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Archives of Business Research – Vol. 8, No. 8
Publication Date: August 25, 2020
DOI: 10.14738/abr.88.8832.
Purnamasari, D. I., Heriyanto, & Simanjuntak, O. S. (2020). Factors Affecting the Use of Online Applications for Business Process
Reengineering (BPR) Acceleration in Micro, Small and Medium Enterprises (MSMEs) as a Consequence of Covid-19 Pandemic. Archives
of Business Research, 8(8). 151-158.
Factors Affecting the Use of Online Applications for Business
Process Reengineering (BPR) Acceleration in Micro, Small and
Medium Enterprises (MSMEs) as a Consequence of Covid-19
Pandemic
Dian Indri Purnamasari
Associate Professor
Universitas Pembangunan Nasional Yogyakarta
Heriyanto
Assistant Professor
Universitas Pembangunan Nasional Yogyakarta
Oliver Samuel Simanjuntak
Assistant Professor
Universitas Pembangunan Nasional Yogyakarta
ABSTRACT
The aim of this research is testing the factors that affect the use of
online applications for the acceleration of Business Process
Reengineering (BPR) system in Micro, Small, and Medium Enterprises
during Covid-19 pandemic will be the next question. This study used
primary data from a web-based survey—Google Form—to keep up
with current technology and to comply with COVID-19 Social Distancing
protocol and to stay alert. We make observation of MSMEs was
conducted in Yogyakarta. The results of analysis presented earlier have
led us to conclude that (1) personal factors do not affect the use of
online application, (2) organizational factors do not affect the use of
online application, (3) online application success affects the use of
online application, and (4) emotional Reaction affects the use of online
application.
Keywords: online, applications, pandemic, reengineering, entreprises.
INTRODUCTION
The outbreak of Corona virus (Covid-19) has disturbed the global economy, and Indonesia is not
an exception. Indonesia’s economic growth is expected to shrink 4.7 - 4.8 percent in the first
quarter of 2020. For the solutions, the Indonesian government has taken numerous measures to
strengthen the national economy, such as: devising synergistic policies, global financial market
integration, enabling the digital economy, and changing household and corporate behavior.
However, it should be noted that the economy still experiencing contraction following the Covid- 19 outbreak. One of the key indicators of global economic contraction is the Gross Domestic
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URL: http://dx.doi.org/10.14738/abr.88.8832 152
Purnamasari, D. I., Heriyanto, & Simanjuntak, O. S. (2020). Factors Affecting the Use of Online Applications for Business Process Reengineering
(BPR) Acceleration in Micro, Small and Medium Enterprises (MSMEs) as a Consequence of Covid-19 Pandemic. Archives of Business Research, 8(8).
151-158.
Product (PDB), as the market value of all goods and services produced in Indonesia during the
Covid-19 pandemic.
Based on the survey of MSMEs in Indonesia, 97 percent of them were negatively impacted by the
Covid-19 pandemic. Out of those impacted, 75% experienced a significant decline in sales.
Moreover, 51% of the MSMEs strongly believed that their business will survive only for the next
three months or less. Sixty seven percent of MSMEs found it difficult to secure emergency funding,
and 75% were unable to decide what policies to make during the crisis.
One of the causes of decline in sales in both MSMEs is the government’s “work from home” policy
in effort to implement social distancing. During social distancing, people are advised to distance
themselves from others outside and, thereby, limit their opportunities to buy products. In fact, the
demand for their products (TIKs, breads and cakes) remains high. This indicates unmistakably that
business operation might or must change due to the changes in consumer behavior or current
situation. Consumer behavior is starting to change in a situation that restricts the movement of
people. Therefore, the stocking of food pantry and TIKs should be adjusted accordingly. While
people can freely go out for shopping before covid-19 outbreak, now they need to order some items
online due to the pandemic. Even if consumers decided to buy the items offline, they tend to choose
the nearest stores.
Among the strategies to deal with this issue include revisiting the business, identifying the
customer base and their needs, simplifying the business process, classifying the best-selling
products, making a product catalogue in digital formats, increasing the inventory stock, and
offering workplace incentives for best-performing employees in current situation. We conducted a
preliminary SWOT analysis based on the problems and opportunities identified. The results of
SWOT analysis are presented in Figure 1.
Figure 1. Results of SWOT Analysis after Preliminary Observation
Source: Data processed 2020
Weakness :
Conventional
business operation
that relies on
customer visit and
in-store purchase
Strength :
As an MSME that is
developing rapidly
and having good
resources and
enthusiasm
Opportunity :
Industry 4.0
implementation in all
aspects Product
demand remains high
Threat :
Government-mandated
social distancing orders
Consumber behavioral
shift to online shopping
Results of SWOT
Analysis
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Archives of Business Research (ABR) Vol.8, Issue 8, August-2020
Government advice to work from home applies to everyone. People are flocking to familiar social
media platforms as the quickest and cheapest options for socializing. This leads all those
concerned, unwittingly, to an accelerated BPR that will soon be adopted permanently in the
present and future. Why is that so? That is because the system performs efficiently. What factors
that affect the use of online applications for the acceleration of Business Process Reengineering
(BPR) system in Micro, Small, and Medium Enterprises during Covid-19 pandemic will be the next
question.
THEORETICAL FRAMEWORK
Economic Condition
Structural changes in the global economy are weakening the world economy and, at the same time,
pose a challenge to the domestic economy in 2019. Economic growth in 2019 was not as strong as
that of earlier years, despite its resiliency due to well-sustained domestic demand and maintained
stability. This development is the result of a greater synergy between government, Bank Indonesia,
and related authorities (BI a, 2019).
Quite apart from Covid-19, Indonesian economy will still confronted with a lot of challenges. On
the external side, the major challenges arise from the risks weakening global economy and decline
in commodity prices. On the domestic side, structural challenges arise from: (i) food, energy and
water security; (ii) industry and tourism competitiveness; (iii) long term financing; and (iv)
inclusive economy. In addition, reinforcement of basic capital for development, macro economy
and financial system stability is a necessity. For this very reason, a combination of policies is
intended to ensure stability, to gain momentum of economic growth, and to accelerate structural
reform. In the future, Indonesia economic structure is expected to be more diversified and
favorable to a sustainable economic development (BI b, 2019).
Bank Indonesia, at the end of 2019, had projected that Indonesia’s economic will grow at 5.1 to 5.5
percent in 2020. Such projection has been influenced by optimism over global economic recovery
and improvement in commodity price. However, after Covid-19 pandemic in mainland China, in
February 2020, Bank Indonesia projected domestic economy to decline slightly to 5.5-5.5% in the
same year. Such prospect has been directly or indirectly affected by China’s economic slowdown
(BI a 2019).
Industry 4.0 in all sectors
Industrial Revolution 4.0 (IR 4.0) has penetrated into many sectors, especially private sectors that
have the flexibility in terms of innovation and budget. The emergence of global startup
phenomenon from digital platforms forces the government to keep pace with latest developments.
As Go-Jek hits the road each workday, application-based business transactions can be done more
easily in the palm of your hand. The business is becoming more competitive as its competitors joint
the crowd. This has been followed by digital wallet platforms like Go-Pay, OVO, and many others
that push IR 4.0 development in Indonesia.
People from all walks of life are becoming more familiar with technology-based applications,
including social media platforms that flooded us with any kind of information. Do we realize that
the key to IR 4.0 development lies in the BIG DATA? Probably we don’t, because we still going
bananas over the perceived ease-of-use of technology in our life. What about the government