Marketing Magic or Just Hype? The AI Factor in Indonesia’s MSME Growth

Putra, Johni Eka and Wibowo, Lili Adi and Sufa, Siska Armawati and Aristi, Nindi and Radjamin, Irzameingindra Putri (2025) Marketing Magic or Just Hype? The AI Factor in Indonesia’s MSME Growth. Pena Justisia: Media Komunikasi dan Kajian Hukum, 24 (02). pp. 6558-6577. ISSN 14126605; E-ISSN 23016426

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Abstract

This research investigates the strategic influence of artificial intelligence (AI) adoption on the competitiveness of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia, emphasizing the mediating role of innovation diffusion. By synthesizing the Technology Acceptance Model (TAM), the Diffusion of Innovations (DOI) theory, and the Resource-Based View (RBV), the study analyzes how perceived usefulness and ease of use contribute to the attainment of sustained competitive advantage. Employing a quantitative methodology, the analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) on data collected from 160 MSMEs. The measurement model demonstrated strong reliability and validity. The findings reveal that technology adoption exerts a significant effect on both innovation and competitiveness, with innovation serving as a partial mediator. The R² and Q² values reflect moderate explanatory and predictive capacity. This study provides both theoretical contributions and practical recommendations for fostering digital transformation in the MSME sector through AI-driven innovation.

Item Type:	Article
Uncontrolled Keywords:	Competitive Advantage, Innovation Diffusion, MSMEs, Technology Adoption
Subjects:	H Social Sciences > HC Economic History and Conditions T Technology > T Technology (General)
Divisions:	Faculty of Business and Economic > Department of Economic
Depositing User:	Ester Sri W. 196039
Date Deposited:	18 Jul 2025 02:58
Last Modified:	18 Jul 2025 03:04
URI:	http://repository.ubaya.ac.id/id/eprint/49022

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