Research pick: No bridge too far for business - "University to MSMEs knowledge transfer in Indonesia"

A study of the bridges linking Micro, Small, and Medium Enterprises (MSMEs) and universities in Indonesia suggests that knowledge transfer plays an important part in strengthening the competitiveness of such companies. In an economy shaped by digital disruption and economic uncertainty, the research, published in the International Journal of Economic Policy in Emerging Economies, shows that universities can help MSMEs adapt and thrive.

Lina Anatan of the Maranatha Christian University Bandung in Indonesia, surveyed more than 200 MSMEs in Indonesia and discovered that there is great demand for university collaborations. In particular, collaborations that advance digitalisation are high on the agenda. MSMEs in Indonesia contribute almost two-thirds of the gross national product and employ almost 97% of the domestic workforce. As such, their digital development is important for the growth of those companies as well as economic growth at the national level. However, despite these findings, it seems that many MSMEs struggle with adopting digital tools and refining their business strategies.

The research shows that the biggest incentive among MSMEs seeking university partnerships is the perhaps obvious need to boost their market share and profitability. Such companies often face barriers, such as a lack of access to investment capital, and this makes it harder for them to buy into new technology or invest in the research they might need to undertake to develop and expand. Universities can play a transformative role by providing invaluable knowledge, resources, and expertise. One must assume that there would be financial and intellectual rewards for academia, as well as the potential for their students and educators to be involved or even employed by the companies they assist.

The research suggests that there remain obstacles and that government intervention might assist through grants or community programmes. This will be increasingly important as Indonesia’s economy continues to develop, the strength of its MSMEs and their ability to adapt to digital disruption will depend on knowledge transfer and technological innovation.

Anatan, L. (2024) ‘University to MSMEs knowledge transfer in Indonesia’, Int. J. Economic Policy in Emerging Economies, Vol. 20, No. 5, pp.1–23.