SEM-Lisrel. This study employed Stratified Random Sampling to ensure that each population element has an equal chance of being selected. Adjustments were made by selecting a sample of 300 respondents. According to the study, business resilience can be enhanced through business agility, whereas business agility can be improved through networking capabilities, an entrepreneurial orientation, and business model innovation. The high entrepreneurial orientation of culinary SMBs impacts business model innovation. With these elements, culinary SMBs can strengthen their business resilience. Due to the limitations of this study, additional research involving various types of businesses is anticipated to be required to identify additional factors of business resilience.